Manila * Cavite * Laguna * Cebu * Cagayan De Oro * Davao

Since 1977

RFBT.3406 VILLEGAS/APRADO/MAGUMUN
AMLA (RA 9160) and Bouncing Checks Law (BP 22) MAY 2023

Anti-Money Laundering Act e. Aids, abets, assists in or counsels the commission

of the money laundering offenses referred to in
PURPOSE, POLICIES, AND PRINCIPLES paragraphs (a), (b) or (c) above; and
f. Performs or fails to perform any act as a result of
Purpose and Policies
which he facilitates the offense of money laundering
referred to in paragraphs (a), (b) or (c) above.
1. To protect and preserve the integrity and
confidentiality of bank accounts; Note: Money laundering is also committed by any covered
2. To ensure that the Philippines shall not be used as person who, knowing that a covered or suspicious
a money laundering site for the proceeds of any transaction is required under this Act to be reported to the
unlawful activity; and Anti-Money Laundering Council (AMLC), fails to do so (Sec.
3. To pursue the State’s foreign policy to extend 4, RA 10365, amending Sec. 4, RA 9160).
cooperation in transnational investigation and
prosecutions of persons involved in money “Covered Transaction” refers to:
laundering activities wherever committed. (Section (1) A transaction in cash or other equivalent monetary
1, Republic Act (RA) No. 9160) instrument exceeding Five Hundred Thousand pesos
(PHP500,000.00).
Key Principles (2) A transaction with or involving jewelry dealers,
1. Anti- Money Laundering (AML) laws, rules and dealers in precious metals and dealers in precious
regulations and other relevant issuances are stones in cash or other equivalent monetary
implemented using a risk-based approach in a way instrument exceeding One Million pesos
that responds to the need to bring the financially (Php1,000,000.00).
excluded into the regulated financial sector, while at (3) A casino cash transaction exceeding Five Million
the same time maintaining effective safeguards and Pesos (PHP5,000,000.00) or its equivalent in other
effective controls against money currency.
laundering/terrorism financing risks. (4) A cash transaction with or involving real estate
2. A strong compliance culture, good governance and developers or brokers exceeding Seven Million Five
observance of high ethical standards in the conduct Hundred Thousand Pesos (P7,500,000.00) or its
of business are good foundations for an effective equivalent in any other currency. (Sec. 4, RA
AML/CTF regime. It will be developed and sustained 10365, amending Sec. 4, RA 9160).
through capacity building and deterrence of
violations through imposition of appropriate, “Suspicious Transaction” refers to a transaction,
proportionate and dissuasive sanctions. regardless of amount, where any of the suspicious
3. A sound risk management system to identify, circumstances, xxx, is determined, based on suspicion or, if
available, reasonable grounds, to be existing. (Sec. 4, RA
assess, mitigate, monitor, and control risks
10365, amending Sec. 4, RA 9160).
associated with money laundering/terrorism
financing is essential.
“Suspicious Circumstance” refers to any of the following
4. Timely and effective domestic and international circumstances, the existence of which makes a transaction
cooperation and established coordination suspicious:
mechanism are critical in the investigation and (1) there is no underlying legal or trade obligation,
prosecution of money laundering/terrorism purpose or economic justification;
financing and associated unlawful activities. (2018 (2) the client is not properly identified;
Implementing Rules and Regulations of RA 9160) (3) the amount involved is not commensurate with the
business or financial capacity of the client;
1. DEFINITION OF TERMS (4) taking into account all known circumstances, it may
be perceived that the client’s transaction is
Money laundering is committed by any person who,
knowing that any monetary instrument or property structured in order to avoid being the subject of
represents, involves, or relates to the proceeds of any reporting requirements under the AMLA;
unlawful activity: (5) any circumstance relating to the transaction which
a. Transacts said monetary instrument or property; is observed to deviate from the profile of the client
b. Converts, transfers, disposes of, moves, acquires, and/or the client’s past transactions with the
possesses or uses said monetary instrument or covered person;
property; (6) the transaction is in any way related to ML/TF or
c. Conceals or disguises the true nature, source, related unlawful activity that is about to be
location, disposition, movement or ownership of or committed, is being or has been committed; or
rights with respect to said monetary instrument or (7) any transaction that is similar, analogous or
property; identical to any of the foregoing, such as the
d. Attempts or conspires to commit money laundering relevant transactions in related and materially-
offenses referred to in paragraphs (a), (b) or (c); linked accounts, as herein defined.

