QuestionsQuestions (Republic Act No. 9160)
Its short title is the “Anti-Money Laundering Act of 2001.” The State’s policy is to protect and preserve the integrity and confidentiality of bank accounts and ensure the Philippines is not used as a money laundering site, while extending cooperation in transnational investigations and prosecutions.
Covered institutions include (1) banks, non-banks, quasi-banks, trust entities, and other BSP-supervised/regulated entities; (2) insurance companies and other entities supervised/regulated by the Insurance Commission; and (3) securities/investment and related financial entities supervised/regulated by the SEC (including mutual funds, investment houses, money changers, remittance/transfer companies, etc.).
A covered transaction is a single, series, or combination involving a total amount in excess of Php4,000,000.00 (or equivalent foreign currency based on prevailing exchange rate) within five (5) consecutive banking days, except transactions between a properly identified client with an amount commensurate with business/financial capacity, and those with an underlying legal/trade obligation, purpose, origin, or economic justification. It also includes unusually large/complex transactions exceeding Php4,000,000.00, especially cash deposits/investments with no credible purpose or origin.
Monetary instrument includes coins/currency, drafts/checks/notes, securities or negotiable instruments (e.g., bonds, commercial papers, deposit certificates, trust certificates, custodial receipts, money market instruments), and similar instruments where title passes by endorsement, assignment, or delivery.
It includes specified serious crimes and offenses such as kidnapping for ransom, violations under the Dangerous Drugs Act, certain Anti-Graft and Corrupt Practices Act sections, plunder, specified robbery/extortion provisions, illegal gambling (jueteng/masiao), piracy, qualified theft, swindling, smuggling, certain E-commerce violations, hijacking, destructive arson and murder (including terrorist acts against non-combatants), securities-related fraudulent practices under the Securities Regulation Code, and similar felonies/offenses punishable under laws of other countries.
(1) Transacting or attempting to transact monetary instruments/property knowing they represent/involve/relate to proceeds of an unlawful activity; (2) performing or omitting an act as a result of which he facilitates the laundering offense, knowing the property involves proceeds of an unlawful activity; and (3) failing to disclose and file required disclosures with AMLC when such disclosure is required under the Act.
The Act allows a person to be charged and convicted of both money laundering and the unlawful activity. It also states that proceedings relating to the unlawful activity shall have precedence, without prejudice to freezing and other remedies under the Act.
Regional Trial Courts have jurisdiction over all money laundering cases. Those committed by public officers and private persons in conspiracy with public officers fall under the jurisdiction of the Sandiganbayan.
AMLC is composed of the BSP Governor (Chairman), Insurance Commissioner (member), and SEC Chairman (member). It shall act unanimously in discharging its functions.
Examples include: requiring and receiving covered transaction reports; issuing identity-determination orders or requests for foreign assistance; instituting civil forfeiture and remedial proceedings through the OSG; causing complaints for prosecution with DOJ or the Ombudsman; initiating investigations; freezing monetary instruments/properties; and implementing countermeasures to prevent money laundering.
Covered institutions must establish and record true identity of clients using official documents, including verifying corporate clients’ legal existence, organizational structure, and authority/IDs of persons acting on behalf. Anonymous accounts, accounts under fictitious names, and similar accounts are absolutely prohibited; peso and foreign currency non-checking numbered accounts are allowed. BSP may conduct annual testing limited to determining existence and true identity.
All transaction records must be maintained and safely stored for five (5) years from transaction dates; closed accounts’ customer identification/account files and business correspondence must be preserved for at least five (5) years from closure. Covered transactions must be reported to AMLC within five (5) working days from occurrence (unless a longer period is set by the Supervising Authority, not exceeding ten (10) working days).
Covered institutions and their personnel are prohibited from communicating to any person, entity, or the media the fact a covered transaction report was made, its contents, or other related information. Violating persons or media are criminally liable.
Upon probable cause determination that an account is related to an unlawful activity, AMLC may issue a freeze order effective immediately for up to fifteen (15) days, with notice simultaneous to issuance. The depositor has 72 hours to explain; AMLC has 72 hours to act on the explanation. If AMLC fails to act within 72 hours, the freeze order automatically dissolves. It may be extended by court order; no TRO or injunction may be issued against AMLC freeze orders except by the CA or SC.
Notwithstanding secrecy laws, AMLC may inquire into/examine particular deposits or investments with banks/non-banks upon order of a competent court in cases of violation where there is probable cause deposits/investments are related to a money laundering offense. It does not apply to deposits/investments made prior to the effectivity of the Act.
Civil forfeiture: when a covered transaction report is made and the court orders seizure of monetary instruments/property related to the report, the Revised Rules of Court on civil forfeiture apply. Payment in lieu of forfeiture: if assets cannot be enforced due to absence, alteration/destruction/diminution, concealment/removal/conversion/transfers to avoid forfeiture, being outside the jurisdiction, or commingling making identification/segregation difficult, the court may order the convicted offender to pay an amount equal to the value of the property.
It allows AMLC to execute foreign requests (track assets, provide information, apply for forfeiture) and to request assistance from foreign states (tracking, information, applying for warrants/searches where allowed, applying for forfeiture). AMLC may refuse if the action contravenes the Constitution or likely prejudices national interest unless there is a treaty on such assistance.
For Section 4(a): imprisonment 7–14 years and fine at least Php3,000,000 but not more than twice the value of the monetary instrument/property. For Section 4(b): imprisonment 4–7 years and fine Php1,500,000–Php3,000,000. For Section 4(c): imprisonment 6 months–4 years or fine Php100,000–Php500,000, or both.
The AMLA cannot be used for political persecution/harassment or to hamper trade competition. No case for money laundering may be filed, and no assets may be frozen/attached/forfeited to the prejudice of a candidate for electoral office during an election period.