Republic of the Philippines

another country which has not been authorized in

Congress of the Philippines
accordance with domestic law in either or both
Metro Manila
country/countries.
Fifteenth Congress
(e) Authority to import refers to a document issued by the
Third Regular Session
Chief of the Philippine National Police (PNP) authorizing
Begun and held in Metro Manila, on Monday, the twenty- the importation of firearms, or their parts, ammunition and
third day of July, two thousand twelve.
other components.
[REPUBLIC ACT NO. 10591]
(f) Authorized dealer refers to any person, legal entity,
AN ACT PROVIDING FOR A COMPREHENSIVE
corporation, partnership or business entity duly licensed by
LAW ON FIREARMS AND AMMUNITION AND
the Firearms and Explosive Office (FEO) of the PNP to
PROVIDING PENALTIES FOR VIOLATIONS
engage in the business of buying and selling ammunition,
THEREOF
firearms or parte thereof, at wholesale or retail basis.
Be it enacted by the Senate and House of Representatives (g) Authorized importer refers to any person, legal entity,
of the Philippines in Congress assembled:
corporation, partnership or business duly licensed by the
ARTICLE I
FEO of the PNP to engage in the business of importing
TITLE, DECLARATION OF POLICY AND
ammunition and firearms, or parts thereof into the territory
DEFINITION OF TERMS
of the Republic of the Philippines for purposes of sale or
SECTION 1. Short Title. This Act shall be known as the distribution under the provisions of this Act.
Comprehensive Firearms and Ammunition Regulation
(h) Authorized manufacturer refers to any person, legal
Act.
entity, corporation, or partnership duly licensed by the
SEC. 2. Declaration of State Policy. It is the policy of FEO of the PNP to engage in the business of
the State to maintain peace and order and protect the
manufacturing firearms, and ammunition or parts thereof
people against violence. The State also recognizes the right for purposes of sale or distribution.
of its qualified citizens to self-defense through, when it is (i) Confiscated firearm refers to a firearm that is taken into
the reasonable means to repel the unlawful aggression
custody by the PNP, National Bureau of Investigation
under the circumstances, the use of firearms. Towards this (NBI), Philippine Drug Enforcement Agency (PDEA), and
end, the State shall provide for a comprehensive law
all other law enforcement agencies by reason of their
regulating the ownership, possession, carrying,
mandate and must be necessarily reported or turned over to
manufacture, dealing in and importation of firearms,
the PEO of the PNP.
ammunition, or parts thereof, in order to provide legal
(j) Demilitarized firearm refers to a firearm deliberately
support to law enforcement agencies in their campaign
made incapable of performing its main purpose of firing a
against crime, stop the proliferation of illegal firearms or projectile.
weapons and the illegal manufacture of firearms or
(k) Duty detail order refers to a document issued by the
weapons, ammunition and parts thereof.
juridical entity or employer wherein the details of the
SEC. 3. Definition of Terms. As used in this Act:
disposition of firearm is spelled-out, thus indicating the
(a) Accessories refer to parts of a firearm which may
name of the employee, the firearm information, the
enhance or increase the operational efficiency or accuracy specific duration and location of posting or assignment and
of a firearm but will not constitute any of the major or
the authorized bonded firearm custodian for the juridical
minor internal parts thereof such as, hut not limited to,
entity to whom such firearm is turned over after the lapse
laser scope, telescopic sight and sound suppressor or
of the order.
silencer.
(l) Firearm refers to any handheld or portable weapon,
(b) Ammunition refers to a complete unfixed unit
whether a small arm or light weapon, that expels or is
consisting of a bullet, gunpowder, cartridge case and
designed to expel a bullet, shot, slug, missile or any
primer or loaded shell for use in any firearm.
projectile, which is discharged by means of expansive
(c) Antique firearm refers to any: (1) firearm which was force of gases from burning gunpowder or other form of
manufactured at least seventy-five (75) years prior to the combustion or any similar instrument or implement. For
current date but not including replicas; (2) firearm which is purposes of this Act, the barrel, frame or receiver is
certified by the National Museum of the Philippines to be considered a firearm.
curio or relic of museum interest; and (3) any other firearm (m) Firearms Information Management System
which derives a substantial part of its monetary value from (FIMS) refers to the compilation of all data and
the fact that it is novel, rare, bizarre or because of its
information on firearms ownership and disposition for
association with some historical figure, period or event.
record purposes.
(d) Arms smuggling refers to the import, export,
(n) Forfeited firearm refers to a firearm that is subject to
acquisition, sale, delivery, movement or transfer of
forfeiture by reason of court order as accessory penalty or
firearms, their parts and components and ammunition,
for the disposition by the FEO of the PNP of firearms
from or across the territory of one country to that of
considered as abandoned, surrendered, confiscated or

revoked in compliance with existing rules and regulations. intended for use in converting a semi-automatic burst to a
(o) Gun club refers to an organization duly registered with full automatic firearm.
and accredited in good standing by the FEO of the PNP
(x) Minor parts of a firearm refers to the parts of the
which is established for the purpose of propagating
firearm other than the major parts which are necessary to
responsible and safe gun ownership, proper appreciation effect and complete the action of expelling a projectile by
and use of firearms by its members, for the purpose of
way of combustion, except those classified as accessories.
sports and shooting competition, self-defense and
(y) Permit to carry firearm outside of residence refers to a
collection purposes.
written authority issued to a licensed citizen by the Chief
(p) Gunsmith refers to any person, legal entity, corporation,of the PNP which entitles such person to carry his/her
partnership or business duly licensed by the FEO of the
registered or lawfully issued firearm outside of the
PNP to engage in the business of repairing firearms and
residence for the duration and purpose specified in the
other weapons or constructing or assembling firearms and authority.
weapons from finished or manufactured parts thereof on a (z) Permit to transport firearm refers to a written authority
per order basis and not in commercial quantities or of
issued to a licensed citizen or entity by the Chief of the
making minor parts for the purpose of repairing or
PNP or by a PNP Regional Director which entitles such
assembling said firearms or weapons.
person or entity to transport a particular firearm from and
(q) Imitation firearm refers to a replica of a firearm, or
to a specific location within the duration and purpose in
other device that is so substantially similar in coloration the authority.
and overall appearance to an existing firearm as to lead a (aa) Residence refers to the place or places of abode of the
reasonable person to believe that such imitation firearm is licensed citizen as indicated in his/her license.
a real firearm.
(bb) Shooting range refers to a facility established for the
(r) Licensed citizen refers to any Filipino who complies
purpose of firearms training and skills development,
with the qualifications set forth in this Act and duly issued firearm testing, as well as for sports and competition
with a license to possess or to carry firearms outside of the shooting either for the exclusive use of its members or
residence in accordance with this Act.
open to the general public, duly registered with and
(s) Licensed, juridical entity refers to corporations,
accredited in good standing by the FEO of the PNP.
organizations, businesses including security agencies and (cc) Short certificate of registration refers to a certificate
local government units (LGUs) which are licensed to own issued by the FEO of the PNP for a government official or
and possess firearms in accordance with this Act.
employee who was issued by his/her employer department,
(t) Light weapons are: Class-A Light weapons which refer agency or government-owned or -controlled corporation a
to self-loading pistols, rifles and carbines, submachine
firearm covered by the long certificate of registration.
guns, assault rifles and light machine guns not exceeding (dd) Small arms refer to firearms intended to be or
caliber 7.62MM which have fully automatic mode; and
primarily designed for individual use or that which is
Class-B Light weapons which refer to weapons designed generally considered to mean a weapon intended to be
for use by two (2) or more persons serving as a crew, or fired from the hand or shoulder, which are not capable of
rifles and machine guns exceeding caliber 7.62MM such asfully automatic bursts of discharge, such as:
heavy machine guns, handheld underbarrel and mounted (1) Handgun which is a firearm intended to be fired from
grenade launchers, portable anti-aircraft guns, portable
the hand, which includes:
anti-tank guns, recoilless rifles, portable launchers of anti- (i) A pistol which is a hand-operated firearm having a
tank missile and rocket systems, portable launchers of anti- chamber integral with or permanently aligned with the
aircraft missile systems, and mortars of a caliber of less
bore which may be self-loading; and
than 100MM.
(ii) Revolver which is a hand-operated firearm with a
(u) Long certificate of registration refers to licenses issued revolving cylinder containing chambers for individual
to government agencies or offices or government-owned or cartridges.
-controlled corporations for firearms to be used by their (2) Rifle which is a shoulder firearm or designed to be
officials and employees who are qualified to possess
fired from the shoulder that can discharge a bullet through
firearms as provider in this Act, excluding security guards. a rifled barrel by different actions of loading, which may
(v) Loose firearm refers to an unregistered firearm, an
be classified as lever, bolt, or self-loading; and
obliterated or altered firearm, firearm which has been lost (3) Shotgun which is a weapon designed, made and
or stolen, illegally manufactured firearms, registered
intended to fire a number of ball shots or a single projectile
firearms in the possession of an individual other than the through a smooth bore by the action or energy from
licensee and those with revoked licenses in accordance
burning gunpowder.
with the rules and regulations.
(ee) Sports shooting competition refers to a defensive,
(w) Major part or components of a firearm refers to the
precision or practical sport shooting competition duly
barrel, slide, frame, receiver, cylinder or the bolt assembly. authorized by the FEO of the PNP.
The term also includes any part or kit designed and
(ff) Tampered, obliterated or altered firearm refers to any

firearm whose serial number or other identification or

security force may be issued a regular license to own and
ballistics characteristics have been intentionally tampered possess firearms and ammunition under the following
with, obliterated or altered without authority or in order to conditions:
conceal its source, identity or ownership.
(a) It must be Filipino-owned and duly registered with the
(gg) Thermal weapon sight refers to a battery operated,
Securities and Exchange Commission (SEC);
uncooled thermal imaging device which amplifies
(b) It is current, operational and a continuing concern;
available thermal signatures so that the viewed scene
(c) It has completed and submitted all its reportorial
becomes clear to the operator which is used to locate and requirements to the SEC; and
engage targets during daylight and from low light to total (d) It has paid all its income taxes for the year, as duly
darkness and operates in adverse conditions such as light certified by the Bureau of Internal Revenue.
rain, light snow, and dry smoke or in conjunction with
The application shall be made in the name of the juridical
other optical and red dot sights.
person represented by its President or any of its officers
ARTICLE II
mentioned below as duly authorized in a board resolution
OWNERSHIP AND POSSESSION OF FIREARMS
to that effect: Provided, That the officer applying for the
SEC. 4. Standards and Requisites for Issuance of and
juridical entity, shall possess all the qualifications required
Obtaining a License to Own and Possess Firearms. In of a citizen applying for a license to possess firearms.
order to qualify and acquire a license to own and possess a Other corporate officers eligible to represent the juridical
firearm or firearms and ammunition, the applicant must be person are: the vice president, treasurer, and board
a Filipino citizen, at least twenty-one (21) years old and secretary.
has gainful work, occupation or business or has filed an Security agencies and LGUs shall be included in this
Income Tax Return (ITR) for the preceding year as proof category of licensed holders but shall be subject to
of income, profession, business or occupation.
additional requirements as may be required by the Chief of
In addition, the applicant shall submit the following
the PNP.
certification issued by appropriate authorities attesting the SEC. 6. Ownership of Firearms by the National
following:
Government. All firearms owned by the National
(a) The applicant has not been convicted of any crime
Government shall be registered with the FEO of the PNP
involving moral turpitude:
in the name of the Republic of the Philippines. Such
(b) The applicant has passed the psychiatric test
registration shall be exempt from all duties and taxes that
administered by a PNP-accredited psychologist or
may otherwise be levied on other authorized owners of
psychiatrist;
firearms. For reason of national security, firearms of the
(c) The applicant has passed the drug test conducted by an Armed Forces of the Philippines (AFP), Coast Guard and
accredited and authorized drug testing laboratory or clinic; other law enforcement agencies shall only be reported to
(d) The applicant has passed a gun safety seminar which is the FEO of the PNP.
administered by the PNP or a registered and authorized
SEC. 7. Carrying of Firearms Outside of Residence or
gun club;
Place of Business. A permit to carry firearms outside of
(e) The applicant has filed in writing the application to
residence shall be issued by the Chief of the PNP or his/her
possess a registered firearm which shall state the personal duly authorized representative to any qualified person
circumstances of the applicant;
whose life is under actual threat or his/her life is in
(f) The applicant must present a police clearance from the imminent danger due to the nature of his/her profession,
city or municipality police office; and
occupation or business.
(g) The applicant has not been convicted or is currently an It shall be the burden of the applicant to prove that his/her
accused in a pending criminal case before any court of law life is under actual threat by submitting a threat assessment
for a crime that is punishable with a penalty of more than certificate from the PNP.
two (2) years.
For purposes of this Act, the following professionals are
For purposes of this Act, an acquittal or permanent
considered to be in imminent danger due to the nature of
dismissal of a criminal case before the courts of law shall their profession, occupation or business:
qualify the accused thereof to qualify and acquire a
(a) Members of the Philippine Bar;
license.
(b) Certified Public Accountants;
The applicant shall pay the reasonable licensing fees as
(c) Accredited Media Practitioners;
may be provided in the implementing rules and regulations (d) Cashiers, Bank Tellers;
of this Act.
(e) Priests, Ministers, Rabbi, Imams;
An applicant who intends to possess a firearm owned by a (f) Physicians and Nurses;
juridical entity shall submit his/her duty detail order to the (g) Engineers; and
FEO of the PNP.
(h) Businessmen, who by the nature of their business or
SEC. 5. Ownership of Firearms and Ammunition by a
undertaking, are exposed to high risk of being targets of
Juridical Entity. A juridical person maintaining its own criminal elements.

