|
RULE 1
Title
Rule 1.a. Title. - These Rules shall be known and cited as the
“Revised Rules and Regulations Implementing Republic Act No.
9160” (the Anti-Money Laundering Act of 2001 [AMLA]), AS AMENDED
BY REPUBLIC ACT NO. 9194.
Rule 1.b. Purpose. - These Rules are promulgated to prescribe the
procedures and guidelines for the implementation of the AMLA, AS
AMENDED BY REPUBLIC ACT NO. 9194.
RULE 2
Declaration of Policy
Rule 2. Declaration of Policy. – It is hereby declared the
policy of the State to protect the integrity and confidentiality
of bank accounts and to ensure that the Philippines shall not be
used as money laundering site for the proceeds of any unlawful activity.
Consistent with its foreign policy, the Philippines shall extend
cooperation in transnational investigations and prosecutions of
persons involved in money laundering activities wherever committed.
RULE 3
Definitions
Rule 3. Definitions. – For purposes of THIS Act, the following
terms are hereby defined as follows:
Rule 3. a. “Covered Institution” refers to:
Rule 3.a.1. Banks, offshore banking units, quasi-banks, trust
entities, non-stock savings and loan associations, pawnshops, and
all other institutions, including their subsidiaries and affiliates
supervised and/or regulated by the Bangko Sentral ng Pilipinas (BSP).
(a) A subsidiary means an entity more than fifty percent (50%)
of the outstanding voting stock of which is owned by a bank, quasi-bank,
trust entity or any other institution supervised or regulated by
the BSP.
(b) An affiliate means an entity at least twenty percent (20%)
but not exceeding fifty percent (50%) of the voting stock of which
is owned by a bank, quasi-bank, trust entity, or any other institution
supervised and/or regulated by the BSP.
Rule 3.a.2. Insurance companies, insurance agents, insurance brokers,
professional reinsurers, reinsurance brokers, holding companies,
holding company systems and all other persons and entities supervised
and/or regulated by the Insurance Commission (IC).
(a) An insurance company includes those entities authorized to transact
insurance business in the Philippines, whether life or non-life
and whether domestic, domestically incorporated or branch of a foreign
entity. A contract of insurance is an agreement whereby one undertakes
for a consideration to indemnify another against loss, damage or
liability arising from an unknown or contingent event. Transacting
insurance business includes making or proposing to make, as insurer,
any insurance contract, or as surety, any contract of suretyship
as a vocation and not as merely incidental to any other legitimate
business or activity of the surety, doing any kind of business specifically
recognized as constituting the doing of an insurance business within
the meaning of Presidential Decree (P.D.) No. 612, as amended, including
a reinsurance business and doing or proposing to do any business
in substance equivalent to any of the foregoing in a manner designed
to evade the provisions of P.D. No. 612, as amended.
(b) An insurance agent includes any person who solicits or obtains
insurance on behalf of any insurance company or transmits for a
person other than himself an application for a policy or contract
of insurance to or from such company or offers or assumes to act
in the negotiation of such insurance.
(c) An insurance broker includes any person who acts or aids in
any manner in soliciting, negotiating or procuring the making of
any insurance contract or in placing risk or taking out insurance,
on behalf of an insured other than himself.
(d) A professional reinsurer includes any person, partnership,
association or corporation that transacts solely and exclusively
reinsurance business in the Philippines, whether domestic, domestically
incorporated or a branch of a foreign entity. A contract of reinsurance
is one by which an insurer procures a third person to insure him
against loss or liability by reason of such original insurance.
(e) A reinsurance broker includes any person who, not being a duly
authorized agent, employee or officer of an insurer in which any
reinsurance is effected, acts or aids in any manner in negotiating
contracts of reinsurance or placing risks of effecting reinsurance,
for any insurance company authorized to do business in the Philippines.
(f) A holding company includes any person who directly or indirectly
controls any authorized insurer. A holding company system includes
a holding company together with its controlled insurers and controlled
persons.
Rule 3.a.3. (i) Securities dealers, brokers, salesmen, associated
persons of brokers or dealers, investment houses, investment agents
and consultants, trading advisors, and other entities managing securities
or rendering similar services; (ii) mutual funds or open-end investment
companies, close-end investment companies, common trust funds, pre-need
companies or issuers and other similar entities; (iii) foreign exchange
corporations, money changers, money payment, remittance, and transfer
companies and other similar entities; and (iv) other entities administering
or otherwise dealing in currency, commodities or financial derivatives
based thereon, valuable objects, cash substitutes and other similar
monetary instruments or property supervised and/or regulated by
the Securities and Exchange Commission (SEC).
(a) A securities broker includes a person engaged in the business
of buying and selling securities for the account of others.
(b) A securities dealer includes any person who buys and sells
securities for his/her account in the ordinary course of business.
(c) A securities salesman includes a natural person, employed as
such or as an agent, by a dealer, issuer or broker to buy and sell
securities.
