Question & AnswerQ&A (Republic Act No. 11521)
The policy of the State is to protect and preserve the integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a money laundering site for proceeds of any unlawful activity, and to extend cooperation in transnational investigations and prosecutions involving money laundering.
Covered persons include certain specified natural or juridical persons like real estate developers and brokers, offshore gaming operations and their service providers supervised or regulated by PAGCOR or other government agencies, among others.
A covered transaction is a cash or monetary instrument transaction involving over ₱500,000 within one banking day for most covered persons; for casinos, single cash transactions exceeding ₱5,000,000; and for real estate developers and brokers, transactions exceeding ₱7,500,000.
Suspicious transactions include those with no legal or economic justification, improperly identified clients, amounts disproportionate to client's capacity, structured to avoid reporting, deviating from client profile, related to unlawful activities, or similar transactions.
Unlawful activities include a broad range of offenses including, among others, fraudulent practices under the Securities Regulation Code, violations related to proliferation of weapons of mass destruction financing, tax crimes with certain thresholds, and felonies punishable under penal laws of other countries.
The AMLC is composed of the Governor of the Bangko Sentral ng Pilipinas as Chairman, the Commissioner of the Insurance Commission, and the Chairman of the Securities and Exchange Commission as members.
The AMLC can investigate suspicious and covered transactions, apply for search and seizure orders, issue subpoenas, implement targeted financial sanctions including asset freezing, and preserve, manage, or dispose of assets under freeze or forfeiture orders.
The AMLC and its Secretariat must securely protect all information processed and shall not reveal any information they acquire due to their office, even after separation. They are tasked with formulating rules for information exchange, dissemination, security, and confidentiality.
Upon a verified ex parte petition of probable cause, the Court of Appeals may issue a freeze order effective for 20 days, extendable up to six months after a summary hearing. Freeze orders are limited only to the amount related to the unlawful activity, with motions to lift the freeze resolvable before expiration. No TRO or injunction against freeze orders except by the Supreme Court.
Penalties include imprisonment from three to eight years and fines between ₱500,000 to ₱1,000,000. Public officials may also face temporary or permanent disqualification from public office. Media personnel responsible for disclosed confidential breaches are also liable.
No, the AMLC is not allowed to participate in BIR operations but may coordinate with BIR investigations relating to violations under Section 254 of the National Internal Revenue Code as predicate to money laundering.
They refer to asset freezing and prohibitions to prevent funds or assets from being made available, directly or indirectly, for individuals or entities designated under relevant United Nations Security Council resolutions related to the financing and proliferation of weapons of mass destruction and terrorism.