Question & AnswerQ&A (AMLC)
These rules are known and cited as the Revised Rules and Regulations Implementing Republic Act No. 9160 (the Anti-Money Laundering Act of 2001), as amended by Republic Act No. 9194.
The State declares it as policy 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. The State also cooperates in transnational investigations and prosecutions of money laundering.
Covered Institutions include banks, offshore banking units, quasi-banks, trust entities, pawnshops, insurance companies and agents, securities dealers, brokers, money changers, and other entities regulated by the BSP, Insurance Commission, or SEC, including their subsidiaries and affiliates.
A Covered Transaction is a transaction in cash or equivalent monetary instrument involving a total amount in excess of five hundred thousand pesos (Php500,000.00) within one banking day.
Suspicious transactions are any transactions regardless of amount where there is no legal or economic justification, client is unidentified, amount is disproportional to client’s capacity, structured to avoid reporting, deviates from client profile or related to unlawful or money laundering activities.
'Proceeds' refers to amounts derived from unlawful activity, including material results, profits, effects, monetary or economic means, devices, and any payments or costs related to financing or maintaining unlawful activities.
Imprisonment ranging from seven (7) to fourteen (14) years and a fine of not less than Three Million Philippine Pesos (Php3,000,000) but not more than twice the value of the monetary instrument or property involved.
Regional Trial Courts have jurisdiction. Cases involving public officers or private persons in conspiracy with public officers fall under the jurisdiction of the Sandiganbayan.
The AMLC requires and receives transaction reports, investigates suspicious and covered transactions, files complaints for prosecution, institutes civil forfeiture proceedings, applies for freeze orders, cooperates with foreign states, and educates on money laundering prevention.
Covered institutions must establish and record true identity using official documents, verify identity of individuals and corporate clients, maintain records of beneficial owners, prohibit anonymous or fictitious accounts, and require face-to-face contact on account opening.
All records must be kept and safely stored for five (5) years from the date of the transaction or account closure, and beyond this period if related to ongoing money laundering cases until they are finally resolved.
The AMLC can inquire without court order when related to unlawful activities including kidnapping for ransom, violations of the Comprehensive Dangerous Drugs Act, hijacking, destructive arson, and murder perpetrated by terrorists against non-combatant persons.
A freeze order is an ex-parte court order from the Court of Appeals to freeze monetary instruments or properties related to unlawful activities or money laundering, effective for twenty (20) days and can be extended.
No, the AMLA prohibits freezing of assets to the prejudice of any candidate for an electoral office during an election period.
A penalty of six (6) months to four (4) years imprisonment and a fine of not less than Php100,000 but not more than Php500,000, with the offender disqualified from probation.