QuestionsQuestions (Republic Act No. 11521)
The 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 and implementing targeted financial sanctions related to proliferation of weapons of mass destruction, terrorism, and financing of terrorism pursuant to relevant UN Security Council resolutions.
Covered persons include real estate developers and brokers, and also offshore gaming operations (and their service providers), which are supervised, accredited, or regulated by PAGCOR or any government agency.
General covered transactions involve cash or other monetary instruments exceeding ₱500,000.00 within one banking day. For casino cash transactions involving persons under Section 3(a)(8), a single casino cash transaction exceeds ₱5,000,000.00 (or equivalent in any other currency).
A single cash transaction involving an amount in excess of ₱7,500,000.00 (or its equivalent in any other currency).
Examples include: (1) no underlying legal/trade obligation, purpose, or economic justification; (2) client not properly identified; (3) amount not commensurate with client’s business/financial capacity; (4) transaction structured to avoid reporting requirements; (5) transaction deviates from client’s profile/past transactions; (6) related to unlawful activity under the AML Act that is being/has been committed; (7) similar/analogous to the foregoing.
“Unlawful activity” refers to acts/omissions related to specified predicate offenses. For the tax crime provision, it covers violations of Section 254 (Chapter II, Title X) of the NIRC where deficiency basic tax due in the final assessment exceeds ₱25,000,000 per taxable year, with a finding of probable cause by the competent authority, and where there must be a finding of fraud/willful misrepresenting/malicious intent on the part of the taxpayer.
The AMLC shall not institute forfeiture proceedings to recover monetary instruments/property/proceeds representing, involving, or relating to a tax crime if the same has already been recovered or collected by the BIR in a separate proceeding.
Targeted financial sanctions are measures like asset freezing and prohibitions to prevent funds/assets from being made available to designated persons/entities under UN Security Council resolutions and designation processes. Proliferation financing refers to when a person makes available an asset/provides a financial service/conducts a financial transaction, knowing or being reckless as to whether it is intended to facilitate proliferation of WMD in relation to specified UN Security Council resolutions.
The law provides that AMLC shall act unanimously in discharging its functions. An example is investigating suspicious transactions and implementing targeted financial sanctions, including ex parte freeze without delay against funds/assets of designated individuals/entities under relevant UN resolutions.
It is about Information Security and Confidentiality. The AMLC and its Secretariat must securely protect information received/processed and must not reveal any information known by reason of office, even after separation from the AMLC. It also requires rules governing information exchange/dissemination and secure handling, storage, access, and protection.
The Court of Appeals may issue a freeze order effective immediately for 20 days. During those 20 days, it conducts a summary hearing to decide whether to modify/lift or extend. The total freeze order effectivity under this provision cannot exceed six months.
The freeze order shall be deemed ipso facto lifted.
No court shall issue a TRO or writ of injunction against any freeze order, except the Supreme Court (and for certain context, the Court of Appeals or Supreme Court is recognized for similar provisional asset preservation orders). Likewise, Section 12(d) is amended to bar TROs or injunctions against provisional asset preservation orders/asset preservation except the Court of Appeals or Supreme Court.
For targeted financial sanctions, AMLC may issue an ex parte freeze order “without delay.” The freeze is effective until the basis is lifted, and the aggrieved party may within 20 days petition the Court of Appeals to determine the basis of the freeze under effective judicial protection.
The person may withdraw sums that the AMLC determines are reasonably needed for monthly family needs and sustenance, including counsel’s services and family medical needs.
It clarifies that AMLC may not participate in BIR operations. However, AMLC may coordinate with the BIR in investigations relating to violations of Section 254 of the NIRC, as amended, when used as a predicate offense to money laundering.