(d) An associated person of a broker or dealer includes an employee
thereof who directly exercises control or supervisory authority,
but does not include a salesman, or an agent or a person whose functions
are solely clerical or ministerial.
(e) An investment house includes an enterprise which engages or
purports to engage, whether regularly or on an isolated basis, in
the underwriting of securities of another person or enterprise,
including securities of the Government and its instrumentalities.
(f) A mutual fund or an open-end investment company includes an
investment company which is offering for sale or has outstanding,
any redeemable security of which it is the issuer.
(g) A closed-end investment company includes an investment company
other than open-end investment company.
(h) A common trust fund includes a fund maintained by an entity
authorized to perform trust functions under a written and formally
established plan, exclusively for the collective investment and
reinvestment of certain money representing participation in the
plan received by it in its capacity as trustee, for the purpose
of administration, holding or management of such funds and/or properties
for the use, benefit or advantage of the trustor or of others known
as beneficiaries.
(i) A pre-need company or issuer includes any corporation supervised
and/or regulated by the SEC and is authorized or licensed to sell
or offer for sale pre-need plans. Pre-need plans are contracts which
provide for the performance of future service(s) or payment of future
monetary consideration at the time of actual need, payable either
in cash or installment by the planholder at prices stated in the
contract with or without interest or insurance coverage and includes
life, pension, education, internment and other plans, which the
Commission may, from time to time, approve.
(j) A foreign exchange corporation includes any enterprise which
engages or purports to engage, whether regularly or on an isolated
basis, in the sale and purchase of foreign currency notes and such
other foreign-currency denominated non-bank deposit transactions
as may be authorized under its articles of incorporation.
(k) Investment Advisor/Agent/Consultant shall refer to any person:
(l) who for an advisory fee is engaged in the business of advising
others, either directly or through circulars, reports, publications
or writings, as to the value of any security and as to the advisability
of trading in any security; or
(2) who for compensation and as part of a regular business, issues
or promulgates, analyzes reports concerning the capital market,
except:
(a) any bank or trust company;
(b) any journalist, reporter, columnist, editor, lawyer, accountant,
teacher;
(c) the publisher of any bonafide newspaper, news, business or financial
publication of general and regular circulation, including their
employees;
(d) any contract market;
(e) such other person not within the intent of this definition,
provided that the furnishing of such service by the foregoing persons
is solely incidental to the conduct of their business or profession.
(3) any person who undertakes the management of portfolio securities
of investment companies, including the arrangement of purchases,
sales or exchanges of securities.
(l) A moneychanger includes any person in the business of buying
or selling foreign currency notes.
(m) A money payment, remittance and transfer company includes any
person offering to pay, remit or transfer or transmit money on behalf
of any person to another person.
(n) “Customer” refers to any person or entity that
keeps an account, or otherwise transacts business, with a covered
institution and any person or entity on whose behalf an account
is maintained or a transaction is conducted, as well as the beneficiary
of said transactions. A customer also includes the beneficiary of
a trust, an investment fund, a pension fund or a company or person
whose assets are managed by an asset manager, or a grantor of a
trust. It includes any insurance policy holder, whether actual or
prospective.
(o) “Property” includes any thing or item of value,
real or personal, tangible or intangible, or any interest therein
or any benefit, privilege, claim or right with respect thereto.
Rule 3.b. “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.
Rule 3.b.1. SUSPICIOUS TRANSACTIONS ARE TRANSACTIONS, REGARDLESS
OF AMOUNT, WHERE ANY OF THE FOLLOWING CIRCUMSTANCES EXISTS:
1. THERE IS NO UNDERLYING LEGAL OR TRADE OBLIGATION, PURPOSE OR
ECONOMIC JUSTIFICATION;
2. THE CLIENT IS NOT PROPERLY IDENTIFIED;
3. THE AMOUNT INVOLVED IS NOT COMMENSURATE WITH THE 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 CIRCUMSTANCE RELATING TO THE TRANSACTION WHICH IS OBSERVED
TO DEVIATE FROM THE PROFILE OF THE CLIENT AND/OR THE CLIENT’S
PAST TRANSACTIONS WITH THE COVERED INSTITUTION;
6. THE TRANSACTION IS IN ANY WAY RELATED TO AN UNLAWFUL ACTIVITY
OR ANY MONEY LAUNDERING ACTIVITY OR OFFENSE UNDER THIS ACT THAT
IS ABOUT TO BE, IS BEING OR HAS BEEN COMMITTED; OR
7. ANY TRANSACTION THAT IS SIMILAR, ANALOGOUS OR IDENTICAL TO ANY
OF THE FOREGOING.”
Rule 3.c. “Monetary Instrument” refers to:
(1) Coins or currency of legal tender of the Philippines, or of
any other country;
(2) Drafts, checks and notes;
(3) Securities or negotiable instruments, bonds, commercial papers,
deposit certificates, trust certificates, custodial receipts or
deposit substitute instruments, trading orders, transaction tickets
and confirmations of sale or investments and money market instruments;
(4) Contracts or policies of insurance, life or non-life, and contracts
of suretyship; and
(5) Other similar instruments where title thereto passes to another
by endorsement, assignment or delivery.
