AMLA

• Anti-Money Laundering Law (AMLA)


  R.A. 9160 or Anti-Money Laundering Act of 2001 as amended by R.A. 9194 and R.A. 10168 or Terrorism Financing Prevention and Suspension Act of 2012 and RA 10365 or An Act Further Strengthening the Anti-Money Laundering Law
• Violations covered by AMLA

  • Violations of the Philippine Fisheries Code of 1998 (R.A. No. 8550)
  • Violations of the Philippine Mining Act of 1995 (R.A. No. 7942)
  • Violations of the Wildlife Resources Conservation and Protection Act (R.A. No. 9147)
  • Violations of the National Caves and Cave Resources Management Protection Act (R.A. No. 9072)
  • Carnapping (R.A. No. 6539)
  • Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or Disposition of Firearms, Ammunitions and Explosives (PD 1866)
  • Fencing (PD 1612)
  • Illegal Recruitment (R.A. No. 8042)
  • Violations of the Intellectual Property Code
  • Voyeurism (R.A. No. 9995)
  • Child Pornography (R.A. No. 9775)
• Declaration of Policy


  It is hereby declared the policy of the State to protect and preserve the integrity and confidentiality of bank accounts to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity. Consistent with its foreign policy, the Philippines shall extend cooperation in transnational investigations and prosecutions of persons involved in money laundering activities wherever committed.
• Money Laundering


  Transacts said monetary instrument or property; Converts, transfers, dispose of, moves, acquires, possesses or uses said monetary instruments or property or proceeds of any unlawful activity; Conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said monetary, instruments or property or proceeds of unlawful activity; Attempts or conspires to commit Money Laundering referred to in par. 1), 2) & 3); Aids, abets, assists in or counsels the commission of the Money Laundering offenses referred to in par. 1), 2), & 3) in par. 1), 2) & 3) above; or Any covered persons who, knowing that a covered or suspicious transaction is required under the AMLA to be reported to the AMLC, fails to do so.
• Predicate Crimes of Money Laundering

  • Kidnapping for ransom under the Revised Penal Code (RPC)
  • Drug Trafficking and other violations of the Comprehensive Dangerous Drugs Act of 2002
  • Child Prostitution, Trafficking, and other forms of Abuse (R.A. No. 7610)
  • Fraudulent practices and other violations of the Securities Regulation Code (R.A. No. 8799)
  • Felonies or offenses of a similar nature that are punishable under the penal laws of other countries
  • Graft and Corruption (R.A. No. 3019, as amended)
  • Plunder (R.A. No. 7080, as amended)
  • Robbery and extortion (RPC)
  • Jueteng and Masiao (PD 1602)
  • Piracy (RPC & PD 532)
  • Qualified Theft (RPC)
  • Swindling/Estafa (RPC)
  • Smuggling (R.A. Nos. 455 & 1937)
  • Violating of Electronic Commerce Act of 2000 (R.A. No. 8792)
  • Hijacking (R.A. No. 6235), Destructive Arson and Murder (RPC)
  • Terrorism and Conspiracy to Commit Terrorism (R.A. No. 9372)
  • Financing and Terrorism (R.A. No. 10168)
  • Bribery and Corruption of Public Officers (RPC)
  • Frauds and Illegal Exactions and Transactions (RPC)
  • Malversation of Public Funds (RPC)
  • Forgeries and Counterfeiting (RPC)
  • Trafficking in Persons (R.A. No. 9208)
  • Violations of the Revised Forestry Code (PD 705)
• Covered Transactions

  Transactions involving covered persons that breached the quantitative threshold provided by AMLA for reporting purposes to AMLC and therefore must be reported by covered persons to AMLC
• Suspicious Transactions


  Transactions that do not breach the quantitative threshold provided by AMLA for reporting purposes to AMLC but must still be reported to AMLC by covered persons because of the suspicious nature of the transactions
• Amount of Covered Transactions for Reporting to AMLC

  A transaction in cash or other equivalent monetary instrument exceeding Five Hundred Thousand pesos (P500,000.00). A transaction exceeding One Million Pesos (P1,000,000.00) in cases of jewelry dealers, dealers in precious metals and dealers in precious stones. A Single Casino Cash Transaction involving an amount in excess of Five Million Pesos (P5,000,000.00) or its equivalent in any other currency.
• Suspicious Transactions that shall also be reported to AMLC

