LECTURE :

AMLA (RA No. 9160) – AN ACT DEFINING THE CRIME OF MONEY LAUNDERING,
PROVIDING PENALTIES THEREFOR AND FOR OTHER PURPOSES
The Anti – Money Laundering Act of 2001
AS AMENDED BY:
RA NO. 9194 – An Act Amending RA NO. 9160, Otherwise known as the Anti- Money
Laundering Act of 2001.
Approved. March 7, 2003.
AS AMENDED BY:

RA 10167 - AN ACT TO FURTHER STRENGTHEN THE ANTI-MONEY LAUNDERING LAW,

AMENDING FOR THE PURPOSE SECTIONS 10 AND 11 OF REPUBLIC ACT NO.
9160, OTHERWISE KNOWN AS THE ANTI-MONEY LAUNDERING ACT OF 2001, AS AMENDED,
AND FOR OTHER PURPOSES

Approved. June 6, 2012

AS AMENDED BY:

RA NO. 10365 - AN ACT FURTHER STRENGTHENING THE ANTI-MONEY

LAUNDERING LAW, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9160,
OTHERWISE KNOWN AS THE “ANTI-MONEY LAUNDERING ACT OF 2001”, AS
AMENDED.

Approved. Feb 6, 2013.

Purpose of the law:

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State:

(1) to protect and preserve the integrity and confidentiality of bank accounts and

(2) to ensure that the Philippines shall not be used as a money laundering site for
the proceeds of any unlawful activity.

(3) Consistent with its foreign policy, the State shall extend cooperation in
transnational investigations and prosecutions of persons involved in money
laundering activities wherever committed. (RA 9160)
What is money laundering?

(RA 9160 as amended by Section 4, RA 10365)

Money laundering is a crime committed by any person who, knowing that any monetary
instrument or property represents, involves, or relates to the proceeds of any unlawful
activity:

“(a) transacts said monetary instrument or property;

“(b) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary
instrument or property;

“(c) conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument or property;

“(d) attempts or conspires to commit money laundering offenses referred to in paragraphs

(a), (b) or (c);

“(e) aids, abets, assists in or counsels the commission of the money laundering offenses
referred to in paragraphs (a), (b) or (c) above; and

“(f) performs or fails to perform any act as a result of which he facilitates the offense of
money laundering referred to in paragraphs (a), (b) or (c) above.

“Money laundering is also committed by any covered person who, knowing that a covered
or suspicious transaction is required under this Act to be reported to the Anti-Money
Laundering Council (AMLC), fails to do so.”

Who are the covered entities/persons?

(RA 9160 as amended by Section 1, RA NO. 10365)

SECTION 1. Section 3(a) of Republic Act No. 9160, as amended, is hereby amended to
read as follows:

“(a) ‘Covered persons’, natural or juridical, refer to:

“(1) banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops,
money changers, remittance and transfer companies and other similar entities and all
other persons and their subsidiaries and affiliates supervised or regulated by the Bangko
Sentral ng Pilipinas (BSP);
“(2) insurance companies, pre-need companies and all other persons supervised or
regulated by the Insurance Commission (IC);

“(3) (i) securities dealers, brokers, salesmen, investment houses and other similar
persons managing securities or rendering services as investment agent, advisor, or
consultant, (ii) mutual funds, close-end investment companies, common trust funds, and
other similar persons, and (iii) other entities administering or otherwise dealing in
currency, commodities or financial derivatives based thereon, valuable objects, cash
substitutes and other similar monetary instruments or property supervised or regulated
by the Securities and Exchange Commission (SEC);

“(4) jewelry dealers in precious metals, who, as a business, trade in precious metals, for
transactions in excess of One million pesos (P1,000,000.00);

“(5) jewelry dealers in precious stones, who, as a business, trade in precious stones, for
transactions in excess of One million pesos (P1,000,000.00);