Rule 3.d. “Offender” refers to any person who commits
a money laundering offense.
Rule 3.e. “Person” refers to any natural or juridical
person.
Rule 3.f. “Proceeds” refers to an amount derived or
realized from an unlawful activity. It includes:
(1) All material results, profits, effects and any amount realized
from any unlawful activity;
(2) All monetary, financial or economic means, devices, documents,
papers or things used in or having any relation to any unlawful
activity; and
(3) All moneys, expenditures, payments, disbursements, costs, outlays,
charges, accounts, refunds and other similar items for the financing,
operations, and maintenance of any unlawful activity.
Rule 3.g. “Supervising Authority” refers to the BSP,
the SEC and the IC. Where the BSP, SEC or IC supervision applies
only to the registration of the covered institution, the BSP, the
SEC or the IC, within the limits of the AMLA, shall have the authority
to require and ask assistance from the government agency having
regulatory power and/or licensing authority over said covered institution
for the implementation and enforcement of the AMLA and these Rules.
Rule 3.h. “Transaction” refers to any act establishing
any right or obligation or giving rise to any contractual or legal
relationship between the parties thereto. It also includes any movement
of funds by any means with a covered institution.
Rule 3.i. “Unlawful activity” refers to any act or
omission or series or combination thereof involving or having relation,
to the following:
(A) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise
known as the Revised Penal Code, as amended;
(1) Kidnapping for ransom
(B) Sections 4, 5, 6, 8, 9, 10, 12,13, 14, 15 and 16 of Republic
Act No. 9165, otherwise known as the COMPREHENSIVE Dangerous Drugs
Act of 2002;
(2) Importation of prohibited drugs;
(3) Sale of prohibited drugs;
(4) Administration of prohibited drugs;
(5) Delivery of prohibited drugs
(6) Distribution of prohibited drugs
(7) Transportation of prohibited drugs
(8) Maintenance of a Den, Dive or Resort for prohibited users
(9) Manufacture of prohibited drugs
(10) Possession of prohibited drugs
(11) Use of prohibited drugs
(12) Cultivation of plants which are sources of prohibited drugs
(13) Culture of plants which are sources of prohibited drugs
(C) Section 3 paragraphs b, c, e, g, h and i of Republic Act No.
3019, as amended, otherwise known as the Anti-Graft and Corrupt
Practices Act;
(14) Directly or indirectly requesting or receiving any gift, present,
share, percentage or benefit for himself or for any other person
in connection with any contract or transaction between the Government
and any party, wherein the public officer in his official capacity
has to intervene under the law;
(15) Directly or indirectly requesting or receiving any gift, present
or other pecuniary or material benefit, for himself or for another,
from any person for whom the public officer, in any manner or capacity,
has secured or obtained, or will secure or obtain, any government
permit or license, in consideration for the help given or to be
given, without prejudice to Section 13 of R.A. 3019;
(16) Causing any undue injury to any party, including the government,
or giving any private party any unwarranted benefits, advantage
or preference in the discharge of his official, administrative or
judicial functions through manifest partiality, evident bad faith
or gross inexcusable negligence;
(17) Entering, on behalf of the government, into any contract or
transaction manifestly and grossly disadvantageous to the same,
whether or not the public officer profited or will profit thereby;
(18) Directly or indirectly having financial or pecuniary interest
in any business contract or transaction in connection with which
he intervenes or takes part in his official capacity, or in which
he is prohibited by the Constitution or by any law from having any
interest;
(19) Directly or indirectly becoming interested, for personal gain,
or having material interest in any transaction or act requiring
the approval of a board, panel or group of which he is a member,
and which exercise of discretion in such approval, even if he votes
against the same or he does not participate in the action of the
board, committee, panel or group.
(D) Plunder under Republic Act No. 7080, as amended;
(20) Plunder through misappropriation, conversion, misuse or malversation
of public funds or raids upon the public treasury;
(21) Plunder by receiving, directly or indirectly, any commission,
gift, share, percentage, kickbacks or any other form of pecuniary
benefit from any person and/or entity in connection with any government
contract or project or by reason of the office or position of the
public officer concerned;
(22) Plunder by the illegal or fraudulent conveyance or disposition
of assets belonging to the National Government or any of its subdivisions,
agencies, instrumentalities or government-owned or controlled corporations
or their subsidiaries;
(23) Plunder by obtaining, receiving or accepting, directly or indirectly,
any shares of stock, equity or any other form of interest or participation
including the promise of future employment in any business enterprise
or undertaking;
(24) Plunder by establishing agricultural, industrial or commercial
monopolies or other combinations and/or implementation of decrees
and orders intended to benefit particular persons or special interests;
(25) Plunder by taking undue advantage of official position, authority,
relationship, connection or influence to unjustly enrich himself
or themselves at the expense and to the damage and prejudice of
the Filipino people and the Republic of the Philippines.
