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The Information Management and Analysis Group (IMAG) of the AMLC
Secretariat is conducting a detailed training on the AMLC Reporting
Procedures for electronic CTRs and STRs every last Wednesday of the month at Room 507
EDPC Bldg., BSP Complex, corner A. Mabini &
P. Ocampo Sts., Malate,
Manila.
Compliance officers and staff of institutions
covered by R.A. 9160, as amended by R.A. 9194 or the Anti-Money
Laundering Act of 2001 (AMLA) who are not yet compliant with the
reporting requirements are enjoined to attend this training. Interested
parties may call IMAG at 302-3848 or 521-7985 to register.
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The Executive Director
AMLC Secretariat
5th Flr. EDPC Building
BSP Complex, Malate
Manila, Philippines
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Phone:
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+63-2-523-4421
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Fax:
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+63-2-524-6085
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eMail:
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AMLA AT A GLANCE
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Rationale for Enacting the Law
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The
Philippines, while striving to sustain economic development and poverty
alleviation through, among others, corporate governance and public office
transparency, must contribute its share and play a vital role in the global
fight against money laundering. Hence, the compelling need to enact
responsive anti-money laundering legislation in order to establish and
strengthen an anti-money laundering regime in the country which will not
only increase investor’s confidence but also ensure that the
Philippines is not used as a site to launder proceeds of unlawful
activities.
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History of the Act
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Republic
Act No. 9160 otherwise known as The Anti-Money Laundering Act of 2001 was
signed into law on September 29, 2001 and took effect on October 17, 2001.
The Implementing Rules and Regulations took effect on April 2, 2002. On
March 7, 2003, R.A. No. 9194 (An Act Amending R.A. No. 9160) was signed
into law and took effect on March 23, 2003. The revised Implementing Rules
and Regulations took effect on September 7, 2003.
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Salient Features
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Criminalizes money laundering
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Creates a financial intelligence unit
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Imposes requirements on customer identification, record keeping
and reporting of covered and suspicious transactions
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Relaxes strict bank deposits secrecy laws
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Provides for freezing/seizure/forfeiture/recovery of dirty
money/property
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Provides for international cooperation
Money
Laundering
is a crime whereby the proceeds of an unlawful activity as defined in the
AMLA are transacted or attempted to be transacted to make them appear to
have originated from legitimate sources.
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Money Laundering Offenses and Penalties
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Knowingly transacting or attempting to transact any monetary
instrument/property which represents, involves or relates to the proceeds
of an unlawful activity. Penalty is 7 to 14 years imprisonment and a
fine of not less than P3M but not more than twice the value of the monetary
instrument/property.
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Knowingly performing or failing to perform an act in relation to
any monetary instrument/property involving the proceeds of any unlawful
activity as a result of which he facilitated the offense of money
laundering. Penalty is 4 to 7 years imprisonment and a fine of not
less than P1.5M but not more than P3M.
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Knowingly failing to disclose and file with the AMLC any monetary
instrument/property required to be disclosed and filed. Penalty is 6
months to 4 years imprisonment or a fine of not less than P100,000 but not more than P500,000, or both.
Unlawful
Activity is
the offense which generates dirty money. It is commonly called the
predicate crime. It refers to any act or omission or series or combination
thereof involving or having direct relation to the following:
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Predicate Crimes/Unlawful Activities
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10. Kidnapping for ransom
11. Drug trafficking and related
offenses
12. Graft and corrupt practices
13. Plunder
14. Robbery and Extortion
15. Jueteng and Masiao
16. Piracy
17. Qualified theft
18. Swindling
19. Smuggling
20. Violations under the Electronic
Commerce Act of 2000
21. Hijacking; destructive arson;
and murder, including those perpetrated by terrorists against non-combatant
persons and similar targets
22. Fraudulent practices and other
violations under the Securities Regulation Code of 2000
23. Felonies or offenses of a
similar nature that are punishable under the penal
laws of other countries.
