REPUBLIC ACT NO.

10365 AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW, AMENDING FOR THE PURPOSEREPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE ANTI-MONEY LAUNDERING ACT OF !001", AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: S#$%&'( 1. Section 3(a) of Republic Act No. 9160, as amended, is hereb amended to read as follo!s" #(a) $%o&ered persons', natural or (uridical, refer to" #(1) ban)s, non*ban)s, +uasi*ban)s, trust entities, forei,n e-chan,e dealers, pa!nshops, mone chan,ers, remittance and transfer companies and other similar entities and all other persons and their subsidiaries and affiliates super&ised or re,ulated b the .an,)o Sentral n, /ilipinas (.S/)0 #(1) insurance companies, pre*need companies and all other persons super&ised or re,ulated b the 2nsurance %ommission (2%)0 #(3) (i) securities dealers, bro)ers, salesmen, in&estment houses and other similar persons mana,in, securities or renderin, ser&ices as in&estment a,ent, ad&isor, or consultant, (ii) mutual funds, close*end in&estment companies, common trust funds, and other similar persons, and (iii) other entities administerin, or other!ise dealin, in currenc , commodities or financial deri&ati&es based thereon, &aluable ob(ects, cash substitutes and other similar monetar instruments or propert super&ised or re,ulated b the Securities and 3-chan,e %ommission (S3%)0 #(4) (e!elr dealers in precious metals, !ho, as a business, trade in precious metals, for transactions in e-cess of 5ne million pesos (/1,000,000.00)0 #(6) (e!elr dealers in precious stones, !ho, as a business, trade in precious stones, for transactions in e-cess of 5ne million pesos (/1,000,000.00)0 #(6) compan ser&ice pro&iders !hich, as a business, pro&ide an of the follo!in, ser&ices to third parties" (i) actin, as a formation a,ent of (uridical persons0 (ii) actin, as (or arran,in, for another person to act as) a director or corporate secretar of a compan , a partner of a partnership, or a similar position in relation to other (uridical persons0 (iii) pro&idin, a re,istered office, business address or accommodation, correspondence or administrati&e address for a compan , a partnership or an other le,al person or arran,ement0 and (i&) actin, as (or arran,in, for another person to act as) a nominee shareholder for another person0 and #(7) persons !ho pro&ide an of the follo!in, ser&ices" (i) mana,in, of client mone , securities or other assets0 (ii) mana,ement of ban), sa&in,s or securities accounts0

(iii) or,ani8ation of contributions for the creation, operation or mana,ement of companies0 and (i&) creation, operation or mana,ement of (uridical persons or arran,ements, and bu in, and sellin, business entities. #Not!ithstandin, the fore,oin,, the term $co&ered persons' shall e-clude la! ers and accountants actin, as independent le,al professionals in relation to information concernin, their clients or !here disclosure of information !ould compromise client confidences or the attorne *client relationship" Provided, 9hat these la! ers and accountants are authori8ed to practice in the /hilippines and shall continue to be sub(ect to the pro&isions of their respecti&e codes of conduct and:or professional responsibilit or an of its amendments.# S#$%&'( !. Section 3(i) of the same Act is hereb amended to read as follo!s" #(i) $;nla!ful acti&it ' refers to an act or omission or series or combination thereof in&ol&in, or ha&in, direct relation to the follo!in," #(1) <idnappin, for ransom under Article 167 of Act No. 3=16, other!ise )no!n as the Re&ised /enal %ode, as amended0 #(1) Sections 4, 6, 6, =, 9, 10, 11, 11, 13, 14, 16 and 16 of Republic Act No. 9166, other!ise )no!n as the %omprehensi&e >an,erous >ru,s Act of 10010 #(3) Section 3 para,raphs ., %, 3, ?, @ and 2 of Republic Act No. 3019, as amended, other!ise )no!n as the Anti*?raft and %orrupt /ractices Act0 #(4) /lunder under Republic Act No. 70=0, as amended0 #(6) Robber and e-tortion under Articles 194, 196, 196, 199, 300, 301 and 301 of the Re&ised /enal %ode, as amended0 #(6) Aueten, and Basiao punished as ille,al ,amblin, under /residential >ecree No. 16010 #(7) /irac on the hi,h seas under the Re&ised /enal %ode, as amended and /residential >ecree No. 6310 #(=) Cualified theft under Article 310 of the Re&ised /enal %ode, as amended0 #(9) S!indlin, under Article 316 and 5ther Dorms of S!indlin, under Article 316 of the Re&ised /enal %ode, as amended0 #(10) Smu,,lin, under Republic Act Nos. 466 and 19370 #(11) Eiolations of Republic Act No. =791, other!ise )no!n as the 3lectronic %ommerce Act of 10000

