QuestionsQuestions (ANTI-MONEY LAUNDERING COUNCIL)
The document is titled “Rules on the Imposition of Administrative Sanctions under Republic Act No. 9160, as Amended,” adopted on 24 May 2017 by the AMLC. It is issued pursuant to Sections 7(7), 7(11), and 14(f) of R.A. 9160 (Anti-Money Laundering Act of 2001), as amended.
They apply to violations committed starting 07 March 2013, the effectivity date of R.A. 10365.
The proceedings are non-litigious and summary in nature, while still complying with due process requirements and the “substantial evidence” standard.
Administrative cases may be initiated upon referral of a Report of Compliance (ROC) or Report of Examination (ROE) to the AMLC Secretariat’s Litigation and Evaluation Unit.
It conducts an ex parte fact-finding investigation based on documents to determine whether a prima facie case exists. If none exists, the ROC/ROE is set aside and the Compliance Unit and Supervising Authorities are notified.
It must include: (1) Statement of Facts; (2) Statement of Attendant Circumstances; (3) Statement of Findings; (4) an allegation that a prima facie case exists for a specific violation; and (5) relevant documents.
The respondent must file a written Answer under oath within ten (10) working days from receipt of the Notice of Formal Charge, and it must contain all material facts and certified true copies of supporting evidence.
The respondent is considered to have waived the right to file an Answer, and the case is submitted for resolution based on available records.
No motions/requests for: extension of time to file Answer, clarification, bills of particulars, dismissal, quashal, or reconsideration on the Formal Charge shall be entertained.
The respondent may file a motion for reconsideration within ten (10) working days from receipt of the AMLC Resolution. No extension is allowed, and a filed motion stays execution of the Resolution.
Grounds are: (1) newly-discovered evidence that could not have been discovered and would materially affect the Resolution; (2) substantial mistake in appreciation of evidence; or (3) erroneous computation of fines.
It becomes final and executory immediately if no motion for reconsideration is filed within the prescribed period.
Fines are not more than Php500,000.00 per violation, and in no case shall the aggregate fine exceed 5% of the asset size of the respondent.
An aggravating or mitigating circumstance increases or decreases the imposable fine by 25%. The 25% adjustment is applied on the fine for the specific violation committed (not on the total fine after considering all violations).
Aggravating circumstances include: prior similar violations within the 2-year period immediately preceding the current case; concealment or deliberate effort to hide the violation (with concealment presumed if the covered person makes the violation difficult to uncover or refuses to provide information/documents); and material misrepresentation.
Mitigating circumstances include: voluntary disclosure before discovery by the Compliance Unit or Supervising Authorities; and corrective measures taken to correct findings prior to referral of the ROC/ROE to the Litigation and Evaluation Unit.
One grave violation is non-compliance with the requirement to immediately freeze upon receipt of a notice of a freeze order. The fine is on a per Resolution (Freeze Order) basis, plus restoration.
The AMLC may dispense with administrative sanctions in certain situations: (i) light violations, if corrective action was immediately taken after attention was called; (ii) less serious violations, if first-time and corrective action was immediately taken; and (iii) serious violations, if first-time, corrective action was immediately taken, and there is no aggravating circumstance. In such cases, the AMLC may impose a reprimand and/or a warning.