THE ANTI-MONEY LAUNDERING

LAW,
AS AMENDED,
IMPLEMENTING RULES AND
RELEVANT REGULATIONS

Presented by

Atty. Joeshias B.
Tambago
Bank Officer IV, Compliance and Investigation Group,
AMLC
Specially for the

Philippine Drug Enforcement Agency

(PDEA)
16-17 August 2012
Davao City, Philippines

I. MONEY
LAUNDERING
Concept

processing of criminal proceeds in

order to conceal or disguise their
illegal origin.

legitimization of proceeds
specified unlawful activity.

of

Definition
crime whereby the proceeds of an
unlawful activity are transacted (or
attempted to be transacted) thereby
making them appear to have originated
from legitimate sources.

Elements
Unlawful activity (as defined in the AMLA)
Monetary instrument or property (MI/P)
Transaction/Attempted
MI/P

transaction

of

Knowledge that the MI/P represents,

involves, or relates to the proceeds of the

Modes

Mix with legitimate funds

Use for legitimate purpose(s)

Invest in legitimate business(es)

Stages
1. Placement involves initial
placement or introduction of
the illegal funds into the
financial system. Banks and
other financial institutions are
usually used at this point.

Examples deposit of cash in bank

convert cash into
financial
instruments,
such as
money orders
or checks
purchase of an
insurance
policy or
shares of stock

Stages
2.

Layering involves a series of

financial transactions during
which the dirty money is passed
through a series of procedures,
putting layer upon layer of
persons and financial activities
into the laundering process.

Examples:

transfer the funds electronically

to other accounts in various
jurisdictions

disguise
the
transfer
as
payment for goods or services
or loans

transfer the funds to shell

corporations

Stages
3.

Integration the money

is
once
again
made
available to the criminal
with the occupational and
geographic
origin
obscured or concealed.
The laundered funds are
now integrated back into
the legitimate economy
through the purchase of
properties, businesses and
other investments.

Example:

purchase of properties and

businesses/investments

Reasons

To be able to use and enjoy the

money with impunity

Effects

Removes or distances the criminal

from the unlawful activity he
committed.

Distances the profits from the unlawful

activity and the criminal.

Allows the criminal to enjoy the

criminal profits without exposing
himself.

II. THE ANTI-MONEY

LAUNDERING ACT OF
2001,
R.A. No. 9160 (R.A.
NO.
- AS
took AMENDED
effect on October
17, 2001
9160)

R.A. No. 9194 (amendatory law)

took effect on March 23, 2003

R.A. No. 10167 (amendatory

law)
- Signed on 6 June 2012

Revised IRRs
- took effect on September 7, 2003

A. State Policies
1.

To ensure that the Philippines shall not

be used as a money laundering site for
the proceeds of any unlawful activity.

2.

To extend cooperation in transnational

investigations
and
prosecutions
of
persons involved in money laundering
activities wherever committed.

3.

To protect and preserve the integrity and

confidentiality of bank accounts.

B. Salient Features
1.
2.

3.

4.

5.

6.

7.

Criminalizes money laundering.

Identifies and defines predicate offenses
to money laundering.
Creates a financial intelligence unit or
implementing agency.
Imposes compliance requirements re:
customer identification, record-keeping
and reporting of covered and suspicious
transactions.
Relaxes
laws.

strict

bank

deposits

secrecy

Provides for inquiry into/freezing/

forfeiture of dirty money/property.
Provides for international cooperation.

C. Covered Institutions
Covered
institutions
(CIs)
are
those
supervised by:
1.
the Bangko Sentral ng Pilipinas (BSP).
2.
the
Securities
and
Exchange
Commission (SEC).
3.
the Insurance Commission (IC).

D. Proceeds

refers to an amount derived or realized

from an unlawful activity.
includes
- all material results, profits, effects
and
any amount realized from
any unlawful
activity;
- all monetary, financial or economic
means, devices, documents, papers
or
things used in or having
relation
to
any
unlawful
activity;
- all moneys, expenditures payments,
disbursements,
costs,
outlays,
charges, accounts, refunds and other
similar items
for the financing,
operations, and
maintenance
of any unlawful
activity.