ARTICLE III
maximum of fifty (50) rounds for each registered
REGISTRATION AND LICENSING
firearm: Provided; That the FEO of the PNP may allow
SEC. 8. Authority to Issue License. The Chief of the
more ammunition to be possessed by licensed sports
PNP, through the FEO of the PNP, shall issue licenses to shooters.
qualified individuals and to cause the registration of
SEC. 13. Issuance of License to Manufacture or Deal In
firearms.
Firearms and Ammunition. Any person desiring to
SEC. 9. Licenses Issued to Individuals. Subject to the
manufacture or deal in firearms, parts of firearms or
requirements set forth in this Act and payment of required ammunition thereof, or instruments and implements used
fees to be determined by the Chief of the PNP, a qualified or intended to be used in the manufacture of firearms, parts
individual may be issued the appropriate license under the of firearms or ammunition, shall make an application to:
following categories;
(a) The Secretary of the Department of the Interior and
Type 1 license allows a citizen to own and possess a
Local Government (DILG) in the case of an application for
maximum of two (2) registered firearms;
a license to manufacture; and
Type 2 license allows a citizen to own and possess a
(b) The Chief of the PNP in the case of a license to deal in
maximum of five (5) registered firearms;
firearms and firearms parts, ammunition and gun repair.
Type 3 license allows a citizen to own and possess a
The applicant shall state the amount of capitalization for
maximum of ten (10) registered firearms;
manufacture or cost of the purchase and sale of said
Type 4 license allows a citizen to own and possess a
articles intended to be transacted by such applicant; and
maximum of fifteen (15) registered firearms; and
the types of firms, ammunition or implements which the
Type 5 license allows a citizen, who is a certified gun
applicant intends to manufacture or purchase and sell
collector, to own and possess more than fifteen (15)
under the license applied for; and such additional
registered firearms.
information as may be especially requested by the
For Types 1 to 5 licenses, a vault or a container secured by Secretary of the DILG or the Chief of the PNP.
lock and key or other security measures for the
The Secretary of the DILG or the Chief of the PNP may
safekeeping of firearms shall be required.
approve or disapprove such application based on the
For Types 3 to 5 licenses, the citizen must comply with the prescribed guidelines. In the case of approval, the
inspection and bond requirements.
Secretary of the DILG or the Chief of the PNP shall
SEC. 10. Firearms That May Be Registered. Only small indicate the amount of the bond to be executed by the
arms may be registered by licensed citizens or licensed
applicant before the issuance of the license and the period
juridical entities for ownership, possession and concealed of time by which said license shall be effective, unless
carry. A light weapon shall be lawfully acquired or
sooner revoked by their authority.
possessed exclusively by the AFP, the PNP and other law Upon approval of the license to manufacture or otherwise
enforcement agencies authorized by the President in the deal in firearms by the Secretary of the DILG or the Chief
performance of their duties: Provided, That private
of the PNP as the case may be, the same shall be
individuals who already have licenses to possess Class-A transmitted to the FEO of the PNP which shall issue the
light weapons upon the effectivity of this Act shall not be license in accordance with the approved terms and
deprived of the privilege to continue possessing the same conditions, upon the execution and delivery by the
and renewing the licenses therefor, for the sole reason that applicant of the required bond conditioned upon the
these firearms are Class A light weapons, and shall be faithful compliance on the part of the licensee to the laws
required to comply with other applicable provisions of this and regulations relative to the business licensed.
Act.
SEC. 14. Scope of License to Manufacture Firearms and
SEC. 11. Registration of Firearms. The licensed citizen Ammunition. The scope of the License to Manufacture
or licensed juridical entity shall register his/her/its firearms firearms and ammunition shall also include the following:
so purchased with the FEO of the PNP in accordance with (a) The authority to manufacture and assemble firearms,
the type of license such licensed citizen or licensed
ammunition, spare parts and accessories, ammunition
juridical entity possesses. A certificate of registration of thecomponents, and reloading of ammunitions, within sites,
firearm shall be issued upon payment of reasonable fees. areas, and factories stated therein. The Secretary of the
For purposes of this Act, registration refers to the
DILG shall approve such license;
application, approval, record-keeping and monitoring of (b) The license to deal in or sell all the items covered by
firearms with the FEO of the PNP in accordance with the the License to Manufacture, such as parts, firearms or
type of license issued to any person under Section 9 of this ammunition and components;
Act.
(c) The authority to subcontract the manufacturing of parts
SEC. 12. License to Possess Ammunition Necessarily
and accessories necessary for the firearms which the
Included. The licenses granted to qualified citizens or
manufacturer is licensed to manufacture: Provided, That
juridical entities as provided in Section 9 of this Act shall the subcontractor of major parts or major components is
include the license to possess ammunition with a
also licensed to manufacture firearms and ammunition; and

(d) The authority to import machinery, equipment, and

The registration of the firearm shall be renewed every four
firearm parts and ammunition components for the
(4) years. Failure to renew the registration of the firearm
manufacture thereof. Firearm parts and ammunition
on or before the date of expiration shall cause the
components to be imported shall, however, be limited to revocation of the license of the firearm. The said firearm
those authorized to be manufactured as reflected in the
shall be confiscated or forfeited in favor of the government
approved License to Manufacture. The Import Permit shall after due process.
be under the administration of the PNP.
The failure to renew a license or registration within the
A licensed manufacturer of ammunition is also entitled to periods stated above on two (2) occasions shall cause the
import various reference firearms needed to test the
holder of the firearm to be perpetually disqualified from
ammunition manufactured under the License to
applying for any firearm license. The application for the
Manufacture. A licensed manufacturer of firearms, on the renewal of the license or registration may be submitted to
other hand, is entitled to import various firearms for
the FEO of the PNP, within six (6) months before the date
reference, test and evaluation for manufacture of similar, of the expiration of such license or registration.
types of firearms covered by the License to Manufacture. SEC. 20. Inspection and Inventory. The Chief of the PNP
An export permit shall, however, be necessary to export or his/her authorized representative shall require the
manufactured parts or finished products of firearms and submission of reports, inspect or examine the inventory
ammunition. The Export Permit of firearms and
and records of a licensed manufacturer, dealer or importer
ammunition shall be under the administration of the PNP. of firearms and ammunition during reasonable hours.
SEC. 15. Registration of Locally Manufactured and
ARTICLE IV
Imported Firearms. Local manufacturers and importers ACQUISITION, DEPOSIT OF FIREARMS,
of firearms and major parts thereof shall register the same ABANDONED,
as follows:
DEMILITARIZED AND ANTIQUE FIREARMS
(a) For locally manufactured firearms and major parts
SEC. 21. Acquisition or Purchase and Sale of Firearms
thereof, the initial registration shall be done at the
and Ammunition. Firearms and ammunition may only be
manufacturing facility:Provided, That firearms intended acquired or purchased from authorized dealers, importers
for export shall no longer be subjected to ballistic
or local manufacturers and may be transferred or sold only
identification procedures; and
from a licensed citizen or licensed juridical entity to
(b) For imported firearms and major parts thereof, the
another licensed citizen or licensed juridical
registration shall be done upon arrival at the FEO of the entity: Provided, That, during election periods, the sale and
PNP storage facility.
registration of firearms and ammunition and the issuance
SEC. 16. License and Scope of License to Deal. The
of the corresponding licenses to citizens shall be allowed
License to Deal authorizes the purchase, sale and general on the condition that the transport or delivery thereof shall
business in handling firearms and ammunition, major and strictly comply with the issuances, resolutions, rules and
minor parts of firearms, accessories, spare parts,
regulations promulgated by the Commission on Elections.
components, and reloading machines, which shall be
SEC. 22. Deposit of Firearms by Persons Arriving
issued by the Chief of the PNP.
From Abroad. A person arriving in the Philippines who is
SEC. 17. License and Scope of License for Gunsmiths. legally in possession of any firearm or ammunition in
The license for gunsmiths shall allow the grantee to repair his/her country of origin and who has declared the
registered firearms. The license shall include
existence of the firearm upon embarkation and
customization of firearms from finished or manufactured disembarkation but whose firearm is not registered in the
parts thereof on per order basis and not in commercial
Philippines in accordance with this Act shall deposit the
quantities and making the minor parts thereof, i.e. pins,
same upon written receipt with the Collector of Customs
triggers, trigger bows, sights and the like only for the
for delivery to the FEO of the PNP for safekeeping, or for
purpose of repairing the registered firearm. The license for the issuance of a permit to transport if the person is a
gunsmiths shall be issued by the Chief of the PNP.
competitor in a sports shooting competition. If the
SEC. 18. Firearms for Use in Sports and
importation of the same is allowed and the party in
Competitions. A qualified individual shall apply for a
question desires to obtain a domestic firearm license, the
permit to transport his/her registered firearm/s from his/her same should be undertaken in accordance with the
residence to the firing range/s and competition sites as may provisions of this Act. If no license is desired or leave to
be warranted.
import is not granted, the firearm or ammunition in
SEC. 19. Renewal of Licenses and Registration. All
question shall remain in the custody of the FEO of the PNP
types of licenses to possess a firearm shall be renewed
until otherwise disposed of in-accordance with law.
every two (2) years. Failure to renew the license on or
SEC. 23. Return of Firearms to Owner upon Departure
before the date of its expiration shall cause the revocation from the Philippines. Upon the departure from the
of the license and of the registration of the firearm/s under Philippines of any person whose firearm or ammunition is
said licensee.
in the custody of the FEO of the PNP, the same shall, upon

timely request, be delivered to the person through the

(e) The penalty of one (1) degree higher than that provided
Collector of Customs. In the case of a participant in a local in paragraphs (a) to (c) in this section shall be imposed
sports shooting competition, the firearm must be presented upon any person who shall unlawfully possess any firearm
to the Collector of Customs before the same is allowed to under any or combination of the following conditions:
be loaded on board the carrier on which the person is to
(1) Loaded with ammunition or inserted with a loaded
board.
magazine;
SEC. 24. Safekeeping of Firearms and Ammunition. Any (2) Fitted or mounted with laser or any gadget used to
licensee may deposit a registered firearm to the FEO of the guide the shooter to hit the target such as thermal weapon
PNP, or any Police Regional Office for safekeeping.
sight (TWS) and the like;
Reasonable fees for storage shall be imposed.
(3) Fitted or mounted with sniper scopes, firearm muffler
SEC. 25. Abandoned Firearms and Ammunition. Any
or firearm silencer;
firearm or ammunition deposited in the custody of the FEO(4) Accompanied with an extra barrel; and
of the PNP pursuant to the provisions of this Act, shall be (5) Converted to be capable of firing full automatic bursts.
deemed to have been abandoned by the owner or his/her (f) The penalty of prision mayor in its minimum period
authorized representative if he/she failed to reclaim the
shall be imposed upon any person who shall unlawfully
same within five (5) years or failed to advise the FEO of acquire or possess a major part of a small arm;
the PNP of the disposition to be made thereof. Thereafter, (g) The penalty of prision mayor in its minimum period
the FEO of the PNP may dispose of the same after
shall be imposed upon any person who shall unlawfully
compliance with established procedures.
acquire or possess ammunition for a small arm or Class-A
SEC. 26. Death or Disability of Licensee. Upon the
light weapon. If the violation of this paragraph is
death or legal disability of the holder of a firearm license, committed by the same person charged with the unlawful
it shall be the duty of his/her next of kin, nearest relative, acquisition or possession of a small arm, the former
legal representative, or other person who shall knowingly violation shall be absorbed by the latter;
come into possession of such firearm or ammunition, to (h) The penalty of prision mayor in its medium period
deliver the same to the FEO of the PNP or Police Regional shall be imposed upon any person who shall unlawfully
Office, and such firearm or ammunition shall be retained acquire or possess a major part of a Class-A light weapon;
by the police custodian pending the issuance of a license (i) The penalty of prision mayor in its medium period shall
and its registration in accordance, with this Act. The failure be imposed upon any person who shall unlawfully acquire
to deliver the firearm or ammunition within six (6) months or possess ammunition for a Class-A light weapon. If the
after the death or legal disability of the licensee shall
violation of this paragraph is committed by the same
render the possessor liable for illegal possession of the
person charged with the unlawful acquisition or possession
firearm.
of a Class-A light weapon, the former violation shall be
SEC. 27. Antique Firearm. Any person who possesses an absorbed by the latter;
antique firearm shall register the same and secure a
(j) The penalty of prision mayor in its maximum period
collectors license from the FEO of the PNP. Proper
shall be imposed upon any person who shall unlawfully
storage of antique firearm shall be strictly imposed.
acquire or possess a major part of a Class-B light weapon;
Noncompliance of this provision shall be considered as
and
illegal possession of the firearm as penalized in this Act. (k) The penalty of prision mayor in its maximum period
ARTICLE V
shall be imposed upon any person who shall unlawfully
PENAL PROVISIONS
acquire or possess ammunition for a Class-B light weapon.
SEC. 28. Unlawful Acquisition, or Possession of Firearms If the violation of this paragraph is committed by the same
and Ammunition. The unlawful acquisition, possession of person charged with the unlawful acquisition or possession
firearms and ammunition shall be penalized as follows:
of a Class-B light weapon, the former violation shall be
(a) The penalty of prision mayor in its medium period
absorbed by the latter.
shall be imposed upon any person who shall unlawfully SEC. 29. Use of Loose Firearm in the Commission of a
acquire or possess a small arm;
Crime. The use of a loose firearm, when inherent in the
(b) The penalty of reclusion temporal to reclusion
commission of a crime punishable under the Revised Penal
perpetua shall be imposed if three (3) or more small arms Code or other special laws, shall be considered as an
or Class-A light weapons are unlawfully acquired or
aggravating circumstance:Provided, That if the crime
possessed by any person;
committed with the use of a loose firearm is penalized by
(c) The penalty of prision mayor in its maximum period the law with a maximum penalty which is lower than that
shall be imposed upon any person who shall unlawfully prescribed in the preceding section for illegal possession of
acquire or possess a Class-A light weapon;
firearm, the penalty for illegal possession of firearm shall
(d) The penalty of reclusion perpetua shall be imposed
be imposed in lieu of the penalty for the crime
upon any person who shall, unlawfully acquire or possess charged: Provided, further, That if the crime committed
a Class-B light weapon;
with the use of a loose firearm is penalized by the law with

a maximum penalty which is equal to that imposed under firearms dealer who shall unlawfully take, sell or otherwise
the preceding section for illegal possession of firearms, the dispose of parts of firearms or ammunition which the
penalty of prision mayor in its minimum period shall be company manufactures and sells, and other materials used
imposed in addition to the penalty for the crime punishable by the company in the manufacture or sale of firearms or
under the Revised Penal Code or other special laws of
ammunition. The buyer or possessor of such stolen part or
which he/she is found guilty.
material, who is aware that such part or material was
If the violation of this Act is in furtherance of, or incident stolen, shall suffer the same penalty as the laborer, worker
to, or in connection with the crime of rebellion of
or employee.
insurrection, or attempted coup d etat, such violation shall If the violation or offense is committed by a corporation,
be absorbed as an element of the crime of rebellion or
partnership, association or other juridical entity, the
insurrection, or attempted coup d etat.
penalty provided for in this section shall be imposed upon
If the crime is committed by the person without using the the directors, officers, employees or other officials or
loose firearm, the violation of this Act shall be considered persons therein who knowingly and willingly participated
as a distinct and separate offense.
in the unlawful act.
SEC. 30. Liability of Juridical Person. The penalty
SEC. 33. Arms Smuggling. The penalty of reclusion
of prision mayor in its minimum to prision mayor in its
perpetua shall be imposed upon any person who shall
medium period shall be imposed upon the owner,
engage or participate in arms smuggling as defined in this
president, manager, director or other responsible officer Act.
of/any public or private firm, company, corporation or
SEC. 34. Tampering, Obliteration or Alteration of
entity who shall willfully or knowingly allow any of the Firearms Identification. The penalty of prision
firearms owned by such firm, company, corporation or
correccional to prision mayor in its minimum period shall
entity to be used by any person or persons found guilty of be imposed upon any person who shall tamper, obliterate
violating the provisions of the preceding section, or
or alter without authority the barrel, slide, frame, receiver,
willfully or knowingly allow any of them to use
cylinder, or bolt assembly, including the name of the
unregistered firearm or firearms without any legal
maker, model, or serial number of any firearm, or who
authority to be carried outside of their residence in the
shall replace without authority the barrel, slide, frame,
course of their employment.
receiver, cylinder, or bolt assembly, including its individual
SEC. 31. Absence of Permit to Carry Outside of
or peculiar identifying characteristics essential in forensic
Residence. The penalty of prision correccional and a fineexamination of a firearm or light weapon.
of Ten thousand pesos (P10,000.00) shall be imposed upon The PNP shall place this information, including its
any person who is licensed to own a firearm but who shall individual or peculiar identifying characteristics into the
carry the registered firearm outside his/her residence
database of integrated firearms identification system of the
without any legal authority therefor.
PNP Crime Laboratory for future use and identification of
SEC. 32. Unlawful Manufacture, Importation, Sale or
a particular firearm.
Disposition of Firearms or Ammunition or Parts Thereof, SEC. 35. Use of an Imitation Firearm. An imitation
Machinery, Tool or Instrument Used or Intended to be
firearm used in the commission of a crime shall be
Used in the Manufacture of Firearms, Ammunition or
considered a real firearm as defined in this Act and the
Parts Thereof. The penalty of reclusion
person who committed the crime shall be punished in
temporal to reclusion perpetua shall be imposed upon any accordance with this Act: Provided, That injuries caused
person who shall unlawfully engage in the manufacture, on the occasion of the conduct of competitions, sports,
importation, sale or disposition of a firearm or
games, or any recreation activities involving imitation
ammunition, or a major part of a firearm or ammunition, or firearms shall not be punishable under this Act.
machinery, tool or instrument used or intended to be used SEC. 36. In Custodia Legis. During the pendency of any
by the same person in the manufacture of a firearm,
case filed in violation of this Act, seized firearm,
ammunition, or a major part thereof.
ammunition, or parts thereof, machinery, tools or
The possession of any machinery, tool or instrument used instruments shall remain in the custody of the court. If the
directly in the manufacture of firearms, ammunition, or
court decides that it has no adequate means to safely keep
major parts thereof by any person whose business,
the same, the court shall issue an order to turn over to the
employment or activity does not lawfully deal with the
PNP Crime Laboratory such firearm, ammunition, or parts
possession of such article, shall beprima facie evidence
thereof, machinery, tools or instruments in its custody
that such article is intended to be used in the unlawful or during the pendency of the case and to produce the same to
illegal manufacture of firearms, ammunition or parts
the court when so ordered. No bond shall be admitted for
thereof.
the release of the firearm, ammunition or parts thereof,
The penalty of prision mayor in its minimum period
machinery, tool or instrument. Any violation of this
to prision mayor in its medium period shall be imposed
paragraph shall be punishable by prision mayor in its
upon any laborer, worker or employee of a licensed
minimum period to prision mayor in its medium period.

