CasiNo.as Covered Persons under AMLA

Section 2 amends Section 3(b) of Republic Act No. 9160 to define covered transactions by cash thresholds.
For covered persons generally, a covered transaction is a transaction in cash or other equivalent monetary instrument involving a total amount in excess of Five hundred thousand pesos (P500,000.00) within one (1) banking day.
For casinos under Section 3(a)(8), a covered transaction exists when a single casino cash transaction involves an amount in excess of Five million pesos (P5,000,000.00) or its equivalent in any other currency.

Section 3 amends Section 3 of Republic Act No. 9160 by inserting a new paragraph defining terms for purposes of covered persons under Section 3(a)(8).
“Casino” is defined as a business authorized by the appropriate government agency to engage in gaming operations.
“Internet-based casino” means casinos where persons participate using remote communication facilities such as internet, telephone, television, radio, or any other electronic or other technology facilitating communication.
“Ship-based casino” means casinos where the operation is undertaken on board a vessel, ship, boat, or any other water-based craft intended for gambling, wholly or partly.

Section 3 defines “casino cash transaction” as transactions involving:
- the receipt of cash by a casino paid by or on behalf of a customer, or
- the payout of cash by a casino to a customer or to any person in his/her behalf.
Section 3 defines “gaming operations” as the activities of the casino offering games of chance and any variations thereof approved by the appropriate government authority.

Section 4 amends Section 10 of Republic Act No. 9160 to govern Freezing of Monetary Instrument or Property.
Upon a verified ex parte petition by the AMLC and after a determination that probable cause exists that the monetary instrument or property is related to an unlawful activity under Section 3(i), the Court of Appeals may issue a freeze order effective immediately for twenty (20) days.
Within the twenty (20)-day period, the Court of Appeals conducts a summary hearing with notice to the parties to decide whether to:
- modify or lift the freeze order, or
- extend its effectivity.
The total period of the freeze order may not exceed six (6) months.
If no case has been filed against a person whose account has been frozen within the period set by the Court of Appeals (not exceeding six (6) months), the freeze order is deemed ipso facto lifted.
This rule does not apply to pending cases in the courts, and the court must act on the petition within twenty-four (24) hours from filing, excluding nonworking days if the petition is filed a day before a nonworking day.
Freeze orders and asset preservation orders under the Act are limited only to the amount of cash/monetary instrument/value of property that the court finds has probable cause as proceeds of a predicate offense, and they do not apply to amounts in the same account beyond that proceeds amount or value.

Section 5 amends Section 18 of Republic Act No. 9160 by adding a requirement for casino-specific implementation.
Within ninety (90) days from the effectivity of this Act, the AMLC, PAGCOR, and other government regulatory agencies jointly promulgate rules and regulations to implement the Act as applicable to casinos as covered institutions.
The implementing rules applicable to other covered institutions do not apply to casinos unless expressly provided in the rules implementing the Act for casinos.

Section 6 provides a separability clause: if any provision of the Act is declared unconstitutional, the validity and effectivity of other provisions remain unaffected.
Section 7 contains a repealing clause: all laws, decrees, orders, and issuances (or parts) inconsistent with the Act are repealed, amended, or modified accordingly.

Section 8 provides that the Act takes effect fifteen (15) days following its publication in the Official Gazette or in any newspaper of general circulation.
The Act is approved on Jul 14 2017.
The Act is enacted as Republic Act No. 10927, titled “An Act Designating Casinos as Covered Persons under Republic Act No. 9160, Otherwise Known as the ‘Anti-Money Laundering Act of 2001’, as Amended.”
The Senate Bill background indicates Senate Bill No. 1468 (approved by the Senate on May 30, 2017) was adopted as an amendment to House Bill No. 5663 by the House of Representatives on May 30, 2017.