AMLA

• Money laundering


  An act or series or combination of acts whereby proceeds of an unlawful activity, whether in cash, property or other assets, are converted, concealed or disguised to make them appear to have originated from legitimate sources
• One way of laundering money is through the financial system
• Republic Act No. 9160 (The Anti-Money Laundering Act of 2001)


  Defined money laundering as a scheme whereby proceeds of an unlawful activity are transacted or attempted to be transacted, thereby making them appear to have originated from legitimate sources
• The government enacted Republic Act (R.A.) No. 9160 (The Anti-Money Laundering Act of 2001), which took effect on 17 October 2001
• Certain provisions of AMLA were amended by R.A. No. 9194 (An Act Amending R.A. 9160) effective 23 March 2003
• The government has also issued the Revised Implementing Rules and Regulations (RIRR) implementing R.A. No. 9160, as amended
• Unlawful activities or predicate crimes covered by the AMLA


  • Kidnapping for ransom
  • Drug offenses
  • Graft and corrupt practices
  • Plunder
  • Robbery and extortion
  • Jueteng and masiao
  • Piracy on the high seas
  • Qualified theft
  • Swindling
  • Smuggling
  • Electronic Commerce crimes
  • Hijacking, destructive arson and murder, including those perpetrated against non-combatant persons (terrorist acts)
  • Securities fraud
  • Felonies or offenses of a similar nature punishable under penal laws of other countries
• How money is laundered through the financial system

  1. Placement - Involves initial placement or introduction of the illegal funds into the financial system

  2. Layering - Involves a series of financial transactions during which the dirty money is passed through a series of procedures, putting layer upon layer of persons and financial activities into the laundering process (e.g. wire transfers, use of shell corporations)

  3. Integration - The money is once again made available to the criminal with the occupational and geographic origin obscured or concealed. The laundered funds are now integrated back into the legitimate economy through the purchase of properties, businesses and other investments
• Money laundering allows criminals to preserve and enjoy the proceeds of their crimes, thus providing them with the incentives and the means to continue their illegal activities
• Organized crime, through money laundering, is known to have the capacity to destabilize governments and undermine their financial systems
• Money laundering is a threat to national security
• Salient features of the AMLA law


  • It criminalizes money laundering and provides penalties for its commission, including hefty fines and imprisonment
  • It creates an Anti-Money Laundering Council (AMLC) that is tasked to oversee the implementation of the law and to act as a financial intelligence unit
  • It relaxes the bank deposit secrecy laws authorizing the AMLC and the Bangko Sentral ng Pilipinas access to deposit and investment accounts in specific circumstances
  • It requires covered institutions to report covered and suspicious transactions and to cooperate with the government in prosecuting offenders
  • It establishes procedures for international cooperation and assistance in the apprehension and prosecution of money laundering suspects
• Anti-Money Laundering Council (AMLC)


  The Philippines' financial intelligence unit, tasked to implement the AMLA
• Powers of the AMLC

  • Require and receive covered or suspicious transaction reports from covered institutions
  • Issue orders to determine the true identity of the owner of any monetary instrument or property that is the subject of a covered or suspicious transaction report
  • Institute civil forfeiture and all other remedial proceedings through the Office of the Solicitor General
  • Cause the filing of complaints with the Department of Justice or the Ombudsman for the prosecution of money laundering offenses
  • Investigate suspicious transactions, covered transactions deemed suspicious, money laundering activities and other violations of the AMLA
  • Secure the order of the Court of Appeals to freeze any monetary instrument or property alleged to be the proceeds of unlawful activity
  • Implement such measures as may be necessary and justified to counteract money laundering
  • Receive and take action on any request from foreign countries for assistance in their own anti-money laundering operations
  • Develop educational programs to make the public aware of the pernicious effects of money laundering
  • Enlist the assistance of any branch of government for the prevention, detection and investigation of money laundering offenses
  • Impose administrative sanctions on those who violate the law
• Covered institutions


  • Banks, offshore banking units, quasi-banks, trust entities, non-stock savings and loan associations, pawnshops, and all other institutions supervised and/or regulated by the Bangko Sentral ng Pilipinas (BSP)
  • Insurance companies, holding companies and all other institutions supervised or regulated by the Insurance Commission (IC)
  • Securities dealers, brokers, pre-need companies, foreign exchange corporations, investment houses, trading advisers, as well as other entities supervised or regulated by the Securities and Exchange Commission (SEC)
• Covered transactions


  Transactions in cash or other equivalent monetary instruments involving a total amount in excess of P500,000.00 within one business day
• Suspicious transactions


  Transactions, regardless of the amount involved, where there is no underlying legal or trade obligation, purpose or economic justification; the client is not properly identified; the amount involved is not commensurate with the business or financial capacity of the client; the transaction is observed to deviate from the profile of the client and/or the client's past transactions; the transaction is in any way related to an unlawful activity or offense under the AMLA
• Covered institutions shall report to the AMLC all covered transactions and suspicious transactions within five working days from occurrence thereof, unless the Supervision Authority prescribes a longer period not exceeding ten working days
• If a transaction is determined to be both a covered transaction and a suspicious transaction, it shall be reported as suspicious transaction
• How reporting is done


  The reports on covered and/or suspicious transactions shall be accomplished in the prescribed formats and submitted within five business days from occurrence of the transactions in a secured manner to the AMLC in electronic form, either via diskettes, leased lines, or through internet facilities. The corresponding hard copy for suspicious transactions shall be sent to AMLC
• Other offenses punishable under the AMLA

  • Failure to keep records - penalty is 6 months to 1 year imprisonment or a fine of not less than P100,000.00 but not more than P500,000.00, or both
  • Malicious reporting - penalty is 6 months to 4 years imprisonment and a fine of not less than P100,000.00 but not more than P500,000.00
  • Breach of Confidentiality - penalty is 3 to 8 years imprisonment and a fine of not less than P500,000.00 but not more than P1 million
  • Administrative offenses - the AMLC can impose fines from P100,000.00 to P500,000.00
• Monetary instrument


  Coins or currency of legal tender, drafts, checks and notes, securities or negotiable instruments, and other similar instruments where title thereto passes to another by endorsement, assignment or delivery
• Offender


  Any person who commits a money laundering offense
• Person


  Any natural or juridical person
• Proceeds


  An amount derived or realized from an unlawful activity
• Supervising Authority


  The appropriate supervisory or regulatory agency, department or office supervising or regulating the covered institutions
• Transaction


  Any act establishing any right or obligation or giving rise to any contractual or legal relationship between the parties thereto, including any movement of funds by any means with a covered institution
• Unlawful activity


  Any act or omission or series or combination thereof
• Suggested readings: http://www.amlc.gov.ph/laws/money-laundering/2015-10-16-02-50-56/republic-act-9160