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 Overview of the Anti-
Money Laundering Act,
As Amended
UP LAW CENTER 26TH PARALEGAL
TRAINING PROGRAM
What is money laundering?
For a brief explainer, please watch the video at
https://www.investopedia.com/terms/m/moneylaundering.asp

The video below explains a more elaborate form of money laundering:

https://www.youtube.com/watch?v=vc5jhmyCruE
 ANTI-MONEY LAUNDERING ACT (Republic Act No. 9160)
2001 2020
The Anti-Money Laundering Act R.A. 11469 or the Anti-Terror
(R.A. 9160) or the AMLA was Law amended the AMLA
passed into law in 2001. (expanding the powers of the
AMLC)

In 2003, R.A. 9194 (An Act R.A. 11521 was passed, among
amending the AMLA) was others, to include POGOs and real
enacted. Lowered threshold of estate brokers and developers as
covered transactions (4M to 500k) covered persons, include tax crimes
and defined suspicious as predicate offenses and to enable
transactions. AMLC to initiate search and
seizures
2003
2021

* Historically, AMLA regulations were made/changed to comply with the Financial Action Task Force (FATF)’s guidelines for the Philippines
to avoid being included in the FATF black list/gray list. Being included in the gray list means increased financial costs for cross border
transactions and Philippine financial institutions will be subject to increased requirements and scrutiny by their correspondent banks/financial
institutions abroad. OFW remittances and inflow of foreign investments can be negatively affected.
* Last June 25, 2021, the Philippines, together with South Sudan, Haiti and Malta, were placed on the FATF gray list. While the FATF did not
call for enhanced due diligence for transactions, the government earlier said some Philippine-related transactions have been subjected to more
scrutiny. The Philippines was first included in the gray list in 2000 and was removed in 2005.
* FATF has retained the Philippines in its “gray list,” citing the country’s need to further strengthen its action plan to address strategic
deficiencies in efforts to counter money laundering, terrorist financing and “proliferation financing.”
As part of the “gray list” along with 22 other countries, the Philippines is subject to increased monitoring by the global dirty money watchdog.
The list was released during the recently concluded hybrid FATF plenary (June 2022).
 SALIENT FEATURES OF AMLA
• Criminalizes money laundering
• Creates a financial intelligence unit
(Anti-Money Laundering Council)
ANTI-MONEY • Imposes requirements on customer
LAUNDERING identification, record keeping and
reporting of covered and suspicious
ACT (Republic transactions
Act No. 9160, • Relaxes strict bank deposits secrecy
as amended) laws
• Provides for bank inquiry and freeze
orders, ex parte
petition/seizure/forfeiture/recovery of
dirty money/property
• Provides for international cooperation
 DEFINITION OF MONEY
LAUNDERING

• Money laundering is a crime

ANTI-MONEY whereby the proceeds of an
LAUNDERING unlawful activity* as defined in
ACT (Republic the AMLA are transacted or
Act No. 9160, attempted to be transacted to
as amended) make them appear to have
originated from legitimate
sources.

*There is a list of crimes constituting unlawful activity (predicate crimes) for

money laundering. The unlawful activity is the offense which generates dirty
money or property (or the predicate crime).
 OFFENSES UNDER THE AMLA
• Knowingly transacting or attempting to transact any
money/property which represents, involves or relates to the
proceeds of an unlawful activity.
• Knowingly performing or failing to perform an act in relation to
any money/property involving the proceeds of any unlawful
activity as a result of which he facilitated the offense of money
laundering.
• Knowingly failing to disclose and file with the AMLC any report
ANTI-MONEY required to be disclosed and filed.

LAUNDERING OTHER PUNISHABLE ACTS

ACT (Republic • Failure to keep records (when a responsible official or employee
Act No. 9160, of a covered institution fails to maintain and safely store all
records of all transactions of said institution, including closed
as amended) accounts, for five years from the date of the transaction or
closure of account)
• Malicious reporting (when a person reports unwarranted or false
information relative to money laundering against any person)
• Breach of confidentiality (when a covered institution/its
officer/employee, when reporting a covered or suspicious
transaction to the AMLC, communicates to any person the fact
that such report was made, the contents thereof or any
information relating thereto)
 PREDICATE CRIMES
• Kidnapping
• Drug trafficking
• Graft & Corruption
• Plunder
• Robbery and Extortion
ANTI-MONEY
• Jueteng and Masiao
LAUNDERING
ACT (Republic • Piracy