“(6) company service providers which, as a business, provide any of the following services
to third parties: (i) acting as a formation agent of juridical persons; (ii) acting as (or
arranging for another person to act as) a director or corporate secretary of a company, a
partner of a partnership, or a similar position in relation to other juridical persons; (iii)
providing a registered office, business address or accommodation, correspondence or
administrative address for a company, a partnership or any other legal person or
arrangement; and (iv) acting as (or arranging for another person to act as) a nominee
shareholder for another person; and

“(7) persons who provide any of the following services:

(i) managing of client money, securities or other assets;

(ii) management of bank, savings or securities accounts;

(iii) organization of contributions for the creation, operation or management of companies;

and

(iv) creation, operation or management of juridical persons or arrangements, and buying

and selling business entities.

“Notwithstanding the foregoing, the term ‘covered persons’ shall exclude lawyers and
accountants acting as independent legal professionals in relation to information
concerning their clients or where disclosure of information would compromise
client confidences or the attorney-client relationship: Provided, That these lawyers
and accountants are authorized to practice in the Philippines and shall continue to be
subject to the provisions of their respective codes of conduct and/or professional
responsibility or any of its amendments.”
What are the covered transactions?

1. 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.( RA 9160 as amended by RA 9194)

2. Jewelry dealers in precious stones, who, as a business, trade in precious stones,

for transactions in excess of Php1,000,000.

3. The Land Registration Authority and all its Registers of Deeds to submit to the
AMLC reports on all real estate transactions involving an amount in excess of
Php500,000 within 15 days from the date of registration of the transaction, in a
form prescribed by the AMLC.

4. A single casino transaction involving an amount in excess of five million pesos

(Php5,000,000) or its equivalent in any currency. (Section 2, RA 10927).

What are the Suspicious transactions?

(RA 9160 as amended by Section 2(b-1) RA 9194)

SECTION 2. Section 3 of the same Act is further amended by inserting between

paragraphs (b) and (c) a new paragraph designated as (b-1) to read as follows:

“(b-1) ‘Suspicious transaction’ are transactions with covered institutions, regardless of

the amounts involved, where any of the following circumstances exist:

“1. there is no underlying legal or trade obligation, purpose or economic justification;

“2. the client is not properly identified;

“3. the amount involved is not commensurate with the business or financial capacity of
the client;

“4. taking into account all known circumstances, it may be perceived that the client’s
transaction is structured in order to avoid being the subject of reporting requirements
under the Act;

“5. any circumstance relating to the transaction which is observed to deviate from the
profile of the client and/or the client’s past transactions with the covered institution;
“6. the transaction is in any way related to an unlawful activity or offense under this Act
that is about to be, is being or has been committed; or

“7. any transaction that is similar or analogous to any of the foregoing.”

What are the unlawful activities under AMLA?

(RA 9160 as amended by Section 2, RA 10365)

SEC. 2. Section 3(i) of the same Act is hereby amended to read as follows:

“(i) ‘Unlawful activity’ refers to any act or omission or series or combination thereof
involving or having direct relation to the following:

“(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the
Revised Penal Code, as amended;

“(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act No. 9165,
otherwise known as the Comprehensive Dangerous Drugs Act of 2002;

“(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. 3019, as amended,

otherwise known as the Anti-Graft and Corrupt Practices Act;

“(4) Plunder under Republic Act No. 7080, as amended;

“(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the
Revised Penal Code, as amended;

“(6) Jueteng and Masiao punished as illegal gambling under Presidential Decree No.
1602;

“(7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential
Decree No. 532;

“(8) Qualified theft under Article 310 of the Revised Penal Code, as amended;

“(9) Swindling under Article 315 and Other Forms of Swindling under Article 316 of the
Revised Penal Code, as amended;

“(10) Smuggling under Republic Act Nos. 455 and 1937;

“(11) Violations of Republic Act No. 8792, otherwise known as the Electronic Commerce
Act of 2000;
“(12) Hijacking and other violations under Republic Act No. 6235; destructive arson and
murder, as defined under the Revised Penal Code, as amended;