E. Transaction

refers to any act establishing any

right or obligation or giving rise to
any contractual or legal relationship
between the parties thereto.

includes any movement of funds by

any
means
with
a
covered
institution.

F. Reportable Transactions
Covered Transaction
Covered transaction is a transaction in
cash or other equivalent monetary
instrument involving a total amount in
excess of Five Hundred Thousand
Pesos
(Php500,000.00) within one
(1) banking day.

Suspicious Transaction
Suspicious transaction is
a transaction with a covered
institution, regardless of the
amount involved, where any
of
the
following
circumstances exist(s):
a.

b.
c.

there is no underlying legal

or trade obligation, purpose
or economic justification;
the client is not properly
identified;
the amount involved is not
commensurate
with
the
business
or
financial
capacity of the client;

d.

e.

f.

g.

taking
into
account
all
known
circumstances, it may be perceived that
the clients transactions are structured
in order to avoid being the subject of
reporting requirements under the AMLA;
any circumstance relating to the
transaction is observed which deviates
from the profile of the client and/or the
clients past transactions with the
covered institution;
the transaction is in any way related to
an unlawful activity or any money
laundering activity or offense under the
AMLA that is about to be, is being or has
been committed; or
any
transaction
that
is
similar,
analogous or identical to any of the
foregoing.

G. Unlawful activity
(a.k.a. predicate crime)

1.
2.

3.
4.

Unlawful activity refers to any

act or
omission or series or
combination thereof involving
or having direct relation to the
following:
Kidnapping for ransom
Drug Trafficking and other
violations
of
the
Comprehensive
Dangerous
Drugs
Act
of
2002Sec.4,5,6,8,9,10,12,13,14,15,16
Graft and Corruption under R.A.
No. 3019, as amended
Plunder (R.A. No. 7080 as
amended)

G. Unlawful activity
(a.k.a. predicate crime)
5.
6.
7.

8.
9.
10.
11.

Robbery and extortion

Jueteng and Masiao (PD
1602)
Piracy on the high seas
(RPC) and in inland
waters (PD 532)
Qualified Theft under Art.
310, RPC
Swindling under Art. 315,
RPC
Smuggling under RA 455
& 1937
Violations
of
the
Electronic Commerce Act
of 2000

G. Unlawful activity
(a.k.a. predicate crime)
12.

13.

14.

Hijacking, destructive arson and

murder, including those perpetrated
by terrorists against non-combatant
persons and similar targets
Fraudulent
practices
and
other
violations
under
the
Securities
Regulation Code of 2000 (RA 8799).
Felonies or offenses of a similar
nature that are punishable under the
penal laws of other countries.

RA NO. 9165
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Sec. 4 Importation
Sec. 5 Sale, Trading, Administration, Delivery
Sec. 6 Maintenance of Den, Dive or Resort
Sec. 8 Manufacture of DD and CPECS
Sec. 9 Illegal Chemical Diversion
Sec. 10 Manufacture of Equipment and Paraphernalia
Sec. 12 Possession of Equipment and Paraphernalia
Sec. 13 Possession of DD during parties, social
gatherings
Sec. 14 Possession Equip., Apparatus during parties
Sec. 15 Use of Dangerous Drugs
Sec. 16 Cultivation or Culture of Plants classified as DD

H. Money Laundering Offenses

(Sec. 4, AMLA)
1.

Knowingly transacting or
attempting to transact
any monetary instrument
or
property
which
represents, involves or
relates to the proceeds of
any unlawful activity.
Penalty
7 to 14 years imprisonment
and a fine of not less than
P3 Million but not more
than twice the value of the
monetary instrument or
property.

2.

Knowingly facilitating money laundering.

Penalty
4 to 7 years imprisonment and a fine of
not less than P1.5 Million but not more
than P3 Million

3.