#(11) @i(ac)in, and other &iolations under Republic Act No. 61360 destructi&e arson and murder, as defined under the Re&ised /enal %ode, as amended0 #(13) 9errorism and conspirac to commit terrorism as defined and penali8ed under Sections 3 and 4 of Republic Act No. 93710 #(14) Dinancin, of terrorism under Section 4 and offenses punishable under Sections 6, 6, 7 and = of Republic Act No. 1016=, other!ise )no!n as the 9errorism Dinancin, /re&ention and Suppression Act of 1011" #(16) .riber under Articles 110, 111 and 111*A of the Re&ised /enal %ode, as amended, and %orruption of /ublic 5fficers under Article 111 of the Re&ised /enal %ode, as amended0 #(16) Drauds and 2lle,al 3-actions and 9ransactions under Articles 113, 114, 116 and 116 of the Re&ised /enal %ode, as amended0 #(17) Bal&ersation of /ublic Dunds and /ropert under Articles 117 and 111 of the Re&ised /enal %ode, as amended0 #(1=) Dor,eries and %ounterfeitin, under Articles 163, 166, 167, 16=, 169 and 176 of the Re&ised /enal %ode, as amended0 #(19) Eiolations of Sections 4 to 6 of Republic Act No. 910=, other!ise )no!n as the Anti*9raffic)in, in /ersons Act of 10030 #(10) Eiolations of Sections 7= to 79 of %hapter 2E, of /residential >ecree No. 706, other!ise )no!n as the Re&ised Dorestr %ode of the /hilippines, as amended0 #(11) Eiolations of Sections =6 to 106 of %hapter E2, of Republic Act No. =660, other!ise )no!n as the /hilippine Disheries %ode of 199=0 #(11) Eiolations of Sections 101 to 107, and 110 of Republic Act No. 7941, other!ise )no!n as the /hilippine Binin, Act of 19960 #(13) Eiolations of Section 17(c), (e), (f), (,) and (i), of Republic Act No. 9147, other!ise )no!n as the Fildlife Resources %onser&ation and /rotection Act0 #(14) Eiolation of Section 7(b) of Republic Act No. 9071, other!ise )no!n as the National %a&es and %a&e Resources Bana,ement /rotection Act0 #(16) Eiolation of Republic Act No. 6639, other!ise )no!n as the Anti*%arnappin, Act of 1001, as amended0 #(16) Eiolations of Sections 1, 3 and 6 of /residential >ecree No. 1=66, as amended, other!ise )no!n as the decree %odif in, the Ga!s on 2lle,al:;nla!ful /ossession, Banufacture, >ealin, 2n, Ac+uisition or >isposition of Direarms, Ammunition or 3-plosi&es0 #(17) Eiolation of /residential >ecree No. 1611, other!ise )no!n as the Anti*Dencin, Ga!0

#(1=) Eiolation of Section 6 of Republic Act No. =041, other!ise )no!n as the Bi,rant For)ers and 5&erseas Dilipinos Act of 1996, as amended b Republic Act No. 100110 #(19) Eiolation of Republic Act No. =193, other!ise )no!n as the 2ntellectual /ropert %ode of the /hilippines0 #(30) Eiolation of Section 4 of Republic Act No. 9996, other!ise )no!n as the Anti* /hoto and Eideo Eo eurism Act of 10090 #(31) Eiolation of Section 4 of Republic Act No. 9776, other!ise )no!n as the Anti* %hild /orno,raph Act of 10090 #(31) Eiolations of Sections 6, 7, =, 9, 10(c), (d) and (e), 11, 11 and 14 of Republic Act No. 7610, other!ise )no!n as the Special /rotection of %hildren A,ainst Abuse, 3-ploitation and >iscrimination0 #(33) Draudulent practices and other &iolations under Republic Act No. =799, other!ise )no!n as the Securities Re,ulation %ode of 10000 and #(34) Delonies or offenses of a similar nature that are punishable under the penal la!s of other countries.# S#$%&'( 3. Section 3 of the same Act shall ha&e ne! para,raphs (() and ()). #(() /recious metals' shall mean ,old, sil&er, platinum, palladium, rhodium, ruthenium, iridium and osmium. 9hese include allo s of precious metals, solders and platin, chemicals such as rhodium and palladium platin, solutions and potassium ,old c anide and potassium sil&er c anide and sil&er c anide in salt solution. #()) $/recious stones' shall mean diamond, rub , emerald, sapphire, opal, ameth st, ber l, topa8, and ,arnet that are used in (e!elr ma)in,, includin, those formerl classified as semi*precious stones.# S#$%&'( ). Section 4 of the same Act is hereb amended to read as follo!s" #S3%. 4. Money Laundering ffense! " Bone launderin, is committed b an person !ho, )no!in, that an monetar instrument or propert represents, in&ol&es, or relates to the proceeds of an unla!ful acti&it " #(a) transacts said monetar instrument or propert 0 #(b) con&erts, transfers, disposes of, mo&es, ac+uires, possesses or uses said monetar instrument or propert 0 #(c) conceals or dis,uises the true nature, source, location, disposition, mo&ement or o!nership of or ri,hts !ith respect to said monetar instrument or propert 0 #(d) attempts or conspires to commit mone launderin, offenses referred to in para,raphs (a), (b) or (c)0