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Any unsuccessful attempt to transact with a covered person, (r) “Forgeries” and “Counterfeiting” under Articles 163,
the denial of which is based on any of the foregoing 166, 167, 168, 169 and 176 of the Revised Penal
circumstances, shall likewise be considered as suspicious Code, as amended;
transaction. (s) Violations of Sections 4 to 6 of Republic Act No.
9208, otherwise known as the “AntiTrafficking in
“Suspicion” refers to a person’s state of mind—based on
Persons Act of 2003, as amended”;
his skills, experience, and/or understanding of the customer
(t) Violations of Sections 78 to 79 of Chapter IV of
profile—which considers that there is a possibility that any
Presidential Decree No. 705, otherwise known as
of the suspicious circumstances exists.
the “Revised Forestry Code of the Philippines, as
amended”;
2. UNLAWFUL ACTIVITIES (u) Violations of Sections 86 to 106 of Chapter IV of
Republic Act No. 8550, otherwise known as the
Unlawful activities refer to any act or omission, or series or “Philippine Fisheries Code of 1998”;
combination thereof, involving or having direct relation, to (v) Violations of Sections 101 to 107, and 110 of
the following: Republic Act No. 7942, otherwise known as the
(a) “Kidnapping for Ransom” under Article 267 of Act “Philippine Mining Act of 1995”;
No. 3815, otherwise known as the Revised Penal (w) Violations of Section 27(c), (e), (f), (g) and
Code, as amended; (i) of Republic Act No. 9147, otherwise known as
(b) Sections 4, 5, 6, 8, 9, 10, 11, 12,13, 14, 15 and 16 the “Wildlife Resources Conservation and Protection
of Republic Act No. 9165, otherwise known as the Act”;
“Comprehensive Dangerous Drugs Act of 2002”; (x) Violations of Section 7(b) of Republic Act No. 9072,
(c) Section 3 paragraphs b, c, e, g, h and i of Republic otherwise known as the “National Caves and Cave
Act No. 3019, as amended, otherwise known as the Resources Management Protection Act”; (
“Anti-Graft and Corrupt Practices Act”; (y) Violation of Republic Act No. 6539, otherwise known
(d) “Plunder” under Republic Act No. 7080, as as the “Anti-Carnapping Act of 2002, as amended”;
amended; (z) Violation of Sections 1, 3, and 5 of Presidential
(e) “Robbery” and “Extortion” under Articles 294, 295, Decree No. 1866, as amended, otherwise known as
296, 299, 300, 301 and 302 of the Revised Penal the decree “Codifying the Laws on Illegal/Unlawful
Code, as amended; Possession, Manufacture, Dealing In, Acquisition or
(f) “Jueteng” and “Masiao” punished as illegal gambling Disposition of Firearms, Ammunition or Explosives”;
under Presidential Decree No. 1602; (aa) Violation of Presidential Decree No. 1612,
(g) “Piracy on the High Seas” under the Revised Penal otherwise known as the “Anti-Fencing Law”;
Code, as amended, and Presidential Decree No. (bb) Violation of Section 6 of Republic Act No.
532: 8042, otherwise known as the “Migrant Workers
(h) “Qualified Theft” under Article 310 of the Revised and Overseas Filipinos Act of 1995, as amended”;
Penal Code, as amended; (cc) Violation of Republic Act No. 8293,
(i) “Swindling” under Article 315 and “Other Forms of otherwise known as the “Intellectual Property Code
Swindling” under Article 316 of the Revised Penal of the Philippines, as amended”;
Code, as amended: (dd)Violation of Section 4 of Republic Act No. 9995,
(j) “Smuggling” under Republic Act No. 455, and otherwise known as the “Anti-Photo and Video
Republic Act No. 1937, as amended, otherwise Voyeurism Act of 2009”;
known as the “Tariff and Customs Code of the (ee) Violation of Section 4 of Republic Act No. 9775,
Philippines”; otherwise known as the “Anti-Child Pornography Act
(k) Violations under Republic Act No. 8792, otherwise of 2009”;
known as the “Electronic Commerce Act of 2000”; (ff) Violations of Sections 5, 7, 8, 9, 10 (c), (d) and (e),
(l) “Hijacking” and other violations under Republic Act 11, 12 and 14 of Republic Act No. 7610, otherwise
No. 6235, otherwise known as the “Anti-Hijacking known as the “Special Protection of Children Against
Law”; “Destructive Arson”; and “Murder”, as Abuse, Exploitation and Discrimination”;
defined under the Revised Penal Code, as amended; (gg) Fraudulent practices and other violations under
(m) “Terrorism” and “Conspiracy to Commit Republic Act No. 8799, otherwise known as the
Terrorism”, as defined and penalized under Sections “Securities Regulation Code of 2000”;
3 and 4 of Republic Act No. 9372; (hh) Violation of Section 19 (A)(3) of Republic
(n) “Financing of Terrorism” under Section 4 and Act No. 10697, otherwise known as “The Strategic
offenses punishable under Sections 5, 6, 7 and 8 of Trade Management Act”, in relation to Proliferation
Republic Act No. 10375, otherwise known as the of WMD and PF pursuant to UNSC Resolution Nos.
“Terrorism Financing Prevention and Suppression 1718 of 2006 and 2231 of 2015;20
Act of 2012”; (ii) Violations of Section 254 of Chapter II, Title X of the
(o) “Bribery” under Articles 210, 211 and 211-A of the “National Internal Revenue Code of 1997”, as
Revised Penal Code, as amended, and “Corruption amended, where the deficiency basic tax due in the
of Public Officers” under Article 212 of the Revised final assessment is in excess of Twenty-Five Million
Penal Code, as amended; Pesos (P25,000,000.00) per taxable year, for each
(p) “Frauds and Illegal Exactions and Transactions” tax type covered and there has been a finding of
under Articles 213, 214, 215 and 216 of the Revised probable cause by the competent authority:
Penal Code, as amended; Provided, further, that there must be a finding of
(q) “Malversation of Public Funds and Property” under fraud, willful misrepresentation or malicious intent
Articles 217 and 222 of the Revised Penal Code, as on the part of the taxpayer: Provided, finally, that in
amended; no case shall the AMLC institute forfeiture
proceedings to recover monetary instruments,