  • 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; Taking into account all known circumstances, it may be perceived that the client's transaction is structured in order to avoid being the subject of reporting requirements under the AMLA; Any circumstances relating to the transaction which is observed to deviate from the profile of the client and/or the client's past transactions with the covered person; The transaction is in any way related to an unlawful activity or any money laundering activity or offense that is about to be committed, is being or has been committed; or Any transaction that is similar, analogous or identical to any of the foregoing.
• Covered Persons required to report to AMLC

  • Banks
  • Non-banks
  • Quasi-banks
  • Trust entities
  • Nonstock savings and loan associations
  • Foreign exchange dealers
  • Electronic money issuers
  • Pawnshops
  • Money changers
  • Remittance and transfer companies
  • All other persons and their subsidiaries and affiliated supervised or regulated by the BSP
  • Insurance companies
  • Pre-need companies
  • Insurance agents
  • Insurance brokers
  • Professional reinsurers
  • Holding companies
  • Holding company systems
  • Mutual benefit associations
  • All other persons in their subsidiaries and affiliated supervised or regulated by the Insurance Commission
  • Securities dealers, brokers, salesmen, investment houses, and other similar persons managing securities or rendering services such as investment agents
  • Mutual funds or open-end companies, close-end investment, investment companies or issuers and other similar entities
  • Other entities administering or otherwise dealing in commodities, or financial derivatives based thereon, valuable objects, cash substitutes and other similar monetary instruments or properties supervised and regulated by the SEC
  • Jewelry dealers, dealers in precious metals, and dealers in precious stones for transactions in excess of P1,000,000
  • Land Registration Authority and all of its Register of Deeds on all real estate transaction with price exceeding P500,000.00
  • Casino refers to a business authorized by the appropriate government agency to engage in gaming operations for single casino transactions in excess of P5,000,000.00
  • Internet-based casino
  • Ship-based casino
  • Company service providers to 3rd parties including CPAs and Lawyers
• Persons excluded from reporting covered transactions or suspicious transactions to AMLC

  • Lawyers if acting as independent legal professionals in relation to information concerning their clients or where disclosure of information would compromise client confidence or the attorney-client relationship
  • Certified public accountants if acting as independent legal professionals in relation to information concerning their clients or where disclosure of information would compromise client confidences or the CPA-client relationship
• Jurisdiction over Money Laundering Cases

  Regional Trial Court - The regional trial courts shall have the jurisdiction to try money laundering cases committed by private individuals, and public officers not covered by the jurisdiction of the Sandiganbayan. Sandiganbayan - The Sandiganbayan shall have jurisdiction to try money laundering cases committed by public officers under its jurisdiction, and private persons who are in conspiracy with such public officers.
• Prosecution of Money Laundering Cases

  Independent Proceedings - The prosecution of money laundering and the unlawful activity shall proceed independently. Any person maybe charged with and convicted to both money laundering and the unlawful activity. Separate and Distinct Elements - The elements of money laundering are separate and distinct from elements of the unlawful activity. The elements of the unlawful activity, including the identity of the perpetrators and the details of the commission of the unlawful activity, need not be established by proof beyond reasonable doubt in the case of money laundering. Knowledge - The elements of knowledge may be established by direct or circumstantial evidence.
• Anti-Money Laundering Council (AMLC)

  The financial intelligence unit of the Republic of the Philippines which is the government agency tasked to implement the AMLA. Composition - Chairperson (BSP Governor), Member (Insurance Commissioner), Member (SEC Chairperson). Unanimous Decision - the AMLC shall act unanimously in discharging its functions.
• Preventive Measures include Customer Due Diligence by covered persons
• Money laundering


  The process of concealing the origins, ownership, or destination of illegally obtained money
• This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to legal recourse.
• Knowledge


  The elements of knowledge may be established by direct or circumstantial evidence
• Anti-Money Laundering Council (AMLC)


  The financial intelligence unit of the Republic of the Philippines which is the government agency tasked to implement the Anti-Money Laundering Act (AMLA)
• Composition of Anti-Money Laundering Council

  • Chairperson - BSP Governor
  • Member - Insurance Commissioner
  • Member - SEC Chairperson
• Unanimous Decision

  The AMLC shall act unanimously in discharging its functions. In case of incapacity, absence, or disability of any member, the officer duly designated or authorized to discharge the functions of the Governor of the BSP, the Commissioner of the IC, and the Chairperson of the SEC, as the case may be, shall act in his stead in the AMLC.
• Preventive Measures

  • Customer Due Diligence
  • Customer Identification
  • Face-to-Face Contact
• Minimum Customer Information and Identification Documents