SEC. 37. Confiscation and Forfeiture. The imposition of shall be unlawful to transfer possession of any firearm to
penalty for any violation of this Act shall carry with it the any person who has not yet obtained or secured the
accessory penalty of confiscation and forfeiture of the
necessary license or permit thereof.
firearm, ammunition, or parts thereof, machinery, tool or The penalty of prision correccional shall be imposed upon
instrument in favor of the government which shall be
any person who shall violate the provision of the preceding
disposed of in accordance with law.
paragraph. In addition, he/she shall be disqualified to apply
SEC. 38. Liability for Planting Evidence. The penalty
for a license to possess other firearms and all his/her
of prision mayor in its maximum period shall be imposed existing firearms licenses whether for purposes of
upon any person who shall willfully and maliciously
commerce or possession, shall be revoked. If governmentinsert; place, and/or attach, directly or indirectly, through issued firearms, ammunition or major parts of firearms or
any overt or covert act, any firearm, or ammunition, or
light weapons are unlawfully disposed, sold or transferred
parts thereof in the person, house, effects, or in the
by any law enforcement agent or public officer to private
immediate vicinity of an innocent individual for the
individuals, the penalty of reclusion temporal shall be
purpose of implicating or incriminating the person, or
imposed.
imputing the commission of any violation of the provisions Any public officer or employee or any person who shall
of this Act to said individual. If the person found guilty
facilitate the registration of a firearm through fraud, deceit,
under this paragraph is a public officer or employee, such misrepresentation or submission of falsified documents
person shall suffer the penalty of reclusion perpetua.
shall suffer the penalty of prision correccional.
SEC. 39. Grounds for Revocation, Cancellation or
ARTICLE VI
Suspension of License or Permit. The Chief of the PNP FINAL PROVISIONS
or his/her authorized representative may revoke, cancel or SEC. 42. Firearms Repository. The FEO of the PNP shall
suspend a license or permit on the following grounds:
be the sole repository of all firearms records to include
(a) Commission of a crime or offense involving the
imported and locally manufactured firearms and
firearm, ammunition, of major parts thereof;
ammunition. Within one (1) year upon approval of this
(b) Conviction of a crime involving moral turpitude or any Act, all military and law enforcement agencies,
offense where the penalty carries an imprisonment of more government agencies, LGUs and government-owned or
than six (6) years;
-controlled corporations shall submit an inventory of all
(c) Loss of the firearm, ammunition, or any parts thereof their firearms and ammunition to the PNP.
through negligence;
SEC. 43. Final Amnesty. Persons in possession of
(d) Carrying of the firearm, ammunition, or major parts
unregistered firearms and holders of expired license or
thereof outside of residence or workplace without, the
unregistered firearms shall register and renew the same
proper permit to carry the same;
through the Final General Amnesty within six (6) months
(e) Carrying of the firearm, ammunition, or major parts
from the promulgation of the implementing rules and
thereof in prohibited places;
regulations of this Act. During the interim period of six (6)
(f) Dismissal for cause from the service in case of
months, no person applying for license shall be charged of
government official and employee;
any delinquent payment accruing to the firearm subject for
(g) Commission of any of the acts penalized under
registration. The PNP shall conduct an intensive
Republic Act No. 9165, otherwise known as the
nationwide campaign to ensure that the general public is
Comprehensive Dangerous Drugs Act of 2002;
properly informed of the provisions of this Act.
(h) Submission of falsified documents or misrepresentation SEC. 44. Implementing Rules and Regulations. Within
in the application to obtain a license or permit;
one hundred twenty (120) days from the effectivity of this
(i) Noncompliance of reportorial requirements; and
Act, the Chief of the PNP, after public hearings and
(j) By virtue of a court order.
consultation with concerned sectors of society shall
SEC. 40. Failure to Notify Lost or Stolen Firearm or Light formulate the necessary rules and regulations for the
Weapon. A fine of Ten thousand pesos (P10,000.00) shall effective implementation of this Act to be published in at
be imposed upon any licensed firearm holder who fails to least two (2) national newspapers of general circulation.
report to the FEO of the PNP that the subject firearm has SEC. 45. Repealing Clause. This Act repeals Sections 1,
been lost or stolen within a period of thirty (30) days from 2, 5 and 7 of Presidential Decree No. 1866, as amended,
the date of discovery.
and Section 6 of Republic Act No. 8294 and all other laws,
Likewise, a fine of Five thousand pesos (P5,000.00) shall executive orders, letters of instruction, issuances, circulars,
be imposed upon any person holding a valid firearm
administrative orders, rules or regulations that are
license who changes residence or office address other than inconsistent herewith.
that indicated in the license card and fails within a period SEC. 46. Separability Clause. If any provision of this
of thirty (30) days from said transfer to notify the FEO of Act or any part hereof is held invalid or unconstitutional,
the PNP of such change of address.
the remainder of the law or the provision not otherwise
SEC. 41. Illegal Transfer/Registration of Firearms. It
affected shall remain valid and subsisting.

SEC. 47. Effectivity. This Act shall take effect after

fifteen (15) days from its publication in a newspaper of
nationwide circulation.
Approved,

Anti-Money Laundering Act of 2001 (RA 9160)

AN ACT DEFINING THE CRIME OF MONEY
LAUNDERING, PROVIDING PENALTIES
THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives
of the Philippines in Congress assembled:
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
policy of the State to protect and preserve the integrity and
confidentiality of bank accounts and 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 State shall extend cooperation in
transnational investigations and prosecutions of persons
involved in money laundering activities 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, quasibanks, trust entities, and all
other institutions and their
subsidiaries and affiliates
supervised or regulated by the
Bangko Sentral ng Pilipinas
(BSP);
(2) insurance companies and all
other institutions supervised or
regulated by the Insurance
Commission; and
(3) (i) securities dealers,
brokers, salesmen, investment
houses and other similar entities
managing securities or
rendering services as
investment agent, advisor, or
consultant, (ii) mutual funds,
close-end investment
companies, common trust
funds, pre-need companies and
other similar entities, (iii)

foreign exchange corporations,

money changers, money
payment, remittance, and
transfer companies and other
similar entities, and (iv) other
entities administering or
otherwise dealing in currency,
commodities or financial
derivatives based thereon,
valuable objects, cash
substitutes and other similar
monetary instruments or
property supervised or
regulated by Securities and
Exchange Commission and
Exchange Commission
(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 except those
between a covered institution and a person
who, at the time of the transaction was a
properly identified client and the amount is
commensurate with the business or financial
capacity of the client; or those with an
underlying legal or trade obligation, purpose,
origin or economic justification.
It likewise refers to a single, series or
combination or pattern of unusually large and
complex transactions in excess of Four
million Philippine pesos (Php4,000,000.00)
especially cash deposits and investments
having no credible purpose or origin,
underlying trade obligation or contract.
(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;
(3) securities or negotiable
instruments, bonds, commercial
papers, deposit certificates, trust
certificates, custodial receipts or
deposit substitute instruments,
trading orders, transaction
tickets and confirmations of

sale or investments and money

market instruments; and
(4) other similar instruments
where title thereto passes to
another by endorsement,
assignment or delivery.
(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 an unlawful 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;
(2) Sections 3, 4, 5, 7, 8 and 9
of Article Two of Republic Act
No. 6425, as amended,
otherwise known as the
Dangerous Drugs Act of 1972;
(3) Section 3 paragraphs B, C,
E, G, H and I of Republic Act
No. 3019, as amended;
otherwise known as the AntiGraft and Corrupt Practices Act;
(4) Plunder under Republic Act
No. 7080, as amended;

(5) Robbery and extortion under

Articles 294, 295, 296, 299,
300, 301 and 302 of the
Revised Penal Code, as
amended;
(6) Jueteng and Masiao
punished as illegal gambling
under Presidential Decree No.
1602;
(7) Piracy on the high seas
under the Revised Penal Code,
as amended and Presidential
Decree No. 532;
(8) Qualified theft under Article
310 of the Revised Penal Code,
as amended;
(9) Swindling under Article 315
of the Revised Penal Code, as
amended;
(10) Smuggling under Republic
Act Nos. 455 and 1937;
(11) Violations under Republic
Act No. 8792, otherwise known
as the Electronic Commerce Act
of 2000;
(12) Hijacking and other
violations under Republic Act
No. 6235; destructive arson and
murder, as defined under the
Revised Penal Code, as
amended, including those
perpetrated by terrorists against
non-combatant persons and
similar targets;
(13) Fraudulent practices and
other violations under Republic
Act No. 8799, otherwise known
as the Securities Regulation
Code of 2000;
(14) Felonies or offenses of a
similar nature that are
punishable under the penal laws
of other countries.

SEC. 4. Money Laundering Offense. Money laundering

is a crime whereby the proceeds of an unlawful activity are
transacted, thereby making them appear to have originated
from legitimate sources. It is committed by the following:
(a) Any person knowing that any monetary instrument or
property represents, involves, or relates to, the proceeds of
any unlawful activity, transacts or attempts to transact said
monetary instrument or property.
(b) Any person knowing that any monetary
instrument or property involves the proceeds
of any unlawful activity, performs or fails to
perform any act as a result of which he
facilitates the offense of money laundering
referred to in paragraph (a) above.
(c) Any person knowing that any monetary
instrument or property is required under this
Act to be disclosed and filed with the AntiMoney Laundering Council (AMLC), fails to
do so.
SEC. 5. Jurisdiction of Money Laundering Cases. The
regional trial courts shall have jurisdiction to try all cases
on money laundering. Those committed by public officers
and private persons who are in conspiracy with such public
officers shall be under the jurisdiction of the
Sandiganbayan.
SEC. 6. Prosecution of Money Laundering.
(a) Any person may be charged with and convicted of both
the offense of money laundering and the unlawful activity
as herein defined.
(b) Any proceeding relating to the unlawful
activity shall be given precedence over the
prosecution of any offense or violation under
this Act without prejudice to the freezing and
other remedies provided.
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:
(1) to require and receive covered transaction reports from
covered institutions;
(2) to issue orders addressed to the
appropriate Supervising Authority or the
covered institution to determine the true

identity of the owner of any monetary

instrument or property subject of a covered
transaction report or request for assistance
from a foreign State, or believed by the
Council, on the basis of substantial evidence,
to be, in whole or in part, wherever located,
representing, involving, or related to, directly
or indirectly, in any manner or by any means,
the proceeds of an unlawful activity;
(3) to institute civil forfeiture proceedings
and all other remedial proceedings through
the Office of the Solicitor General;
(4) to cause the filing of complaints with the
Department of Justice or the Ombudsman for
the prosecution of money laundering
offenses;
(5) to initiate investigations of covered
transactions, money laundering activities and
other violations of this Act;
(6) to freeze any monetary instrument or
property alleged to be proceeds of any
unlawful activity;
(7) to implement such measures as may be
necessary and justified under this Act to
counteract money laundering;
(8) to receive and take action in respect of,
any request from foreign states for assistance
in their own anti-money laundering
operations provided in this Act;
(9) to develop educational programs on the
pernicious effects of money laundering, the
methods and techniques used in money
laundering, the viable means of preventing
money laundering and the effective ways of
prosecuting and punishing offenders; and
(10) to enlist the assistance of any branch,
department, bureau, office, agency or
instrumentality of the government, including
government-owned and -controlled
corporations, in undertaking any and all antimoney laundering operations, which may
include the use of its personnel, facilities and
resources for the more resolute prevention,
detection and investigation of money
laundering offenses and prosecution of
offenders.

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 either in the Insurance
Commission, the Securities and Exchange Commission or
the Bangko Sentral ng Pilipinas (BSP) and shall hold fulltime permanent positions within the BSP.

any manner or by any means, to any person the fact that a

covered transaction report was made, the contents thereof,
or any other information in relation thereto. In case of
violation thereof, the concerned officer, employee,
representative, agent, advisor, consultant or associate of
the covered institution, shall be criminally liable. However,
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 this Act or any other Philippine law.

SEC. 9. Prevention of Money Laundering; Customer

Identification Requirements and Record Keeping.

When reporting covered transactions to the AMLC,

covered institutions and their officers, employees,
representatives, agents, advisors, consultants or associates
(a) Customer Identification. - Covered institutions shall
are prohibited from communicating, directly or indirectly,
establish and record the true identity of its clients based on
in any manner or by any means, to any person, entity, the
official documents. They shall maintain a system of
media, the fact that a covered transaction report was made,
verifying the true identity of their clients and, in case of
the contents thereof, or any other information in relation
corporate clients, require a system of verifying their legal
thereto. Neither may such reporting be published or aired
existence and organizational structure, as well as the
in any manner or form by the mass media, electronic mail,
authority and identification of all persons purporting to act
or other similar devices. In case of violation thereof, the
on their behalf.The provisions of existing laws to the
concerned officer, employee, representative, agent,
contrary notwithstanding, anonymous accounts, accounts
advisor, consultant or associate of the covered institution,
under fictitious names, and all other similar accounts shall
or media shall be held criminally liable.
be absolutely prohibited. Peso and foreign currency nonchecking numbered accounts shall be allowed. The BSP SEC. 10. Authority to Freeze. Upon determination that
may conduct annual testing solely limited to the
probable cause exists that any deposit or similar account is
determination of the existence and true identity of the
in any way related to an unlawful activity, the AMLC may
owners of such accounts.
issue a freeze order, which shall be effective immediately,
on the account for a period not exceeding fifteen (15) days.
Notice to the depositor that his account has been frozen
(b) Record Keeping. - All records of all
shall be issued simultaneously with the issuance of the
transactions of covered institutions shall be
freeze order. The depositor shall have seventy-two (72)
maintained and safely stored for five (5)
hours upon receipt of the notice to explain why the freeze
years from the dates of transactions. With
order should be lifted. The AMLC has seventy-two (72)
respect to closed accounts, the records on
hours to dispose of the depositors explanation. If it fails to
customer identification, account files and
act within seventy-two (72) hours from receipt of the
business correspondence, shall be preserved
depositors explanation, the freeze order shall
and safely stored for at least five (5) years
automatically be dissolved. The fifteen (15)-day freeze
from the dates when they were closed.
order of the AMLC may be extended upon order of the
court, provided that the fifteen (15)-day period shall be
(c) Reporting of Covered Transactions. tolled pending the courts decision to extend the period.
Covered institutions shall report to the
AMLC all covered transactions within five
(5) working days from occurrence thereof,
unless the Supervising Authority concerned
prescribes a longer period not exceeding ten
(10) working days.

