9160 AMLA

• SECTION 1. Short Title. – This Act shall be known as the“Anti-Money Laundering Act of 2001.”
• SEC. 2. Declaration of Policy. – It is hereby declared the policyof the State to protect and preserve the integrity and confidentiality ofbank accounts and to ensure that the Philippines shall not be used as amoney laundering site for the proceeds of any unlawful activity. Consistentwith its foreign policy, the State shall extend cooperation in transnationalinvestigations and prosecutions of persons involved in money launderingactivities wherever committed.
• SEC. 3. Definitions. – For purposes of this Act, the following

  terms are hereby defined as follows:

  (a) “Covered institution” refers to:

  (1) banks, non-banks, quasi-banks, trust entities, and all other

  institutions and their subsidiaries and affiliates supervised or regulated

  by the Bangko Sentral ng Pilipinas (BSP);
• (b) “Covered transaction” is a single, series, or combination of

  transactions involving a total amount in excess of Four million Philippine

  pesos (Php4,000,000.00) or an equivalent amount in foreign currency based

  on the prevailing exchange rate within five (5) consecutive banking days
• (c) “Monetary instrument” refers to:

  (1) coins or currency of legal tender of the Philippines, or of any

  other country;

  (2) drafts, checks and notes;
• (d) “Offender” refers to any person who commits a money

  laundering offense.

  (e) “Person” refers to any natural or juridical person.

  (f) “Proceeds” refers to an amount derived or realized from anunlawful activity.

  (g) “Supervising Authority” refers to the appropriate

  supervisory or regulatory agency, department or office supervising or

  regulating the covered institutions enumerated in Section 3(a).
• (h) “Transaction” refers to any act establishing any right or

  obligation or giving rise to any contractual or legal relationship between

  the parties thereto. It also includes any movement of funds by any means

  with a covered institution.

  (i) “Unlawful activity” refers to any act or omission or series or combination thereof involving or having relation to the following:

  (1) Kidnapping for ransom under Article 267 of Act No. 3815,otherwise known as the Revised Penal Code, as amended;
• SEC. 4. Money Laundering Offense. – Money laundering is acrime whereby the proceeds of an unlawful activity are transacted, therebymaking them appear to have originated from legitimate sources. It iscommitted by the following:
• SEC. 7. Creation of Anti-Money Laundering Council (AMLC).

  – The Anti-Money Laundering Council is hereby created and shall be

  composed of the Governor of the Bangko Sentral ng Pilipinas as chairman,

  the Commissioner of the Insurance Commission and the Chairman of the

  Securities and Exchange Commission as members. The AMLC shall act

  unanimously in the discharge of its functions as defined hereunder:\
• SEC. 8. Creation of a Secretariat. – The AMLC is hereby

  authorized to establish a secretariat to be headed by an Executive Director

  who shall be appointed by the Council for a term of five (5) years. He must

  be a member of the Philippine Bar, at least thirty-five (35) years of age and

  of good moral character, unquestionable integrity and known probity. All

  members of the Secretariat must have served for at least five (5) years
• SEC. 9. Prevention of Money Laundering; CustomerIdentification Requirements and Record Keeping. – (a) CustomerIdentification. - Covered institutions shall establish and record the trueidentity of its clients based on official documents. They shall maintain asystem of verifying the true identity of their clients and, in case of corporateclients, require a system of verifying their legal existence and organizationalstructure, as well as the authority and identification of all persons purportingto act on their behalf
• SEC. 11. Authority to Inquire into Bank Deposits. –Notwithstanding the provisions of Republic Act No. 1405, as amended;Republic Act No. 6426, as amended; Republic Act No. 8791, and otherlaws, the AMLC may inquire into or examine any particular deposit orinvestment with any banking institution or non-bank financial institutionupon order of any competent court in cases of violation of this Act whenit has been established that there is probable cause that the deposits orinvestments involved are in any way related to a money laundering offense
• SEC. 12 Forfeiture Provisions. –

  (a) Civil Forfeiture. - When there is a covered transaction report

  made, and the court has, in a petition filed for the purpose ordered seizure

  of any monetary instrument or property, in whole or in part, directly or

  indirectly, related to said report, the Revised Rules of Court on civil

  forfeiture shall apply.
• SEC. 13. Mutual Assistance among States. –

  (a) Request for Assistance from a Foreign State. - Where a

  foreign State makes a request for assistance in the investigation or

  prosecution of a money laundering offense, the AMLC may execute the

  request or refuse to execute the same and inform the foreign State of any

  valid reason for not executing the request or for delaying the execution

  thereof. The principles of mutuality and reciprocity shall, for this purpose,

  be at all times recognized.
• SEC. 14. Penal Provisions. – (a) Penalties for the Crime of Money

  Laundering. The penalty of imprisonment ranging from seven (7) to

  fourteen (14) years and a fine of not less than Three million Philippine

  pesos (Php 3,000,000.00) but not more than twice the value of the monetary

  instrument or property involved in the offense, shall be imposed upon a

  person convicted under Section 4(a) of this Act.
• SEC. 15. System of Incentives and Rewards. – A system of special

  incentives and rewards is hereby established to be given to the appropriate

  government agency and its personnel that led and initiated an investigation,

  prosecution and conviction of persons involved in the offense penalized

  in Section 4 of this Act.
• SEC. 16. Prohibitions Against Political Harassment. – This Actshall not be used for political persecution or harassment or as an instrumentto hamper competition in trade and commerce.
• SEC. 17. Restitution. – Restitution for any aggrieved party shallbe governed by the provisions of the New Civil Code.
• SEC. 18. Implementing Rules and Regulations. – Within thirty

  (30) days from the effectivity of this Act, the Bangko Sentral ng Pilipinas,

  the Insurance Commission and the Securities and Exchange Commission

  shall promulgate the rules and regulations to implement effectively the

  provisions of this Act. Said rules and regulations shall be submitted to the

  Congressional Oversight Committee for approval
• SEC. 20. Appropriations Clause. – The AMLC shall be providedwith an initial appropriation of Twenty-five million Philippine pesos(Php25,000,000.00) to be drawn from the national government.Appropriations for the succeeding years shall be included in the GeneralAppropriations Act.
• SEC. 19. Congressional Oversight Committee. – There is herebycreated a Congressional Oversight Committee composed of seven (7)members from the Senate and seven (7) members from the House ofRepresentatives. The members from the Senate shall be appointed by theSenate President based on the proportional representation of the partiesor coalitions therein with at least two (2) Senators representing the minority.
• SEC. 21. Separability Clause. – If any provision or section ofthis Act or the application thereof to any person or circumstance is held tobe invalid, the other provisions or sections of this Act, and the applicationof such provision or section to other persons or circumstances, shall notbe affected thereby.
• SEC. 22. Repealing Clause. – All laws, decrees, executive orders,rules and regulations or parts thereof, including the relevant provisions ofRepublic Act No. 1405, as amended; Republic Act No. 6426, as amended;Republic Act No. 8791, as amended and other similar laws, a
• SEC. 23. Effectivity. – This Act shall take effect fifteen (15) daysafter its complete publication in the Official Gazette or in at least two (2)national newspapers of general circulation.