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property or proceeds representing, involving, or for another person to act as) a nominee
relating to a tax crime, if the same has already been shareholder for another person.
recovered or collected by the Bureau of Internal 4. Persons, including lawyers, accountants and
Revenue (BIR) in a separate proceeding; other professionals, who provide any of the
(jj) Felonies and offenses of a similar nature that are following services: (a) Managing of client
punishable under the penal laws of other countries. money, securities or other assets; (b)
(Sec. 4, RA 10365, amending Sec. 4, RA 9160). Management of bank, savings, securities or
other assets; (c) Organization of contributions
3. COVERED PERSONS for the creation, operation or management of
companies; and (d) Creation, operation or
The following are the covered persons under the AMLA:
management of juridical persons or
(a) The following financial institutions:
arrangements, and buying and selling business
1. Persons supervised and/or regulated by BSP,
entities.
including their subsidiaries and affiliates, which
5. Casinos, including internet-based casinos and
are also covered persons, supervised and/or
ship-based casinos, with respect to their casino
regulated by the BSP such as: (a) Banks; (b)
cash transactions related to their gaming
Quasi-banks; (c) Trust entities (d) Pawnshops;
operations.
(e) Non-stock savings and loan associations; (f)
Other Non-bank financial institutions which
4. MONEY LAUNDERING, TERRORISM AND
under special laws are subject to BSP
FINANCING, AND ASSET FORFEITURE
supervision and/or regulation; (g) Electronic
money issuers; and (h) Foreign exchange Policy of RA 10375- It is the policy of the State to protect
dealers, money changers, and remittance and life, liberty, and property from acts of terrorism and to
transfer companies. condemn terrorism and those who support and finance it
and to recognize it as inimical and dangerous to national
2. Persons supervised or regulated by Insurance security and the welfare of the people, and to make the
Commission, such as: (a) Insurance financing of terrorism a crime against the Filipino people,
companies; (b) Pre-need companies; (c) against humanity, and against the law of nations.
Toward this end, the State shall reinforce its fight against
Insurance agents; (d) Insurance brokers; (e)
terrorism by criminalizing the financing of terrorism and
Professional reinsurers; (f) Reinsurance
related offenses, and by preventing and suppressing the
brokers; (g) Holding companies; (h) Holding commission of said offenses through freezing and forfeiture
company systems; (i) Mutual benefit of properties or funds while protecting human rights. (Sec.
associations; and (j) All other persons and their 2, RA 10375)
subsidiaries and affiliates supervised or
regulated by the IC. What is Terrorism Financing (TF)? Who are liable?

3. Persons supervised or regulated by SEC, such Principal

as: (a) Securities dealers, brokers, salesmen, Any person who, directly or indirectly, willfully and without
investment houses, and other similar persons lawful excuse, possesses, provides, collects or uses
managing securities or rendering services, such property or funds or makes available property, funds or
as investment agents, advisors, or consultants; financial service or other related services, by any means,
with the unlawful and willful intention that they should be
(b) mutual funds or open-end investment
used or with the knowledge that they are to be used, in full
companies, close-end investment companies or
or in part: (a) to carry out or facilitate the commission of
issuers, and other similar entities; and (c) other any terrorist act; (b) by a terrorist organization, association
entities, administering or otherwise dealing in or group; or (c) by an individual terrorist, shall be guilty of
commodities, or financial derivatives based the crime of financing of terrorism xxx.
thereon, valuable objects, cash substitutes, and Any person who organizes or directs others to commit
other similar monetary instruments or financing of terrorism under the immediately preceding
properties, supervised or regulated by the SEC. paragraph shall likewise be guilty of an offense xxx. (Sec.
4)
(b) The following designated non-financial businesses
and professions: Attempt or Conspiracy to Commit TF
1. Jewelry dealers. Any attempt to commit any crime under Section 4 or Section
2. Dealers in precious metals, and dealers in 8 under this Act shall be penalized by a penalty two degrees
precious stones. lower than that prescribed for the commission of the same.
(Sec. 5)
3. Company service providers, which, as a
business, provide any of the following services
Accomplice
to third parties: (a) acting as a formation agent Any person who, not being a principal under Article 17 of
of juridical persons; (b) acting as (or arranging the Revised Penal Code or a conspirator as defined in
for another person to act as) a director or Section 5 hereof, cooperates in the execution of either the
corporate secretary of a company, a partner of crime of financing of terrorism or conspiracy to commit the
a partnership, or a similar position in relation to crime of financing of terrorism by previous or simultaneous
other juridical persons; (c) providing a acts. (Sec. 6)
registered office; business address or
accommodation, correspondence or
administrative address for a company, a Accessory
partnership or any other juridical person or legal Any person who, having knowledge of the commission of
the crime of financing of terrorism but without having
arrangement; and (d) acting as (or arranging
participated therein as a principal, takes part subsequent to

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its commission, by profiting from it or by assisting the Asset Forfeiture

principal or principals to profit by the effects of the crime,
or by concealing or destroying the effects of the crime in The following rules shall be observed in asset forfeiture
order to prevent its discovery, or by harboring, concealing proceedings:
or assisting in the escape of a principal of the crime shall be
guilty as an accessory to the crime of financing of terrorism.
(a) No prior criminal charge, pendency of a case, or
(Sec. 7)
conviction for an unlawful activity or money
laundering offense is necessary for the
Persons Dealing with Properties used for TF
commencement or the resolution of a petition for
Any person who, not being an accomplice under Section 6
civil forfeiture.
or accessory under Section 7 in relation to any property or
(b) No asset shall be attached or forfeited to the
fund: (i) deals directly or indirectly, in any way and by any
prejudice of a candidate for an electoral office
means, with any property or fund that he knows or has
during an election period.
reasonable ground to believe is owned or controlled by a
(c) No court shall issue a temporary restraining order
designated person, organization, association or group of
or a writ of injunction against any provisional asset
persons, including funds derived or generated from property
preservation order or asset preservation order,
or funds owned or controlled, directly or indirectly, by a
except the Court of Appeals or the Supreme Court.
designated person, organization, association or group of
(Section 8 of AMLC Regulatory Issuance A, B and C
persons; or (ii) makes available any property or funds, or
No. 1, Series of 2021)
financial services or other related services to a designated
and/or identified person, organization, association, or group
of persons. Petition for Civil Forfeiture

Authority of the Anti-Money Laundering Council Upon determination that probable cause exists that any
Authority to Investigate monetary instrument or property is in any way related to an
unlawful activity or money laundering offense, the AMLC
The AMLC, either upon its own initiative or at the request of shall file with the regional trial court, through the Office of
the ATC, is hereby authorized to investigate: (a) any the Solicitor General, a verified petition for civil forfeiture.
property or funds that are in any way related to financing of (Section 15 of AMLC Regulatory Issuance A, B and C No. 1,
terrorism or acts of terrorism; (b) property or funds of any Series of 2020)
person or persons in relation to whom there is probable
cause to believe that such person or persons are committing Conditions when applying for civil forfeiture:
or attempting or conspiring to commit, or participating in or (a) When there is a suspicious transaction report or a
facilitating the financing of terrorism or acts of terrorism as covered transaction report deemed suspicious after
defined herein. investigation by the AMLC; and
(b) The court has, in a petition filed for the purpose,
The AMLC may also enlist the assistance of any branch, ordered the seizure of any monetary instrument or
department, bureau, office, agency or instrumentality of the property, in whole or in part, directly or indirectly
government, including government-owned and -controlled related to said report.
corporations in undertaking measures to counter the
financing of terrorism, which may include the use of its 5. PREVENTIVE MEASURES AND OBLIGATIONS
personnel, facilities and resources. (Sec. 10) OF COVERED PERSONS