“(13) Terrorism and conspiracy to commit terrorism as defined and penalized under
Sections 3 and 4 of Republic Act No. 9372;

“(14) Financing of terrorism under Section 4 and offenses punishable under Sections 5,
6, 7 and 8 of Republic Act No. 10168, otherwise known as the Terrorism Financing
Prevention and Suppression Act of 2012:

“(15) Bribery under Articles 210, 211 and 211-A of the Revised Penal Code, as amended,
and Corruption of Public Officers under Article 212 of the Revised Penal Code, as
amended;

“(16) Frauds and Illegal Exactions and Transactions under Articles 213, 214, 215 and 216
of the Revised Penal Code, as amended;

“(17) Malversation of Public Funds and Property under Articles 217 and 222 of the
Revised Penal Code, as amended;

“(18) Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169 and 176 of the
Revised Penal Code, as amended;

“(19) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known as the Anti-
Trafficking in Persons Act of 2003;

“(20) Violations of Sections 78 to 79 of Chapter IV, of Presidential Decree No. 705,

otherwise known as the Revised Forestry Code of the Philippines, as amended;

“(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act No. 8550, otherwise
known as the Philippine Fisheries Code of 1998;

“(22) Violations of Sections 101 to 107, and 110 of Republic Act No. 7942, otherwise
known as the Philippine Mining Act of 1995;

“(23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic Act No. 9147, otherwise
known as the Wildlife Resources Conservation and Protection Act;

“(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise known as the National
Caves and Cave Resources Management Protection Act;

“(25) Violation of Republic Act No. 6539, otherwise known as the Anti-Carnapping Act of
2002, as amended;

“(26) Violations of Sections 1, 3 and 5 of Presidential Decree No. 1866, as amended,

otherwise known as the decree Codifying the Laws on Illegal/Unlawful Possession,
Manufacture, Dealing In, Acquisition or Disposition of Firearms, Ammunition or
Explosives;

“(27) Violation of Presidential Decree No. 1612, otherwise known as the Anti-Fencing
Law;

“(28) Violation of Section 6 of Republic Act No. 8042, otherwise known as the Migrant
Workers and Overseas Filipinos Act of 1995, as amended by Republic Act No. 10022;

“(29) Violation of Republic Act No. 8293, otherwise known as the Intellectual Property
Code of the Philippines;

“(30) Violation of Section 4 of Republic Act No. 9995, otherwise known as the Anti-Photo
and Video Voyeurism Act of 2009;

“(31) Violation of Section 4 of Republic Act No. 9775, otherwise known as the Anti-Child
Pornography Act of 2009;

“(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and 14 of Republic Act
No. 7610, otherwise known as the Special Protection of Children Against Abuse,
Exploitation and Discrimination;

“(33) Fraudulent practices and other violations under Republic Act No. 8799, otherwise
known as the Securities Regulation Code of 2000; and

“(34) Felonies or offenses of a similar nature that are punishable under the penal laws of
other countries.

What are the preventive measures to stop money laundering?

PREVENTION OF MONEY LAUNDERING

(RA 9160 as amended by Section 9, RA 10365)

Prevention of money laundering is done thru:

(a) Customer Identification. — Covered institutions shall establish and record the true
identity of its clients based on official documents. They shall maintain a system of
verifying the true identity of their clients and, in case of corporate clients, require
a system of verifying their legal existence and organizational structure, as well as
the authority and identification of all persons purporting to act on their behalf.

The provisions of existing laws to the contrary notwithstanding, anonymous accounts,

accounts under fictitious names, and all other similar accounts shall be absolutely
prohibited. Peso and foreign currency non-checking numbered accounts shall be allowed.
The BSP may conduct annual testing solely limited to the determination of the existence
and true identity of the owners of such accounts.

(b) Record Keeping. — All records of all transactions of covered institutions shall be
maintained and safely stored for five (5) years from the dates of transactions. With
respect to closed accounts, the records on customer identification, account files and
business correspondence, shall be preserved and safely stored for at least five (5) years
from the dates when they were closed.