(E) Robbery and extortion under Articles 294, 295, 296, 299, 300,
301 and 302 of the Revised Penal Code, as amended;
(26) Robbery with violence or intimidation of persons;
(27) Robbery with physical injuries, committed in an uninhabited
place and by a band, or with use of firearms on a street, road or
alley;
(28) Robbery in an uninhabited house or public building or edifice
devoted to worship.
(F) Jueteng and Masiao punished as illegal gambling under Presidential
Decree No. 1602;
(29) Jueteng;
(30) Masiao.
(G) Piracy on the high seas under the Revised Penal Code, as amended
and Presidential Decree No. 532;
(31) Piracy on the hers;
(33) Aiding and abetting pirates and brigigh seas;
(32) Piracy in inland Philippine watands.
(H) Qualified theft under Article 310 of the Revised Penal Code,
as amended;
(34) Qualified theft.
(I) Swindling under Article 315 of the Revised Penal Code, as amended;
(35) Estafa with unfaithfulness or abuse of confidence by altering
the substance, quality or quantity of anything of value which the
offender shall deliver by virtue of an obligation to do so, even
though such obligation be based on an immoral or illegal consideration;
(36) Estafa with unfaithfulness or abuse of confidence by misappropriating
or converting, to the prejudice of another, money, goods or any
other personal property received by the offender in trust or on
commission, or for administration, or under any other obligation
involving the duty to make delivery or to return the same, even
though such obligation be totally or partially guaranteed by a bond;
or by denying having received such money, goods, or other property;
(37) Estafa with unfaithfulness or abuse of confidence by taking
undue advantage of the signature of the offended party in blank,
and by writing any document above such signature in blank, to the
prejudice of the offended party or any third person;
(38) Estafa by using a fictitious name, or falsely pretending to
possess power, influence, qualifications, property, credit, agency,
business or imaginary transactions, or by means of other similar
deceits;
(39) Estafa by altering the quality, fineness or weight of anything
pertaining to his art or business;
(40) Estafa by pretending to have bribed any government employee;
(41) Estafa by postdating a check, or issuing a check in payment
of an obligation when the offender has no funds in the bank, or
his funds deposited therein were not sufficient to cover the amount
of the check;
(42) Estafa by inducing another, by means of deceit, to sign any
document;
(43) Estafa by resorting to some fraudulent practice to ensure success
in a gambling game;
(44) Estafa by removing, concealing or destroying, in whole or in
part, any court record, office files, document or any other papers.
(J) Smuggling under Republic Act Nos. 455 and 1937;
(45) Fraudulent importation of any vehicle;
(46) Fraudulent exportation of any vehicle;
(47) Assisting in any fraudulent importation;
(48) Assisting in any fraudulent exportation;
(49) Receiving smuggled article after fraudulent importation;
(50) Concealing smuggled article after fraudulent importation;
(51) Buying smuggled article after fraudulent importation;
(52) Selling smuggled article after fraudulent importation;
(53) Transportation of smuggled article after fraudulent importation;
(54) Fraudulent practices against customs revenue.
(K) Violations under Republic Act No. 8792, otherwise known as
the Electronic Commerce Act of 2000;
K.1. Hacking or cracking, which refers to:
(55) unauthorized access into or interference in a computer system/server
or information and communication system; or
(56) any access in order to corrupt, alter, steal, or destroy using
a computer or other similar information and communication devices,
wi
information and communications system, including thout the knowledge and consent of the owner of the computer or
(57) the introduction of computer viruses and the like, resulting
in the corruption, destruction, alteration, theft or loss of electronic
data messages or electronic document;
K.2. Piracy, which refers to:
(58) the unauthorized copying, reproduction,
(59) the unauthorized dissemination, distribution,
(60) the unauthorized importation,
(61) the unauthorized use, removal, alteration, substitution, modification,
(62) the unauthorized storage, uploading, downloading, communication,
making available to the public, or
(63) the unauthorized broadcasting,
of protected material, electronic signature or copyrighted works
including legally protected sound recordings or phonograms or information
material on protected works, through the use of telecommunication
networks, such as, but not limited to, the internet, in a manner
that infringes intellectual property rights;
K.3. Violations of the Consumer Act or Republic Act No. 7394 and
other relevant or pertinent laws through transactions covered by
or using electronic data messages or electronic documents:
(64) Sale of any consumer product that is not in conformity with
standards under the Consumer Act;
(65) Sale of any product that has been banned by a rule under the
Consumer Act;
(66) Sale of any adulterated or mislabeled product using electronic
documents;
(67) Adulteration or misbranding of any consumer product;
(68) Forging, counterfeiting or simulating any mark, stamp, tag,
label or other identification device;
(69) Revealing trade secrets;
(70) Alteration or removal of the labeling of any drug or device
held for sale;
(71) Sale of any drug or device not registered in accordance with
the provisions of the E-Commerce Act;
(72) Sale of any drug or device by any person not licensed in accordance
with the provisions of the E-Commerce Act;
(73) Sale of any drug or device beyond its expiration date;
(74) Introduction into commerce of any mislabeled or banned hazardous
substance;
(75) Alteration or removal of the labeling of a hazardous substance;
