QuestionsQuestions (BFAD MEMORANDUM CIRCULAR NO. 4)
They are known and cited as the “Revised Rules and Regulations Implementing Republic Act No. 9160” and are promulgated to prescribe the procedures and guidelines for implementing the AMLA as amended by R.A. No. 9194.
To protect the integrity and confidentiality of bank accounts and ensure the Philippines is not used as a money laundering site for proceeds of unlawful activity; and to extend cooperation in transnational investigations and prosecutions.
A covered institution includes BSP-supervised/regulated financial institutions (e.g., banks, offshore banking units, quasi-banks, trust entities, NSLAs, pawnshops), IC-supervised/regulated insurance-related entities, and SEC-supervised/regulated securities, investment, and similar financial services. “Supervising Authority” refers to BSP/SEC/IC; where their supervision is only for registration, they still cooperate by requiring/asking assistance from agencies with licensing/regulatory power.
Subsidiary: more than 50% of outstanding voting stock is owned by a BSP-supervised/regulated institution. Affiliate: at least 20% but not exceeding 50% of voting stock is owned by a BSP-supervised/regulated institution.
A transaction in cash or other equivalent monetary instrument involving a total amount exceeding PHP 500,000 within one (1) banking day.
Suspicious transactions are those involving any of the listed circumstances, such as no underlying legal/trade obligation or economic justification; customer not properly identified; amount not commensurate with client’s business/financial capacity; structuring perceived to avoid reporting; deviations from client profile/past transactions; relation to unlawful activity/money laundering that is about to be, being, or has been committed; or being similar/analogous/identical to any such circumstances.
Coins/currency; drafts, checks and notes; securities/negotiable instruments, bonds, commercial papers, deposit certificates, trust certificates, custodial receipts and deposit substitutes; insurance contracts and suretyship contracts; and similar instruments where title passes by endorsement/assignment/delivery.
It is an amount derived or realized from an unlawful activity, including material results/profits/effects and any amount realized; the monetary/financial/economic means and related documents/devices/papers/things used in or having relation to the unlawful activity; and expenditures/payments/outlays/costs for financing and maintaining unlawful activity.
It covers acts/omissions/series/combinations involving or related to enumerated serious crimes (predicate crimes). Examples include violations under the Comprehensive Dangerous Drugs Act (e.g., importation/possession/sale of prohibited drugs) and plunder under R.A. No. 7080, as amended.
Money laundering is committed when any person (1) knowing a monetary instrument/property represents/involves/relates to proceeds of unlawful activity, transacts or attempts to transact; (2) knowing it involves proceeds of unlawful activity, performs/fails to perform an act that facilitates money laundering; or (3) knowing it is required to be disclosed and filed but fails to do so.
Yes. Under Rule 6.1(a), a person may be charged with and convicted of both money laundering and the unlawful activity. Under Rule 6.1(b), proceedings for the unlawful activity are given precedence, without prejudice to AMLC’s ex parte application for freeze orders.
Knowledge may be established by direct evidence or inferred from attendant circumstances.
No. All elements of money laundering must be proved beyond reasonable doubt, including knowledge, but elements of the unlawful activity (including identity and details of actual commission) need not be proved beyond reasonable doubt.
Regional Trial Courts have jurisdiction over money laundering cases generally. Those committed by public officers and private persons in conspiracy with such public officers fall under Sandiganbayan jurisdiction.
The AMLC investigates (1) suspicious transactions; (2) covered transactions deemed suspicious after AMLC investigation; (3) money laundering activities; and (4) other violations of the AMLA.
If the AMLC finds probable cause, it causes a complaint to be filed before the Department of Justice or the Ombudsman, which then conducts preliminary investigation. If probable cause is found, the necessary information is filed before the RTC or Sandiganbayan.
They must establish and record the true identity of clients based on official documents; verify legal existence and organizational structure for corporate clients; identify and verify trustees/nominees/agents acting on behalf of others; and ensure minimum information/documents requirements are met.
Anonymous accounts, accounts under fictitious names, and similar accounts are absolutely prohibited. No new accounts may be opened without face-to-face contact and full compliance with individual customer identification requirements.
They must report within five (5) working days from occurrence (unless the supervising authority allows up to ten (10) working days). Reporting of covered transactions is deferred for 60 days after effectivity of R.A. No. 9194 (or as determined by AMLC) to allow configuration of computer systems; suspicious transactions follow the prescribed period.