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Amla

The Anti-Money Laundering Act (AMLA) of 2001 aims to prevent the Philippines from becoming a money laundering haven and protect the financial system's integrity. It mandates covered institutions, including banks and casinos, to report suspicious transactions and comply with customer due diligence protocols. The AMLC enforces the act, with penalties for money laundering offenses and non-compliance, while ensuring international cooperation to combat cross-border money laundering.

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Lovenia M. Ferrer
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16 views3 pages

Amla

The Anti-Money Laundering Act (AMLA) of 2001 aims to prevent the Philippines from becoming a money laundering haven and protect the financial system's integrity. It mandates covered institutions, including banks and casinos, to report suspicious transactions and comply with customer due diligence protocols. The AMLC enforces the act, with penalties for money laundering offenses and non-compliance, while ensuring international cooperation to combat cross-border money laundering.

Uploaded by

Lovenia M. Ferrer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Summary Notes: Anti-Money Laundering Act (AMLA) of 2001

(Republic Act No. 9160, as amended by R.A. 9194, 10167, 10365, 10927, and others)

Purpose and Policy

• AMLA aims to prevent the Philippines from becoming a money laundering haven.

• It seeks to protect the integrity and stability of the financial system.

• Supports the country’s commitment to international anti-money laundering and anti-


terrorism financing standards.

Definition of Money Laundering

Money laundering is a crime where someone attempts to hide, disguise, or clean the proceeds
of illegal activities to make them appear legitimate.

Covered Institutions

• Banks and non-bank financial institutions.

• Insurance companies, securities dealers, and investment houses.

• Jewelry dealers, real estate brokers, casinos, and similar businesses.

These institutions are required to report and monitor suspicious transactions.

Covered Transactions

• Any single transaction exceeding ₱500,000 (within one banking day).

• For casinos, any cash transaction exceeding ₱5,000,000 (or its equivalent in foreign
currency).

Suspicious Transactions

Transactions that raise red flags even if below the monetary threshold, such as:

• No clear legal or business purpose.

• Deviating from the customer’s known profile.


• Structuring transactions to avoid reporting.

• Inconsistent with the customer's financial capacity.

Obligations of Covered Institutions

1. Customer Due Diligence (CDD) — Know Your Customer (KYC) protocols.

2. Record-Keeping — Records must be kept for 5 years.

3. Report Suspicious and Covered Transactions to the Anti-Money Laundering Council


(AMLC) within 5 working days.

4. Confidentiality Rule — Reports and investigations are confidential to protect both


institutions and customers.

Anti-Money Laundering Council (AMLC)

• The primary government agency tasked with enforcing AMLA.

• Powers include:

o Investigating money laundering cases.

o Freezing and forfeiting assets.

o Coordinating with international bodies.

Penalties

• For Money Laundering Offense:

o Imprisonment of 7 to 14 years.

o Fine of ₱3 million to twice the value of the laundered property.

• For Failure to Report/Compliance by Covered Institutions:

o Fines and administrative sanctions.

o Possible criminal liability for responsible officers.

International Cooperation

• The Philippines complies with the Financial Action Task Force (FATF) standards.
• The AMLC can share information and cooperate with foreign financial intelligence units
to combat cross-border money laundering.

Key Takeaways

• AMLA creates a strong regulatory framework against the concealment of illegal wealth.

• Institutions must follow reporting, record-keeping, and due diligence requirements.

• The AMLC plays a central role in the detection, investigation, and prosecution of money
laundering cases.

• Money laundering can happen across various sectors, not just banks.

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