Reporting of Covered and Suspicious Transactions

Authority to Freeze Covered persons shall report to the AMLC all covered
transactions and suspicious transactions within five (5)
The AMLC, either upon its own initiative or at the request working days from occurrence thereof, unless the AMLC
of the ATC, is hereby authorized to issue an ex parte order prescribes a different period not exceeding fifteen (15)
to freeze without delay: (a) property or funds that are in working days.
any way related to financing of terrorism or acts of Lawyers and accountants acting as independent legal
terrorism; or (b) property or funds of any person, group of professionals are not required to report covered and
persons, terrorist organization, or association, in relation to suspicious transactions if the relevant information was
whom there is probable cause to believe that they are obtained in circumstances where they are subject to
committing or attempting or conspiring to commit, or professional secrecy or legal professional privilege.
participating in or facilitating the commission of financing of When reporting covered or suspicious transactions to the
terrorism or acts of terrorism as defined herein. AMLC, covered persons and their officers and employees are
prohibited from communicating, directly or indirectly, in any
The AMLC shall be authorized to issue a freeze order with manner or by any means, to any person or entity, the
respect to property or funds of a designated organization, media, the fact that a covered or suspicious transaction has
association, group or any individual to comply with binding been reported or is about to be reported, the contents of
terrorism-related Resolutions, including Resolution No. the report, or any other information in relation thereto.
1373, of the UN Security Council pursuant to Article 41 of Neither may such reporting be published or aired in any
the Charter of the UN. Said freeze order shall be effective manner or form by the mass media”, electronic mail, or
until the basis for the issuance thereof shall have been other similar devices. In case of violation thereof, the
lifted. concerned officer and employee of the covered person and
media shall be held criminally liable. (Sec. 5, RA 10375)
Note: In case of Covered or Suspicious Transactions,
However, if the property or funds subject of the freeze order
covered persons are required to submit to the AMLC
under the immediately preceding paragraph are found to be
Covered Transaction Report (CTR) and Suspicious
in any way related to financing of terrorism or acts of
Transaction Report (STR).
terrorism committed within the jurisdiction of the
Covered persons shall file all CTRs and STRs, in accordance
Philippines, said property or funds shall be the subject of
with the registration and reporting guidelines of the AMLC.
civil forfeiture proceedings.

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STRs shall cover all transactions, whether completed or photo of the customer, or the photo-bearing ID or a copy
attempted. thereof does not clearly show the face of the customer, a
Should a transaction be determined to be both a covered covered person may utilize ICT or any other technology to
and a suspicious transaction, the same shall be reported as take the photo of the customer.
a suspicious transaction. In this regard, it shall l be reported
first as a CTR, subject to updating if it is finally confirmed Required Identification Data:
to be reportable as STR. a. For customers who are natural persons, covered
persons shall gather the following identification
a. Prohibited Accounts (Rule 17, Revised IRR of information and ID before or during account
RA 9160 as amended by RA 10375) opening or onboarding:
(a) Identification Information: (1) Full name; (2)
The following account shall be prohibited: Date of birth; (3) Place of birth; (4) Sex; (5)
1. Anonymous Accounts and Accounts under Fictitious Citizenship or nationality; (6) Address; (7)
Names. (Absolutely prohibited) Contact number or information, if any; (8)
a. Covered persons shall maintain customers’ Specimen signatures or biometric information.
account only in the true and full name of the (b) Identification Documents: (1) PhilID; or (2)
account owner or holder. Other identification documents.
b. Anonymous accounts, accounts under fictitious b. For customers that are juridical persons, covered
names, and all other similar accounts shall be persons shall gather the following identification
absolutely prohibited. information and IDs before or during account
2. Numbered Accounts. opening or onboarding:
a. Numbered accounts, except non-checking (a) Identification Information: (1) Full name; (2)
numbered accounts, shall not be allowed. Name of authorized
b. CTRs and STRs involving non-checking representative/transactor/signer; (3) Current
numbered accounts shall contain the true name office address; (4) Contact number or
of the account holder. information, if any; (5) Nature of business; and
(6) Specimen signatures or biometric
b. Customer Due Diligence (Rule 18, Revised IRR information of the authorized
representative/transactor/signer.
of RA 9160 as amended by RA 10375)
(b) Identification Documents: (1) Certificates of
Purpose Registration issued by the Department of Trade
(a) To identify the customer, and its agents and and Industry (DTI) for sole proprietors, or
beneficial owners; Certificate of Incorporation or Partnership
(b) To determine the risk posed by each customer; issued by the SEC for corporations and
(c) To establish, maintain, close or terminate the partnerships, respectively, and by the BSP for
account or business relationship; and money changers/foreign exchange dealers and
(d) To assess the level of monitoring to be applied. remittance agents, and by the AMLC for covered
persons. (2) Articles of
When CCD Required? Incorporation/Partnership; (3) Registration
(a) establishing business or professional relationship; Data Sheet/Latest General Information Sheet;
(b) carrying out occasional transactions above (Php (4) Secretary’s Certificate citing the pertinent
100,000.00) or any other threshold as may be portion of the Board or Partners’ Resolution
determined by the relevant SAs, with notice to the authorizing the signatory to sign on behalf of
Council, including situations where the transaction the entity; and (5) For entities registered
is carried out in a single operation or in several outside of the Philippines, similar documents
operations that appear to be linked; and/or information duly authenticated by a
(c) carrying out occasional wire transfers in the senior officer of the covered person assigned in
circumstances under Rule 19, Section 6 hereof; the country of registration; in the absence of
(d) there is a suspicion of ML/TF, regardless of any said officer, the documents shall be
exemptions or thresholds that are referred to authenticated by the Philippine Consulate,
elsewhere under this IRR; or (e) the covered company register or notary public, where said
person has doubts about the veracity or adequacy entities are registered.
of previously obtained identification information
and/or data. 6. BENEFICIAL OWNERSHIP
Procedures Included in CDD “Beneficial Owner” refers to any natural person who:
(a) Customer Identification Process; (1) Ultimately owns or controls the customer and/or on
(b) Customer Verification Process; whose behalf a transaction or activity is being
(c) Identification and Verification of Agents; conducted;
(d) Beneficial Ownership Verification; (2) Has ultimate effective control over a juridical person
(e) Determination of the Purpose of Relationship; and or legal arrangement; or
(f) Ongoing Monitoring Process. (3) Owns, at least, twenty percent (20%) shares,
contributions or equity interest in a juridical person
or legal arrangement.
Customer Identification
Control includes whether the control is exerted by means of
Covered persons shall identify and record the true identity trusts, agreements, arrangements, understandings, or
of their customers, whether permanent or occasional, and practices, and whether or not the individual can exercise
whether natural or juridical person, or legal arrangement. control through making decisions about financial and
Customers who engage in a transaction with a covered operating policies.
person for the first time shall be required to present the Covered persons shall identify the beneficial owner and take
original and submit a clear copy of, at least, one (1) ID as reasonable measures to verify the identity of the beneficial
herein defined. In case the ID presented does not bear any owner, using the relevant information or data obtained from