(76) Deceptive sales acts and practices;
(77) Unfair or unconscionable sales acts and practices;
(78) Fraudulent practices relative to weights and measures;
(79) False representations in advertisements as the existence of
a warranty or guarantee;
(80) Violation of price tag requirements;
(81) Mislabeling consumer products;
(82) False, deceptive or misleading advertisements;
(83) Violation of required disclosures on consumer loans;
(84) Other violations of the provisions of the E-Commerce Act;
(L) Hijacking and other violations under Republic Act No. 6235;
destructive arson and murder, as defined under the Revised Penal
Code, as amended, including those perpetrated by terrorists against
non-combatant persons and similar targets;
(85) Hijacking;
(86) Destructive arson;
(87) Murder;
(88) Hijacking, destructive arson or murder perpetrated by terrorists
against non-combatant persons and similar targets;
(M) Fraudulent practices and other violations under Republic Act
No. 8799, otherwise known as the Securities Regulation Code of 2000;
(89) Sale, offer or distribution of securities within the Philippines
without a registration statement duly filed with and approved by
the SEC;
(90) Sale or offer to the public of any pre-need plan not in accordance
with the rules and regulations which the SEC shall prescribe;
(91) Violation of reportorial requirements imposed upon issuers
of securities;
(92) Manipulation of security prices by creating a false or misleading
appearance of active trading in any listed security traded in an
Exchange or any other trading market;
(93) Manipulation of security prices by effecting, alone or with
others, a series of transactions in securities that raises their
prices to induce the purchase of a security, whether of the same
or different class, of the same issuer or of a controlling, controlled
or commonly controlled company by others;
(94) Manipulation of security prices by effecting, alone or with
others, a series of transactions in securities that depresses their
price to induce the sale of a security, whether of the same or different
class, of the same issuer or of a controlling, controlled or commonly
controlled company by others;
(95) Manipulation of security prices by effecting, alone or with
others, a series of transactions in securities that creates active
trading to induce such a purchase or sale though manipulative devices
such as marking the close, painting the tape, squeezing the float,
hype and dump, boiler room operations and such other similar devices;
(96) Manipulation of security prices by circulating or disseminating
information that the price of any security listed in an Exchange
will or is likely to rise or fall because of manipulative market
operations of any one or more persons conducted for the purpose
of raising or depressing the price of the security for the purpose
of inducing the purchase or sale of such security;
(97) Manipulation of security prices by making false or misleading
statements with respect to any material fact, which he knew or had
reasonable ground to believe was so false and misleading, for the
purpose of inducing the purchase or sale of any security listed
or traded in an Exchange;
(98) Manipulation of security prices by effecting, alone or with
others, any series of transactions for the purchase and/or sale
of any security traded in an Exchange for the purpose of pegging,
fixing or stabilizing the price of such security, unless otherwise
allowed by the Securities Regulation Code or by the rules of the
SEC;
(99) Sale or purchase of any security using any manipulative deceptive
device or contrivance;
(100) Execution of short sales or stop-loss order in connection
with the purchase or sale of any security not in accordance with
such rules and regulations as the SEC may prescribe as necessary
and appropriate in the public interest or the protection of the
investors;
(101) Employment of any device, scheme or artifice to defraud in
connection with the purchase and sale of any securities;
(102) Obtaining money or property in connection with the purchase
and sale of any security by means of any untrue statement of a material
fact or any omission to state a material fact necessary in order
to make the statements made, in the light of the circumstances under
which they were made, not misleading;
(103) Engaging in any act, transaction, practice or course of action
in the sale and purchase of any security which operates or would
operate as a fraud or deceit upon any person;
(104) Insider trading;
(105) Engaging in the business of buying and selling securities
in the Philippines as a broker or dealer, or acting as a salesman,
or an associated person of any broker or dealer without any registration
from the Commission;
(106) Employment by a broker or dealer of any salesman or associated
person or by an issuer of any salesman, not registered with the
SEC;
(107) Effecting any transaction in any security, or reporting such
transaction, in an Exchange or using the facility of an Exchange
which is not registered with the SEC;
(108) Making use of the facility of a clearing agency which is not
registered with the SEC;
(109) Violations of margin requirements;
(110) Violations on the restrictions on borrowings by members, brokers
and dealers;
(111) Aiding and Abetting in any violations of the Securities Regulation
Code;
(112) Hindering, obstructing or delaying the filing of any document
required under the Securities Regulation Code or the rules and regulations
of the SEC;
(113) Violations of any of the provisions of the implementing rules
and regulations of the SEC;
(114) Any other violations of any of the provisions of the Securities
Regulation Code.
(N) Felonies or offenses of a similar nature to the afore-mentioned
unlawful activities that are punishable under the penal laws of
other countries.
