ANTI-MONEY

LAUNDERING ACT (AMLA)

 Q: What is the policy for the enactment of the
AntiMoney Laundering Act?
A: 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. (Sec. 1 R.A. 9160, as amended)
 Q: What are the covered
institutions?
A:
Banks
Nonbanks
Quasibanks
Trust entities
All other institutions, their subsidiaries and affiliates supervised or regulated by BSP
Insurance companies and all other institutions supervised and regulated by the Insurance Commission
Securities dealers, brokers, salesmen, investment houses and other similar entities managing securities or
rendering services as investment agent, advisor, or consultant
Mutual funds, closedend investment companies, common trust funds, preneed companies and other
similar entities
Foreign exchange, corporations, money changers, money payments, remittance and transfer companies
and other similar entities; and
10. 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 SEC. (Sec. 3 R.A. 9160, as amended)
 Q: What is the obligation of the covered
institutions?
A: They are mandated by the AMLA to submit
covered and suspicious transaction reports to the
AMLC.
 Agency overview

AMLC Secretariat, BSP Complex, Manila ,

Headquarters
Philippines

Amando Tetangco, Jr. (Chairman), Teresita J.

Herbosa and Dennis B. Funa (Members), Julia
Agency executive
C. Bacay-Abad (Executive Director, AMLC
Secretariat)

Website www.amlc.gov.ph
 Q: What are Covered Transactions?
A: These are single transactions in cash or other
equivalent monetary instrument involving a total
amount in excess of 500,000.00 within 1 banking
day.
Note: These transactions are required to be
reported to the AntiMoney Laundering Council.
 Q: What are Suspicious Transactions?
A: Regardless of amount, if any of the following is
present:
No underlying economic, trade or legal justification
Client not properly identified; numbered accounts are
allowed provided client is identified
Transaction is not commensurate with financial capability of
the client
Transaction is so structured that it cannot be reported to the
AMLC
Transaction which deviates from usual profile of the client
Relates to unlawful activity as defined by law
Analogous transactions
 Q: What is the meaning of Money
Laundering?
A: A crime whereby the proceeds of

unlawful activity are transacted, making

them appear to have come from lawful
transaction. (Sec. 4 R.A. 9160, as amended)
 Q: How is money laundering committed?
A: It is committed by the following persons:
Any person knowing that the 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
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 referred to in No. 1 above

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 4 R.A. 9160, as amended)
Money Laundering 1.
Cycle Predicate Crimes
Corruption and Bribery
Fraud
Organized crime
Drug and human
trafficking
Environmental crime
4. Terrorism 2.
INTEGRATIO Other serious crimes PLACEMENT
The last stage in the
N Initial introduction of
laundering process. criminal proceeds into the
Occurs when the laundered stream of commerce
proceeds are distributed Most vulnerable stage of
back to the criminal. money laundering process
Creates appearance of
legitimate wealth. 3.
LAYERING
Involves distancing the
money from its criminal
source:
movements of $ into
different accounts
movements of money to
different countries
Increasingly difficult to
detect
 Simple Bribe and Money Laundering Transaction
Country 3
Country 1

Company owned by Ministers cousin

Company A
Needs to generate
$1 million for bribe to
Finance Minister.
Uses invoices from
company in Country
2

Company Bank Account $500,000 - Purchase $500,000 - Purchase

of Real Estate of Bearer Share

Country 4
Country 2
 Q: What are considered as unlawful activities or predicate crimes under AMLA?
A: These refer to any act or omission or series or combination thereof involving or having direct
relation to the following:
Kidnapping for ransom
Drug trafficking and related offenses
Graft and corrupt practices
Plunder
Robbery and Extortion
Jueteng and Masiao
Piracy
Qualified theft
Swindling
Smuggling
Violations under the Electronic Commerce Act of 2000
Hijacking, destructive arson, and murder, including those perpetrated by terrorists