  • Name of customer
  • Date and place of birth
  • Name of beneficial owner; if applicable
  • Name of beneficiary (in case of insurance contracts or remittance transactions)
  • Present address
  • Permanent addresses
  • Contact number or information
  • Nationality
  • Specimen signatures or biometrics of the customer
  • Nature of work and name of employer or nature of self-employment business, if applicable
  • Sources of funds or property
  • Tax Identification Number (TIN), Social Security System, (SSS) number or Government Service Insurance System (GSIS) number, if applicable
• Prohibited Accounts

  • Anonymous Accounts and Accounts under Fictitious Names
  • Numbered Accounts
• Record Keeping

  • Covered persons shall maintain and safely store for five (5) years from the dates of transactions all records of customer identification and transaction documents of their customers or five (5) years from the date the account is closed
• Transaction Reporting

  1. Covered person shall report to the AMLC all covered transactions and suspicious transactions within five (5) working days, unless the AMLC prescribes a different period not exceeding fifteen (15) working days, from the occurrence thereof

  2. For Suspicious transaction, "occurrence" refers to the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding ten (10) calendar days from the date of transaction. However, if the transaction is in any way related to, or the person transacting is involved in or connected to, an unlawful activity or money laundering offense, the 10-day period for determination shall be reckoned from the date the covered person knew or should have known the suspicious transaction indicator.
• Safe Harbor Provision of AMLA


  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, whether or not such reporting results in any criminal prosecution under the AMLA or any other Philippine law.
• Freeze Order

  1. Upon verified ex parte petition by the AMLC and after determination that probable cause exists that any monetary instrument or property is in any way related to an unlawful activity, the Court of Appeals may issue a freeze order, which shall be effective immediately for a period of 20 days. Within 20-day period, the Court of Appeals shall conduct a summary hearing with notice to the parties, to determine whether or not to modify or lift the freeze order or to extend its effectivity.

  2. Freezing of Related Accounts and Materially-Linked Accounts

  3. The Court of Appeals shall resolve the petition to freeze within twenty-four (24) hours from filing thereof.

  4. The total period of the freeze order issued by the Court of Appeals under this provision shall not exceed six months. This is without prejudice to an asset preservation order that the Regional Trial Court having jurisdiction over the appropriate money-laundering case or civil forfeiture case may issue on the same accounting depending upon the circumstances of the case, where the Court of Appeals will remand the case and its records: Provided, that if there is no case filed against a person whose account has been frozen within the period determined by the Court of Appeals, no exceeding six months, the freeze order shall be deemed ipso lifted.
• Bank Inquiry with Court Order

  1. The AMLC may inquire into or examine any particular deposit or investment account, including related accounts, with any banking institution or non-bank financial institution, upon order by the Court of Appeals based on an ex parte application in cases of violation of the AMLA when it has been established that probable cause exists that the deposits or investments involved, including related accounts, are in any way related to an unlawful activity or a money laundering offense.

  2. The Court of Appeals shall resolve the application within twenty-four (24) hours from filing thereof.

  3. A court order ex parte must be obtained before the AMLC can inquire into the related accounts. The procedure for the ex parte application for an order of inquiry into the principal account shall be the same for that of the related accounts.

  4. The authority to inquire into or examine the main account and the related accounts shall comply with the requirements of Article III, Section 2 and 3 of the 1987 Constitution.
• Bank Inquiry without Court Order

  The AMLC shall issue a resolution authorizing the AMLC Secretariat to inquire into or examine any particular deposit or investment account, including related accounts, with any banking institution or non-bank financial institution and their subsidiaries and affiliates when it has been established that probable cause exists that the deposits or investments involved, including related accounts, are in any way related to any of the following unlawful activities: (Predicate crimes that may authorize AMLC to inquire bank accounts even without Court Order from Court of Appeals)
• Asset Forfeiture

  1. Civil Forfeiture - Upon determination that probable cause exists that any monetary instrument or property is in any way related to an unlawful activity or a money laundering offense, the AMLC shall file with the regional trial court, through the Office of the Solicitor General, a verified petition for civil forfeiture.

  2. No prior criminal charge, pendency of or conviction for an unlawful activity or money laundering offense is necessary for the commencement or the resolution of a petition for civil forfeiture.

  3. Where there is conviction for money laundering, the court shall issue a judgment of forfeiture in favor of the Government of the Philippines with respect to the monetary instrument or property found to be proceeds of an unlawful activity.