Introduction of Suspicious Transactions
- Suspicious transactions involve covered institutions regardless of amount.
- Indicators include lack of legal/economic justification, unidentified clients, disproportionate amounts, structuring to avoid reporting, deviation from client's profile, relation to unlawful activity, or similar suspicious circumstances.
Expanded Definition of Unlawful Activity
- Includes crimes such as kidnapping for ransom, drug offenses, graft, plunder, robbery, illegal gambling, piracy, qualified theft, swindling, smuggling, electronic commerce violations, hijacking, arson, murder, fraudulent securities practices, and similar offenses punishable under foreign laws.
Definition and Elements of Money Laundering Offense
- Crime of transacting proceeds of unlawful activity to appear legitimate.
- Committed by knowingly transacting, facilitating, or failing to disclose relevant monetary instruments or property.
Creation and Functions of the Anti-Money Laundering Council (AMLC)
- Composed of BSP Governor (Chairman), Insurance Commissioner, and SEC Chairman (Members).
- Powers include receiving reports, identifying owners, filing civil forfeiture, prosecuting offenders, investigating transactions, freezing assets, cooperating with foreign states, education, government collaboration, and imposing administrative sanctions.
Reporting Requirements and Confidentiality
- Covered institutions must report covered and suspicious transactions within 15 working days unless extended.
- Suspicious transaction reports take precedence if overlapping.
- Prohibition against disclosure of report existence or contents; violation results in criminal liability.
- Immunity granted for reports made in good faith.
Freezing of Monetary Instruments or Property
- Court of Appeals may issue ex parte freeze orders valid for 20 days upon probable cause linking property to unlawful activity.
Authority to Inquire into Bank Deposits
- AMLC may examine deposits/investments with court order upon probable cause except for certain offenses (kidnapping, drugs, terrorism), where court order is not required.
- BSP may examine deposits during regular or special examinations.
Penalties for Malicious Reporting
- Imprisonment of 6 months to 4 years plus fines PHP 100,000 to PHP 500,000.
- No probation benefits.
- Corporate offenders held liable through responsible officers; possible license suspension or revocation.
- Alien offenders face deportation after sentence.
- Public officials additionally disqualified from holding office.
- Penalties for refusal or failure to testify when summoned.
Penalties for Breach of Confidentiality
- Imprisonment of 3 to 8 years and fines PHP 500,000 to PHP 1,000,000.
- Media personnel responsible for publication subject to liability.
Repeal of Section 15
- Section 15 of the original Act is deleted.
Effectivity and Transitory Provisions
- Act takes effect 15 days after publication.
- Existing freeze orders remain valid for 30 days post-effectivity unless extended by the Court of Appeals.