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a reliable sources, such that the covered person is satisfied 2. Money laundering is a crime committed by any person
that it knows who the beneficial owner is. who knowing that any instrument or property
Covered persons shall determine the true nature of the represents, involves, or relates to the proceeds of any
beneficial owner’s capacities and duties vis-àvis his agent unlawful activity. Except:
by obtaining a copy of the written document evidencing a. transacts said monetary instrument or property;
their relationship and apply the same standards for b. converts or transfers, disposes of, moves,
assessing the risk profile and determining the standard of acquires, possess or uses said monetary
CDD to be applied to both. instrument or property;
Covered persons shall verify the identity of the beneficial c. conceals or disguises the true nature, source,
owner before or during the course of establishing a business location, disposition, movement or ownership of or
or professional relationship, or conducting transactions for rights with respect to said monetary instrument;
occasional customers in excess of the threshold. They may d. failure to report to the AMLC by any covered person
complete the BOV after the establishment of the business knowing that covered or suspicious transactions is
or professional relationship; Provided, that: required under the law
(a) this occurs as soon as reasonably practicable; e. Answer not given
(b) this is essential not to interrupt the normal conduct
of business; and 3. It is a transaction in cash or other equivalent monetary
(c) the ML/TF risks are effectively managed. instrument involving a total amount in excess of
P500,000.00 within one (1) banking day.
a. covered transaction
7. RECORD KEEPING REQUIREMENTS b. covered persons
c. suspicious transactions
Covered institutions shall establish and record the true
d. unlawful activity
identity of its clients based on official documents. They shall
maintain a system of verifying the true identity of their
4. The following are covered persons, except:
clients and, in case of corporate clients, require a system of
a. banks supervised or regulated by BSP
verifying their legal existence and organizational structure,
b. insurance companies regulated by the Insurance
as well as the authority and identification of all persons
Commission
purporting to act on their behalf.
c. SEC supervised entities
All records of all transactions of covered institutions shall be
d. company service providers
maintained and safely stored for five (5) years from the
e. casinos regulated by PAGCOR
dates of transactions. With respect to closed accounts, the
f. Answer not given
records on customer identification, account files and
business correspondence, shall be preserved and safely
5. The following are obligations of a covered institution,
stored for at least five (5) years from the dates when they
except:
were closed.
a. Arms-length rule
b. Customer identification
8. SAFE HARBOR PROVISION
c. Record keeping
Note: When reporting covered transactions to the AMLC, d. Reporting of covered and suspicious transactions
covered institutions and their officers, employees,
representatives, agents, advisors, consultants or associates 6. S1 – Covered institutions must record the true identity
shall not be deemed to have violated Republic Act No. 1405, of its clients and all persons purporting to act on their
as amended; Republic Act No. 6426, as amended; Republic behalf based on official documents, and keep a system
Act No. 8791 and other similar laws, but are prohibited from of verifying their true identity as a system of verifying
communicating, directly or indirectly, in any manner or by their legal existence and organizational structure.
any means, to any person the fact that a covered S2 - Peso and foreign currency non-checking numbered
transaction report was made, the contents thereof, or any accounts shall be allowed.
other information in relation thereto. In case of violation a. All are correct
thereof, the concerned officer, employee, representative, b. All are wrong
agent, advisor, consultant or associate of the covered c. Only S1 is incorrect
institution, shall be criminally liable. d. Only S2 is incorrect
Safe Harbor: However, no administrative, criminal or civil
proceedings, shall lie against any person for having made a 7. All records of all transactions of covered institutions
covered transaction report in the regular performance of his shall be maintained and safely stored for ___ years from
duties and in good faith, whether or not such reporting the date of transactions. With respect to closed
results in any criminal prosecution under this Act or any accounts, the records on customer identification,
other Philippine law. (Sec. 9, RA 9160 as amended by RA account files and business correspondences, shall be
10635) preserved and safely stored for at least ___ years from
the date when they were closed.
a. 1-1
AMLA MC QUESTIONS b. 2-2
c. 2-5
1. The following are policies of the AMLA, except: d. 3-5
a. to protect and preserve the integrity and e. 5-5
confidentiality of bank accounts
b. to ensure that the Philippines shall not be used as 8. Covered persons shall report to the AMLC all covered
money laundering site for the proceeds of any transactions and suspicious transactions within ___
unlawful activity working days from the occurrence thereof, unless the
c. to prevent money-laundering activities by providing AMLC prescribes a different period of not exceeding ___
more transparency in the Philippine financial system working days.
d. to generate foreign investors in investing in the a. 5-5
Philippines b. 5-10
c. 5-15