Knowingly failing to
report covered and
suspicious transactions
to the AMLC
Penalty
6 months to 4 years
imprisonment or a fine
of
not
less
than
P100,000.00 but not
more
than
P500,000.00, or both

I.

Other Offenses
(Secs. 9 &
14, AMLA)

Failure to keep records

All records of all transactions of covered
institutions shall be maintained and
safely stored for five (5) years from the
dates of the transactions. In case of
closed accounts, the records on
customer identification, account files
and business correspondence shall be
preserved and safely stored for at least
5 years from the dates of closure of the
accounts.
Penalty
6 months to 1 year imprisonment or a
fine of not less than P100,000.00 but
not more than P500,000.00, or both
1.

Malicious reporting
Reporting or filing a completely
unwarranted or false information
relative to a money laundering
transaction against any person.
Penalty
6 months to 4 years imprisonment
and a fine of not less than
P100,000.00 but not more than
P500,000.00; provided that the
offender is not entitled to the
benefits of the Probation Law
2.

2.a. Refusal to testify

Any public official or employee who is

called upon to testify and refuses to do
the same or purposely fails to testify
shall suffer the same penalties
prescribed.

3. Breach of confidentiality When

reporting
covered
or
suspicious
transactions to the AMLC, covered institutions
and their officers and employees are prohibited
from communicating directly or indirectly, in
any manner or by any means, to any person or
entity, the media, the fact that a covered or
suspicious transaction report was made, the
contents thereof, or any other information in
relation thereto. Neither may such reporting be
published or aired in any manner or form by the
mass media, electronic mail or other similar
devices.
In case of violation thereof, the
concerned officer and employee of the covered
institution and media (the responsible reporter,
writer, president, publisher, manager and
editor-in-chief) shall be held criminally liable.
Penalty
3 to 8 years imprisonment and a fine of not less
than P500,000.00 but not
more than P1.0
Million

Safe Harbor Provision

When reporting covered or suspicious
transactions to the AMLC, covered
institutions and their officers and
employees shall not be deemed to
have violated Republic Act No. 1405,
as amended, Republic Act No. 6426,
as amended, Republic Act No. 8791
and other similar laws.
No administrative, criminal or civil
proceedings, shall lie against any
person for having made a covered or
suspicious transaction report in the
regular performance of his duties in
good faith, whether or not such
reporting results in any criminal
prosecution under the AMLA or any
other law.

J. Jurisdiction Over Money

Laundering Cases
For Preliminary Investigation
- Department of Justice
- Office of the Ombudsman where a
public official or employee is involved

J. Jurisdiction Over Money

Laundering Cases

For Trial
- Regional Trial Courts (Special AML
Courts) shall have jurisdiction to try all
cases on money laundering.
- Sandiganbayan shall try and decide
violations of R.A. 9160, as amended,
committed by public officers or private
persons who are in conspiracy with such
public officers.
- Trial for the money laundering offense
shall proceed in accordance with the
Code of Criminal Procedure or the Rules
of Procedure of the Sandiganbayan, as
the case may be. (Rule 6.4, RIRRs)

K. Prosecution of Money
Laundering Cases

No double jeopardy
The money laundering offense and
the predicate crime are separate and
distinct.
Any person may be charged with
and convicted of both the offense of
money laundering (subject offense)
and the unlawful activity (predicate
offense)
Precedence
Any proceeding relating to the
unlawful activity shall be given
precedence over the prosecution of
any offense or violation under R.A.
No. 9160 without prejudice to the

K. Prosecution of Money
Laundering Cases
-

No element of the unlawful activity,

however, including the identity of the
perpetrators and the details of the
actual commission of the unlawful
activity need be established by proof
beyond reasonable doubt.
The elements of the offense of money
laundering are separate and distinct
from the elements of the felony or
offense constituting the unlawful
activity. (Rule 6.7, supra)

III. THE ANTI-MONEY LAUNDERING

COUNCIL (AMLC)