In determining whether or not a felony or offense punishable under
the penal laws of other countries, is “of a similar nature”,
as to constitute the same as an unlawful activity under the AMLA,
the nomenclature of said felony or offense need not be identical
to any of the predicate crimes listed under Rule 3.i.
RULE 4
Money Laundering Offense
Rule 4.1. Money Laundering Offense - Money laundering is a crime
whereby the proceeds of an unlawful activity AS HEREIN DEFINED are
transacted, thereby making them appear to have originated from legitimate
sources. It is committed by the following:
(a) Any person knowing that any monetary instrument or property
represents, involves, or relates to, the proceeds of any unlawful
activity, transacts or attempts to transact said monetary instrument
or property.
(b) Any person knowing that any monetary instrument or property
involves the proceeds of any unlawful activity, performs or fails
to perform any act as a result of which he facilitates the offense
of money laundering referred to in paragraph (a) above.
(c) Any person knowing that any monetary instrument or property
is required under this Act to be disclosed and filed with the Anti-Money
Laundering Council (AMLC), fails to do so.
RULE 5
Jurisdiction of Money Laundering Cases and Money Laundering Investigation
Procedures
Rule 5.1. Jurisdiction of Money Laundering Cases. – The Regional
Trial Courts shall have the jurisdiction to try all cases on money
laundering. Those committed by public officers and private persons
who are in conspiracy with such public officers shall be under the
jurisdiction of the Sandiganbayan.
Rule 5.2. Investigation of Money Laundering Offenses. - The AMLC
shall investigate:
(a) SUSPICIOUS TRANSACTIONS;
(b) COVERED TRANSACTIONS DEEMED SUSPICIOUS AFTER AN INVESTIGATION
CONDUCTED BY THE AMLC;
(c) MONEY LAUNDERING ACTIVITIES; AND
(d) OTHER VIOLATIONS OF THIS ACT.
Rule 5.3. Attempts at Transactions. Section 4 (a) and (b) of the
AMLA provides that any person who attempts to transact any monetary
instrument or property representing, involving or relating to the
proceeds of any unlawful activity shall be prosecuted for a money
laundering offense. Accordingly, the reports required under Rule
9.3 (a) and (b) of these Rules shall include those pertaining to
any attempt by any person to transact any monetary instrument or
property representing, involving or relating to the proceeds of
any unlawful activity.
RULE 6
Prosecution of Money Laundering
Rule 6.1. Prosecution of Money Laundering. -
(a) Any person may be charged with and convicted of both the offense
of money laundering and the unlawful activity as defined under Rule
3 (i) of the AMLA.
(b) Any proceeding relating to the unlawful activity shall be given
precedence over the prosecution of any offense or violation under
the AMLA without prejudice to the APPLICATION EX-PARTE by the AMLC
TO THE COURT OF APPEALS FOR A FREEZE ORDER with respect to the MONETARY
INSTRUMENT OR PROPERTY involved therein and resort to other remedies
provided under the AMLA, THE RULES OF COURT AND OTHER PERTINENT
LAWS AND RULES.
Rule 6.2. When the AMLC finds, after investigation, that there
is probable cause to charge any person with a money laundering offense
under Section 4 of the AMLA, it shall cause a complaint to be filed,
pursuant to Section 7 (4) of the AMLA, before the Department of
Justice or the Ombudsman, which shall then conduct the preliminary
investigation of the case.
Rule 6.3. After due notice and hearing in the preliminary investigation
proceedings before the Department of Justice, or the Ombudsman,
as the case may be, and the latter should find probable cause of
a money laundering offense, it shall file the necessary information
before the Regional Trial Courts or the Sandiganbayan.
Rule 6.4. Trial for the money laundering offense shall proceed
in accordance with the Code of Criminal Procedure or the Rules of
Procedure of the Sandiganbanyan, as the case may be.
Rule 6.5. Knowledge of the offender that any monetary instrument
or property represents, involves, or relates to the proceeds of
an unlawful activity or that any monetary instrument or property
is required under the AMLA to be disclosed and filed with the AMLC,
may be established by direct evidence or inferred from the attendant
circumstances.
Rule 6.6. All the elements of every money laundering offense under
Section 4 of the AMLA must be proved by evidence beyond reasonable
doubt, including the element of knowledge that the monetary instrument
or property represents, involves or relates to the proceeds of any
unlawful activity.
Rule 6.7. 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 7
Creation of Anti-Money Laundering Council (AMLC).
Rule 7.1.a. Composition. – The Anti-Money Laundering Council
is hereby created and shall be composed of the Governor of the Bangko
Sentral ng Pilipinas as Chairman, the Commissioner of the Insurance
Commission and the Chairman of the Securities and Exchange Commission
as members.
Rule 7.1.b. Unanimous Decision – The AMLC shall act unanimously
in discharging its functions as defined in the AMLA and in these
Rules. However, in the case of the incapacity, absence or disability
of any members to discharge his functions, the officer duly designated
or authorized to discharge the functions of the Governor of the
BSP, the Chairman of the SEC or the Insurance Commissioner, as the
case may be, shall act in his stead in the AMLC.