No court shall issue a temporary restraining order or writ

of injunction against any freeze order issued by the AMLC
except the Court of Appeals or the Supreme Court.

SEC. 11. Authority to Inquire into Bank Deposits.

Notwithstanding the provisions of Republic Act No. 1405,
as amended; Republic Act No. 6426, as amended;
When reporting covered transactions to the AMLC,
Republic Act No. 8791, and other laws, the AMLC may
covered institutions and their officers, employees,
inquire into or examine any particular deposit or
representatives, agents, advisors, consultants or associates
investment with any banking institution or non-bank
shall not be deemed to have violated Republic Act No.
financial institution upon order of any competent court in
1405, as amended; Republic Act No. 6426, as amended;
cases of violation of this Act when it has been established
Republic Act No. 8791 and other similar laws, but are
that there is probable cause that the deposits or investments
prohibited from communicating, directly or indirectly, in
involved are in any way related to a money laundering

offense: Provided, That this provision shall not apply to

deposits and investments made prior to the effectivity of
this Act.
SEC. 12. Forfeiture Provisions.

the order of forfeiture of the monetary

instrument or property or part thereof or
interest therein, accordingly order the
convicted offender to pay an amount equal to
the value of said monetary instrument or
property. This provision shall apply in both
civil and criminal forfeiture.

(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 SEC. 13. Mutual Assistance among States.
to said report, the Revised Rules of Court on civil
(a) Request for Assistance from a Foreign State. - Where a
forfeiture shall apply.
foreign State makes a request for assistance in the
investigation or prosecution of a money laundering
(b) Claim on Forfeited Assets. - Where the
offense, the AMLC may execute the request or refuse to
court has issued an order of forfeiture of the
execute the same and inform the foreign State of any valid
monetary instrument or property in a criminal
reason for not executing the request or for delaying the
prosecution for any money laundering
execution thereof. The principles of mutuality and
offense defined under Section 4 of this Act,
reciprocity shall, for this purpose, be at all times
the offender or any other person claiming an
recognized.
interest therein may apply, by verified
petition, for a declaration that the same
(b) Powers of the AMLC to Act on a Request
legitimately belongs to him and for
for Assistance from a Foreign State. - The
segregation or exclusion of the monetary
AMLC may execute a request for assistance
instrument or property corresponding thereto.
from a foreign State by: (1) tracking down,
The verified petition shall be filed with the
freezing, restraining and seizing assets
court which rendered the judgment of
alleged to be proceeds of any unlawful
conviction and order of forfeiture, within
activity under the procedures laid down in
fifteen (15) days from the date of the order of
this Act; (2) giving information needed by
forfeiture, in default of which the said order
the foreign State within the procedures laid
shall become final and executory. This
down in this Act; and (3) applying for an
provision shall apply in both civil and
order of forfeiture of any monetary
criminal forfeiture.
instrument or property in the court: Provided,
That the court shall not issue such an order
(c) Payment in Lieu of Forfeiture. - Where
unless the application is accompanied by an
the court has issued an order of forfeiture of
authenticated copy of the order of a court in
the monetary instrument or property subject
the requesting State ordering the forfeiture of
of a money laundering offense defined under
said monetary instrument or property of a
Section 4, and said order cannot be enforced
person who has been convicted of a money
because any particular monetary instrument
laundering offense in the requesting State,
or property cannot, with due diligence, be
and a certification or an affidavit of a
located, or it has been substantially altered,
competent officer of the requesting State
destroyed, diminished in value or otherwise
stating that the conviction and the order of
rendered worthless by any act or omission,
forfeiture are final and that no further appeal
directly or indirectly, attributable to the
lies in respect of either.
offender, or it has been concealed, removed,
converted or otherwise transferred to prevent
(c) Obtaining Assistance from Foreign States.
the same from being found or to avoid
- The AMLC may make a request to any
forfeiture thereof, or it is located outside the
foreign State for assistance in (1) tracking
Philippines or has been placed or brought
down, freezing, restraining and seizing assets
outside the jurisdiction of the court, or it has
alleged to be proceeds of any unlawful
been commingled with other monetary
activity; (2) obtaining information that it
instruments or property belonging to either
needs relating to any covered transaction,
the offender himself or a third person or
money laundering offense or any other matter
entity, thereby rendering the same difficult to
directly or indirectly related thereto; (3) to
identify or be segregated for purposes of
the extent allowed by the law of the foreign
forfeiture, the court may, instead of enforcing
State, applying with the proper court therein

for an order to enter any premises belonging

to or in the possession or control of, any or
all of the persons named in said request,
and/or search any or all such persons named
therein and/or remove any document,
material or object named in said request:
Provided, That the documents accompanying
the request in support of the application have
been duly authenticated in accordance with
the applicable law or regulation of the
foreign State; and (4) applying for an order of
forfeiture of any monetary instrument or
property in the proper court in the foreign
State: Provided, That the request is
accompanied by an authenticated copy of the
order of the regional trial court ordering the
forfeiture of said monetary instrument or
property of a convicted offender and an
affidavit of the clerk of court stating that the
conviction and the order of forfeiture are
final and that no further appeal lies in respect
of either.
(d) Limitations on Requests for Mutual
Assistance. - The AMLC may refuse to
comply with any request for assistance where
the action sought by the request contravenes
any provision of the Constitution or the
execution of a request is likely to prejudice
the national interest of the Philippines unless
there is a treaty between the Philippines and
the requesting State relating to the provision
of assistance in relation to money laundering
offenses.
(e) Requirements for Requests for Mutual
Assistance from Foreign States. - A request
for mutual assistance from a foreign State
must (1) confirm that an investigation or
prosecution is being conducted in respect of a
money launderer named therein or that he has
been convicted of any money laundering
offense; (2) state the grounds on which any
person is being investigated or prosecuted for
money laundering or the details of his
conviction; (3) give sufficient particulars as
to the identity of said person; (4) give
particulars sufficient to identify any covered
institution believed to have any information,
document, material or object which may be
of assistance to the investigation or
prosecution; (5) ask from the covered
institution concerned any information,
document, material or object which may be
of assistance to the investigation or

prosecution; (6) specify the manner in which

and to whom said information, document,
material or object obtained pursuant to said
request, is to be produced; (7) give all the
particulars necessary for the issuance by the
court in the requested State of the writs,
orders or processes needed by the requesting
State; and (8) contain such other information
as may assist in the execution of the request.
(f) Authentication of Documents. - For
purposes of this Section, a document is
authenticated if the same is signed or
certified by a judge, magistrate or equivalent
officer in or of, the requesting State, and
authenticated by the oath or affirmation of a
witness or sealed with an official or public
seal of a minister, secretary of State, or
officer in or of, the government of the
requesting State, or of the person
administering the government or a
department of the requesting territory,
protectorate or colony. The certificate of
authentication may also be made by a
secretary of the embassy or legation, consul
general, consul, vice consul, consular agent
or any officer in the foreign service of the
Philippines stationed in the foreign State in
which the record is kept, and authenticated
by the seal of his office.
(g) Extradition. - The Philippines shall
negotiate for the inclusion of money
laundering offenses as herein defined among
extraditable offenses in all future treaties.
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.
The penalty of imprisonment from four (4) to
seven (7) years and a fine of not less than
One million five hundred thousand
Philippine pesos (Php1,500,000.00) but not
more than Three million Philippine pesos
(Php3,000,000.00), shall be imposed upon a
person convicted under Section 4(b) of this
Act.

The penalty of imprisonment from six (6)

months to four (4) years or a fine of not less
than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five
hundred thousand Philippine pesos
(Php500,000.00), or both, shall be imposed
on a person convicted under Section 4(c) of
this Act.
(b) Penalties for Failure to Keep Records.
The penalty of imprisonment from six (6)
months to one (1) year or a fine of not less
than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five
hundred thousand Philippine pesos
(Php500,000.00), or both, shall be imposed
on a person convicted under Section 9(b) of
this Act.
(c) Malicious Reporting. Any person who,
with malice, or in bad faith, reports or files a
completely unwarranted or false information
relative to money laundering transaction
against any person shall be subject to a
penalty of six (6) months to four (4) years
imprisonment and a fine of not less than One
hundred thousand Philippine pesos (Php100,
000.00) but not more than Five hundred
thousand Philippine pesos (Php500, 000.00),
at the discretion of the court: Provided, That
the offender is not entitled to avail the
benefits of the Probation Law.
If the offender is a corporation, association,
partnership or any juridical person, the
penalty shall be imposed upon the
responsible officers, as the case may be, who
participated in the commission of the crime
or who shall have knowingly permitted or
failed to prevent its commission. If the
offender is a juridical person, the court may
suspend or revoke its license. If the offender
is an alien, he shall, in addition to the
penalties herein prescribed, be deported
without further proceedings after serving the
penalties herein prescribed. If the offender is
a public official or employee, he shall, in
addition to the penalties prescribed herein,
suffer perpetual or temporary absolute
disqualification from office, as the case may
be.
Any public official or employee who is called
upon to testify and refuses to do the same or

purposely fails to testify shall suffer the same

penalties prescribed herein.
(d) Breach of Confidentiality. The
punishment of imprisonment ranging from
three (3) to eight (8) years and a fine of not
less than Five hundred thousand Philippine
pesos (Php500,000.00) but not more than
One million Philippine pesos
(Php1,000,000.00), shall be imposed on a
person convicted for a violation under
Section 9(c).
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
Act shall not be used for political persecution or
harassment or as an instrument to hamper competition in
trade and commerce.
No case for money laundering may be filed against and no
assets shall be frozen, attached or forfeited to the prejudice
of a candidate for an electoral office during an election
period.
SEC. 17. Restitution. Restitution for any aggrieved party
shall be 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.
Covered institutions shall formulate their respective money
laundering prevention programs in accordance with this
Act including, but not limited to, information
dissemination on money laundering activities and its
prevention, detection and reporting, and the training of
responsible officers and personnel of covered institutions.
SEC. 19. Congressional Oversight Committee. There is
hereby created a Congressional Oversight Committee
composed of seven (7) members from the Senate and
seven (7) members from the House of Representatives.
The members from the Senate shall be appointed by the
Senate President based on the proportional representation
of the parties or coalitions therein with at least two (2)
Senators representing the minority. The members from the

House of Representatives shall be appointed by the

Speaker also based on proportional representation of the
parties or coalitions therein with at least two (2) members
representing the minority.

LAUNDERING ACT OF 2001, AS AMENDED

Be it enacted by the Senate and House of Representatives
of the Philippines in Congress assembled:
SECTION 1. Section 3(a) of Republic Act No. 9160, as
amended, is hereby amended to read as follows:
The Oversight Committee shall have the power to
(a) Covered persons, natural or juridical, refer to:
promulgate its own rules, to oversee the implementation of
(1) banks, non-banks, quasi-banks, trust entities, foreign
this Act, and to review or revise the implementing rules
exchange dealers, pawnshops, money changers, remittance
issued by the Anti-Money Laundering Council within
and transfer companies and other similar entities and all
thirty (30) days from the promulgation of the said rules.
other persons and their subsidiaries and affiliates
SEC. 20. Appropriations Clause. The AMLC shall be
supervised or regulated by the Bangko Sentral ng Pilipinas
provided with an initial appropriation of Twenty-five
(BSP);
million Philippine pesos (Php25,000,000.00) to be drawn (2) insurance companies, pre-need companies and all
from the national government. Appropriations for the
other persons supervised or regulated by the Insurance
succeeding years shall be included in the General
Commission (IC);
Appropriations Act.
(3) (i) securities dealers, brokers, salesmen, investment
houses and other similar persons managing securities or
SEC. 21. Separability Clause. If any provision or section
rendering services as investment agent, advisor, or
of this Act or the application thereof to any person or
consultant, (ii) mutual funds, close-end investment
circumstance is held to be invalid, the other provisions or
companies, common trust funds, and other similar persons,
sections of this Act, and the application of such provision
and (iii) other entities administering or otherwise dealing
or section to other persons or circumstances, shall not be
in currency, commodities or financial derivatives based
affected thereby.
thereon, valuable objects, cash substitutes and other similar
SEC. 22. Repealing Clause. All laws, decrees, executive monetary instruments or property supervised or regulated
orders, rules and regulations or parts thereof, including the by the Securities and Exchange Commission (SEC);
relevant provisions of Republic Act No. 1405, as amended; (4) jewelry dealers in precious metals, who, as a business,
Republic Act No. 6426, as amended; Republic Act No.
trade in precious metals, for transactions in excess of One
8791, as amended and other similar laws, as are
million pesos (P1,000,000.00);
inconsistent with this Act, are hereby repealed, amended or (5) jewelry dealers in precious stones, who, as a business,
modified accordingly.
trade in precious stones, for transactions in excess of One
million pesos (P1,000,000.00);
SEC. 23. Effectivity. This Act shall take effect fifteen
(6) company service providers which, as a business,
(15) days after its complete publication in the Official
provide any of the following services to third parties: (i)
Gazette or in at least two (2) national newspapers of
acting as a formation agent of juridical persons; (ii) acting
general circulation.
as (or arranging for another person to act as) a director or
The provisions of this Act shall not apply to deposits and corporate secretary of a company, a partner of a
investments made prior to its effectivity.
partnership, or a similar position in relation to other
juridical persons; (iii) providing a registered office,
Approved,
business address or accommodation, correspondence or
administrative address for a company, a partnership or any
other legal person or arrangement; and (iv) acting as (or
arranging for another person to act as) a nominee
shareholder for another person; and
(7) persons who provide any of the following services:
(i) managing of client money, securities or other assets;
(ii) management of bank, savings or securities accounts;
(iii) organization of contributions for the creation,
operation or management of companies; and
(iv) creation, operation or management of juridical persons
or arrangements, and buying and selling business entities.
Notwithstanding the foregoing, the term covered
[REPUBLIC ACT NO. 10365]
persons shall exclude lawyers and accountants acting as
AN ACT FURTHER STRENGTHENING THE ANTI- independent legal professionals in relation to information
MONEY LAUNDERING LAW, AMENDING FOR
concerning their clients or where disclosure of information
THE PURPOSE REPUBLIC ACT NO. 9160,
would compromise client confidences or the attorneyOTHERWISE KNOWN AS THE ANTI-MONEY
client relationship: Provided, That these lawyers and

accountants are authorized to practice in the Philippines amended;