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d. 10-15 e. 5 million
e. 10-20
15. S1 - Only the Supreme Court has the sole authority to
9. Suspicious transactions with covered institutions, issue the freeze order in AMLA cases.
regardless of the amount involved, where any of the S2 - No court shall issue a temporary restraining order
following circumstances exist are considered unlawful: or a writ of injunction against any freeze order issued in
except: AMLA, except the Supreme Court.
a. There is no underlying legal or trade obligation, a. All are correct
purpose or economic justification; b. All are wrong
b. The client is not properly groomed; c. Only S1 is incorrect
c. The amount involved is not commensurate with the d. Only S2 is incorrect
business or financial capacity of the client;
d. Taking into account all known circumstances, it may 16. It shall refer to accounts, the funds and sources of which
be perceived that the client’s transaction is originated from and/or are materially linked to the
structured in order to avoid being the subject of monetary instrument(s) or property(ies) subject of the
reporting requirements freeze order in AMLA.
a. Splitting of Account
10. S1 - Lawyers and accountants acting as independent b. Related interest
legal professionals are required to report covered and c. Related Accounts
suspicious transactions if the relevant information was d. Substitute Account
obtained in circumstances in their professional e. Savings Account
capacity.
S2 - Covered persons and their officers and employees 17. The following are predicate crimes, except;
are prohibited from communicating directly or a. Jueteng and Masiao punished as illegal gambling
indirectly, in any manner or by any means, to any under PD 1602;
person or entity or the media the fact that a covered or b. Malicious mischief in open seas under RPC;
suspicious transaction has been reported or is about to c. Qualified theft under Art. 310 of RPC;
be reported, the contents of the report or any other d. Swindling and other forms of swindling of RPC;
information relating thereto. e. Smuggling under RA Nos. 455 and 1937;
a. All are correct
b. All are wrong 18. The following are unlawful activities, except:
c. Only S1 is incorrect a. Violations of PD 1612 or the Anti-Fencing Law;
d. Only S2 is incorrect b. Violation of Section 6 of RA 8042 or the Migrant
Workers and Overseas Filipino Act of 1995, as
11. The following are Unlawful activities under the AMLA, amended by RA 10022;
except: c. Violation of RA 8293 or the Intellectual Property
a. Kidnapping for ransom under Article 267 of RPC; Code of the Philippines;
b. Sections in RA 9165 or Comprehensive Dangerous d. Violation of Section 4 of RA 9995 or the Anti-Photo
Drugs Act of 2002; and Video Voyeurism
c. Espionage under the RPC e. Violation of the Trust Receipt Law
d. Plunder under RA 7080;
e. Robbery and Extortion under RPC 19. If AMLA violation is committed by public officers and
private persons in conspiracy with the former,
12. S1 - Jurisdiction over AMLA cases is vested upon the jurisdiction shall be vested in –
Regional Trial Court, or the Sandiganbayan if committed a. Ombusdman
by public officers and private persons in conspiracy with b. PCGG
the former. c. PDIC
S2 - Any person may be charged with and convicted of d. Regional Trial Court
both the offense of money laundering and unlawful e. Sandiganbayan
activity.
a. All are correct 20. No court order shall be required for the examination of
b. All are wrong bank deposits by AMLC in cases involving, except:
c. Only S1 is incorrect a. Kidnapping for ransom under Article 267 of RPC;
d. Only S2 is incorrect b. Sections 4, 5, 8, 9, 10, 12, 13, 14, 15 and 16 of RA
9165, otherwise known as the Comprehensive
13. S1 – Composition of the PDIC Board is seven. Dangerous Drugs Act of 2002;
S2 – Composition of the AMLC Board is three. c. Hijacking and other violations under RA 6235;
a. All are correct destructive arson and murder as defined under RPC,
b. All are wrong including those perpetrated by terrorists against
c. Only S1 is incorrect non-combatant persons and similar targets;
d. Only S2 is incorrect d. Forgeries and counterfeiting of RPC

14. Land Registration Authority and all its Registries of 21. It is a crime whereby the proceeds of an unlawful
Deeds are to submit to the AMLC, reports on real estate activity are transacted, thereby making them
transactions involving an amount in excess of appear to have originated from legitimate source.
________________ pesos within fifteen (15) days from a. Swindling c. Misappropriation
the date of the registration of the transaction and b. Money Laundering d. Smuggling
submit all other relevant documents of all real estate
transactions. 22. How much shall be the transaction in cash or other
a. 300,000 equivalent monetary instrument in 1 banking day to
b. 500,000 be considered a “Covered Transaction”?
c. 1 Million a. P1,000,000.00 c. P500,000
d. 2 million b. 750,000.00 d. P250,000

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1. That a person has sufficient funds in or credit with

23. For a transaction to be considered a “Suspicious the drawee bank when he makes or draws and
Transaction”, any of the following shall exist, issues a check;
except: 2. That he fails to keep sufficient funds or to maintain
a. There is underlying legal or trade obligation, a credit to cover the full amount of the check if
purpose or economic justification. presented within a period of 90 days from the date
b. The client is not properly identified. appearing thereon; and
c. The amount involved is not commensurate 3. That the check is dishonored by the drawee bank.
with the business or financial capacity of the
client. Note: BP 22 does not make distinction as to whether the
d. None of the above. bad check is issued in payment of an obligation or merely
guarantees an obligation. The purpose for which the check
24. Which of the following is not considered as an was issued and the terms and conditions relating to its
unlawful activity? issuance are immaterial. What is primordial is that the
a. Qualified Theft issued checks were worthless, and the fact of worthlessness
b. Violation of Corporation Code was known to the petitioner at the time of their issuance.
c. Violation of Anti-Fencing Law This is because under Batas Pambansa Blg. 22, the mere
d. Violations of Revised Forestry Code act of issuing a worthless check is malum prohibitum.
(Ricardo Llamado vs. Court of Appeals, et. al, G.R. No.
25. The following are Covered Persons except: 99032 March 26, 1997)
a. Real estate developers c. banks
b. Insurance companies d. Accountants 1. Checks issued with insufficient funds

When is Check Considered Bouncing Check?