#(e) aids, abets, assists in or counsels the commission of the mone launderin, offenses referred to in para,raphs (a), (b) or (c) abo&e0 and #(f) performs or fails to perform an act as a result of !hich he facilitates the offense of mone launderin, referred to in para,raphs (a), (b) or (c) abo&e. #Bone launderin, is also committed b an co&ered person !ho, )no!in, that a co&ered or suspicious transaction is re+uired under this Act to be reported to the Anti*Bone Gaunderin, %ouncil (ABG%), fails to do so.# S#$%&'( 5. Section 6(a) of the same Act is hereb amended to read as follo!s" #S3%. 6. Prosecution of Money Laundering! H #(a) An person ma be char,ed !ith and con&icted of both the offense of mone launderin, and the unla!ful acti&it as herein defined. #(b) 9he prosecution of an offense or &iolation under this Act shall proceed independentl of an proceedin, relatin, to the unla!ful acti&it .# S#$%&'( 6. Section 7 of the same Act is hereb amended to read as follo!s" #S3%. 7. Creation of #nti$Money Laundering Council %#MLC&! " 9he Anti*Bone Gaunderin, %ouncil is hereb created and shall be composed of the ?o&ernor of the .an,)o Sentral n, /ilipinas as %hairman, the %ommissioner of the 2nsurance %ommission and the %hairman of the Securities and 3-chan,e %ommission, as members. 9he ABG% shall act unanimousl in the dischar,e of its functions as defined hereunder" #- - #(6) to appl before the %ourt of Appeals, e' parte, for the free8in, of an monetar instrument or propert alle,ed to be laundered, proceeds from, or instrumentalities used in or intended for use in an unla!ful acti&it as defined in Section 3(i) hereof0 #- - #(11) to re+uire the Gand Re,istration Authorit and all its Re,istries of >eeds to submit to the ABG%, reports on all real estate transactions in&ol&in, an amount in e-cess of Di&e hundred thousand pesos (/600,000.00) !ithin fifteen (16) da s from the date of re,istration of the transaction, in a form to be prescribed b the ABG%. 9he ABG% ma also re+uire the Gand Re,istration Authorit and all its Re,istries of >eeds to submit copies of rele&ant documents of all real estate transactions.# S#$%&'( *. Section 9(c), para,raphs 1 and 4 of the same Act are hereb amended to read as follo!s" #S3%. 9. Prevention of Money Laundering( Customer )dentification Re*uirements and Record +eeping! H #(a) - - -