and shall continue to be subject to the provisions of their (19) Violations of Sections 4 to 6 of Republic Act No.
respective codes of conduct and/or professional
9208, otherwise known as the Anti-Trafficking in Persons
responsibility or any of its amendments.
Act of 2003;
SEC. 2. Section 3(i) of the same Act is hereby amended to (20) Violations of Sections 78 to 79 of Chapter IV, of
read as follows:
Presidential Decree No. 705, otherwise known as the
(i) Unlawful activity refers to any act or omission or
Revised Forestry Code of the Philippines, as amended;
series or combination thereof involving or having direct (21) Violations of Sections 86 to 106 of Chapter VI, of
relation to the following:
Republic Act No. 8550, otherwise known as the Philippine
(1) Kidnapping for ransom under Article 267 of Act No. Fisheries Code of 1998;
3815, otherwise known as the Revised Penal Code, as
(22) Violations of Sections 101 to 107, and 110 of
amended;
Republic Act No. 7942, otherwise known as the Philippine
(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Mining Act of 1995;
Republic Act No. 9165, otherwise known as the
(23) Violations of Section 27(c), (e), (f), (g) and (i), of
Comprehensive Dangerous Drugs Act of 2002;
Republic Act No. 9147, otherwise known as the Wildlife
(3) Section 3 paragraphs B, C, E, G, H and I of Republic Resources Conservation and Protection Act;
Act No. 3019, as amended, otherwise known as the Anti- (24) Violation of Section 7(b) of Republic Act No. 9072,
Graft and Corrupt Practices Act;
otherwise known as the National Caves and Cave
(4) Plunder under Republic Act No. 7080, as amended; Resources Management Protection Act;
(5) Robbery and extortion under Articles 294, 295, 296, (25) Violation of Republic Act No. 6539, otherwise
299, 300, 301 and 302 of the Revised Penal Code, as
known as the Anti-Carnapping Act of 2002, as amended;
amended;
(26) Violations of Sections 1, 3 and 5 of Presidential
(6) Jueteng and Masiao punished as illegal gambling
Decree No. 1866, as amended, otherwise known as the
under Presidential Decree No. 1602;
decree Codifying the Laws on Illegal/Unlawful Possession,
(7) Piracy on the high seas under the Revised Penal Code, Manufacture, Dealing In, Acquisition or Disposition of
as amended and Presidential Decree No. 532;
Firearms, Ammunition or Explosives;
(8) Qualified theft under Article 310 of the Revised Penal (27) Violation of Presidential Decree No. 1612, otherwise
Code, as amended;
known as the Anti-Fencing Law;
(9) Swindling under Article 315 and Other Forms of
(28) Violation of Section 6 of Republic Act No. 8042,
Swindling under Article 316 of the Revised Penal Code, as otherwise known as the Migrant Workers and Overseas
amended;
Filipinos Act of 1995, as amended by Republic Act No.
(10) Smuggling under Republic Act Nos. 455 and 1937; 10022;
(11) Violations of Republic Act No. 8792, otherwise
(29) Violation of Republic Act No. 8293, otherwise
known as the Electronic Commerce Act of 2000;
known as the Intellectual Property Code of the Philippines;
(12) Hijacking and other violations under Republic Act (30) Violation of Section 4 of Republic Act No. 9995,
No. 6235; destructive arson and murder, as defined under otherwise known as the Anti-Photo and Video Voyeurism
the Revised Penal Code, as amended;
Act of 2009;
(13) Terrorism and conspiracy to commit terrorism as
(31) Violation of Section 4 of Republic Act No. 9775,
defined and penalized under Sections 3 and 4 of Republic otherwise known as the Anti-Child Pornography Act of
Act No. 9372;
2009;
(14) Financing of terrorism under Section 4 and offenses (32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e),
punishable under Sections 5, 6, 7 and 8 of Republic Act 11, 12 and 14 of Republic Act No. 7610, otherwise known
No. 10168, otherwise known as the Terrorism Financing as the Special Protection of Children Against Abuse,
Prevention and Suppression Act of 2012:
Exploitation and Discrimination;
(15) Bribery under Articles 210, 211 and 211-A of the
(33) Fraudulent practices and other violations under
Revised Penal Code, as amended, and Corruption of Public Republic Act No. 8799, otherwise known as the Securities
Officers under Article 212 of the Revised Penal Code, as Regulation Code of 2000; and
amended;
(34) Felonies or offenses of a similar nature that are
(16) Frauds and Illegal Exactions and Transactions under punishable under the penal laws of other countries.
Articles 213, 214, 215 and 216 of the Revised Penal Code, SEC. 3. Section 3 of the same Act shall have new
as amended;
paragraphs (j) and (k).
(17) Malversation of Public Funds and Property under
(j) Precious metals shall mean gold, silver, platinum,
Articles 217 and 222 of the Revised Penal Code, as
palladium, rhodium, ruthenium, iridium and osmium.
amended;
These include alloys of precious metals, solders and
(18) Forgeries and Counterfeiting under Articles 163,
plating chemicals such as rhodium and palladium plating
166, 167, 168, 169 and 176 of the Revised Penal Code, as solutions and potassium gold cyanide and potassium silver

cyanide and silver cyanide in salt solution.

Registries of Deeds to submit to the AMLC, reports on all
(k) Precious stones shall mean diamond, ruby, emerald, real estate transactions involving an amount in excess of
sapphire, opal, amethyst, beryl, topaz, and garnet that are Five hundred thousand pesos (P500,000.00) within fifteen
used in jewelry making, including those formerly
(15) days from the date of registration of the transaction, in
classified as semi-precious stones.
a form to be prescribed by the AMLC. The AMLC may
SEC. 4. Section 4 of the same Act is hereby amended to also require the Land Registration Authority and all its
read as follows:
Registries of Deeds to submit copies of relevant
SEC. 4. Money Laundering Offense. Money laundering documents of all real estate transactions.
is committed by any person who, knowing that any
SEC. 7. Section 9(c), paragraphs 1 and 4 of the same Act
monetary instrument or property represents, involves, or are hereby amended to read as follows:
relates to the proceeds of any unlawful activity:
SEC. 9. Prevention of Money Laundering; Customer
(a) transacts said monetary instrument or property;
Identification Requirements and Record Keeping.
(b) converts, transfers, disposes of, moves, acquires,
(a) x x x
possesses or uses said monetary instrument or property; (b) x x x
(c) conceals or disguises the true nature, source, location, (c) Reporting of Covered and Suspicious Transactions.
disposition, movement or ownership of or rights with
Covered persons shall report to the AMLC all covered
respect to said monetary instrument or property;
transactions and suspicious transactions within five (5)
(d) attempts or conspires to commit money laundering
working days from occurrence thereof, unless the AMLC
offenses referred to in paragraphs (a), (b) or (c);
prescribes a different period not exceeding fifteen (15)
(e) aids, abets, assists in or counsels the commission of working days.
the money laundering offenses referred to in paragraphs Lawyers and accountants acting as independent legal
(a), (b) or (c) above; and
professionals are not required to report covered and
(f) performs or fails to perform any act as a result of
suspicious transactions if the relevant information was
which he facilitates the offense of money laundering
obtained in circumstances where they are subject to
referred to in paragraphs (a), (b) or (c) above.
professional secrecy or legal professional privilege.
Money laundering is also committed by any covered
x x x
person who, knowing that a covered or suspicious
x x x
transaction is required under this Act to be reported to the When reporting covered or suspicious transactions to the
Anti-Money Laundering Council (AMLC), fails to do so. AMLC, covered persons and their officers and employees
SEC. 5. Section 6(a) of the same Act is hereby amended to are prohibited from communicating, directly or indirectly,
read as follows:
in any manner or by any means, to any person or entity, the
SEC. 6. Prosecution of Money Laundering.
media, the fact that a covered or suspicious transaction has
(a) Any person may be charged with and convicted of
been reported or is about to be reported, the contents of the
both the offense of money laundering and the unlawful
report, or any other information in relation thereto. Neither
activity as herein defined.
may such reporting be published or aired in any manner or
(b) The prosecution of any offense or violation under this form by the mass media, electronic mail, or other similar
Act shall proceed independently of any proceeding relating devices. In case of violation thereof, the concerned officer
to the unlawful activity.
and employee of the covered person and media shall be
SEC. 6. Section 7 of the same Act is hereby amended to held criminally liable.
read as follows:
SEC. 8. Section 10 of the same Act, as amended by
SEC. 7. Creation of Anti-Money Laundering Council
Republic Act No. 10167, is hereby amended to read as
(AMLC). The Anti-Money Laundering Council is hereby follows:
created and shall be composed of the Governor of the
SEC. 10. Freezing of Monetary Instrument or Property.
Bangko Sentral ng Pilipinas as Chairman, the
Upon a verified ex parte petition by the AMLC and after
Commissioner of the Insurance Commission and the
determination that probable cause exists that any monetary
Chairman of the Securities and Exchange Commission, as instrument or property is in any way related to an unlawful
members. The AMLC shall act unanimously in the
activity as defined in Section 3(i) hereof, the Court of
discharge of its functions as defined hereunder:
Appeals may issue a freeze order which shall be effective
x x x
immediately, and which shall not exceed six (6) months
(6) to apply before the Court of Appeals, ex parte, for the depending upon the circumstances of the
freezing of any monetary instrument or property alleged to case: Provided, That if there is no case filed against a
be laundered, proceeds from, or instrumentalities used in person whose account has been frozen within the period
or intended for use in any unlawful activity as defined in determined by the court, the freeze order shall be
Section 3(i) hereof;
deemed ipso facto lifted: Provided, further, That this new
x x x
rule shall not apply to pending cases in the courts. In any
(12) to require the Land Registration Authority and all its case, the court should act on the petition to freeze within

twenty-four (24) hours from filing of the petition. If the

rendered worthless by any act or omission, directly or
application is filed a day before a nonworking day, the
indirectly, attributable to the offender, or it has been
computation of the twenty-four (24)-hour period shall
concealed, removed, converted, or otherwise transferred to
exclude the nonworking days.
prevent the same from being found or to avoid forfeiture
A person whose account has been frozen may file a
thereof, or it is located outside the Philippines or has been
motion to lift the freeze order and the court must resolve placed or brought outside the jurisdiction of the court, or it
this motion before the expiration of the freeze order.
has been commingled with other monetary instruments or
No court shall issue a temporary restraining order or a
property belonging to either the offender himself or a third
writ of injunction against any freeze order, except the
person or entity, thereby rendering the same difficult to
Supreme Court.
identify or be segregated for purposes of forfeiture, the
SEC. 9. Section 12 of the same Act is hereby amended to court may, instead of enforcing the order of forfeiture of
read as follows:
the monetary instrument or property or part thereof or
(a) Civil Forfeiture. Upon determination by the AMLC interest therein, accordingly order the convicted offender
that probable cause exists that any monetary instrument or to pay an amount equal to the value of said monetary
property is in any way related to an unlawful activity as instrument or property. This provision shall apply in both
defined in Section 3(i) or a money laundering offense
civil and criminal forfeiture.
under Section 4 hereof, the AMLC shall file with the
SEC. 10. Section 14 of the same Act, as amended, is
appropriate court through the Office of the Solicitor
hereby further amended to read as follows:
General, a verified ex parte petition for forfeiture, and the SEC. 14. Penal Provisions. (a) Penalties for the Crime
Rules of Court on Civil Forfeiture shall apply.
of Money Laundering. The penalty of imprisonment
The forfeiture shall include those other monetary
ranging from seven (7) to fourteen (14) years and a fine of
instrument or property having an equivalent value to that not less than Three million Philippine pesos
of the monetary instrument or property found to be related (Php3,000,000.00) but not more than twice the value of the
in any way to an unlawful activity or a money laundering monetary instrument or property involved in the offense,
offense, when with due diligence, the former cannot be
shall be imposed upon a person convicted under Section
located, or it has been substantially altered, destroyed,
4(a), (b), (c) and (d) of this Act.
diminished in value or otherwise rendered worthless by
The penalty of imprisonment from four (4) to seven (7)
any act or omission, or it has been concealed, removed,
years and a fine of not less than One million five hundred
converted, or otherwise transferred, or it is located outside thousand Philippine pesos (Php1,500,000.00) but not more
the Philippines or has been placed or brought outside the than Three million Philippine pesos (Php3,000,000.00),
jurisdiction of the court, or it has been commingled with shall be imposed upon a person convicted under Section
other monetary instrument or property belonging to either 4(e) and (f) of this Act.
the offender himself or a third person or entity, thereby
The penalty of imprisonment from six (6) months to four
rendering the same difficult to identify or be segregated for (4) years or a fine of not less than One hundred thousand
purposes of forfeiture.
Philippine pesos (Php100,000.00) but not more than Five
(b) Claim on Forfeited Assets. Where the court has
hundred thousand Philippine pesos (Php500,000.00), or
issued an order of forfeiture of the monetary instrument or both, shall be imposed on a person convicted under the last
property in a criminal prosecution for any money
paragraph of Section 4 of this Act.
laundering offense defined under Section 4 of this Act, the (b) x x x
offender or any other person claiming an interest therein (c) x x x
may apply, by verified petition, for a declaration that the (d) x x x
same legitimately belongs to him and for segregation or (e) The penalty of imprisonment ranging from four (4) to
exclusion of the monetary instrument or property
seven (7) years and a fine corresponding to not more than
corresponding thereto. The verified petition shall be filed two hundred percent (200%) of the value of the monetary
with the court which rendered the judgment of forfeiture, instrument or property laundered shall be imposed upon
within fifteen (15) days from the date of the finality of the the covered person, its directors, officers or pesonnel who
order of forfeiture, in default of which the said order shall knowingly participated in the commission of the crime of
become final and executor. This provision shall apply in money laundering.
both civil and criminal forfeiture.
(f) Imposition of Administrative Sanctions. The
(c) Payment in Lieu of Forfeiture. Where the court has imposition of the administrative sanctions shall be without
issued an order of forfeiture of the monetary instrument or prejudice to the filing of criminal charges against the
property subject of a money laundering offense defined
persons responsible for the violation.
under Section 4, and said order cannot be enforced because After due notice and hearing, the AMLC shall, at its
any particular monetary instrument or property cannot,
discretion, impose sanctions, including monetary penalties,
with due diligence, be located, or it has been substantially warning or reprimand, upon any covered person, its
altered, destroyed, diminished in value or otherwise
directors, officers, employees or any other person for the

violation of this Act, its implementing rules and

regulations, or for failure or refusal to comply with AMLC
orders, resolutions and other issuances. Such monetary
RULES AND REGULATIONS IMPLEMENTING
penalties shall be in amounts as may be determined by the
THE ANTI-MONEY LAUNDERING ACT OF 2001
AMLC to be appropriate, which shall not be more than
(Republic Act No. 9160)
Five hundred thousand Philippine pesos (P500,000.00) per
violation.
The AMLC may promulgate rules on fines and penalties
RULE 1
taking into consideration the attendant circumstances, such
POLICY AND APPLICATION
as the nature and gravity of the violation or irregularity.
(g) The provision of this law shall not be construed or
Section 1. Title. - These Rules shall be known and cited as
implemented in a manner that will discriminate against
the "Rules and Regulations Implementing Republic Act
certain customer types, such as politically-exposed
No. 9160" (the Anti-Money Laundering Act of
persons, as well as their relatives, or against a certain
2001 [AMLA]).
religion, race or ethnic origin, or such other attributes or
Sec. 2. Purpose. - These Rules are promulgated to
profiles when used as the only basis to deny these persons
prescribe the procedures and guidelines for the
access to the services provided by the covered persons.
implementation of the AMLA.
Whenever a bank, or quasi-bank, financial institution or
Sec. 3. Declaration of Policy. It is the policy of the State
whenever any person or entity commits said discriminatory
that:
act, the person or persons responsible for such violation
(a) The integrity and confidentiality of bank accounts shall
shall be subject to sanctions as may be deemed appropriate
be protected and preserved;
by their respective regulators.
(b) The Philippines shall not be used as a money
SEC. 11. New sections are hereby inserted after Section 19
laundering site for the proceeds of any unlawful activity;
of the same Act, as amended, to read as follows:
and
SEC. 20. Non-intervention in the Bureau of Internal
(c) Consistent with its foreign policy, the Philippines shall
Revenue (BIR) Operations. Nothing contained in this Act
extend cooperation in transnational investigations and
nor in related antecedent laws or existing agreements shall
prosecutions of persons involved in money laundering
be construed to allow the AMLC to participate in any
activities wherever committed.
manner in the operations of the BIR.
Sec. 4. Definition of Terms. SEC. 21. The authority to inquire into or examine the
(a) "Covered institutions" refer to the following:
main account and the related accounts shall comply with
(1) Banks, offshore banking units, quasi-banks, trust
the requirements of Article III, Sections 2 and 3 of the
entities, non-stock savings and loan associations,
1987 Constitution, which are hereby incorporated by
pawnshops, and all other institutions including their
reference. Likewise, the constitutional injunction
subsidiaries and affiliates supervised and/or regulated
against ex post facto laws and bills of attainder shall be
by the Bangko Sentral ng Pilipinas (BSP).
respected in the implementation of this Act.
A subsidiary means an entity more than fifty percent
SEC. 12. The succeeding sections are hereby renumbered
(50%) of the outstanding voting stock of which is
accordingly.
owned by a bank, quasi-bank, trust entity or any other
SEC. 13. Separability Clause. If any provision of this
institution supervised or regulated by the BSP.
Act is declared unconstitutional, the same shall not affect
An affiliate means an entity at least twenty percent
the validity and effectivity of the other provisions hereof.
(20%) but not exceeding fifty percent (50%) of the
SEC. 14. Repealing Clause. All laws, decrees, orders,
voting stock of which is owned by a bank, quasi-bank,
and issuances or portions thereof, which are inconsistent
trust entity, or any other institution supervised and/or
with the provisions of this Act, are hereby repealed,
regulated by the BSP.
amended or modified accordingly.
(2) Insurance companies, insurance agents, insurance
SEC. 15. Effectivity. This Act shall take effect fifteen
brokers, professional reinsurers, reinsurance brokers,
(15) days following its publication in at least two (2)
holding companies, holding company systems and all
national newspapers of general circulation.
other persons and entities supervised and/or regulated
by the Insurance Commission (IC).
An insurance company includes those entities
authorized to transact insurance business in the
Philippines, whether life or non-life and whether
domestic, domestically incorporated or branch of a
foreign entity. A contract of insurance is an agreement
whereby one undertakes for a consideration to

