The Anti-Money Laundering Council of the Philippines (AMLC) is a government agency established to

combat money laundering and other financial crimes in the country. It was created to implement the
provisions of the Anti-Money Laundering Act of 2001, which aims to prevent the use of the Philippine
financial system for money laundering purposes.

The AMLC is composed of three key government institutions as members: the Bangko Sentral ng Pilipinas
(BSP), the Securities and Exchange Commission (SEC), and the Insurance Commission (IC). These
institutions work together to formulate policies, guidelines, and regulations to effectively address money
laundering issues in the Philippines.

History of the AML Council of the Philippines

The AMLC was established in 2001 through the enactment of the Anti-Money Laundering Act. The
Philippines recognized the need to strengthen its efforts in combating money laundering, especially with
the rise of international organized crime and the increasing complexity of financial transactions.

By establishing the AMLC, the Philippine government aimed to enhance its ability to investigate and
prosecute money laundering cases, as well as to cooperate with international organizations and other
countries in the fight against financial crimes.

Role of the Anti-Money Laundering Council of the Philippines

The primary role of the AMLC is to implement and enforce the Anti-Money Laundering Act in the
Philippines. It has the authority to receive, analyze, and investigate suspicious transaction reports (STRs)
and currency transaction reports (CTRs) from covered institutions, such as banks, money remittance
companies, and casinos.

The AMLC also collaborates with local and international law enforcement agencies, financial intelligence
units, and other relevant organizations to exchange information and coordinate efforts in combating
money laundering and terrorist financing activities.

Guiding Policies of Anti-Money Laundering Council

The AMLC places great importance on its guiding policies, which are designed to ensure the effective
implementation of anti-money laundering measures in the Philippines. These policies are crucial in
combating money laundering and other financial crimes.

 One of the key policies followed by the AMLC is the adoption of risk-based approaches. This
means that the Council assesses the level of risk associated with each financial institution and
transaction, and allocates its resources accordingly. By focusing on high-risk areas, the AMLC can
prioritize its efforts and target its investigations where they are most needed.

 Another important policy is customer due diligence. The AMLC requires covered institutions to
conduct thorough checks on their customers to verify their identities and assess the risks of
potential money laundering activities. This helps ensure that financial institutions are aware of
who they are dealing with and can detect any suspicious behaviour.

 Record-keeping requirements are also a crucial aspect of the AMLC's policies. Covered
institutions are required to maintain detailed records of their transactions and customer
 information. These records serve as a valuable source of information for investigations and can
help trace the flow of illicit funds.

 Furthermore, the freezing and forfeiture of assets involved in money laundering activities is an
essential policy of the AMLC. When suspicious activities are detected, the Council has the
authority to freeze the assets involved, preventing further illicit transactions. If a case is proven,
the assets can be forfeited, ensuring that criminals do not benefit from their illegal activities.

By adhering to these guiding policies, the AMLC ensures that the fight against money laundering is
conducted in a comprehensive and effective manner. These policies provide a framework for the
Council's operations and enable it to carry out its responsibilities successfully. Ultimately, they contribute
to the overall goal of safeguarding the integrity of the Philippine financial system and protecting it from
abuse by criminals.

The AMLC also promotes awareness and education on anti-money laundering and terrorist financing
among covered institutions and the general public to enhance the overall vigilance and understanding of
these issues.

Organizational Structure of the AMLC

The AMLC is composed of a Secretariat that provides administrative and operational support to the
Council. The anti-money laundering Council Secretariat is headed by an Executive Director and is
responsible for receiving, analyzing, and disseminating information related to money laundering and
terrorist financing activities.

The Council itself is chaired by the Governor of the Bangko Sentral ng Pilipinas and is composed of the
heads of the Securities and Exchange Commission and the Insurance Commission. This structure ensures
coordination and collaboration among the key institutions involved in combating money laundering in
the Philippines.

How does the AML Council Prevent Financial Crimes?

To effectively prevent financial crimes, the AMLC employs a comprehensive range of measures that
specifically target money laundering and terrorist financing activities.

 One of the key measures employed by the AMLC is the continuous monitoring of financial
transactions within the Philippine financial system. This involves the use of sophisticated
technology and data analysis tools to detect any suspicious activities that may indicate potential
money laundering or terrorist financing.

 The AMLC also places a strong emphasis on the identification and verification of customer
identities. Covered institutions are required to conduct thorough checks on their customers to
ensure their identities are legitimate and to assess the risks of potential money laundering
activities. This includes verifying customer information, such as their name, address, and source
of funds, to ensure that they are not involved in any illicit activities.

 The AMLC emphasizes the importance of reporting suspicious transactions. Covered institutions
are required to submit suspicious transaction reports (STRs) to the AMLC whenever they
encounter any transactions that appear to be unusual or suspicious. These reports provide
 valuable information that can help the AMLC identify potential money laundering activities and
take appropriate action.

 The AMLC has the authority to freeze and forfeit assets that are involved in money laundering.
When suspicious activities are detected, the AMLC can freeze the assets involved, thereby
preventing further illicit transactions. If a case is proven, the assets can be forfeited, ensuring
that criminals do not benefit from their illegal activities and that the proceeds of crime are
confiscated.

