ANTI-MONEY LAUNDERING ACT

(R.A. 9160, As Amended by R.A. 9194, R.A. 10167 & 10365)

The Concept of Money Laundering

A crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to
have originated from legitimate sources (R.A. 9160, Sec. 4)

How Money Laundering is Committed

Money laundering is committed by any person who, knowingly that any monetary instrument or
property represents, involves, or relates to the proceeds of any unlawful activity:
1. Transacts said monetary instrument or property;
2. Attempts or conspires to commit money laundering;
3. Aids, abets, assists in or counsels the commission of the money laundering offenses;
4. Converts, transfers or disposes of, moves, acquires, possesses or uses said monetary instrument
or property;
5. Conceals or disguises the true nature, source, location; disposition, movement or ownership of
or rights with respect to said monetary instrument or property;
6. Performs or fails to perform any act as a result of which he facilitates the offense of money
laundering;
7. Any covered person who, knowing that a covered or suspicious transaction is required under
this Act to be reported to the AMLC, fails to do so. (R.A. 10365, Sec. 4)

Covered Entities/Institutions Under AMLA

1. Banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops, money
changers, remittance and transfer companies etc. regulated by BSP;
2. Insurance companies, pre-need companies and other persons regulated by the Insurance
Commission;
3. Dealers of securities supervised or related by the SEC;
4. Jewelry dealers of precious metals for transactions in excess of P1M; (R.A. 10365, Sec. 1)

*The term “covered persons” shall exclude lawyers and accountants acting as independent legal
professionals with regard to client information or disclosure , provided they are authorized to practice in
the Philippines and shall continue to be subject to the provisions of their codes of conduct and/ or
professional responsibility.

COVERED TRANSACTIONS SUSPICIOUS TRANSACTIONS

1. Cash transactions in excess of P500,000 within
1 banking day
2. Precious stones jewelry dealers for
transactions in excess of P1M
3. Real estate transactions in excess of P500,000
which must be reported by LRA and RD within
15 days from date of registration, in an AMLC
form
Transactions with covered entities regardless of
amount, where there is:
1. No underlying legal or trade obligation, purpose
or economic justification
2. Client who is not properly identified
3. Deviation from usual and past transactions
4. Transaction that is structured in order to avoid
 being subject of reporting requirements
5. Amount that is not commensurate to client’s
financial capacity
6. Transaction that is unlawful
7. Analogous or similar transactions

Unlawful Activities
1. Kidnapping for ransom
2. Violations of Comprehensive Dangerous Drugs Act of 2002
3. Violations of RA. 3019 (Anti-Graft and Corrupt Practices Act)
4. Plunder
5. Jueteng and masiao
6. Piracy
7. Qualified theft
8. Swindling
9. Smuggling
10. Violations of E-Commerce Act of 2000
11. Hijacking, destructive arson and murder
12. Terrorism

Jurisdiction
1. For ALL cases of money laundering: RTC
2. For those committed by public officers and private persons in conspiracy with them: SB
3. For freezing of monetary instrument or property: CA

Composition of AMLC
1. BSP Governor as Chairman
2. Commissioner or Insurance Commission
3. SEC Chairman

Which Court has the power to issue a freeze order?

Court of Appeals
Requirements:
1. Verified ex parte petition by AMLC; and
2. Determination of probable casue

What is the time frame within which the court should act on the petition to freeze?
Within 24 hours from the filing of the petition

How long may any monetary instrument or property be frozen?

Up to 6 months

When is a freeze order deemed ipso facto lifted?

If there is no case filed within the period determined by the Court

What is the remedy against a freeze order?

File a motion to lift freeze order which the court must resolve before the expiration of the freeze order
Which court can issue a TRO or writ of Injuction against a freeze order? Only SC