CPA in Transit Reviewer: Anti Money Laundering Act of 2001 (RA 9160)
2017-2018 ed.
I. MONEY LAUNDERING
It is committed by any person who, knowing
that any monetary instrument or property
represents, involves, or relates to the
proceeds of any unlawful activity:
a) Transacts said instrument or
property
b) Converts, transfers, disposes of,
moves, acquires, possesses or use it
c) Conceals or disguise the true nature,
source, location, disposition,
movement or ownership of or rights
d) Attempts or conspires to commit
money laundering offenses
e) Aids, abets, assist in or councils the
commission of the money
laundering offenses
f) Performs or fails to perform any act
as a result of which he facilitates the
offense
Money laundering is also committed by any
covered persons who, knowing that a
covered or suspicious transaction is required
to be reported to the Anti-Money
Laundering Council (AMLC). [Sec 4]
II. COVERED PERSONS
It refers to the following, natural or judicial:
a. all persons and their subsidiaries and
affiliates supervised or regulated by
the BSP.
b. all persons supervised or regulated
by the Insurance Commission
c. Entities administrating or otherwise
dealing in currency, commodities or
financial derivatives and other
similar monetary instrument or
property supervised or regulated by
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the Securities and Exchange
Commission.
d. Jewelry dealers in precious metals
and/or stones for transactions in
excess of One million pesos (P1M).
e. Company service providers which, as
a business, provide any of the
following services to 3rd parties:
i. Acting as a formation agent
ii. Acting as director or corporate
secretary of a company, a
partner of a partnership, or a
similar position to other judicial
persons
iii. Providing a registered office,
business address or accom-
modation, correspondence or
administrative address for a
company, a partnership or any
other legal persons or
arrangement
iv. Acting as a nominee share-
holder for another person
f. 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
iv. Creation, operation or
management of judicial persons
or arrangements, and buying
and selling business entities
III. OBLIGATIONS OF COVERED
PERSONS
The following are required to performed by
covered persons in order to prevent Money
Laundering:
 CPA in Transit Reviewer: Anti Money Laundering Act of 2001 (RA 9160)
2017-2018 ed.
1. Customer Identification
2. Record Keeping
3. Reporting of Covered and Suspicious
Transaction
A.) Customer Identification
Covered institutions shall establish
and record the true identity of its clients
based on official documents. They shall
maintain a system of verifying the same,
and in case of corporate clients, require a
system of verifying their legal existence and
organizational structure, as well as authority
and identification of all persons purporting
to act on their behalf.
B.) Record Keeping
All records of all transactions of
covered institutions shall be maintained and
safely stored for five (5) years from the dates
of transactions.
With respect to closed accounts, the
records on customer identification, account
files and business correspondence, shall be
preserved and safely stored for at least five
(5) years from the dates when they were
closed.
C.) Reporting of Covered and Suspicious
Transactions
Covered persons shall report to the
AMLC all covered transactions and
suspicious transactions within five (5)
working days from occurrence thereof,
unless the AMLC prescribes a different
period not exceeding fifteen (15) working
days.
Independent lawyers and
accountants are not required to report if
they are subject to professional secrecy or
legal professional privilege.
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When reporting covered or
suspicious transactions, it is prohibited to
communicate it through mass media. Any of
the report’s contents should not be made
into public knowledge.
IV. COVERED AND SUSPICIOUS
TRANSACTIONS
Covered Transactions
Transactions in cash or any other
equivalent monetary instrument involving a
total amount of P500,000 within one (1)
banking day. [Sec 3, (b)]
Suspicious Transactions
Transactions with covered institutions,
regardless of the amounts involved, where
any of the following circumstances exist:
1. No underlying legal or trade,
obligation, purpose or economic
justification;
2. Client is not properly identified
3. Amount involved is not
commensurate with business or
financial capacity of the client
4. Taking into account all known
circumstances, it may be perceived
that the client’s transaction is
structured in order to avoid being
the subject of reporting
requirements under the Act;
5. Any circumstances which is
observed to deviate from the profile
of the client and/or the client’s past
transactions wit the covered
institutions;
6. transaction is in anyway related to
an unlawful activity or offense that
is about to be, I being or has been
committed; or
7. Any transactions that is similar or
analogous to any of the foregoing.
 CPA in Transit Reviewer: Anti Money Laundering Act of 2001 (RA 9160) 3
2017-2018 ed. RFBT
money
V. PENALTIES laundering
Imposition of
Not more
Jurisdiction Administrative
than P500k
The Regional Trial Courts shall have Sanctions
jurisdiction to try all cases on money
laundering.
The Sandiganbayan shall have jurisdiction VI. FREEZING OF MONEY OR
over cases those committed by public PROPERTY
officers and private persons who are in
conspiracy with such public officers. [Sec 5] The Court of Appeals may issue a freeze
order effective immediately, and shall not
Penal Provision exceed 6 months, if the following has been
satisfied:
Offense Fine Imprisonment
P3 M, but 1. Verified ex parte petition by the
not more AMLC; and
than twice 2. Determining that probable cause
Money exist that any monetary instrument
the value of
Laundering 7-4 years or property is in any way related to
the
(a,b,c,d) an unlawful activity
instrument
or property A person whose account has been frozen
involved may file a motion to lift the freeze order and
P1.5 M- the court must resolve this motion before
(e & f) 7-4 years
P3M the expiration of the freeze order.
Last parag. of P100K- 6 months-
Sec 4 P500K 4 years No court shall issue a temporary restraining
Failure to keep P100K- 6 months- order or a writ of injunction against any
records P500K 1 year freeze order, except the Supreme Court.
Malicious P100K- 6 months-
Reporting P500K 4 years
Breach of VII. ANTI-MONEY LAUNDERING
P500k-P1M 3-8 years COUNCIL
Confidentiality
Covered
Not more The Anti-Money Laundering Council shall be
persons, its
than 200% composed of the Governor of the Bangko
directors, or
of the value Sentral ng Pilipinas (BSP) as chairman, the
personnel who
of the Commissioner of the Insurance Commission
knowingly 4-7 years
monetary and the Chairman of the Securities and
participated in
instrument Exchange Commission (SEC) as members.
the
or property [Sec. 7]
commission of
laundered
the crime of

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