The Philippines Financial Intelligence U

A. Composition
1. The BSP Governor as Chairman

2. The SEC Chairperson as

Member

3. The IC Commissioner as
Member

B. Secretariat

AMLC is assisted by a Secretariat which is

headed by an Executive Director.
Executive Director
Technical Services Staff

Compliance and
Investigation Group

Legal Services
Group

Information
Management and
Analysis Group

Administrative and
Financial Services
Division

C. Nature of AMLC Functions

a. an FIU
b. an investigative and asset discovery
agency
c. an asset recovery unit
d. a mutual legal assistance office
e. a support agency to the Anti-Terrorism
Council (ATC)
f. a support agency to the Office of the
Ombudsman
g. an AML/CFT advocate

D. Special Powers

1.

Inquiry Into/Examination of Bank

Deposits/Investments
Bank deposits and investments may be inquired
into during an election period.
Probable cause exists that the particular deposits or
investments are related to an unlawful activity as
defined in the AMLA or a money laundering offense
under Sec. 4 of the AMLA.
No court order is required if the unlawful activity is 1. kidnapping for ransom;
2. drug trafficking & other pertinent violations of
R.A. No.
9165 (the Comprehensive Dangerous
Drugs Act of
2002); or
3. hijacking and other violations under R.A. No.
6235;
destructive arson and murder, as
defined under the Revised Penal Code, including
those perpetrated by
terrorists against noncombatant persons and similar targets.

BSP may inquire into/examine any deposit or

investment with any bank or non-bank
financial institution and its subsidiaries and
affiliates without a court order and
regardless of the nature of the unlawful
activity involved, to ensure compliance with
the AMLA.
Where to File the Petition for Inquiry if a
court order is necessary?
- The AMLC, thru the OSG, shall file the
petition with the Court of Appeals, ex parte.
(R.A. No. 10167, signed on 6 June 2012)

JURISPRUDENCE:
RP (AMLC) vs. Hon. Antonio M. Eugenio, Jr.,
RTC-Manila, Branch 34, Pantaleon Alvarez
and Lilia Cheng (G.R. No. 174629, Feb. 14,
2008)* Petition for Certiorari and
Prohibition under Rule 65
SC held:

While Sec. 11 of RA 9160 allows the inquiry by

AMLC into bank deposits, it cannot be done ex
parte. In other words, the person whose bank
accounts are involved must be allowed first to
explain and dispute the conduct of said bank
inquiry. R.A. 10167 now allows ex parte
inquiry.

Sec. 11 of RA 9160 allows the AMLC to inquire

into bank deposits without having to obtain a
judicial order where there is probable cause that
the deposits or investments are related to
kidnapping for ransom, certain violations of the
Comprehensive Dangerous Drugs Act of 2002,
hijacking and other violations under the R.A. No.
6235, destructive arson and murder.

A bank inquiry order may be obtained from

the court and availed of without need of a
pre-existing case under the AMLA.
The application of the bank inquiry order as
a means of inquiring into records of
transactions entered into prior to the
passage
of
the
AMLA
would
be
constitutionality infirm, offensive as it is to
the ex post facto clause.
The proscription against ex post facto laws
does not go as far as to prohibit any inquiry
into records of transactions undertaken after
the enactment of the AMLA even if the same
were done through bank accounts opened
prior to the effectivity of the AMLA.

2. Freeze of Dirty Money/Property

No assets shall be frozen to the prejudice of a

candidate for an electoral office during an
election period.
Probable cause exists that
any monetary
instrument or property is in any way related to
an unlawful activity as defined in the AMLA.
Where to file the Petition for a Freeze Order?
- The AMLC, thru the OSG, shall file ex parte
the Petition with the Court of Appeals (directly
with the Presiding Justice in Manila or the
Executive Justices in Cebu City or Cagayan de
Oro City, as the case may be, or in their
absence, with the next available senior justice).

