Republic Act no. 9160 Anti-Money Laundering Act, as amended.

I. Multiple Choice Questions:

1. The following belong to the declared policy of the state with regard the promulgation of
the Anti-Money Laundering Act or Republic Act no. 9160, except:
a. to protect and preserve the integrity and confidentiality of bank accounts
b. to ensure that the Philippines shall not be used as a money laundering site for the
proceeds of any unlawful activity
c. to develop educational programs, including awareness campaign on the
pernicious effects, the methods and techniques used, and the viable means of
preventing money laundering and the effective ways of prosecuting and
punishing offenders
d. to extend cooperation in transnational investigations and prosecutions of persons
involved in money laundering activities wherever committed

2. ________________ states that no administrative, criminal or civil proceedings shall lie

against any person for having made a covered transaction or suspicious transaction report
in the regular performance of his duties and in good faith, whether or not such reporting
results in any criminal prosecution under the AMLA or any other Philippine law.
a. Confidentiality of Reporting
b. Enhanced Due Diligence
c. Transaction Reporting
d. Safe Harbor Provision

3. Monetary Instrument in Anti-Money Laundering Act or Republic Act no. 9160 include
contracts or policies of insurance, life or non-life, contracts of suretyship, pre-need plans,
and member certificates issued by mutual benefit association. True/False.
a. True, it is expressly provided in the law.
b. True, monetary instrument includes instruments where title thereto passes to
another by endorsement, assignment, or delivery.
c. False, monetary instrument only incudes coins or currency of legal tender of the
Philippines, or of any other country.
d. False, contracts or policies of insurance, life or non-life, contracts of suretyship,
pre-need plans, and member certificates issued by mutual benefit association are
not considered as monetary instrument.

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4. The authority to inquire into or examine the main account and the related accounts in
Anti-Money Laundering Act or Republic Act no. 9160 shall comply with the
requirements of:
a. Article III, Section 2 of the 1987 Constitution
b. Article III, Section 3 of the 1987 Constitution
c. Both A and B
d. None of the above

5. _______________ is an inter-governmental body which sets standards and promotes

effective implementation of legal, regulatory and operational measures for combating
money laundering, terrorist financing and other related threats to the integrity of the
international financial system.
a. Financial Investigative Unit
b. Financial Crimes Enforcement Network
c. Financial Action Task Force
d. Intelligence Processing and Action against Illicit Financial Networks

II. Essay Questions

1. Lucio Sy 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 and has purchased five (5)
houses and lots for his children from the Villar Realty, Inc. Since he does not have any
visible job, the company reported his purchases to the Anti-Money Laundering Council
(AMLC). Thereafter, AMLC resolved that he violated of the Anti-Money Laundering
Act. Upon request of the AMLC, the bank disclosed to it Lucios bank deposits
amounting to P100 Million. He was then charged in court for violation of the Anti-
Money Laundering Act.
a. Can Lucio move to dismiss the case on the ground that he has no criminal record?
5%
b. To raise funds for his defense, Lucio sold the houses and lots to a friend. Can
Villar Realty, Inc. be compelled to transfer to the buyer the ownership of the
houses and lots? 2.5%
c. In disclosing Lucios bank accounts to the AMLC, did the bank violate any law?
2.5%

2. Mr. X filed a verified Certificate of Candidacy with COMELEC. During the campaign
period, ABC Bank, the bank which holds 80% of Mr. Xs assets, submitted to the Anti-
Money Laundering Council a report stating several suspicious transactions. Finding

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 probable cause therein, AMLC promptly acted on the report. Through the Office of the
Solicitor General, it filed petition to freeze Mr. Xs account (with CA) and another action
for civil forfeiture (with RTC). Both CA and RTC respectively granted the petitions
before them.

Mr. X contends that the actions of AMLC, CA and RTC violate Rule XVI Prosecution
of Money Laundering Cases of the 2016 Revised Implementing Rules and Regulations
of RA 9160, as amended. AMLC justified its actions in stating that Mr. Xs transactions
are really malicious and they have sufficient evidence to back it up.

Decide the case. (10%)

3. Mabuhay Bank is the depositary bank of Mrs. Nappy. Lately, amounts ranging from
Php600,000 to Php800, 000 are wired and taken from the latters account on almost a
daily basis. Finding the same suspicious, the bank filed a report with the AMLC with
specific details as regards a possible scheme of money laundering. Basing on Mabuhay
Banks up-to-date records, Mrs. Nappy is only a plain housewife receiving monthly
pension from his deceased husbands benefit plan. AMLC received the report but made
no action towards it. Concerned and quite flustered, Mabuhay bank filed a petition for
Mandamus to require AMLC to initiate an action to freeze Mrs. Nappys account. The
bank said that AMLCs primary purpose is to address money laundering issues, thus, it
must not slack on its mandate.

Will the action prosper? (10%)

4. Leyla is a legislator of the country. The President, acting on an intelligence report from
the Armed Forces, and the National Police, declared that Leyla acts as a financier of
illegal drug-related activities, an unlawful act in Republic Act no. 9165 or the
"Comprehensive Dangerous Drugs Act of 2002". The president ordered the Anti-Money
Laundering Council (AMLC) to disclose to the public the bank accounts of Leyla.
a. AMLC disregarded the order of the President. In doing so, is the AMLC correct?
(5%)
b. AMLC received reports of suspicious transactions in the account of Rony, a
person who has a close relationship to Leyla, can the AMLC apply before the CA
a bank inquiry order which covers the accounts of Leyla on the ground that she is
a Politically Exposed Person? (5%)

5. From his first term in 2007, Congressman Riko has been endorsing his pork barrel
allocations to Twin Rivers in exchange for a commission of 40% of the face value of the
allocation. Twin Rivers is a non-governmental organization whose supporting papers,

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after audit, were found by the Commission on Audit to be fictitious. Other than to prepare
and submit falsified papers to support the encashment of the pork barrel checks, Twin
Rivers does not appear to have done anything on the endorsed projects and Congressman
Abner likewise does not appear to have bothered to monitor the progress of the projects
he endorsed. The congressman converted most of the commissions he generated into US
dollars, and deposited these in a foreign currency account with Banco de Plata (BDP).

Based on amply-supported tips given by a congressman from another political party, the
Anti-Money Laundering Council sent BDP an order: (1) to confirm Cong. Abner's
deposits with the bank and to provide details of these deposits; and (2) to hold all
withdrawals and other transactions involving the congressman's bank accounts.

As counsel for BDP, would you advise the bank to comply with the order? (10%)

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