Title
CasiNo.as Covered Persons under AMLA
Law
Republic Act No. 10927
Decision Date
Jul 14, 2017
Republic Act No. 10927 designates casinos as covered persons under the Anti-Money Laundering Act, subjecting them to regulations on cash transactions and freezing of assets related to unlawful activities.

Definition of Covered Transactions for Casinos

  • A "covered transaction" for most covered persons involves cash or equivalent monetary instruments exceeding PHP 500,000 within one banking day.
  • For casinos, a "covered transaction" specifically means a single casino cash transaction exceeding PHP 5,000,000 or its equivalent in other currencies.

Key Definitions Related to Casinos

  • Casino: A business authorized by the government to engage in gaming operations.
  • Internet-based Casino: Casinos where participation is via electronic methods such as the internet, telephone, TV, radio, or other communication technologies.
  • Ship-based Casino: Casinos operated on board vessels, ships, boats, or other watercraft.
  • Casino Cash Transaction: Transactions where cash is either received by the casino from or paid out to a customer or their representative.
  • Gaming Operations: Activities involving games of chance and their variations, approved by the government authority.

Freezing of Monetary Instruments or Property

  • The Anti-Money Laundering Council (AMLC) may petition ex parte for a freeze order on monetary instruments or property when probable cause exists that they are related to unlawful activities.
  • The Court of Appeals issues the freeze order, which takes immediate effect for 20 days.
  • Within these 20 days, the court shall conduct a summary hearing to decide whether to lift, modify, or extend the freeze order.
  • The freeze order may be extended but shall not exceed a total of six months.
  • The freeze order is limited only to the amount identified as proceeds of predicate offenses.
  • The Courts must act on the freeze petition within 24 hours from filing, excluding nonworking days.
  • If no case is filed within six months, the freeze order is automatically lifted.

Implementation of Rules and Regulations

  • The AMLC, Philippine Amusement and Gaming Corporation (PAGCOR), and other regulatory agencies must promulgate implementing rules within 90 days of the Act's effectivity.
  • These rules will specifically address compliance requirements for casinos as covered institutions.
  • Default implementing rules for other covered institutions do not apply to casinos unless explicitly stated.

Separability Clause

  • If any provision of the Act is declared unconstitutional, this does not affect the validity or effectiveness of the remaining provisions.

Repealing Clause

  • All existing laws, decrees, orders, or issuances inconsistent with this Act are repealed, amended, or modified to conform with the new provisions.

Effectivity

  • The Act takes effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.

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