AMLA (Anti-Money Laundering Act RA 9160 as Amended by RA 9194)

MONEY LAUNDERING

A crime whereby the proceeds of an ULA are transacted, thereby making them appear to have originated from legitimate sources.

A crime committed by any person knowing that any monetary instrument or property represents, involves or relates to, the proceeds of any
activity: *and does any of the PUTA CA F

PUTA CA F

1. Transacts or attempts to transact said monetary instrument or property;

2. Converts, moves, disposes of, possesses, uses transacts or acquires (CMDPUTA) said monetary instrument or property;

3. Conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights

4. Attempts or conspires to commit (1 to 3)

5. Aids, abets, assists in or counsels the commission of (1 to 3)

6. Performs or fails to perform any act as a result of which he facilitates the offense (1 to 3)

7. Failure to report to the AMLC by any covered person knowing that a covered or suspicious transaction is required under the AMLA to be
reported thereto

Purposes:

1. Aims to preserve confidentiality (bank secrecy) and integrity (legitimate accounts) of bank accounts

2. Gov’t aims to prevent the PH becoming a money laundering site

3. Cooperate in transnationals investigation and prosecution

Stages of Money Laundering

1. Placement – insertion of dirty money into a legitimate financial institution

2. Layering – series of transaction designed to erase the trace of ULA

3. Integration – the money can be used in legitimate-looking form as if it come from legitimate transaction

Preventive Measures

1. Customer identification – establish and record the true identity of its clients based on official docs

a. Prohibited accts – anonymous accounts under fictitious names shall be absolutely prohibited

b. Customer due diligence/Know your customer (KYC) – regulatory requirement for companies entering into business relationships with a
customer to help you verify your customers’ identities and assess their risk profiles.

2. Record keeping – all records of transactions of covered institutions shall be maintained and stored for 5 yrs from the date of transactions

3. Reportorial requirements

a. Covered transactions

GR: In excess of P500,000 within one (1) banking day

EX: In excess of P1,000,000 in case of jewelry dealers in precious stones/metals; In excess of P5,000,000 in case of casino

b. Suspicious transactions *Amount is immaterial

*file suspicious transaction reports within the next working day from the occurrence thereof

- no economic justification

- the client is not properly identified

- observed to deviate from customer profile

- the transaction is structured in order to avoid being the subject of reporting requirements

- transaction is any way related to money laundering

- any transaction that is similar or analogous to any of the foregoing

c. Realty transactions – in excess of P7,500,000 *Covered institutions – Land Registration Authority and Registry of Deeds

Covered Institutions

1. Financial institutions regulated and supervised by BSP, IC and SEC (See Section 3 (a) (1,2&3) Pg. 480-481

2. Designated Non-Financial Business and Profession

a. Jewelry dealers in precious stones/metals

b. Company service providers including CPA and Lawyers

c. Person providing services including CPA and lawyers

d. Securities dealers

e. Mutual funds

f. LRA and RoD

g. Foreign exchange

h. Casino

i. Real estate developers and brokers

j. Offshore gaming operators and their service providers (as amended by R.A. No. 11521)

EX: CPA and Lawyers acting as independent legal professionals

*no administrative, criminal or civil proceedings, shall lie against any person for having made a covered transaction report in the regular
performance of his duties and in good faith = Safe harbor provision

AMLC (Anti-Money Laundering Council)

Chairman: BSP Governor; Members: Commissioner of Insurance Commission; Chairman of SEC *shall act unanimously

Secretariat – office under the council – executive director appointed by the 3 - to aid the council in the exercise of its duties

Powers of AMLC

1. Empowered to file criminal cases

Filing – DOJ – done thru National Prosecution Service – Hearing in Reginal Trial Court; Ombudsman – Office of the Special Prosecutor – SB

2. Power to initiate forfeiture cases – proceeds or properties acquired from ULA shall be surrendered to the gov’t

a. Civil forfeiture (A.M. No. 05-11-04-SC) *filed separately (no need to file criminal case)

*to institute civil forfeiture proceedings and all other remedial proceedings through the Office of the Solicitor General (OSG = Lawyer of the ROP)

Criminal case = People of the PH v. Richmond Villanueva; Civil case = Republic of the PH v. Richmond Villanueva

3&4

Bank inquiry Freeze order

Freeze order – injunction granted by Court restraining a party from disposing or dealing with assets, including related web accounts

- shall be effective immediately for a period of 20 days (shall conduct summary hearing) unless extended by the Court of Appeals upon
application of AMLC

- it shall not exceed six (6) months *no case filed against a person whose assets are frozen = freeze order shall be deemed ipso facto lifted

Bank inquiry – W/o court order Section 3 (i)

1. Serious illegal detention (Kidnapping for ransom)

2. Violation of Comprehensive Dangerous Drugs Act (RA 9165)

12. Hijacking, destructive arson and murder

Similar. Felonies or offenses similar to 1,2 and 12 that are punishable under the foreign penal laws

ATA. Anti-Terrorism Act

TFPSA. Terrorism Financing Prevention and Suppression Act

Freeze order – W/o court order *N/A to AMLA

*ATA and TFPSA – 20 days and extendible by Court of Appeals upon application of AMLC

Commission of Money Laundering

1. When a covered person has a knowledge of reportable transaction and fails to do so

2. *See definition of ML and does any of the PUTA CA F

*When guilty in ML, forfeiture is included in the judgement of the Court *no need to file separate for forfeiture

When Election Period (90 days before the election and 30 days thereafter)

*Filing of ML case, civil forfeiture, freeze order case against candidates are PROHIBITED

Note: See Pg. 487-489 for amendments