BOUNCING CHECK LAW A check is considered a bouncing check when upon its
(BP 22) presentment for payment, it is dishonored for insufficiency
of funds or when the account of the drawer is already
I. REQUISITES TO BE LIABLE UNDER BP 22 closed.

Acts Punishable under BP 22

2. Evidence of knowledge of insufficient funds
1. Any person who makes or draws and issues any
check to apply on account or for value, knowing at
the time of issue that he does not have sufficient Knowledge of insufficiency of funds or credit in the drawee
funds in or credit with the drawee bank for the bank for the payment of a check upon its presentment is an
payment of such check in full upon its presentment, essential element of the offense. There is a prima facie
which check is subsequently dishonored by the presumption of the existence of this element from the fact
drawee bank for insufficiency of funds or credit or of drawing, issuing or making a check, the payment of which
would have been dishonored for the same reason was subsequently refused for insufficiency of funds. It is
had not the drawer, without any valid reason, important to stress, however, that this is not a conclusive
ordered the bank to stop payment. (Section 1, BP presumption that forecloses or precludes the presentation
22) of evidence to the contrary. (Lim Lao v. CA, G.R. No.
119178, 20 June 1997)
Elements:
Requisites for the prima facie presumption to apply:
1. That a person makes or draws and issues any
check; The making, drawing and issuance of a check payment of
2. The check is drawn or issued to apply on account or which is refused by the drawee because of insufficient funds
for a valuable consideration; in or credit with such bank, when presented within ninety
3. The person who makes or draws and issues the (90) days from the date of the check shall constitute prima
check knows at the time of issue that he does not facie knowledge of insufficiency of funds. This prima facie
have sufficient funds in or credit with the drawee knowledge of insufficiency of funds, however, will not arise
bank for the payment of such check in full upon its if the drawer of the check deposited the amount necessary
presentment; and to cover the check within five (5) banking days from the
4. At the time, the check was presented for payment date of receipt of notice thereof. (Sec. 2, BP 22)
at due date, the same was dishonored for
insufficiency of funds or credit, or would have been Therefore, for the prima facie of knowledge of insufficiency
dishonored for the same reason had not the drawer, of funds to arise, the following are the elements or the
without any valid reason, ordered the bank to stop requisites:
payment.
1. The check must be deposited within 90 days from
2. Having sufficient funds in or credit with the drawee the date appearing on the check.
bank when he makes or draws and issues a check, 2. That the drawer of the check received a notice of
shall fail to keep sufficient funds or to maintain a dishonor either from the bank or from the payee or
credit to cover the full amount of the check if holder of the check
presented within a period of 90 days from the date 3. The drawer of the check failed to make good of the
appearing thereon, for which reason it is dishonored check within 5 banking days.
by the drawee bank. (Section 1, BP 22)
There is no prima facie knowledge of insufficiency of funds
Elements: if:

1. The drawer of the check received a notice of

dishonor within five days, he deposited the amount

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in the bank to cover the check, there will arise no NOT violated if check is issued Violated whether or not
prima facie evidence of knowledge of insufficiency in payment of a pre-existing the check is issued in
of funds. obligation. payment of a pre-existing
2. Within 5 banking days, he went to the bank and obligation. (Ticman,
made arrangement for the amount necessary to Reason: Fraud and deceit may 2021)
cover the check. have not attended the
issuance of the check. If the
3. Obligations of the Drawee issuance of the check is the
efficient cause of the
defraudation, the offender
It shall be the duty of the drawee of any check, when
could be held liable for estafa.
refusing to pay the same to the holder thereof upon
presentment, to cause to be written, printed, or stamped in
If the offended party in whose
plain language thereon, or attached thereto, the reason for
favor the check is issued would
drawee's dishonor or refusal to pay the same. (Sec. 3, BP
have not parted with his
22)
money/property where it not
for the assurance that the
Notice of Dishonor, an indispensable requisite account from which the check
was drawn is funded at the
This topic is related to the requisites of the prima facie time of presentment, then
presumption. there is a badge of fraud.

The presumption that the issuer had knowledge of the To be held liable for estafa, the
insufficiency of funds is brought into existence only after it check should have been issued
is proved that the issuer had received a notice of dishonor at the time the obligation is
and that, within five days from receipt thereof, he failed to contracted.
pay the amount of the check or to make arrangement for The drawer is given 3 days Via a letter of demand,
its payment. If such notice of non-payment by the drawee from receipt demand letter or the drawer is given 5 days
bank is not sent to the maker or drawer of the bum check, notice of dishonor to pay the from receipt thereof or
or if there is no proof as to when such notice was received amount due on the bounced notice of dishonor, to pay
by the drawer, then the presumption of knowledge as check. the amount due on the
provided in Section 2 of B.P. 22 cannot arise, since there bounced check.
would simply be no way of reckoning the crucial five-day Note: Demand is necessary
period. (Resterio v. People, G.R. No. 177438, 24 Sept. for both prior to the institution
2012) of criminal action is an
essential requisite.
The presumption or prima facie evidence cannot arise if
But demand prior to the
such notice of non-payment by the drawee bank is not sent institution of action for
to the maker or drawer, or if there is no proof as to when
violation of BP 22 is more
such notice was received by the drawer, since there would important/essential than that
simply be no way of reckoning the crucial 5-day period.
in estafa because the cause of
(Resterio v. People, G.R. No. 177438, 24 Sept. 2012) the prosecution in BP 22 could
either rise or fall on the
Verbal notice of dishonor is NOT sufficient. The notice of presence or absence of a
dishonor must be in writing. A mere oral notice or demand demand.
to pay would be insufficient for conviction under the law. Failure to pay within the Failure to pay within the
(Marigomen v. People, G.R. No. 153451, 26 May 2005) required period shall be prime required period shall give
facie evidence of deceit. rise to the presumption
Note: The notice of dishonor may be sent by the offended that the drawer has
party or the drawee bank. (Resterio v. People, G.R. No. knowledge of
177438, 24 Sept. 2012) insufficiency of funds at
the time the check was
4. Credit Construed issued.