#(b) - - #(c) Reportin, of %o&ered and Suspicious 9ransactions. H %o&ered persons shall report to the ABG% all co&ered transactions and suspicious transactions !ithin fi&e (6) !or)in, da s from occurrence thereof, unless the ABG% prescribes a different period not e-ceedin, fifteen (16) !or)in, da s. #Ga! ers and accountants actin, as independent le,al professionals are not re+uired to report co&ered and suspicious transactions if the rele&ant information !as obtained in circumstances !here the are sub(ect to professional secrec or le,al professional pri&ile,e. #- - #- - #Fhen reportin, co&ered or suspicious transactions to the ABG%, co&ered persons and their officers and emplo ees are prohibited from communicatin,, directl or indirectl , in an manner or b an means, to an person or entit , the media, the fact that a co&ered or suspicious transaction has been reported or is about to be reported, the contents of the report, or an other information in relation thereto. Neither ma such reportin, be published or aired in an manner or form b the mass media#, electronic mail, or other similar de&ices. 2n case of &iolation thereof, the concerned officer and emplo ee of the co&ered person and media shall be held criminall liable.# S#$%&'( +. Section 10 of the same Act, as amended b Republic Act No. 10167, is hereb amended to read as follo!s" #S3%. 10. ,ree-ing of Monetary )nstrument or Property! " ;pon a &erified e' parte petition b the ABG% and after determination that probable cause e-ists that an monetar instrument or propert is in an !a related to an unla!ful acti&it as defined in Section 3(i) hereof, the %ourt of Appeals ma issue a free8e order !hich shall be effecti&e immediatel , and !hich shall not e-ceed si- (6) months dependin, upon the circumstances of the case" Provided, 9hat if there is no case filed a,ainst a person !hose account has been fro8en !ithin the period determined b the court, the free8e order shall be deemed ipso facto lifted"Provided, further, 9hat this ne! rule shall not appl to pendin, cases in the courts. 2n an case, the court should act on the petition to free8e !ithin t!ent *four (14) hours from filin, of the petition. 2f the application is filed a da before a non!or)in, da , the computation of the t!ent *four (14)*hour period shall e-clude the non!or)in, da s. #A person !hose account has been fro8en ma file a motion to lift the free8e order and the court must resol&e this motion before the e-piration of the free8e order. #No court shall issue a temporar restrainin, order or a !rit of in(unction a,ainst an free8e order, e-cept the Supreme %ourt.# S#$%&'( 9. Section 11 of the same Act is hereb amended to read as follo!s" #(a) Civil ,orfeiture! H ;pon determination b the ABG% that probable cause e-ists that an monetar instrument or propert is in an !a related to an unla!ful acti&it as defined in Section 3(i) or a mone launderin, offense under Section 4 hereof, the ABG% shall file !ith

the appropriate court throu,h the 5ffice of the Solicitor ?eneral, a &erified e' parte petition for forfeiture, and the Rules of %ourt on %i&il Dorfeiture shall appl . #9he forfeiture shall include those other monetar instrument or propert ha&in, an e+ui&alent &alue to that of the monetar instrument or propert found to be related in an !a to an unla!ful acti&it or a mone launderin, offense, !hen !ith due dili,ence, the former cannot be located, or it has been substantiall altered, destro ed, diminished in &alue or other!ise rendered !orthless b an act or omission, or it has been concealed, remo&ed, con&erted, or other!ise transferred, or it is located outside the /hilippines or has been placed or brou,ht outside the (urisdiction of the court, or it has been commin,led !ith other monetar instrument or propert belon,in, to either the offender himself or a third person or entit , thereb renderin, the same difficult to identif or be se,re,ated for purposes of forfeiture. #(b) Claim on ,orfeited #ssets! H Fhere the court has issued an order of forfeiture of the monetar instrument or propert in a criminal prosecution for an mone launderin, offense defined under Section 4 of this Act, the offender or an other person claimin, an interest therein ma appl , b &erified petition, for a declaration that the same le,itimatel belon,s to him and for se,re,ation or e-clusion of the monetar instrument or propert correspondin, thereto. 9he &erified petition shall be filed !ith the court !hich rendered the (ud,ment of forfeiture, !ithin fifteen (16) da s from the date of the finalit of the order of forfeiture, in default of !hich the said order shall become final and e-ecutor. 9his pro&ision shall appl in both ci&il and criminal forfeiture. #(c) Payment in Lieu of ,orfeiture! " Fhere the court has issued an order of forfeiture of the monetar instrument or propert sub(ect of a mone launderin, offense defined under Section 4, and said order cannot be enforced because an particular monetar instrument or propert cannot, !ith due dili,ence, be located, or it has been substantiall altered, destro ed, diminished in &alue or other!ise rendered !orthless b an act or omission, directl or indirectl , attributable to the offender, or it has been concealed, remo&ed, con&erted, or other!ise transferred to pre&ent the same from bein, found or to a&oid forfeiture thereof, or it is located outside the /hilippines or has been placed or brou,ht outside the (urisdiction of the court, or it has been commin,led !ith other monetar instruments or propert belon,in, to either the offender himself or a third person or entit , thereb renderin, the same difficult to identif or be se,re,ated for purposes of forfeiture, the court ma , instead of enforcin, the order of forfeiture of the monetar instrument or propert or part thereof or interest therein, accordin,l order the con&icted offender to pa an amount e+ual to the &alue of said monetar instrument or propert . 9his pro&ision shall appl in both ci&il and criminal forfeiture.# S#$%&'( 10. Section 14 of the same Act, as amended, is hereb further amended to read as follo!s" #S3%. 14. Penal Provisions! " (a) /enalties for the %rime of Bone Gaunderin,. 9he penalt of imprisonment ran,in, from se&en (7) to fourteen (14) ears and a fine of not less than 9hree million /hilippine pesos (/hp3,000,000.00) but not more than t!ice the &alue of the monetar instrument or propert in&ol&ed in the offense, shall be imposed upon a person con&icted under Section 4(a), (b), (c) and (d) of this Act. #9he penalt of imprisonment from four (4) to se&en (7) ears and a fine of not less than 5ne million fi&e hundred thousand /hilippine pesos (/hp1,600,000.00) but not more than 9hree million /hilippine pesos (/hp3,000,000.00), shall be imposed upon a person con&icted under Section 4(e) and (f) of this Act.