“(c) Reporting of Covered and Suspicious Transactions. – Covered persons shall

report to the AMLC all covered transactions and suspicious transactions within five (5)
working days from occurrence thereof, unless the AMLC prescribes a different
period not exceeding fifteen (15) working days.

“Lawyers and accountants acting as independent legal professionals are not required to
report covered and suspicious transactions if the relevant information was obtained in
circumstances where they are subject to professional secrecy or legal professional
privilege.

“x x x

“x x x

“When reporting covered or suspicious transactions to the AMLC, covered persons and
their officers and employees are prohibited from communicating, directly or
indirectly, in any manner or by any means, to any person or entity, the media, the
fact that a covered or suspicious transaction has been reported or is about to be
reported, the contents of the report, or any other information in relation thereto. Neither
may such reporting be published or aired in any manner or form by the mass media”,
electronic mail, or other similar devices. In case of violation thereof, the concerned
officer and employee of the covered person and media shall be held criminally
liable.”

- Conviction of the unlawful activity is not necessary before a report is made.

FREEZING OF MONETARY INSTRUMENT OR PROPERTY

(Section 10, RA 9160, as amended by RA10167 and RA 10365).

A. The Court of Appeals may issue a Freeze Order under the following conditions:

1. There must be a verified ex parte petition by the AMLC.

2. Court of Appeals must determine that probable cause exists that any monetary
instrument or property is in any way related to an unlawful activity as defined in
Section 3(i) of RA 9160.

3. The freeze order shall be effective immediately.

4. The freeze order shall be for a period not exceeding six (6) months.

(Section 10, RA 9160, as amended by RA10167 and RA 10365).

B. The Court of Appeals should act on the petition to freeze within 24 hours from
filing of the petition. If the application is filed a day before a non-working day, the
computation of the 24 - hour period shall exclude the non-working days.

C. A person whose account has been frozen may file a motion to lift the freeze order
and the court must resolve this motion before the expiration of freeze order.

D. No court shall issue a temporary restraining order or a writ of injunction against

any freeze order, except the Supreme Court.

AUTHORITY OF AMLC TO INQUIRE INTO AND EXAMINE BANK DEPOSITS

(Section 11, RA 9160 as amended by RA 10167)

The AMLC may inquire into or examine any particular deposit or investment, including
related accounts with any banking institution or non-bank financial institution. This can be
either upon order of the court or even without court order in exceptional cases.

Inquiry into deposits under Section 11 does not require a pre-existing criminal case.

A. COURT ORDER REQUIRED:

Examination by AMLC based on a Court order upon ex parte application is

applicable in cases of violations of RA 9160, as amended, when it has been
 established that there is probable cause that the deposits or investments,
including related accounts involved, are related to
(1) an Unlawful Activity (see enumeration) or
(2) a money laundering offense.

Related Accounts shall refer to accounts, the funds and sources of which
originated from and/or are materially linked to the monetary instruments or
properties subject of the freeze order.

A court order ex parte must first be obtained before the AMLC can inquire into
related accounts.
The Court of Appeals must act on the application within 24 hours from the filing.

B. NO COURT ORDER REQUIRED:

Court order is not required for the examination of bank deposits by AMLC in cases
involving:

1. Kidnapping for ransom under Art. 267 of the Revised Penal Code.

2. Violations of RA 9165 otherwise known as Comprehensive Dangerous Drugs

Act of 2002 (Sections 4,5,7,8,9,10,12,13,14 and 16).

3. Hijacking and other violations under RA 6235; destructive arson and murder,
as defined under the Revised Penal Code, including those perpetrated by
terrorists under non-combatant persons and similar targets,

4. Felonies or offenses of a nature similar to those mentioned in Section 3(i)(1),

(2), and (12), which are Punishable under the penal laws of other countries.

5. Terrorism and conspiracy to commit terrorism as defined and penalized under

Republic Act No. 9372