Law Summary
Definition of Unlawful Activity
- Broadly enumerates criminal acts such as kidnapping for ransom, drug offenses, graft and corruption, plunder, robbery, illegal gambling, piracy, theft, fraud, smuggling, electronic commerce violations, terrorism, bribery, malversation, forgery, trafficking in persons, environmental crimes, car theft, firearms offenses, anti-fencing, migrant workers violations, intellectual property violations, voyeurism, child pornography, protection of children, and securities regulation violations.
- Also covers felonies punishable under foreign penal laws of similar nature.
Definitions of Precious Metals and Precious Stones
- Precious metals include gold, silver, platinum, palladium, rhodium, ruthenium, iridium, and osmium along with their alloys and plating chemicals.
- Precious stones include diamond, ruby, emerald, sapphire, opal, amethyst, beryl, topaz, garnet, encompassing those formerly termed semi-precious.
Money Laundering Offense
- Constitutes knowing transactions involving monetary instruments or property derived from unlawful activities:
- Transaction, conversion, transfer, disposal, possession, or use of such property.
- Concealment or disguise of true nature, source, location, or ownership.
- Attempts, conspiracies, aiding or facilitating such acts.
- Covered persons failing to report required covered or suspicious transactions to the AMLC commit money laundering.
Prosecution of Money Laundering
- Persons may be charged with both money laundering and the underlying unlawful activity independently.
- Prosecution of money laundering proceeds regardless of other proceedings.
Creation and Powers of the Anti-Money Laundering Council (AMLC)
- AMLC composed of BSP Governor (Chair), Insurance Commissioner, and SEC Chairman.
- Functions include unanimous decisions on freezing monetary instruments or property upon ex parte application to Court of Appeals.
- AMLC can require real estate transaction reports over PHP 500,000 from Land Registration Authority.
Reporting Requirements for Covered and Suspicious Transactions
- Covered persons must report transactions to AMLC within 5 working days or as prescribed (max 15 days).
- Lawyers and accountants acting as independent legal professionals exempt when subject to confidentiality.
- Strict prohibition on revealing any information about the reporting to any person or the media; violations incur criminal liability.
Freezing of Monetary Instrument or Property
- Court of Appeals may issue freeze orders ex parte upon verified AMLC petition with probable cause.
- Freeze valid up to 6 months; lifted if no charges filed within period.
- Court must act within 24 hours; motions to lift freeze must be resolved before expiration.
- Only Supreme Court may issue injunctions against freeze orders.
Civil Forfeiture and Claims on Forfeited Assets
- AMLC to file verified ex parte petitions for forfeiture when probable cause is found, applying civil forfeiture rules.
- Forfeiture includes substitute assets if originals are unlocatable, altered, destroyed, or commingled.
- Offenders or claimants have 15 days to petition for legitimate ownership and segregation post-forfeiture order finality.
- Courts may order payment in lieu of forfeiture if assets are unreachable or compromised.
Penal Provisions and Sanctions
- Imprisonment ranging from 7 to 14 years and fines from PHP 3 million to twice the value for core money laundering offenses.
- Lesser penalties for aiding or facilitating offenses.
- Imprisonment or fines for covered persons' personnel who knowingly participate.
- AMLC empowered to impose administrative sanctions including monetary penalties up to PHP 500,000 per violation.
- Anti-discrimination clause prohibits denial of services based solely on political exposure, religion, race, ethnicity, or similar attributes.
Non-Intervention Clause and Constitutional Compliance
- AMLC is prohibited from interfering in BIR operations.
- Inquiries into accounts must comply with constitutional protections against unlawful search and seizure and ex post facto laws.
Separability, Repealing, and Effectivity Clauses
- Invalidity of any provision does not affect the rest of the Act.
- Repeals inconsistent laws and issuances.
- Effectivity 15 days after publication in two national newspapers.