Law Summary
Definitions and Scope of Covered Persons and Transactions
- "Covered persons" include various natural and juridical entities such as real estate developers and brokers, offshore gaming operators, and their service providers.
- "Covered transactions" involve cash or monetary instruments exceeding P500,000 within one banking day.
- Specific thresholds apply: P5 million for casino cash transactions and P7.5 million for real estate-related cash transactions.
- "Suspicious transactions" include those lacking legal basis, economic justification, or proper client identification, transactions inconsistent with client profile, and those related to unlawful activities.
- "Unlawful activity" extended to include fraudulent practices under the Securities Regulation Code, violations related to proliferation financing, significant tax-related offenses, and international felonies.
- Definitions provided for offshore gaming operators, service providers, real estate developers, brokers, targeted financial sanctions, and proliferation financing.
Composition and Powers of the Anti-Money Laundering Council (AMLC)
- AMLC is composed of the BSP Governor (Chairman), the Insurance Commission Commissioner, and the SEC Chairman.
- Must act unanimously in all functions.
- Tasks include investigating suspicious and covered transactions, applying for search warrants and subpoenas, implementing targeted financial sanctions related to weapons proliferation, and managing frozen or forfeited assets.
Information Security and Confidentiality
- AMLC and its Secretariat must securely protect all information.
- Non-disclosure applies even after separation from office.
- AMLC will establish rules on information handling, dissemination, storage, and access.
Freezing Monetary Instruments and Property
- Court of Appeals can issue an ex parte freeze order for 20 days upon AMLC petition and finding of probable cause.
- A summary hearing within 20 days determines extension, modification, or lifting of the freeze order.
- Maximum freeze period is 6 months unless remanded to Regional Trial Court.
- Freeze applies only to amounts considered proceeds of predicate offenses.
- Persons affected may file motion to lift freeze; courts must resolve before expiration.
- TROs or injunctions against freeze orders can only be issued by the Supreme Court.
- AMLC authorized to issue ex parte freeze orders without delay for targeted sanctions related to weapons proliferation; affected parties may petition for judicial review.
- AMLC may initiate civil forfeiture to protect assets from dissipation.
Asset Preservation Orders
- Courts cannot issue TRO or injunction against asset preservation orders except Court of Appeals or Supreme Court.
Penal Provisions for Breach of Information Security and Confidentiality
- Imprisonment from 3 to 8 years and fines from P500,000 to P1,000,000 for violations.
- Public officials additionally face disqualification from public office.
- Media personnel responsible for unauthorized publication may also be liable.
Coordination with Bureau of Internal Revenue (BIR)
- AMLC cannot participate in BIR operations.
- AMLC may coordinate with BIR on investigations involving violations related to predicate offenses under tax laws.
Implementing Rules and Regulations
- AMLC shall issue necessary implementing rules within 90 days from the law’s effectivity.
Separability, Repealing, and Effectivity Clauses
- Invalid provisions do not affect the remainder of the law.
- Conflicting laws or regulations are repealed or modified accordingly.
- The law takes effect immediately after publication in the Official Gazette or a newspaper of general circulation.