indemnify another against loss, damage or liability

arising from an unknown or contingent event.
Transacting insurance business includes making or
proposing to make, as insurer, any insurance contract, or
as surety, any contract of suretyship as a vocation and
not as merely incidental to any other legitimate business
or activity of the surety, doing any kind of business
specifically recognized as constituting the doing of an
insurance business within the meaning of Presidential
Decree (P. D.) No. 612, as amended, including a
reinsurance business and doing or proposing to do any
business in substance equivalent to any of the foregoing
in a manner designed to evade the provisions of P. D.
No. 612, as amended.
An insurance agent includes any person who solicits or
obtains insurance on behalf of any insurance company
or transmits for a person other than himself an
application for a policy or contract of insurance to or
from such company or offers or assumes to act in the
negotiation of such insurance.
An insurance broker includes any person who acts or
aids in any manner in soliciting, negotiating or
procuring the making of any insurance contract or in
placing risk or taking out insurance, on behalf of an
insured other than himself.
A professional reinsurer includes any person,
partnership, association or corporation that transacts
solely and exclusively reinsurance business in the
Philippines, whether domestic, domestically
incorporated or a branch of a foreign entity. A contract
of reinsurance is one by which an insurer procures a
third person to insure him against loss or liability by
reason of such original insurance.
A reinsurance broker includes any person who, not
being a duly authorized agent, employee or officer of an
insurer in which any reinsurance is effected, acts or aids
in any manner in negotiating contracts of reinsurance or
placing risks of effecting reinsurance, for any insurance
company authorized to do business in the Philippines.
A holding company includes any person who directly or
indirectly controls any authorized insurer.
A holding company system includes a holding company
together with its controlled insurers and controlled
persons.
(3) (i) Securities dealers, brokers, salesmen, associated
persons of brokers or dealers, investment houses,
investment agents and consultants, trading advisors, and
other entities managing securities or rendering similar
services, (ii) mutual funds or open-end investment
companies, close-end investment companies, common
trust funds, pre-need companies or issuers and other
similar entities; (iii) foreign exchange corporations,
money changers, money payment, remittance, and
transfer companies and other similar entities, and (iv)
other entities administering or otherwise dealing in
currency, commodities or financial derivatives based

thereon, valuable objects, cash substitutes and other

similar monetary instruments or property supervised
and/or regulated by the Securities and Exchange
Commission (SEC).
A securities broker includes a person engaged in the
business of buying and selling securities for the account
of others.
A securities dealer includes any person who buys and
sells securities for his/her account in the ordinary course
of business.
A securities salesman includes a natural person,
employed as such or as an agent, by a dealer, issuer or
broker to buy and sell securities.
An associated person of a broker or dealer includes an
employee thereof who directly exercises control of
supervisory authority, but does not include a salesman,
or an agent or a person whose functions are solely
clerical or ministerial.
An investment house includes an enterprise which
engages or purports to engage, whether regularly or on
an isolated basis, in the underwriting of securities of
another person or enterprise, including securities of the
Government and its instrumentalities.
A mutual fund or an open-end investment company
includes an investment company which is offering for
sale or has outstanding, any redeemable security of
which it is the issuer.
A closed-end investment company includes an
investment company other than open-end investment
company.
A common trust fund includes a fund maintained by an
entity authorized to perform trust functions under a
written and formally established plan, exclusively for
the collective investment and reinvestment of certain
money representing participation in the plan received by
it in its capacity as trustee, for the purpose of
administration, holding or management of such funds
and/or properties for the use, benefit or advantage of the
trustor or of others known as beneficiaries.
A pre-need company or issuer includes any corporation
supervised and/or regulated by the SEC and is
authorized or licensed to sell or offer for sale pre-need
plans.
A foreign exchange corporation includes any enterprise
which engages or purports to engage, whether regularly
or on an isolated basis, in the sale and purchase of
foreign currency notes and such other foreign-currency
denominated non-bank deposit transactions as may be
authorized under its articles of incorporation.
An investment agent or consultant or trading advisor
includes any person who is engaged in the business of
advising others as to the value of any security and the
advisability of trading in any security or in the business
of issuing reports or making analysis of capital markets.
However, in case the issuance of reports or the
rendering of the analysis of capital markets is solely

incidental to the conduct of the business or profession of

banks, trust companies, journalists, reporters,
columnists, editors, lawyers, accountants, teachers, and
publishers of newspapers and business or financial
publications of general and regular circulation,
including their employees, they shall not be deemed to
be investment agents or consultants or trade advisors
within the contemplation of the AMLA and these Rules.
A money changer includes any person in the business of
buying or selling foreign currency notes.
A money payment, remittance and transfer company
includes any person offering to pay, remit or transfer or
transmit money on behalf of any person to another
person.

maintenance of any unlawful activity.

(g) "Property" includes any thing or item of value, real
or personal, tangible or intangible, or any interest
therein or any benefit, privilege, claim or right with
respect thereto.
(h) "Supervising Authority" refers to the BSP, the SEC
and the IC. Where the SEC supervision applies only to
the incorporation of the registered institution, within the
limits of the AMLA, the SEC shall have the authority to
require and ask assistance from the government agency
having regulatory power and/or licensing authority over
said covered institution for the implementation and
enforcement of the AMLA and these Rules.

(b) "Customer" refers to any person or entity that keeps

an account, or otherwise transacts business, with a
(i) "Transaction" refers to any act establishing any right
covered institution and any person or entity on whose
or obligation or giving rise to any contractual or legal
behalf an account is maintained or a transaction is
relationship between the parties thereto. It also includes
conducted, as well as the beneficiary of said
any movement of funds by any means with a covered
transactions. A customer also includes the beneficiary of institution.
a trust, an investment fund, a pension fund or a
Sec. 5. Limitations of the Rules. company or person whose assets are managed by an
(a) The provisions of the AMLA and these Rules shall
asset manager, or a grantor of a trust. It includes any
not apply to deposits, investments, and all other
insurance policy holder, whether actual or prospective.
accounts of customers with covered institutions that
were opened or created prior to the effectivity of the
(c) "Monetary Instrument" refers to:
AMLA on October 17, 2001. Hence, no covered
(1) Coins or currency of legal tender of the Philippines,
transaction reports, investigation and prosecution of
or of any other country;
money laundering cases, or any other action authorized
(2) Drafts, checks and notes;
under the AMLA, may be undertaken with respect to
(3) Securities or negotiable instruments, bonds,
such deposits, investments and accounts as well as
commercial papers, deposit certificates, trust
transactions or circumstances in relation thereto, that
certificates, custodial receipts or deposit substitute
have been completed prior to October 17, 2001.
instruments, trading orders, transaction tickets and
However, the AMLA and these Rules shall apply to all
confirmations of sale or investments and money market
movements of funds respecting such deposits,
instruments;
investments and accounts as well as transactions or
(4) Other similar instruments where title thereto passes
circumstances in relation thereto, that are initiated or
to another by endorsement, assignment or delivery; and
commenced on or after October 17, 2001.
(5) Contracts or policies of insurance, life or non-life,
(b) The AMLA and these Rules shall not be used for
and contracts of suretyship.
political persecution or harassment or as an instrument
to hamper competition in trade and commerce.
(d) "Offender" refers to any person who commits a
money laundering offense.
RULE 2
COMPOSITION AND PROCEEDINGS OF
(e) "Person" refers to any natural or juridical person.
THE ANTI-MONEY LAUNDERING COUNCIL
(f) "Proceeds" refers to an amount derived or realized
from an unlawful activity. It includes:
(1) All material results, profits, effects and any amount Section 1. Composition. The members of the AntiMoney Laundering Council (AMLC) created under the
realized from any unlawful activity;
(2) All monetary, financial or economic means, devices, AMLA shall be the Governor of the BSP, the Insurance
Commissioner and the Chairman of the SEC. The
documents, papers or things used in or having any
Governor of the BSP shall be the Chairman.
relation to any unlawful activity; and
(3) All moneys, expenditures, payments, disbursements, Sec. 2. Collegiality. The AMLC is a collegial body where
the Chairman and the members of the AMLC are entitled
costs, outlays, charges, accounts, refunds and other
to one (1) vote each.
similar items for the financing, operations, and

Sec. 3. Unanimous Decision. The AMLC shall act

Sec. 8. Meetings. The AMLC shall meet every first
unanimously in discharging its functions as defined in the Monday of the month or as often as may be necessary at
AMLA and in these Rules. However, in the case of the
the call of the Chairman. Subject to the rule on
incapacity, absence or disability of any member to
confidentiality in the immediately preceding section, the
discharge his functions, the officer duly designated or
meetings of the AMLC may be conducted through modern
authorized to discharge the functions of the Governor of technologies such as, but not limited to, teleconferencing
the BSP, the Chairman of the SEC or the Insurance
and video-conferencing.
Commissioner, as the case may be, shall act in his stead in Sec. 9. Budget. The budget appropriated by the Congress
the AMLC.
shall be used to defray operational expenses of the AMLC,
Sec. 4. Delegation of Authority. Action on routinary
including indemnification for legal costs and expenses
administrative matters may be delegated to any member of reasonably incurred for the services of external counsel or
the AMLC or to any ranking official of the Secretariat
in connection with any civil, criminal or administrative
under such guidelines as the AMLC may determine.
action, suit or proceedings to which members of the
Sec. 5. Secretariat.
AMLC and the Executive Director and other members of
(a) The Secretariat shall be headed by an Executive
the Secretariat may be made a party by reason of the
Director who shall be appointed by the AMLC for a term performance of their functions or duties.
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
RULE 3
character, unquestionable integrity and known probity. He
POWERS OF THE AMLC
shall be considered a regular employee of the BSP with the
rank of Assistant Governor, and shall be entitled to such
benefits and subject to such rules and regulations as are
Section 1. Authority to Initiate Investigations on the Basis
applicable to officers of similar rank.
of Voluntary Citizens Complaints and Government
(b) Other than the Executive Director whose qualifications
Agency Referrals. are provided for in the preceding paragraph, in organizing
(a) Any person, including covered institutions not subject
the Secretariat, the AMLC may only choose from among
to any account secrecy laws and branches, departments,
those who have served, continuously or cumulatively, for
bureaus, offices, agencies and instrumentalities of the
at least five (5) years in the BSP, the SEC or the IC, but
government, including government-owned and controlled
who need not be incumbents therein at the time of their
corporations, may report to the AMLC any activity that
appointment in the Secretariat. All members of the
engenders reasonable belief that any money laundering
Secretariat shall be considered regular employees of the
offense under Section 4 of the AMLA and defined under
BSP and shall be entitled to such benefits and subject to
Rule 4 of these Rules is about to be, is being or has been
such rules and regulations as are applicable to BSP
committed.
employees of similar rank.
(b) The person so reporting shall file a Voluntary Citizens
Sec. 6. Detail and Secondment of Personnel. The AMLC
Complaint (VCC) or Government Referral (GR) in the
is authorized under Section 7 (10) of the AMLA to enlist
form prescribed by the AMLC. The VCC and GR forms
the assistance of the BSP, the SEC or the IC or any other
shall indicate that the members of the AMLC, the
branch, department, bureau, office, agency or
Executive Director and all the members of the Secretariat
instrumentality of the government, including governmentare bound by the confidentiality rule provided in Section 7,
owned and controlled corporations, in undertaking any
Rule 2 of these Rules. The VCC shall be signed by the
and all anti-money laundering operations. This includes
complainant. The GR shall be signed by the authorized
the use of any member of their personnel who may be
representative of the government agency concerned,
detailed or seconded to the AMLC, subject to existing laws
indicating his current position and rank therein.
and Civil Service Rules and Regulations.
(c) Any person who files a VCC or GR shall not incur
Sec. 7. Confidentiality of Proceedings. The members of
any liability for all their acts in relation thereto that were
the AMLC, the Executive Director, and all the members of done in good faith. However, any person who, with
the Secretariat, whether permanent, on detail or on
malice, or in bad faith, reports or files a completely
secondment, shall not reveal in any manner except under
unwarranted or false information relative to any money
orders of the court, the Congress or any government office laundering transaction against any person shall be
or agency authorized by law, or under such conditions as
subject to the penalties provided for under Section 14
may be prescribed by the AMLC, any information known
(c) of the AMLA.
to them by reason of their office. In case of violation of
(d) On the basis of the VCC or GR, the AMLC may
this provision, the person shall be punished in accordance
initiate investigation thereof, and based on the evidence
with the pertinent provisions of R. A. Nos. 3019, 6713 and gathered, the AMLC may cause the filing of criminal
7653.
complaints with the Department of Justice or the