Rule 7.2. Functions. - The functions of the AMLC are defined hereunder:
(1) to require and receive covered OR SUSPICIOUS transaction reports
from covered institutions;
(2) to issue orders addressed to the appropriate Supervising Authority
or the covered institution to determine the true identity of the
owner of any monetary instrument or property subject of a covered
OR SUSPICIOUS transaction report, or request for assistance from
a foreign State, or believed by the Council, on the basis of substantial
evidence, to be, in whole or in part, wherever located, representing,
involving, or related to, directly or indirectly, in any manner
or by any means, the proceeds of an unlawful activity;
(3) to institute civil forfeiture proceedings and all other remedial
proceedings through the Office of the Solicitor General;
(4) to cause the filing of complaints with the Department of Justice
or the Ombudsman for the prosecution of money laundering offenses;
(5) TO INVESTIGATE SUSPICIOUS TRANSACTIONS AND COVERED TRANSACTIONS
DEEMED SUSPICIOUS AFTER AN INVESTIGATION BY THE AMLC, money laundering
activities and other violations of this Act;
(6) TO APPLY BEFORE THE COURT OF APPEALS, EX-PARTE, FOR THE FREEZING
OF any monetary instrument or property alleged to be proceeds of
any unlawful activity AS DEFINED UNDER SECTION 3 (i) HEREOF;
(7) to implement such measures as may be inherent, necessary, implied,
incidental and justified under the AMLA to counteract money laundering.
Subject to such limitations as provided for by law, the AMLC is
authorized under Rule 7 (7) of the AMLA to establish an information
sharing system that will enable the AMLC to store, track and analyze
money laundering transactions for the resolute prevention, detection
and investigation of money laundering offenses. For this purpose,
the AMLC shall install a computerized system that will be used in
the creation and maintenance of an information database;
(8) to receive and take action in respect of any request from foreign
states for assistance in their own anti-money laundering operations
as provided in the AMLA. The AMLC is authorized under Sections 7
(8) and 13 (b) and (d) of the AMLA to receive and take action in
respect of any request of foreign states for assistance in their
own anti-money laundering operations, in respect of conventions,
resolutions and other directives of the United Nations (UN), the
UN Security Council, and other international organizations of which
the Philippines is a member. However, the AMLC may refuse to comply
with any such request, convention, resolution or directive where
the action sought therein contravenes the provisions of the Constitution,
or the execution thereof is likely to prejudice the national interest
of the Philippines.
(9) to develop educational programs on the pernicious effects of
money laundering, the methods and techniques used in money laundering,
the viable means of preventing money laundering and the effective
ways of prosecuting and punishing offenders.
(10) to enlist the assistance of any branch, department, bureau,
office, agency or instrumentality of the government, including government-owned
and -controlled corporations, in undertaking any and all anti-money
laundering operations, which may include the use of its personnel,
facilities and resources for the more resolute prevention, detection
and investigation of money laundering offenses and prosecution of
offenders. The AMLC may require the intelligence units of the Armed
Forces of the Philippines, the Philippine National Police, the Department
of Finance, the Department of Justice, as well as their attached
agencies, and other domestic or transnational governmental or non-governmental
organizations or groups to divulge to the AMLC all information that
may, in any way, facilitate the resolute prevention, investigation
and prosecution of money laundering offenses and other violations
of the AMLA.
(11) TO IMPOSE ADMINISTRATIVE SANCTIONS FOR THE VIOLATION OF LAWS,
RULES, REGULATIONS AND ORDERS AND RESOLUTIONS ISSUED PURSUANT THERETO.
Rule 7.3. Meetings. - The AMLC shall meet every first Monday of
the month, or as often as may be necessary at the call of the Chairman.
RULE 8
Creation of a Secretariat
Rule 8.1. The Executive Director. – The Secretariat shall
be headed by an Executive Director who shall be appointed by the
AMLC for a term of five (5) years. He must be a member of the Philippine
Bar, at least thirty-five (35) years of age, must have served at
least five (5) years either at the BSP, the SEC or the IC and of
good moral character, unquestionable integrity and known probity.
He shall be considered a full-time permanent employee of the BSP
with the rank of Assistant Governor, and shall be entitled to such
benefits and subject to rules and regulations, as well as prohibitions,
as are applicable to officers of similar rank.
Rule 8.2. Composition. – In organizing the Secretariat, the
AMLC may choose from those who have served, continuously or cumulatively,
for at least five (5) years in the BSP, the SEC or the IC. All members
of the Secretariat shall be considered regular employees of the
BSP and shall be entitled to such benefits and subject to such rules
and regulations as are applicable to BSP employees of similar rank.