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Other Offenses/Penalties
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Failure to keep records is committed by any responsible official or employee
of a covered institution who fails to maintain and safely store all records
of all transactions of said institution, including closed accounts, for
five (5) years from the date of the transaction/closure of the account. Penalty
is 6 months to 1 year imprisonment or a fine of not less than P100,000 but not more than P500,000, or both.
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Malicious reporting is committed by any person who, with malice or in bad
faith, reports/files a completely unwarranted or
false information relative to money laundering transaction against any person.
Penalty is 6 months to 4 years imprisonment and a fine of not less
than P100,000 but not more than P500,000, at the
discretion of the court. The offender is not entitled to avail the benefits
of the Probation Law.
1. If the offender is a
corporation, association, partnership or any juridical person, the penalty
shall be imposed upon the responsible officers, as the case may be, who
participated in, or allowed by their gross negligence, the commission of
the crime.
2. If the offender is a juridical
person, the court may suspend or revoke its license.
3. If the offender is an alien, he
shall, in addition to the penalties prescribed, be deported without further
proceedings after serving the penalties prescribed.
4. If the offender is a public
official or employee, he shall, in addition to the penalties prescribed,
suffer perpetual or temporary absolute disqualification from office, as the
case may be.
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Breach of confidentiality. When reporting covered or suspicious transactions to
the AMLC, covered institutions and their officers/employees are prohibited
from communicating directly or indirectly, in any manner or by any means,
to any person/entity/media, the fact that such report was made, the
contents thereof, or any other information in relation thereto. In case of
violation thereof, the concerned official and employee of the covered
institution shall be criminally liable. 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 a breach of confidentiality published
or reported by media, the responsible reporter, writer, president,
publisher, manager and editor-in-chief shall also be held criminally
liable. Penalty is 3 to 8 years imprisonment and a fine of not less than
P500,000 but not more than P1M.
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Covered Institutions
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Covered Institutions are those mandated by the AMLA to submit
covered and suspicious transaction reports to the AMLC. These are:
0. Banks and all other entities,
including their subsidiaries and affiliates, supervised and regulated by
the Bangko Sentral ng Pilipinas
1. Insurance companies and all
other institutions supervised or regulated by the Insurance Commission
2. Securities dealers, pre-need
companies, foreign exchange corporations and other entities supervised or
regulated by the Securities and Exchange Commission
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Covered & Suspicous
Transactions
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Covered transactions are single transactions in cash or other
equivalent monetary instrument involving a total amount in excess of Five
Hundred Thousand (P500,000) Pesos within one (1) banking day
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Suspicious transactions are transactions with covered institutions,
regardless of the amounts involved, where any of the following
circumstances exists:
0. there is no underlying
legal/trade obligation, purpose or economic justification;
1. the client is not properly
identified;
2. the amount involved is not
commensurate with the business or financial capacity of the client;
3. the transaction is structured
to avoid being the subject of reporting requirements under the AMLA;
4. there is a deviation from the
client’s profile/past transactions;
5. the transaction is related to
an unlawful activity/offense under the AMLA; and
6. transactions similar or analogous to the
above.
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Freezing of Monetary Instrument or
Property
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The
Court of Appeals, upon application ex parte
(without notice to the other party) by the AMLC and after determination
that probable cause exists that any monetary instrument or property is in
any way related to an unlawful activity, may issue a freeze order which
shall be effective immediately. The freeze order shall be for a period of
20 days unless extended by the court.
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Authority to Inquire into Bank Deposits
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Notwithstanding
the provisions of R.A. No. 1405, as amended, R.A. No. 6426, as amended, R.A.
No. 8791, and other laws, the AMLC may inquire into or examine any
particular deposit or investment with any banking institution or non-bank
financial institution upon order of any competent court in cases of
violation of this act when it has been established that there is probable
cause that the deposits/investments are involved/related to an unlawful
activity as defined in Sec. 3(i) of the AMLA or a
money laundering offense under Sec. 4 thereof; except that no court order shall be required in
cases involving kidnapping for ransom; drug trafficking and related
offenses; and hijacking, destructive arson and murder, including those
perpetrated by terrorists against non-combatant persons and similar
targets.
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