against noncombatant persons and similar targets

13. Fraudulent practices and other violations under the SRC of 2000;
14. Felonies or offenses of a similar nature that are punishable under the penal laws of other
countries. (Sec. 3(i) R.A. 9160, as amended)
 Q: Alvin is jobless but is reputed to be a jueteng operator.
He has never been charged or convicted of any crime. He
maintains several bank accounts amounting to P100
Million. AMLC charged Alvin with violation of the
AntiMoney Laundering Law. Can Alvin move to dismiss
the case on the ground that he has no criminal record?
A: No. The contention of Alvin is not tenable because
under AMLA, "money laundering crime" committed when
the proceeds of an "unlawful activity," like jueteng
operations, are made to appear as having originated
from legitimate sources.
The money laundering crime is separate from the unlawful
activity of being a jueteng operator, and requires no
previous conviction for the unlawful activity. (Sec. 3, AMLA)
 Q: In disclosing Alvin's bank accounts to the
AMLC, did the bank violate any law?
A: No, the bank did not violate any law. The
bank being specified as a "covered institution"
under the AntiMoney Laundering Law, is obliged
to report to the AMLC covered and suspicious
transactions, without thereby violating any law.
This is one of the exceptions to the Secrecy of
Bank Deposit Act.
 Q: What is the purpose of the law on creating the
AMLC?
A: AMLC is created to:
To protect and preserve the integrity and
confidentiality of bank accounts;
To ensure that the Philippines shall not be used as a
money laundering site for proceeds of any unlawful
activity; and
To extend cooperation in transnational investigation
and prosecution of person involved in money
laundering activities wherever committed.
 Q: What are the functions of AMLC?
A:
1. To require and receive reports of suspicious transactions from covered
institutions
Note: Covered institutions include, (banks and all other institutions and their
subsidiaries and affiliates supervised or regulated by BSP; insurance
companies and all other institutions supervised or regulated by the IC; and
securities dealers and other entities supervised or regulated by the SEC)
2. To issue orders addressed to the Supervising Authority or the covered
institution
3. To institute civil forfeiture proceedings and all other remedial proceedings
through the OSG
4. To cause the filing of complaints with the DOJ or the Ombudsman for the
prosecution of money laundering offenses
5. To investigate suspicious transactions and covered transactions deemed
suspicious after an investigation by AMLC
 6. To apply before the CA, ex parte, for the freezing of any
monetary instrument/property alleged to be proceeds of any
unlawful activity as defined in the AMLA
7. To implement such measures as may be necessary and
justified to counteract money laundering
8. To receive and take action in respect of any request for
assistance from foreign states in their own antimoney
laundering operations
9. To develop educational programs on the pernicious
effects of money laundering.
10. To enlist the assistance of any branch, department,
bureau, office, agency or instrumentality of the government,
including GOCCs in undertaking any and all antimoney
laundering operations
 11. To impose administrative sanctions for the violation
of laws, rules, regulations and orders and resolutions
issued pursuant thereto. (Sec. 7 R.A. 9160, as amended)
12. To examine or inquire into bank
deposits/investments upon order of any competent
court in cases of violation of the AMLA, when it has
been established that there is probable cause that the
deposits/investments are related to an unlawful activity.
(Sec. 11 R.A. 9160, as amended)
 Q: Who has jurisdiction for violations of
AMLA?
A:

RTC all cases on money laundering

Sandiganbayan Those committed by public

officers and private persons in conspiracy with
them. (Sec. 5 R.A. 9160, as amended)
 Q: Which court has the jurisdiction to issue a freeze
order?
A: It is solely the CA which has the authority to
issue a freeze order upon application ex parte by
the AMLC and after determination that probable
cause exists.
It also has the exclusive jurisdiction to extend existing
freeze orders previously issued by the AMLC visvis
accounts and deposits related to moneylaundering
activities. (Republic v. Cabrini Green & Ramos, G.R. No.
154522, May 5, 2006)
 Q: When may the AntiMoney Laundering Council
(AMLC) inquire into bank deposits?
A:
GR: Only upon order of any competent court in
cases of violation of R.A. 9160, as amended.
XPN: No need of court order in cases of
Kidnapping, Hijacking, Drugs, Arson, Murder.
(Sec. 11 R.A. 9160, as amended)