BOUNCING CHECKS LAW MC QUESTIONS

The word "credit" as used herein shall be construed to mean
an arrangement or understanding with the bank for the 1. S1 – “Drawn Against Insufficient Funds” is included in
payment of such check. (Sec. 4, BP 22) the words ‘CLOSED ACCOUNT.”
S2 – The gravamen of the offense under BP 22 is the
II. COMPARISON WITH ESTAFA (Art. 315 2d) act of making and issuing a bouncing check.
a. All statements are correct
Estafa BP 22 b. All statements are incorrect
Malum in se Malum prohibitum c. Only S1 is correct
d. Only S2 is correct
Lack of criminal intent or good Lack of criminal intent or
faith is a defense goof faith is not a defense 2. S1 – Notice of dishonor under BP 22 may be oral or in
Deceit is an element Deceit is NOT an element, writing.
as what is punished is the S2 – Violation of BP 22 is categorized as a transitory or
mere issuance of continuing crime.
worthless checks. a. All statements are correct
b. All statements are incorrect
c. Only S1 is correct

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d. Only S2 is correct to settle the amount with B in spite of the latter’s written
demand received personally by. Is A guilty of violating
3. S1 – Violation of BP 22 can be filed at the places of the Bouncing Checks Law?
issue, delivery and dishonor of the check. a. No. A is not liable because of the timely order of
S2 – Check Kiting is a specie of fraud or fraudulent stop payment.
practice of exchange of checks of approximately the b. Yes. A is liable because the check was dishonored.
same dates and amounts. c. No. A is not liable because there was no intent to
a. All statements are correct defraud
b. All statements are incorrect d. It depends. If damage suffered by B is proven, then
c. Only S1 is correct he is liable; otherwise, he is not.
d. Only S2 is correct
9. Jane is a money lender. Edmund is a businessman who
4. S1 - BP 22 covers crossed check. has been borrowing money from Jane by rediscounting
S2 – The word “credit” as used under BP 22 shall be his personal checks to pay his loans. In March 2015, he
construed to mean an arrangement or understanding borrowed P100,000 from Jane and issued to her a check
with the bank for the payment of such check. for the same amount. The check was dishonored by the
a. All statements are correct drawee bank for having been drawn against a closed
b. All statements are incorrect account. When Edmund was notified of the dishonor of
c. Only S1 is correct the check, he promised to raise the amount within five
d. Only S2 is correct (5) days. He failed. Consequently, Jane sued Edmund
for violation of the Bouncing Checks Law. The defense
5. Which of the following circumstances of dishonor of a of Edmund was that he gave the check to serve as a
check can be a basis for the prosecution under the memorandum of his indebtedness to her and not
bouncing check law? supposed to be enchased. Is the defense of Edmund
a. The check was returned unpaid with stamped “stop valid?
payment,” although the drawer’s deposit was a. Yes, what the law punishes is the mere issuance of
sufficient. a bouncing check
b. The check, drawn and issued in the Philippines, was b. Yes, since the instrument is negotiable
dishonored by the drawee bank in a foreign country. c. No, since Memorandum checks are not covered by
c. The check was presented to the bank for payment BP 22
6 months after the date of issue. d. No, since Jane violated the terms of their contract
d. The drawer of the check paid its value within 5 days
from notice of dishonor. 10. In order to give rise to the prima facie presumption of
knowledge of insufficiency of funds or credit, the
6. The accused was convicted under BP 22 for having prosecution must show the following, except:
several checks which were dishonored by the drawee a. The first and third elements of the offense are
bank on their due date because the accused closed her present
account after the issuance of the checks. On appeal, she b. The check was presented within ninety days from
argued that she could not be convicted under BP 22 by the date of the maturity of the check
reason of the closing of her account because said law c. Offender received an oral notice of dishonor
applies solely to checks dishonored by reason of d. Despite the lapse of five banking days after
insufficiency of funds and that at the time she issued receiving notice, the check has not been paid by the
the checks concerned, she had adequate funds in the drawee
bank. Is her contention correct?
a. Yes, the application thereof would be tantamount to “The STRUGGLE that you are in TODAY is developing the
an ex post facto law STRENGTH you need for TOMORROW”
b. Yes, the application thereof would be a violation of End of RFBT.3406
the right against double jeopardy.
c. No, the law punishes two acts and the act in case at
bar falls under the second way of violating it
d. No, the proof beyond reasonable doubt was not
established

7. The period of prescription under BP 22 is 4 years

counted from –
a. Knowledge of Insufficiency of funds
b. Presentment of the check for payment from the
drawee bank
c. Dishonor of the check by the drawee bank
d. Date of the giving of the notice of dishonor to the
drawer
e. Lapse of the 5 banking days from the notice of
dishonor within which to make good the check

8. A, a businessman, borrowed P500,000 from B, a friend

. To pay the loan, A issued a postdated check to be
presented for payment 30 days after the transaction.
Two days before the maturity of the check, A called up
B and told him no to deposit the check on the date
stated on the face thereof, as A had not deposited in the
drawee bank the amount needed to cover the check.
Nevertheless, B deposited the check in question and the
same was dishonored for insufficiency of funds. A failed

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