Act No. 9160, • Qualified theft

as amended) • Swindling
• Smuggling
• Violations under the Electronic Commerce Act of
2000
 PREDICATE CRIMES
(cont’d)
• Hijacking; destructive arson; and murder, including those
perpetrated by terrorists against non-combatant persons and
similar targets
• Fraudulent practices and other violations under the Securities
Regulation Code of 2000

ANTI-MONEY • Felonies or offenses of a similar nature that are punishable

under the penal laws of other countries.
LAUNDERING • Terrorism financing and organizing or directing others to
ACT (Republic commit terrorism financing (R.A. 10168).

Act No. 9160, • Attempt/conspiracy to commit terrorism financing and

organizing or directing others to commit terrorism financing
as amended) (R.A. 10168).
• Tax evasion where the final assessment of deficiency basic tax is
in excess of P25M. (R.A. 11521)
• Attempt/conspiracy to commit dealing with property or funds of
designated person.
• Accomplice to terrorism financing or conspiracy to commit
terrorism financing.
• Accessory to terrorism financing.
 • Covered and suspicious transaction
reporting framework is one of the
cornerstones of the government’s
AML/CTF regime.
ANTI-MONEY • Covered Persons, as the first line of
defense against money
LAUNDERING laundering/terrorism financing, are
(LEGAL mandated to report all covered and
suspicious transactions to the AMLC.
FRAMEWORK RE These reports should be complete, accurate
AMLC and timely as they provide vital
REGISTRATION information for effective identification and
prevention of financial crime patterns and
AND REPORTING) trends through financial analysis.
• The result of the analysis on these reports
are essential in the investigation and
prosecution of cases as well as in assessing
ML/TF risks.
 COVERED AND SUSPICIOUS TRANSACTIONS
Covered transactions are single transactions in cash or
other equivalent monetary instrument involving a total
amount in excess of Five Hundred Thousand (P500,000)
Pesos within one (1) banking day. For casinos, the
threshold is a single casino cash transaction in excess of
P5M or its equivalent in any other currency. For RE
developers or brokers, the covered transaction is a single
cash transaction in excess of P7.5M.
Suspicious transactions are transactions with covered
institutions, regardless of the amounts involved, where
ANTI-MONEY any of the following circumstances exists:
LAUNDERING • there is no underlying legal/trade obligation, purpose or
economic justification or the client is not properly
ACT (Republic identified;
Act No. 9160, • the amount involved is not commensurate with the
as amended) business or financial capacity of the client;
• the transaction is structured to avoid being the subject
of reporting requirements under the AMLA;
• there is a deviation from the client’s profile/past
transactions;
• the transaction is related to an unlawful activity/offense
under the AMLA;
• and transactions similar or analogous to the above.
 REQUIRED TO REGISTER WITH AMLC
A. Banks, offshore banking units, quasi-banks, trust
entities, non-stock savings and loan associations,
pawnshops, foreign exchange dealers, money changers,
money remittance or transfer companies, electronic money
issuers and all other persons and entities supervised or
regulated by the BSP, including their subsidiaries and
affiliates
B. Insurance companies, insurance agents, insurance
brokers, professional reinsurers, reinsurance brokers,
holding companies Insurers, holding company systems,
ANTI-MONEY pre-need companies, mutual benefit associations and all
other persons and entities supervised and regulated by
LAUNDERING the Insurance Commission (IC).

ACT (Republic C. Covered Persons Supervised or Regulated by the

Securities and Exchange Commission (SEC) such as:
Act No. 9160, • Securities dealers, brokers, salesmen, investment
as amended) houses and other similar persons managing securities
or rendering services as investment agent, advisor, or
consultant;
• Mutual funds, close-end investment companies,
common trust funds, and other similar persons; and
• 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 SEC.
 REQUIRED TO REGISTER WITH AMLC (continued)
D. Businesses and Professions (Designated Non-Financial
Businesses and Professions or DNFBPs)
1. Jewelry dealers in precious metals, who, as a business, trade
in precious metals;
2. Jewelry dealers in precious stones, who, as a business, trade
in precious stones;
3. Company service providers which, as a business, provide
any of the following services to third parties:
ANTI-MONEY a. acting as a formation agent of juridical persons;

LAUNDERING b. 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;
ACT (Republic c. providing a registered office; business address or accommodation,
correspondence or administrative address for a company, a partnership
Act No. 9160, or any other legal person or arrangement; and

as amended) d. acting as (or arranging for another person to act as) a nominee
shareholder for another person.