#9he penalt of imprisonment from si- (6) months to four (4) ears or a fine of not less than 5ne hundred thousand /hilippine pesos (/hp100,000.00) but not more than Di&e hundred thousand /hilippine pesos (/hp600,000.00), or both, shall be imposed on a person con&icted under the last para,raph of Section 4 of this Act. #(b) - - #(c) - - #(d) - - #(e) 9he penalt of imprisonment ran,in, from four (4) to se&en (7) ears and a fine correspondin, to not more than t!o hundred percent (100I) of the &alue of the monetar instrument or propert laundered shall be imposed upon the co&ered person, its directors, officers or pesonnel !ho )no!in,l participated in the commission of the crime of mone launderin,. #(f) 2mposition of Administrati&e Sanctions. 9he imposition of the administrati&e sanctions shall be !ithout pre(udice to the filin, of criminal char,es a,ainst the persons responsible for the &iolation. #After due notice and hearin,, the ABG% shall, at its discretion, impose sanctions, includin, monetar penalties, !arnin, or reprimand, upon an co&ered person, its directors, officers, emplo ees or an other person for the &iolation of this Act, its implementin, rules and re,ulations, or for failure or refusal to compl !ith ABG% orders, resolutions and other issuances. Such monetar penalties shall be in amounts as ma be determined b the ABG% to be appropriate, !hich shall not be more than Di&e hundred thousand /hilippine pesos (/600,000.00) per &iolation.
./0phi.

#9he ABG% ma promul,ate rules on fines and penalties ta)in, into consideration the attendant circumstances, such as the nature and ,ra&it of the &iolation or irre,ularit . #(,) 9he pro&ision of this la! shall not be construed or implemented in a manner that !ill discriminate a,ainst certain customer t pes, such as politicall *e-posed persons, as !ell as their relati&es, or a,ainst a certain reli,ion, race or ethnic ori,in, or such other attributes or profiles !hen used as the onl basis to den these persons access to the ser&ices pro&ided b the co&ered persons. Fhene&er a ban), or +uasi*ban), financial institution or !hene&er an person or entit commits said discriminator act, the person or persons responsible for such &iolation shall be sub(ect to sanctions as ma be deemed appropriate b their respecti&e re,ulators.# S#$%&'( 11. Ne! sections are hereb inserted after Section 19 of the same Act, as amended, to read as follo!s" #S3%. 10. 1on$intervention in the Bureau of )nternal Revenue %B)R& perations! " Nothin, contained in this Act nor in related antecedent la!s or e-istin, a,reements shall be construed to allo! the ABG% to participate in an manner in the operations of the .2R.# #S3%. 11. 9he authorit to in+uire into or e-amine the main account and the related accounts shall compl !ith the re+uirements of Article 222, Sections 1 and 3 of the 19=7 %onstitution, !hich are hereb incorporated b reference. Gi)e!ise, the constitutional in(unction

a,ainst e' post facto la!s and bills of attainder shall be respected in the implementation of this Act.# S#$%&'( 1!. 9he succeedin, sections are hereb renumbered accordin,l . S#$%&'( 13. Separability Clause! H 2f an pro&ision of this Act is declared unconstitutional, the same shall not affect the &alidit and effecti&it of the other pro&isions hereof. S#$%&'( 1). Repealing Clause! " All la!s, decrees, orders, and issuances or portions thereof, !hich are inconsistent !ith the pro&isions of this Act, are hereb repealed, amended or modified accordin,l . S#$%&'( 15. 2ffectivity! H 9his Act shall ta)e effect fifteen (16) da s follo!in, its publication in at least t!o (1) national ne!spapers of ,eneral circulation.