Ombudsman for the prosecution of money laundering

offenses.
Sec. 2. Authority to Initiate Investigations on the Basis of
Covered Transaction Reports. -

information/knowledge that the transaction is a covered

transaction.
(c) Covered Transaction Report Form. The Covered
Transaction Report (CTR) shall be in the form prescribed
by the appropriate Supervising Authority and approved by
(a) Covered Transactions. The mandatory duty and
the AMLC. It shall be signed by the employee(s) who dealt
obligation of covered institutions to make reports to the
directly with the customer in the transaction and/or who
AMLC covers the following transactions:
made the initial internal report within the covered
(1) A single transaction involving an amount in excess of
institution, the compliance officer or his equivalent, and a
Four million Philippine pesos (Php4,000,000.00) or an
senior official of the bank with a rank not lower than
equivalent amount in foreign currency based on the
senior vice-president. The CTR shall be filed with the
prevailing exchange rate where the client is not properly
AMLC in a central location, to be determined by the
identified and/or the amount is not commensurate with his
AMLC, as indicated in the instructions on the CTR form.
business or financial capacity.
(d) Exemption from Bank Secrecy Laws. When reporting
(2) A single transaction involving an amount in excess of
covered transactions to the AMLC, banks and their
Four million Philippine pesos (Php4,000,000.00) or an
officers, employees, representatives, agents, advisors,
equivalent amount in foreign currency based on the
consultants or associates shall not be deemed to have
prevailing exchange rate which has no underlying legal or
violated R. A. No. 1405, as amended, R. A. No. 6426, as
trade obligation, purpose, origin, or economic justification.
amended,R. A. No. 8791 and other similar laws.
(3) A series or combination of transactions conducted
(e) Safe Harbor Provision. No administrative, criminal or
within five (5) consecutive banking days aggregating to a
civil proceedings shall lie against any person for having
total amount in excess of Four million Philippine pesos
made a covered transaction report in the regular
(Php4,000,000.00) or an equivalent in foreign currency
performance of his duties and in good faith, whether or not
based on the prevailing exchange rate where the client is
such reporting results in any criminal prosecution under
not properly identified and/or the amount is not
the AMLA or any other Philippine law.
commensurate with his business or financial capacity.
(f) Filing of Criminal Complaints. On the basis of the
(4) A series or combination of transactions conducted
CTR, the AMLC may initiate investigation thereof, and
within five (5) consecutive banking days aggregating to a
based on the evidence gathered, the AMLC may cause the
total amount in excess of Four million Philippine pesos
filing of criminal complaints with the Department of
(Php4,000,000.00) or an equivalent in foreign currency
Justice or the Ombudsman for the prosecution of money
based on the prevailing exchange rate exchange rate where
laundering offenses.
most, if not all the transactions, do not have any
(g) Malicious Reporting. Any person who, with malice, or
underlying legal or trade obligation, purpose, origin, or
in bad faith, reports or files a completely unwarranted or
economic justification.
false information relative to any money laundering
(5) A single unusually large and complex transaction in
transaction against any person, shall be subject to a penalty
excess of Four million Philippine pesos
of imprisonment from six (6) months to four (4) years and
(Php4,000,000.00), especially a cash deposit or investment
a fine of not less than One hundred thousand Philippine
having no credible purpose or origin, underlying trade
pesos (Php100,000.00) but not more than Five hundred
obligation or contract, regardless of whether or not the
thousand Philippine pesos (Php500,000.00), at the
client is properly identified and/or the amount is
discretion of the court: Provided, That the offender is not
commensurate with his business or financial capacity.
entitled to avail of the benefits under the Probation Law.
(6) A series, combination or pattern of unusually large and
If the offender is a corporation, association, partnership or
complex transactions aggregating to, without reference to
any juridical person, the penalty shall be imposed upon the
any period, a total amount in excess of Four million
responsible officers, as the case may be, who participated
Philippine pesos (Php4,000,000.00), especially cash
or failed to prevent its commission. If the offender is a
deposits and/or investments having no credible purpose or
juridical person, the court may suspend or revoke its
origin, underlying trade obligation or contract, regardless
license. If the offender is an alien, he shall, in addition to
of whether or not the client is properly identified and/or
the penalties herein prescribed, be deported without further
the amount is commensurate with his business or financial
proceedings after serving the penalties herein prescribed. If
capacity.
the offender is a public official or employee, he shall, in
(b) Obligation to Report Covered Transactions. All
addition to the penalties prescribed herein, suffer perpetual
covered institutions supervised or regulated by the BSP,
or temporary absolute disqualification from office, as the
the SEC and the IC shall report all covered transactions to
case may be.
the AMLC within five (5) working days from the date of
(h) Breach of Confidentiality. When reporting covered
the transaction or from the date when the covered
transactions to the AMLC, covered institutions and their
institution concerned gained/acquired
officers, employees, representatives, agents, advisors,

consultants or associates are prohibited from

or otherwise place under its absolute control the account
communicating, directly or indirectly, in any manner or by and the monetary instrument or property subject thereof.
any means, to any person, entity, or the media, the fact that (d) The owner or holder of the account so notified shall
a covered transaction report was made, the contents
have a non-extendible period of seventy-two (72) hours
thereof, or any other information in relation thereto.
upon receipt of the notice to file a verified explanation
Neither may such reporting be published or aired in any with the AMLC why the freeze order should be lifted.
manner or form by the mass media, electronic mail, or
Failure of the owner or holder of the account to file such
other similar devices. Violation of this provision shall
verified explanation shall be deemed waiver of his right to
constitute the offense of breach of confidentiality punished question the freeze order.
under Section 14 (d) of the AMLA with imprisonment
(e) The AMLC shall have seventy-two (72) hours from
from three (3) to eight (8) years and a fine of not less than receipt of the written explanation of the owner or holder of
Five hundred thousand Philippine pesos (Php500,000.00) the frozen account to resolve the same. If the AMLC fails
but not more than One million Philippine pesos
to act within said period, the freeze order shall
(Php1,000,000.00).
automatically be dissolved. However, the covered
(i) File of Covered Transactions. Covered institutions
institution shall not lift the freeze order without securing
shall maintain a complete file on all covered
official confirmation from the AMLC.
transactions that have been reported to the AMLC.
(f) Before the fifteen (15)-day period expires, the AMLC
Covered institutions shall undertake the necessary
may apply in court for an extension of said period. Upon
adequate security measures to ensure the confidentiality of the timely filing of such application and pending the
such file. The file of covered transactions shall be kept for decision of the court to extend the period, said period shall
at least five (5) years: Provided, That if money laundering be suspended and the freeze order shall remain effective.
cases based thereon have been filed in court, the file must (g) In case the court denies the application for extension,
be retained beyond the five(5)-year period until it is
the freeze order shall remain effective only for the balance
confirmed that the case has been finally resolved or
of the fifteen (15)-day period.
terminated by the court.
(h) No court shall issue a temporary restraining order or
Sec. 3. Authority to Freeze Accounts.
writ of injunction against any freeze order issued by the
AMLC or any court order extending period of effectivity
(a) The AMLC is authorized under Sections 6 (6) and 10 of
of the freeze order except the Court of Appeals or the
the AMLA to freeze any account or any monetary
Supreme Court.
instrument or property subject thereof upon determination
(i) No assets shall be frozen to the prejudice of a candidate
that probable cause exists that the same is in any way
for an electoral office during an election period.
related to any unlawful activity and/or money laundering
Sec. 4. Authority to Inquire into Accounts.
offense. The AMLC may freeze any account or any
monetary instrument or property subject thereof prior to (a) The AMLC is authorized under Section 7 (2) of the
the institution or in the course of, the criminal proceedings AMLA to issue orders addressed to the appropriate
involving the unlawful activity and/or money laundering Supervising Authority or any covered institution to
offense to which said account, monetary instrument or
determine and reveal the true identity of the owner of any
property is any way related. For purposes of Section 10 of monetary instrument or property subject of a covered
the AMLA and Section 3, Rule 3 of these Rules, probable transaction report, or a request for assistance from a
cause includes such facts and circumstances which would foreign State, or believed by the AMLC, on the basis of
lead a reasonably discreet, prudent or cautious man to
substantial evidence, to be, in whole or in part, wherever
believe that an unlawful activity and/or a money
located, representing, involving, or related to, directly or
laundering offense is about to be, is being or has been
indirectly, in any manner or by any means, the proceeds of
committed and that the account or any monetary
an unlawful activity. For purposes of the AMLA and these
instrument or property subject thereof sought to be frozen Rules, substantial evidence includes such relevant
is in any way related to said unlawful activity and/or
evidence as a reasonable mind might accept as adequate to
money laundering offense.
support a conclusion.
(b) The freeze order on such account shall be effective
(b) In case of any violation of the AMLA involving bank
immediately for a period not exceeding fifteen (15) days. deposits and investments, the AMLC may inquire into or
(c) The AMLC must serve notice of the freeze order upon examine any particular deposit or investment with any
the covered institution concerned and the owner or holder banking institution or non-bank financial institution upon
of the deposit, investment or similar account,
order of any competent court when the AMLC has
simultaneously with the issuance thereof. Upon receipt of established that there is probable cause that the deposits or
the notice of the freeze order, the covered institution
investments involved are in any way related to any
concerned shall immediately stop, freeze, block, suspend unlawful activity and/or money laundering offense. The
AMLC may file the application for authority to inquire

into or examine any particular bank deposit or investment

in court, prior to the institution or in the course of, the
criminal proceedings involving the unlawful activity
and/or money laundering offense to which said bank
deposit or investment is any way related. For purposes of
Section 11 of the AMLA and Section 4, Rule 3 of these
Rules, probable cause includes such facts and
circumstances which would lead a reasonably discreet,
prudent or cautious man to believe that an unlawful
activity and/or a money laundering offense is about to be,
is being or has been committed and that the bank deposit
or investment sought to be inquired into or examined is in
any way related to said unlawful activity and/or money
laundering offense.
Sec. 5. Authority to Institute Civil Forfeiture
Proceedings. The AMLC is authorized under Section 7
(3) of the AMLA to institute civil forfeiture proceedings
and all other remedial proceedings through the Office of
the Solicitor General.
Sec. 6. Authority to Assist the United Nations and other
International Organizations and Foreign States. The
AMLC is authorized under Sections 7 (8) and 13 (b) and
(d) of the AMLA to receive and take action in respect of
any request of foreign states for assistance in their own
anti-money laundering operations. It is also authorized
under Section 7 (7) of the AMLA to cooperate with the
National Government and/or take appropriate action in
respect of conventions, resolutions and other directives of
the United Nations (UN), the UN Security Council, and
other international organizations of which the Philippines
is a member. However, the AMLC may refuse to comply
with any such request, convention, resolution or directive
where the action sought therein contravenes the provision
of the Constitution or the execution thereof is likely to
prejudice the national interest of the Philippines.

Sec. 9. Authority to Establish Information Sharing

System. Subject to such limitations as provided for by
law, the AMLC is authorized under Section 7 (7) of the
AMLA to establish an information sharing system that will
enable the AMLC to store, track and analyze money
laundering transactions for the resolute prevention,
detection and investigation of money laundering offenses.
For this purpose, the AMLC shall install a computerized
system that will be used in the creation and maintenance of
an information database. The AMLC is also authorized,
under Section 7 (9) of the AMLA to enter into memoranda
of agreement with the intelligence units of the Armed
Forces of the Philippines, the Philippine National Police,
the Department of Finance, the Department of Justice, as
well as their attached agencies, and other domestic or
transnational governmental or non-governmental
organizations or groups for sharing of all information that
may, in any way, facilitate the resolute prevention,
investigation and prosecution of money laundering
offenses and other violations of the AMLA.
Sec. 10. Authority to Establish System of Incentives and
Rewards. The AMLC is authorized under Section 15 of
the AMLA to establish a system of special incentives and
rewards to be given to the appropriate government agency
and its personnel that led and initiated the investigation,
prosecution, and conviction of persons involved in money
laundering offenses under Section 4 of the AMLA. Any
monetary reward shall be made payable out of the funds
appropriated by Congress.
Sec. 11. Other Inherent, Necessary, Implied or Incidental
Powers. The AMLC shall perform such other functions
and exercise such other powers as may be inherent,
necessary, implied or incidental to the functions assigned,
and powers granted, to it under the AMLA for the purpose
of carrying out the declared policy of the AMLA.

Sec. 7. Authority to Develop and Implement Educational

Programs. The AMLC is authorized under Section 7 (9)
RULE 4
of the AMLA to develop educational programs on the
MONEY LAUNDERING OFFENSES
pernicious effects of money laundering, the methods and
techniques used in money laundering, the viable means of
preventing money laundering and the effective ways of
prosecuting and punishing offenders. The AMLC shall
Section 1. Money Laundering Offenses and their
conduct nationwide information campaigns to heighten
Corresponding Penalties. Money laundering is a crime
awareness of the public of their civic duty as citizens to
whereby the proceeds of an unlawful activity are
report any and all activities which engender reasonable
transacted, thereby making them appear to have originated
belief that a money laundering offense under Section 4 of from legitimate sources. It is a process comprising of three
the AMLA is about to be, is being or has been committed. (3) stages, namely, placement or the physical disposal of
Sec. 8. Authority to Issue, Clarify and Amend the Rules the criminal proceeds, layering or the separation of the
and Regulations Implementing R. A. No. 9160. The
criminal proceeds from their source by creating layers of
AMLC is authorized under Sections 7 (7), 18 and 19 of the financial transactions to disguise the audit trail, and
AMLA to promulgate as well as clarify and/or amend, as integration or the provision of apparent legitimacy to the
may be necessary, these Rules. The AMLC may make
criminal proceeds. Any transaction involving such criminal
appropriate issuances for this purpose.
proceeds or attempt to transact the same during the

placement, layering or integration stage shall constitute the (m) Fraudulent practices and other violations under R. A.
crime of money laundering.
No. 8799, the Securities Regulation Code of 2000; and
(a) When it is committed by a person who, knowing that (n) Felonies or offenses of a similar nature that are
any monetary instrument or property represents, involves, punishable under the penal laws of other countries.
or relates to, the proceeds of any unlawful activity,
Sec. 3. Jurisdiction of Money Laundering Cases. The
transacts or attempts to transact said monetary instrument Regional Trial Courts shall have the jurisdiction to try all
or property, the penalty is imprisonment from seven (7) to cases on money laundering. Those committed by public
fourteen (14) years and a fine of not less than Three
officers and private persons who are in conspiracy with
million Philippine pesos (Php3,000,000.00) but not more such public officers shall be under the jurisdiction of the
than twice the value of the monetary instrument or
Sandiganbayan.
property involved in the offense.
Sec. 4. Prosecution of Money Laundering.
(b) When it is committed by a person who, knowing that
(a) Any person may be charged with and convicted of both
any monetary instrument or property involves the proceeds
the offense of money laundering and the unlawful activity
of any unlawful activity, performs or fails to perform any
as defined under Section 3 (i) of the AMLA.
act, as a result of which he facilitates the offense of money
(b) Any proceeding relating to the unlawful activity shall
laundering referred to in paragraph (a) above, the penalty
be given precedence over the prosecution of any offense or
is imprisonment from four (4) to seven (7) years and a fine
violation under the AMLA without prejudice to the
of not less than One million five hundred thousand
issuance by the AMLC of a freeze order with respect to the
Philippine pesos (Php1,500,000.00) but not more than
deposit, investment or similar account involved therein and
Three million Philippine pesos (Php3,000,000.00).
resort to other remedies provided under the AMLA.
(c) When it is committed by a person who, knowing that
(c) Knowledge of the offender that any monetary
any monetary instrument or property is required under this
instrument or property represents, involves, or relates to
Act to be disclosed and filed with the AMLC, fails to do
the proceeds of an unlawful activity or that any monetary
so, the penalty is imprisonment from six (6) months to four
instrument or property is required under the AMLA to be
(4) years or a fine of not less than One hundred thousand
disclosed and filed with the AMLC, may be established by
Philippine pesos (Php100,000.00) but not more than Five
direct evidence or inferred from the attendant
hundred thousand Philippine pesos (Php500,000.00), or
circumstances.
both.
(d) All the elements of every money laundering offense
Sec. 2. Unlawful Activities. - These refer to any act or
under Section 4 of the AMLA must be proved by evidence
omission or series or combination thereof involving or
beyond reasonable doubt, including the element of
having relation to the following:
knowledge that the monetary instrument or property
(a) Kidnapping for ransom under Article of Act No. 3815, represents, involves or relates to the proceeds of any
the Revised Penal Code, as amended;
unlawful activity. No element of the unlawful activity,
(b) Robbery and extortion under Articles 294, 295, 296, however, including the identity of the perpetrators and the
299, 300, 301 and 302 of the sameCode;
details of the actual commission of the unlawful activity
(c) Qualified theft under Article 310 of the same Code;
need be established by proof beyond reasonable doubt. The
(d) Swindling under Article 315 of the same Code;
elements of the offense of money laundering are separate
(e) Piracy on the high seas under the same Code and
and distinct from the elements of the felony or offense
Presidential Decree (P.D.) No. 532;
constituting the unlawful activity.
(f) Destructive arson and murder as defined under the
(e) No case for money laundering may be filed to the
same Code and hijacking and other violations under
prejudice of a candidate for an electoral office during an
Republic Act (R. A.) No. 6235, including those perpetrated election period. However, this prohibition shall not
by terrorists against non-combatant persons and similar
constitute a bar to the prosecution of any money
targets;
laundering case filed in court before the election period.
(g) Jueteng and Masiao punished as illegal gambling
(f) The AMLC may apply, in the course of the criminal
under P.D. No. 1602;
proceedings, for provisional remedies to prevent the
(h) Smuggling under R. A. Nos. 455 and 1937;
monetary instrument or property subject thereof from
(i) Section 3, paragraphs B, C, E, G, H and I of R. A. No. being removed, concealed, converted, commingled with
3019, the Anti-Graft and Corrupt Practices Act, as
other property or otherwise to prevent its being found or
amended;
taken by the applicant or otherwise placed or taken beyond
(j) Sections 3, 4, 5, 7, 8 and 9 of Article Two of R. A. No. the jurisdiction of the court. However, no assets shall be
6425, the Dangerous Drugs Act of 1972 as amended;
attached to the prejudice of a candidate for an electoral
(k) Plunder under R. A. No. 7080, as amended;
office during an election period.
(l) Violations under R. A. No. 8792, the Electronic
(g) Where there is conviction for money laundering under
Commerce ct of 2000;
Section 4 of the AMLA, 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 one or more unlawful activities.
However, no assets shall be forfeited to the prejudice of a
candidate for an electoral office during an election period.
(h) Restitution for any aggrieved party shall be governed
by the provisions of the New Civil Code.
RULE 5
PREVENTION OF MONEY LAUNDERING

self-employment/business;
(7) Contact numbers;
(8) Tax identification number, Social Security System
number or Government Service and Insurance System
number;
(9) Specimen signature;
(10) Source of fund(s); and
(11) Names of beneficiaries in case of insurance contracts
and whenever applicable.
(c) Minimum Information/Documents Required for
Corporate and Juridical Entities. Before establishing
business relationships, covered institutions shall endeavor
to ensure that the customer that is a corporate or juridical
entity has not been or is not in the process of being,
dissolved, wound up or voided, or that its business or
operations has not been or is not in the process of being,
closed, shut down, phased out, or terminated. Dealings
with shell companies and corporations, being legal entities
which have no business substance in their own right but
through which financial transactions may be conducted,
should be undertaken with extreme caution. The following
minimum information/documents shall be obtained from
customers that are corporate or juridical entities, including
shell companies and corporations:

Section 1. Customer Identification Requirements.