CA Action

Raffle petition to freeze immediately on

same day filed.
Raffle to a specific justice actually present
in the Court from among the members of
the first three divisions in Manila, Cebu
City or Cagayan de Oro City, for study and
report.
All members of the Division of the Court to
which the assigned justice belongs shall
act on the petition within 24 hours after its
filing. If the Court finds existence of
probable cause that the MI/P/P are in any
way related to or involved in any unlawful
activity specified in the AMLA, it shall
issue ex parte a freeze order.

Notice of Freeze Order

Shall be served personally upon the

respondent or his representative, the
covered institution or government agency
concerned.
Party in interest who has appeared before
the Court shall also be notified.

Effectivity; post-issuance
hearing

The
freeze
order
takes
effect
immediately for 20 days. Within the 20day period, the Court shall conduct a
summary hearing, with notice to the
parties, to determine whether or not to
modify or lift the freeze order, or extend
its effectivity.

Duty of Respondent, Covered

Institution or Government Agency
Upon Receipt of Freeze Order

Immediately desist from and not allow any

transaction, withdrawal, deposit, transfer,
removal, conversion, other movement or
concealment of the account representing,
involving or relating to the subject
monetary instrument, property, proceeds
or its related web of accounts.

Related accounts*

Those accounts, the funds and sources of

which originated from and/or are materially
linked to the monetary instrument or
property subject of the freeze order.
Upon receipt of the freeze order, the CIs
shall freeze these related accounts
wherever these funds may be found.
The return of the CI shall include the fact of
such freezing and an explanation as to the
grounds for the identification of the related
web of accounts.

* Defined under Sec. 2 of RA N0. 10167

Extension of the Freeze Order

Before the 20-day period of the freeze

order issued by the CA expires, the AMLC
may apply in the same court for an
extension. Said period shall be deemed
suspended and the freeze order shall
remain effective.
CA may extend FOs effectivity for not
more than 6 months.
During the effectivity of the freeze order,
the AMLC may avail itself of other legal
remedies, such as
bank inquiry, civil
forfeiture with a prayer for an asset
preservation order and/or filing of money
laundering cases.

AMLC Confirmation

Covered institutions shall not lift

the effects of the freeze order
without
securing
official
confirmation from the AMLC.
(Rule 10.5, RIRRs)

JURISPRUDENCE:
Maj. Gen. Carlos Garcia vs. CA and RP (AMLC)
(G.R. No. 165800, November 27, 2007)
Petition for Certiorari under Rule 65

Nothing in R.A. No. 9160 requires that a case for

violation of anti-money laundering laws must be
filed before the issuance of a freeze order.

There are only 2 requisites under the AMLA for

the issuance of the freeze order:
(1) the application ex-parte by the AMLC; and
(2) the determination of probable cause by the
CA.
As these two (2) requisites are present, the
absence of a previous complaint has no effect
or implication on the CAs determination of
probable cause for the issuance of a freeze
order.

3. Forfeiture of Dirty Money/ Property

- No assets shall be forfeited to the prejudice
of a candidate for an electoral office during
an election period.

CRIMINAL FORFEITURE (Art. 45, Revised

Penal Code in relation to Sec. 12 of R.A. No.
9160, as amended, and Rule 15.2.b, RIRRs)
- When there is conviction for money
laundering, the court shall issue a judgment
of forfeiture in favor of the Philippine
government with respect to the monetary
instrument or property found to be proceeds
of one or more unlawful activities.

CIVIL FORFEITURE (Special Rule on Civil

Forfeiture in relation to Sec. 12 of R.A. No.
9160, as amended, and Rule 12, RIRRs)

Probable cause exists that the monetary

instrument, property, or proceeds subject
of the petition are in any way related to an
unlawful activity or a money laundering
offense as defined in the AMLA.

Where to file the Petition for Civil Forfeiture

with prayer for an asset preservation
order?

AMLC, thru the OSG, shall file the petition

directly with the RTC of the judicial region
where the monetary instrument, property,
or proceeds (MIPP) are located.

where all or any portion of the MIPP is

located outside the Philippines, the petition
may be filed in the RTC in Manila, or of the
judicial region where any portion of the MIPP
is located, at petitioners option.

direct filing with the executive judge of the

RTC or, in his absence, the vice-executive
judge or, in their absence, any judge of the
RTC of the same station. He shall act on the
petition within 24 hours after its filing.