By employing these various measures, the AMLC aims to create a robust and effective system that can
effectively combat money laundering and terrorist financing activities. The monitoring of financial
transactions, the identification and verification of customer identities, the reporting of suspicious
transactions, and the freezing and forfeiture of assets all play crucial roles in deterring and preventing
financial crimes in the Philippines. Through these measures, the AMLC works towards safeguarding the
integrity of the Philippine financial system and protecting it from abuse by criminals.
Rationale for Enacting the Law

The Philippines, while striving to sustain economic development and poverty alleviation through, among
others, corporate governance and public office transparency, must contribute its share and play a vital
role in the global fight against money laundering. Hence, the compelling need to enact responsive anti-
money laundering legislation in order to establish and strengthen an anti-money laundering regime in
the country which will not only increase investor’s confidence but also ensure that the Philippines is not
used as a site to launder proceeds of unlawful activities.

History of the Act

Republic Act No. 9160 otherwise known as The Anti-Money Laundering Act of 2001 was signed into law
on September 29, 2001 and took effect on October 17, 2001. The implementing Rules and Regulations
took effect on April 2, 2002. On March 7, 2003, R.A. No. 9194 (An Act Amending R.A. No. 9160) was
signed into law and took effect on March 23, 2003. The revised Implementing Rules and Regulations took
effect on September 7, 2003.

Salient Features

 Criminalizes money laundering

 Creates a financial intelligence unit

 Imposes requirements on customer identification, record keeping and reporting of covered and
suspicious transactions

 Relaxes strict bank deposits secrecy laws

 Provides for bank inquiry and freeze ex parte petition/seizure/forfeiture/recovery of dirty

money/property

 Provides for international cooperation

Money Laundering is a crime whereby the proceeds of an unlawful activity as defined in the AMLA are
transacted or attempted to be transacted to make them appear to have originated from legitimate
sources.

Money Laundering Offenses and Penalties

 Knowingly transacting or attempting to transact any monetary instrument/property which

represents, involves or relates to the proceeds of an unlawful activity. Penalty is 7 to 14 years
 imprisonment and a fine of not less than P3M but not more than twice the value of the
monetary instrument/property.

 Knowingly performing or failing to perform an act in relation to any monetary

instrument/property involving the proceeds of any unlawful activity as a result of which he
facilitated the offense of money laundering. Penalty is 4 to 7 years imprisonment and a fine of
not less than P1.5M but not more than P3M.

 Knowingly failing to disclose and file with the AMLC any monetary instrument/property required
to be disclosed and filed. Penalty is 6 months to 4 years imprisonment or a fine of not less than
P100,000 but not more than P500,000, or both.

Unlawful Activity is the offense which generates dirty money or property. It is commonly called
the predicate crime. It refers to any act or omission or series or combination thereof involving or
having direct relation to the following:

Predicate Crimes/Unlawful Activities

 Kidnapping for ransom

 Drug trafficking and related offenses

 Graft and corrupt practices

 Plunder

 Robbery and Extortion

 Jueteng and Masiao

 Piracy

 Qualified theft

 Swindling

 Smuggling

 Violations under the Electronic Commerce Act of 2000

 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

 Felonies or offenses of a similar nature that are punishable under the penal laws of other
countries.

 Terrorism financing and organizing or directing others to commit terrorism financing (R.A.
10168).
  Attempt/conspiracy to commit terrorism financing and organizing or directing others to commit
terrorism financing (R.A. 10168).

 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.

Other Offenses/Penalties

Failure to keep records is committed by any responsible official or employee of a covered institution who
fails to maintain and safely store all records of all transactions of said institution, including closed
accounts, for five (5) years from the date of the transaction/closure of the account. Penalty is 6 months
to 1 year imprisonment or a fine of not less than P100,000 but not more than P500,000, or both.

Malicious reporting is committed by any person who, with malice or in bad faith, reports/files a
completely unwarranted or false information relative to money laundering transaction against any
person. Penalty is 6 months to 4 years imprisonment and a fine of not less than P100,000 but not more
than P500,000, at the discretion of the court. The offender is not entitled to avail the benefits of the
Probation Law.

 If the offender is a corporation, association, partnership or any juridical person, the penalty shall
be imposed upon the responsible officers, as the case may be, who participated in, or
allowed by their gross negligence, the commission of the crime.

 If the offender is a juridical person, the court may suspend or revoke its license.

 If the offender is an alien, he shall, in addition to the penalties prescribed, be deported without
further proceedings after serving the penalties prescribed.

 If the offender is a public official or employee, he shall, in addition to the penalties prescribed,
suffer perpetual or temporary absolute disqualification from office, as the case may be.

Breach of confidentiality. When reporting covered or suspicious transactions to the AMLC, covered
institutions and their officers/employees are prohibited from communicating directly or indirectly, in any
manner or by any means, to any person/entity/media, the fact that such report was made, the contents
thereof, or any other information in relation thereto. In case of violation thereof, the concerned official
and employee of the covered institution shall be criminally liable. 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 a breach of confidentiality published or reported by media, the responsible reporter, writer,
president, publisher, manager and editor-in-chief shall also be held criminally liable. Penalty is 3 to 8
years imprisonment and a fine of not less than P500,000 but not more than P1M.