(a) True Identity of Individuals as Clients. Covered
institutions shall establish appropriate systems and
methods based on internationally compliant standards and
adequate internal controls for verifying and recording the
true and full identity of their customers.
For this purpose, they shall develop clear customer
acceptance policies and procedures when conducting
business relations or specific transactions, such as, but not
limited to, opening of deposit accounts, accepting deposit
substitutes, entering into trust and other fiduciary
transactions, renting of safety deposit boxes, performing
remittances and other large cash transactions.
(1) Articles of Incorporation/Partnership;
When dealing with customers who are acting as trustee,
(2) By-laws;
nominee, agent or in any capacity for and on behalf of
(3) Official address or principal business address;
another, covered institutions shall verify and record the
(4) List of directors/partners;
true and full identity of the person(s) on whose behalf a
(5) List of principal stockholders owning at least two
transaction is being conducted. Covered institutions shall
percent (2%) of the capital stock;
also establish and record the true and full identity of such
(6) Contact numbers;
trustees, nominees, agents and other persons and the nature
(7) Beneficial owners, if any; and
of their capacity and duties. In case a covered institution
(8) Verification of the authority and identification of the
has doubts as to whether such persons are being used as
person purporting to act on behalf of the client.
dummies in circumvention of existing laws, it shall
immediately make the necessary inquiries to verify the
(d) Verification without Face-to-Face Contact. To the
status of the business relationship between the parties.
extent and through such means allowed under existing
(b) Minimum Information/Documents required for
laws and applicable rules and regulations of the BSP, the
Individual Customers. Covered institutions shall require
SEC and the IC, covered institutions may create new
customers to produce original documents of identity issued
accounts without face-to-face contact. However, such new
by an official authority, preferably bearing a photograph of
accounts shall not be valid and effective unless the
the customer. Examples of such documents are identity
customer complies with the requirements under the two (2)
cards and passports. Where practicable, file copies of
immediately preceding subsections and such other
documents of identity are to be kept. Alternatively, the
requirements that have been or will be imposed by the
identity card or passport number and/or other relevant
BSP, the SEC and the IC, as the case may be, pursuant to
details are to be recorded. The following minimum
Rule 5 of these Rules and/or their respective charters,
information/documents shall be obtained from individual
within ten (10) days from the creation of the new accounts.
customers:
Unless such requirements have been fully complied with,
no transaction shall be honored by any covered institution
(1) Name;
respecting an account created without face-to-face contact.
(2) Present address;
(e) Acquisition of Another Covered Institution. When a
(3) Permanent address;
covered institution acquires the business of another
(4) Date and place of birth;
covered institution, either in whole or as a product
(5) Nationality;
portfolio, it is not necessary for the identity of all existing
(6) Nature of work and name of employer or nature of
customers to be re-established: Provided, That all customer

account records are acquired with the business and due

(d) Form of Records. Records shall be retained as
diligence inquiries do not raise any doubt as to whether or originals or certified true copies on paper, microfilm or
not the acquired business has fully complied with all the electronic form: Provided, That such forms are admissible
requirements under the AMLA and these Rules.
in court pursuant to existing laws and the applicable rules
(f) Risk-monitoring and Review. Covered institutions shall promulgated by the Supreme Court.
adopt programs for on-going monitoring of high-risk
(e) Penalties for Failure to Keep Records. The penalty of
accounts and risk management, subject to such rules and imprisonment from six (6) months to one (1) year or a fine
regulations as may be prescribed by the appropriate
of not less than One hundred thousand Philippine pesos
Supervising Authority. Regular reviews of customer base (Php100,000.00) but not more than Five hundred thousand
should be undertaken to ensure that the nature of accounts Philippine pesos (Php500,000.00), or both, shall be
and potential risks are properly identified, monitored and imposed on a person convicted for a violation of Section 9
controlled.
(b) of the AMLA.
(g) Prohibition against Certain Accounts. Covered
Sec. 3. Money Laundering Prevention Programs.
institutions shall maintain accounts only in the true name Covered institutions shall formulate their respective
of the account owner or holder. The provisions of existing money laundering prevention programs in accordance with
laws to the contrary notwithstanding, anonymous accounts, Section 9 and other pertinent provisions of the AMLA and
accounts under fictitious names, incorrect name accounts Sections 1 and 2 of Rules 3 and 4 and other pertinent
and all other similar accounts shall be absolutely
provisions of these Rules, subject to such guidelines as
prohibited.
may be prescribed by the Supervising Authority and
(h) Numbered Accounts. Peso and foreign currency non- approved by the AMLC. Every covered institution shall
checking numbered accounts shall be
submit its own money laundering program to the
allowed: Provided, That the true identity of the customer is Supervising Authority concerned within a non-extendible
satisfactorily established based on official and other
period of sixty (60) days from the date of effectivity of
reliable documents and records, and that the information these Rules.
and documents required under Section 1 (b) and (c) of
Every money laundering program shall establish detailed
Rule 5 of these Rules are obtained and recorded by the
procedures implementing a comprehensive, institutioncovered institution. The BSP may conduct annual testing
wide "know-your-client" policy, set-up an effective
for the purpose of determining the existence and true
dissemination of information on money laundering
identity of the owners of such accounts.
activities and their prevention, detection and reporting,
Sec. 2. Recordkeeping Requirements. Covered
adopt internal policies, procedures and controls, designate
transactions shall prepare and maintain documentation on
compliance officers at management level, institute
their customer accounts, relationships and transactions
adequate screening and recruitment procedures, and set-up
such that any account, relationship or transaction can be so
an audit function to test the system.
reconstructed as to enable the AMLC, the law enforcement
Covered institutions shall adopt, as part of their money
and prosecutorial authorities, and/or the courts to establish
laundering programs, a system of flagging and monitoring
an audit trail for money laundering.
transactions that qualify as covered transactions except that
(a) Existing and New Accounts and New Transactions. All they involve amounts below the threshold to facilitate the
records of existing and new accounts and of new
process of aggregating them for purposes of future
transactions shall be maintained and safely stored for five reporting of such transactions to the AMLC when their
(5) years from October 17, 2001 or from the dates of the aggregated amounts breach the threshold. Covered
accounts or transactions, whichever is later.
institutions not subject to account secrecy laws shall
(b) Closed Accounts. With respect to closed accounts, the incorporate in their money laundering programs the
records on customer identification, account files and
provisions of Section 1, Rule 3 of these Rules and such
business correspondence shall be preserved and safely
other guidelines for the voluntary reporting to the AMLC
stored for at least five (5) years from the dates when they of all transactions that engender the reasonable belief that a
were closed.
money laundering offense is about to be, is being, or has
(c) Retention of Records in Case a Money Laundering
been committed.
Case Has Been Filed in Court. If a money laundering
Sec. 4. Training of Personnel. Covered institutions shall
case based on any record kept by the covered institution provide all their responsible officers and personnel with
concerned has been filed in court, said file must be
efficient and effective training and continuing education
retained beyond the period stipulated in the two (2)
programs to enable them to fully comply with all their
immediately preceding subsections, as the case may be,
obligations under the AMLA and these Rules.
until it is confirmed that the case has been finally resolved
or terminated by the court.
RULE 6
FORFEITURE

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. 2. Powers of the AMLC to Act on a Request for
Assistance from a Foreign State. - The AMLC may
execute a request for assistance from a foreign state by: (a)
tracking down, freezing, restraining and seizing assets
alleged to be proceeds of any unlawful activity under the
procedures laid down in the AMLA and in these Rules; (b)
giving information needed by the foreign state within the
procedures laid down in the AMLA and in these Rules; and
(c) applying for an order of forfeiture of any monetary
instrument or property in the court:Provided, That the
court shall not issue such an order unless the application is
accompanied by an authenticated copy of the order of a
court in the requesting state ordering the forfeiture of said
monetary instrument or property of a person who has been
convicted of a money laundering offense in the requesting
state, and a certification or an affidavit of a competent
officer of the requesting state stating that the conviction
and the order of forfeiture are final and that no further
appeal lies in respect of either.

Section 1. 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. However, no assets
shall be forfeited to the prejudice of a candidate for an
electoral office during an election period.
Sec. 2. Claim on Forfeited Assets. - Where the court has
issued an order of forfeiture of the monetary instrument or
property in a criminal prosecution for any money
laundering offense under Section 4 of the AMLA, the
offender or any other person claiming an interest therein
may apply, by verified petition, for a declaration that the
same legitimately belongs to him and for segregation or
exclusion of the monetary instrument or property
corresponding thereto. The verified petition shall be filed
with the court which rendered the judgment of conviction
and order of forfeiture, within fifteen (15) days from the
date of the order of forfeiture, in default of which the said
order shall become final and executory. This provision
shall apply in both civil and criminal forfeiture.
Sec. 3. Payment in lieu of Forfeiture. - Where the court has
issued an order of forfeiture of the monetary instrument or
Sec. 3. Obtaining Assistance From Foreign States. - The
property subject of a money laundering offense under
AMLC may make a request to any foreign state for
Section 4 of the AMLA, and said order cannot be enforced
assistance in (a) tracking down, freezing, restraining and
because any particular monetary instrument or property
seizing assets alleged to be proceeds of any unlawful
cannot, with due diligence, be located, or it has been
activity; (b) obtaining information that it needs relating to
substantially altered, destroyed, diminished in value or
any covered transaction, money laundering offense or any
otherwise rendered worthless by any act or omission,
other matter directly or indirectly related thereto; (c) to the
directly or indirectly, attributable to the offender, or it has
extent allowed by the law of the foreign state, applying
been concealed, removed, converted or otherwise
with the proper court therein for an order to enter any
transferred to prevent the same from being found or to
premises belonging to or in the possession or control of,
avoid forfeiture thereof, or it is located outside the
any or all of the persons named in said request, and/or
Philippines or has been placed or brought outside the
search any or all such persons named therein and/or
jurisdiction of the court, or it has been commingled with
remove any document, material or object named in said
other monetary instruments or property belonging to either
request: Provided, That the documents accompanying the
the offender himself or a third person or entity, thereby
request in support of the application have been duly
rendering the same difficult to identify or be segregated for
authenticated in accordance with the applicable law or
purposes of forfeiture, the court may, instead of enforcing
regulation of the foreign state; and (d) applying for an
the order of forfeiture of the monetary instrument or
order of forfeiture of any monetary instrument or property
property or part thereof or interest therein, accordingly
in the proper court in the foreign state: Provided, That the
order the convicted offender to pay an amount equal to the
request is accompanied by an authenticated copy of the
value of said monetary instrument or property. This
order of the Regional Trial Court ordering the forfeiture of
provision shall apply in both civil and criminal forfeiture.
said monetary instrument or property of a convicted
offender and an affidavit of the clerk of court stating that
RULE 7
the conviction and the order of forfeiture are final and that
MUTUAL ASSISTANCE AMONG STATES
no further appeal lies in respect of either.
Sec. 4. Limitations on Requests for Mutual Assistance. Section 1. Request for Assistance from a Foreign State. - The AMLC may refuse to comply with any request for
Where a foreign state makes a request for assistance in the assistance where the action sought by the request
investigation or prosecution of a money laundering
contravenes any provision of the Constitution or the

execution of a request is likely to prejudice the national

under Section 4 of the AMLA among the extraditable
interest of the Philippines, unless there is a treaty between offenses in all future treaties.
the Philippines and the requesting state relating to the
provision of assistance in relation to money laundering
RULE 8
offenses.
AMENDMENTS AND EFFECTIVITY
Sec. 5. Requirements for Requests for Mutual Assistance
from Foreign States. - A request for mutual assistance from
Section 1. Amendments. These Rules or any portion
a foreign state must (a) confirm that an investigation or
thereof may be amended by unanimous vote of the
prosecution is being conducted in respect of a money
members of the AMLC and approved by the Congressional
launderer named therein or that he has been convicted of
Oversight Committee as provided for under Section 19 of
any money laundering offense; (b) state the grounds on
the AMLA.
which any person is being investigated or prosecuted for
Sec. 2. Effectivity. These Rules shall take effect after its
money laundering or the details of his conviction; (c) give
approval by the Congressional Oversight Committee and
sufficient particulars as to the identity of said person; (d)
fifteen (15) days after the completion of its publication in
give particulars sufficient to identify any covered
the Official Gazette or in a newspaper of general
institution believed to have any information, document,
circulation.
material or object which may be of assistance to the
investigation or prosecution; (e) ask from the covered
institution concerned any information, document, material
or object which may be of assistance to the investigation or
prosecution; (f) specify the manner in which and to whom
said information, document, material or object obtained
pursuant to said request, is to be produced; (g) give all the
particulars necessary for the issuance by the court in the
requested state of the writs, orders or processes needed by
the requesting state; and (8) contain such other information
as may assist in the execution of the request.
Sec. 6. Authentication of Documents. - For purposes of
Section 13 of the AMLA and Rule 7 of these Rules, a
document is authenticated if the same is signed or certified
by a judge, magistrate or equivalent officer in or of, the
requesting state, and authenticated by the oath or
affirmation of a witness or sealed with an official or public
seal of a minister, secretary of state, or officer in or of, the
government of the requesting state, or of the person
administering the government or a department of the
requesting territory, protectorate or colony. The certificate
of authentication may also be made by a secretary of the
embassy or legation, consul general, consul, vice consul,
consular agent or any officer in the foreign service of the
Philippines stationed in the foreign state in which the
record is kept, and authenticated by the seal of his office.
Sec. 7. Extradition. The Philippines shall negotiate for
the inclusion of money laundering offenses as defined