E. Persons who provide any of the following services other

than those supervised and regulated by the BSP, SEC and IC:
a. Managing of client money, securities or other assets
b. Management of bank, savings or securities accounts;
c. Organization of contributions for the creation, operation or management of
companies; and
d. Creation, operation or management of juridical persons or arrangements, and
buying and selling business entities.
 OBLIGATIONS OF
REPORTING/COVERED
INSTITUTIONS
ANTI-MONEY
LAUNDERING
ACT (Republic
Customer Identification
(Know Your Customer or
Act No. 9160, ‘KYC’)
as amended) Recordkeeping
Reporting of Covered and
Suspicious Transactions
 BASIC REQUIREMENTS FOR
AMLA REPORTING/COVERED
INSTITUTIONS
ANTI-MONEY
LAUNDERING
ACT (Republic ANTI-MONEY LAUNDERING
OPERATING MANUAL (MTPP
Act No. 9160, now)
as amended) AMLA REPORTS ON
COVERED AND SUSPICIOUS
TRANSACTIONS
 REMEDIES UNDER THE AMLA
• Bank Inquiry (AMLC may examine
particular deposits or investments with
any banking institution or non-bank
ANTI-MONEY financial institution upon order of any
competent court for violations of the
LAUNDERING AMLA when it is established that there
ACT (Republic is a probable cause that the deposits or
investments are involved in a money
Act No. 9160, laundering offense)
as amended) • Freeze Order (AMLC may petition, ex
parte, with the Court of Appeals; such
freeze order may be effective for 20 days,
unless extended by the court)
• Asset Forfeiture
 REMEDIES UNDER THE AMLA
• NOTE ORIGINAL:
Bank Inquiry (AMLC may examine
particular deposits or investments with any
banking institution or non-bank financial
institution upon order of any competent court
for violations of the AMLA when it is
established that there is a probable cause
ANTI-TERROR LAW that the deposits or investments are involved
in a money laundering offense)
(RA 11479)
AMENDMENTS TO • UNDER ANTI-TERROR LAW
AMENDMENT
THE AMLA
AMLC, on its own initiative or at request of
Anti-Terror Council (ATC), is authorized to
investigate property or funds related to
financing of terrorism and for this purpose is
authorized to inquire into or examine
deposits and investments WITHOUT A
COURT ORDER.
 REMEDIES UNDER THE AMLA
• NOTE ORIGINAL:
Freeze Order: The AMLC may petition, ex
parte, with the Court of Appeals; such freeze
order may be effective for 20 days, unless
extended by the court)
NO FREEZE ORDER without court
intervention.
ANTI-TERROR LAW • UNDER ANTI-TERROR LAW
AMENDMENT
(RA 11479)
AMENDMENTS TO The AMLC may, upon its own initiative or at
request of ATC, issue an ex parte order to
THE AMLA freeze without delay any property or funds
related to financing of terrorism. The freeze
order shall be effective for 20 days but may be
extended to 6 months by the Court of Appeals,
at the application of AMLC. The twenty day
period shall be tolled upon filing of petition to
extend the freeze order.
FREEZE ORDER may be issued WITHOUT
COURT INTERVENTION
 SALIENT CHANGES
• Added real estate developers and
brokers, offshore gaming operators
(POGOs) and their service providers
as Covered Persons;
RA 11521 • For RE developers and brokers,
AMENDMENTS TO covered transactions are cash
THE AMLA transactions in excess of P7.5M.
• Enable AMLC to apply with the
court for a search and seizure order
and/or subpoena, in the conduct of
its investigation of suspicious
transactions.
Practical Implications of AMLA?
• Very detailed KYC forms
in banks and other
financial institutions
• Getting (almost) intrusive
questions when you
withdraw or deposit
significant amount of
money
• Restrictions on bringing
currencies in or out of the
country
THANK YOU.