Question & AnswerQ&A (BSP MEMORANDUM, MARCH 21, 2002)
RA 9160 is a Philippine law enacted to prevent and combat money laundering activities, penalizing the committing of offenses related to money laundering and providing mechanisms for its detection and prosecution.
The AMLC is the primary government agency responsible for implementing RA 9160. It receives and processes covered and suspicious transaction reports and coordinates with domestic and foreign entities for anti-money laundering efforts.
Supervised financial institutions and covered institutions are mandated to submit covered and suspicious transaction reports involving individuals, groups, or entities suspected of involvement in money laundering or terrorism financing.
Covered transactions refer to any cash, check, or other transactions involving certain amounts or suspicious characteristics that must be reported to the AMLC as prescribed under the law and its implementing rules and regulations.
Under Rule 3.f of the AMLA Implementing Rules and Regulations, 'proceeds' include all moneys, expenditures, payments, disbursements, costs, and other similar items derived from or used in the financing, operations, and maintenance of any unlawful activity.
Predicate crimes include illegal activities such as hijacking, destructive arson, murder, drug trafficking, terrorist acts, and other serious offenses enumerated in Section 3 of the AMLA.
These lists contain names of individuals and organizations identified as terrorists by the United States government. Financial institutions are required to monitor, report, and possibly freeze transactions involving these entities to comply with AMLA provisions.
Under Sections 2, 7, and 13 of the AMLA and Rule 7.2 (8) of the IRRs, the AMLC is authorized to assist foreign states by receiving and acting on requests related to anti-money laundering operations including freezing or blocking funds and properties.
Supervising authorities must disseminate terrorist lists to covered institutions, require submission of reports related to transactions involving listed individuals or groups, and enforce compliance with AMLA rules and guidelines.
Transacting proceeds from terrorist activities is penalized as money laundering offense under Section 4 of the AMLA, which carries legal sanctions including imprisonment and fines upon conviction.
They are required to file reports of suspicious and covered transactions involving any individual or entity listed in the referenced Terrorist Lists, in accordance with the Implementing Rules and Regulations (IRRs) of the AMLA and related guidelines.