RTC may issue ex parte a Provisional Asset

Preservation Order (PAPO).
Within 20 days from the issuance of the
PAPO, the RTC shall determine whether the
PAPO should be modified or lifted or an
Asset Preservation Order (APO) should issue.
An APO shall await the final disposition of
the case.

Claim on Forfeited Assets

[Sec. 12 (b) of R.A. No. 9160,
as amended]

The offender or any person claiming an

interest in the monetary instrument or
property subject of a court order of
forfeiture
may apply, by verified petition, for a
declaration that the same legitimately
belongs to him, and
for segregation or exclusion of the
monetary
instrument
or
property
corresponding thereto
within 15 days from the date of the order
of forfeiture (from the date of finality of
the forfeiture order per Rule on Civil
Forfeiture)

Payment in lieu of forfeiture

The Court may instead order the

convicted offender or the respondent in
the civil forfeiture case to pay an amount
equal to the value of the monetary
instrument or property when a forfeiture
order cannot be enforced because any
particular
monetary
instrument
or
property of the offender cannot, with due diligence, be located, or
has been substantially altered, destroyed,
diminished in value or otherwise rendered
worthless by any act or omission of the
offender, or
has been concealed, removed, converted
or otherwise transferred to prevent the
same from being found or to avoid
forfeiture thereof, or

Payment in lieu of forfeiture

is located outside of the Philippines, or

has been placed or brought outside the
jurisdiction of the court, or
has been commingled with other
monetary instruments or property
belonging to either the offender
himself or a third person or entity,
thereby rendering the same difficult to
identify or be segregated for purposes
of forfeiture.

JURISPRUDENCE:
RP (AMLC) vs. Glasgow Credit and
Collection Services & Citystate Savings
Bank, Inc. (G.R. No. 170281, January 18,
2008) Petition for Review under Rule
45

A criminal conviction for an unlawful activity

is not a pre-requisite for the institution of a
civil forfeiture proceeding. Stated otherwise,
a finding of guilt for an unlawful activity is
not an essential element of civil forfeiture.
Thus, regardless of the absence, pendency
or outcome of a criminal prosecution for the
unlawful activity or for money laundering, an
action for civil forfeiture may be separately
and independently prosecuted and resolved.

No prior criminal charge, pendency of,

or conviction for an unlawful activity or
money laundering offense is necessary
for the commencement or the resolution
of a petition for civil forfeiture. (Sec. 27,
Rule of Procedure in Cases of Civil
Forfeiture)

IV.

1.

2.
3.

AMLAs 3 MAJOR
COMPLIANCE
REQUIREMENTS

Customer identification and due

diligence
Record-keeping
Reporting of covered and suspicious
transactions

1. CUSTOMER
DILIGENCE

IDENTIFICATION AND DUE

(KNOW YOUR CUSTOMER RULE)

Covered institutions must know fully and truly
their customers. Hence, they shall:

Require their customers to submit one (1) valid

photo-bearing ID issued by an official authority.
Maintain accounts only in the true and full name
of the account owner or holder.
Not allow opening and creation of new accounts
without face-to-face contact and full compliance
with the requirements on
minimum
information/
documents,
for
individual
customers.

Prohibited accounts

1.

Anonymous accounts
Accounts under fictitious names
Numbered checking accounts
Other similar accounts

2.
3.
4.

2. RECORD-KEEPING
All covered institutions shall:
a.

b.

c.

maintain and safely store all records of all

their transactions for at least 5 years from
the transaction dates.
ensure that said records/files contain the
full and true identity of the owners or
holders of the accounts involved in the
transactions and all other identification
documents.
undertake
the
necessary
adequate
measures to ensure the confidentiality of
such file.

d. anent closed accounts, preserve and

safely store the records on customer
identification, account files and business
correspondence for at least 5 years
from
closure dates.
e. if a money laundering case based on any
record
kept by the covered
institution has been filed in court, retain
said file until it is
confirmed that the
case has been finally
resolved or
terminated by the court.
f. retain records as originals in such forms
as
are admissible in court.

3. REPORTING OF COVERED AND

SUSPICIOUS TRANSACTIONS

The Covered Transaction Report (CTR)

and Suspicious Transaction Report (STR)
shall be in the form prescribed by the
appropriate supervising authority and
approved by the AMLC.

Period of Reporting of Covered and

Suspicious Transactions within ten (10)
working days from occurrence thereof.

Should a transaction be determined to be

both a covered transaction and a
suspicious transaction, the covered
institution shall be required to report the
same as a suspicious transaction.

V. AML/CTF
Regulations

A. SPECIAL RULE ON CIVIL

FORFEITURE, ASSET PRESERVATION
AND FREEZE

Took effect on 15 December 2005.

Non-criminal
conviction
based
civil
forfeiture.
- No prior criminal charge, pendency of or
conviction for an unlawful activity or a
money laundering offense
is necessary
for the commencement
or
resolution of a petition for civil forfeiture.
- Only probable cause is sufficient to get a
PAPO and an APO. Only preponderance of
evidence is required to get a civil
forfeiture judgment.

A. SPECIAL RULE ON CIVIL

FORFEITURE, ASSET PRESERVATION
AND FREEZE

Only probable cause is enough to get a

freeze order from the Court of Appeals
- Freeze Order is effective for 20 days;
may be extended by six (6) months.

B. AMLC RESOLUTIONS
AMLC Resolution No.292 dated
October 24, 2003

Embodies the Rules on Submission of

CTRs/STRs.
CIs, other than banks, must file CTRs involving
monetary instruments (other than checks) or
property. If the check transaction of a CI,
other than a bank, is suspicious, same must
be reported by the CI.
In stock exchange transactions, the brokersdealers must file CTRs/STRs. (The Philippine
Stock Exchange, Philippine Depository and
Treasury Corporation, Securities Clearing
Corporation of the Philippines and transfer
agents are exempt from filing CTRs; they
must, however, file STRs on transactions that
pass thru them).

Insurance companies must file a CTR

when the total amount of the
premiums
for
the
entire
year
regardless of the mode of payment
(monthly, quarterly, semi-annually or
annually) exceeds P500,000 even if
the amounts of the amortizations are
less than the threshold amount.

AMLC Resolution No. 58 dated May

25, 2005, as amended by AMLC
Resolution No. 24 dated March 18,
2009

Defers reporting by CIs to AMLC of the following

non-cash, no/low risk covered transactions:
- Transactions between banks and the BSP;
- Transactions between banks operating in the
Philippines;
- Internal operating expenses of the banks;
(- Transactions between banks and other
government agencies) *
- Transactions involving transfer of funds from
one deposit account to another deposit account
of the same person within the same bank;
- Rollovers of placements of time deposits;
- Loan interest/principal payment debited against
borrowers deposit account maintained with the
lending bank.
* deleted per AMLC Resolution No. 24 dated
March 18, 2009

AMLC Resolution No. 8 dated

20 February 2008
Covered institutions shall require their
customers to present, for purposes of
identification, the original of one (1)
valid photo-bearing ID issued by an
official authority.
Official authority refers to any of the
following:
a. The Philippine Government;
b. Its political subdivisions and
instrumentalities; and

AMLC Resolution No. 8 dated

20 February 2008
c. Private entities or institutions registered
with
or supervised or regulated either by
the Bangko
Sentral ng Pilipinas or
Securities and
Exchange
Commission or
Insurance Commission.
Note:
by

For lawyers, one (1) valid photo-bearing ID issued

the Integrated Bar of the Philippines or any of its
Chapters is acceptable to AMLC.

For students, any valid and effective I.D. issued

by the
duly authorized officer of any educational
institution, whether public or private, is an
acceptable identification
card for purposes of
complying with the requirements of
the AMLA

AMLC Resolution No. 47 dated

22 March 2009
Passports issued by foreign governments
are valid identification documents.

BSP
Circular
No.
308
dated
November 15, 2001, as amended by
Circular No. 507 dated 19 January
2006 (Regulation on the transport
into or out of the Philippines foreign
currency in excess of US$10,000 or
its equivalent)

Requires any person who brings into or

out of the Philippines foreign currency or
other
foreign
exchange-denominated
bearer monetary instruments in excess of
US$10,000 or its equivalent to declare
the same in writing and to furnish
information on the source and purpose
of the transport of such currency.

The accomplished declaration form shall

be submitted by the Bureau of Customs
(BOC) to the AMLC.
Penalty for violation: - Two (2) to ten
(10) years imprisonment or a fine of
P50,000.00 P200,000.00, or both at the
discretion of the Court.
Confiscation
of
the
foreign
currency/monetary instrument by the
BOC

 Central Bank Circular 1389 dated

April 13, 1993, as amended by BSP
Circular No. 98 dated 11 Dec. 1995
and No. 287 dated 26 July 2001
(Consolidated
Foreign
Exchange
Rules and Regulations)

Requires any person who brings into or

out of the Philippines, or electronically
transfer legal tender Philippine notes and
coins, checks, money orders and other
bills of exchange drawn in pesos against
banks operating in the Philippines in an
amount exceeding P10,000.00 to get an
authorization from the BSP.

MB Res. No. 75 dated January 20,

2005
(Decision to require all existing foreign
exchange dealers/money changers and
remittance agents to register with the
Requires
all existing foreign exchange
BSP)
dealers/money changers and remittance
agents to register with the Bangko Sentral ng
Pilipinas.

BSP Circular No. 608* dated 20 May

2008
(Valid Identification Cards for
Financial Transactions )
Banks and non-bank financial institutions
shall require their clients to submit an
updated photo and other relevant
information whenever the need for it
arises.

BSP Circular No. 608* dated 20 May

2008
(Valid Identification Cards for
Financial
Transactions )

Passport
Drivers license
Professional Regulation Commission (PRC) ID
National Bureau of Investigation (NBI)
clearance
Police clearance
Postal ID
Voters ID
Barangay certification
Government Service and Insurance System
(GSIS) e-card
Social Security System (SSS) card
Senior Citizen Card
Overseas Workers Welfare Administration
(OWWA) ID

BSP Circular No. 608* dated 20 May

2008
(Valid Identification Cards for
Financial
Transactions )

OFW ID
Seamans Book
Alien Certification of Registration/Immigrant
Certificate of Registration
Government Office ID [e.g. Armed Forces of
the Philippines (AFP), Home Development
Mutual Fund (HDMF) IDs]
Certification from the National Council for
the Welfare of Disabled Persons (NCWDP)
Department of Social Welfare and
Development (DSWD) Certification
Integrated Bar of the Philippines ID
Company IDs issued by private entities or
institutions registered with or supervised or
regulated either by the BSP, SEC or IC

BSP Circular No. 612 dated 13 June

2008 (Extension of the Deadline for
the Submission of Reports on Covered
and Suspicious Transactions to the
AMLC)

Extends the period of reporting all

covered and suspicious transactions to
ten (10) working days from occurrence
of the transaction.

 BSP Circular No. 649 dated 9 March

2009
(Guidelines governing the issuance of
electronic money [e-money] and the
operations of electronic money issuers
[EMI] in the Philippines)
Took effect on 26 March 2009.
Defines E-money.

Definition of E-Money

monetary value as represented by a

claim on its issuer.
stored electronically in an instrument or
device.
issued against receipt of funds not less
than the monetary value issued.
accepted as payment by entities other
than the e-money issuer.
withdrawable
in
cash
or
cash
equivalent.

INVENTORY OF SEIZED ITEMS

-Drug Items
-Non-Drug Items i.e. deposit slips

?
Questions?