Rule 8.3. Detail and Secondment. – The AMLC is authorized
under Section 7(10) of the AMLA to enlist the assistance of the
BSP, the SEC or the IC, or any other branch, department, bureau,
office, agency or instrumentality of the government, including government-owned
and controlled corporations, in undertaking any and all anti-money
laundering operations. This includes the use of any member of their
personnel who may be detailed or seconded to the AMLC, subject to
existing laws and Civil Service Rules and Regulations. Detailed
personnel shall continue to receive their salaries, benefits and
emoluments from their respective mother units. Seconded personnel
shall receive, in lieu of their respective compensation packages
from their respective mother units, the salaries, emoluments and
all other benefits to which their AMLC Secretariat positions are
entitled to.
Rule 8.4. Confidentiality Provisions. – The members of the
AMLC, the Executive Director, and all the members of the Secretariat,
whether permanent, on detail or on secondment, shall not reveal,
in any manner, any information known to them by reason of their
office. This prohibition shall apply even after their separation
from the AMLC. In case of violation of this provision, the person
shall be punished in accordance with the pertinent provisions of
the Central Bank Act.
RULE 9
Prevention of Money Laundering;
Customer Identification Requirements and Record Keeping.
Rule 9.1. Customer Identification Requirements.
Rule 9.1.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 true identity
of their clients and, in case of corporate clients, require a system
of verifying their legal existence and organizational structure,
as well as the authority and identification of all persons purporting
to act on their behalf. Covered institutions shall establish appropriate
systems and methods based on internationally compliant standards
and adequate internal controls for verifying and recording the true
and full identity of their customers.
Rule 9.1.b. Trustee, Nominee and Agent Accounts. - When dealing
with customers who are acting as trustee, nominee, agent or in any
capacity for and on behalf of another, covered institutions shall
verify and record the true and full identity of the person(s) on
whose behalf a transaction is being conducted. Covered institutions
shall also establish and record the true and full identity of such
trustees, nominees, agents and other persons and the nature of their
capacity and duties. In case a covered institution has doubts as
to whether such persons are being used as dummies in circumvention
of existing laws, it shall immediately make the necessary inquiries
to verify the status of the business relationship between the parties.
Rule 9.1.c. Minimum Information/Documents Required for Individual
Customers. - Covered institutions shall require customers to produce
original
documents of identity issued by an official authority, bearing a
photograph of the customer. Examples of such documents are identity
cards and passports. The following minimum information/documents
shall be obtained from individual customers:
(1) Name;
(2) Present address;
(3) Permanent address;
(4) Date and place of birth;
(5) Nationality;
(6) Nature of work and name of employer or nature of self-employment/business;
(7) Contact numbers;
(8) Tax identification number, Social Security System number or
Government Service and Insurance System number;
(9) Specimen signature;
(10) Source of fund(s); and
(11) Names of beneficiaries in case of insurance contracts and whenever
applicable.
Rule 9.1.d. Minimum Information/Documents Required for Corporate
and Juridical Entities. - Before establishing business relationships,
covered institutions shall endeavor to ensure that the customer
is a corporate or juridical entity which has not been or is not
in the process of being, dissolved, wound up or voided, or that
its business or operations has not been or is not in the process
of being, closed, shut down, phased out, or terminated. Dealings
with shell companies and corporations, being legal entities which
have no business substance in their own right but through which
financial transactions may be conducted, should be undertaken with
extreme caution. The following minimum information/documents shall
be obtained from customers that are corporate or juridical entities,
including shell companies and corporations:
(1) Articles of Incorporation/Partnership;
(2) By-laws;
(3) Official address or principal business address;
(4) List of directors/partners;
(5) List of principal stockholders owning at least two percent (2%)
of the capital stock;
(6) Contact numbers;
(7) Beneficial owners, if any; and
(8) Verification of the authority and identification of the person
purporting to act on behalf of the client.
Rule 9.1.e. Prohibition against Certain Accounts. Covered institutions
shall maintain accounts only in the true and full name of the account
owner or holder. The provisions of existing laws to the contrary
notwithstanding, anonymous accounts, accounts under fictitious names,
and all other similar accounts shall be absolutely prohibited.
Rule 9.1.f. Prohibition against opening of Accounts without Face-to-face
Contact. - No new accounts shall be opened and created without face-to-face
contact and full compliance with the requirements under Rule 9.1.c
of these Rules.
Rule 9.1.g. Numbered Accounts. - Peso and foreign currency non-checking
numbered accounts shall be allowed: Provided, That the true identity
of the customers of all peso and foreign currency non-checking numbered
accounts are satisfactorily established based on official and other
reliable documents and records, and that the information and documents
required under the provisions of these Rules are obtained and recorded
by the covered institution. No peso and foreign currency non-checking
accounts shall be allowed without the establishment of such identity
and in the manner herein provided. The BSP may conduct annual testing
for the purpose of determining the existence and true identity of
the owners of such accounts. The SEC and the IC may conduct similar
testing more often than once a year and covering such other related
purposes as may be allowed under their respective charters.
Rule 9.2. Record Keeping Requirements.
.
Rule 9.2.a. Record Keeping: Kinds of Records and Period for Retention.
– All records of all transactions of covered institutions
shall be maintained and safely stored for five (5) years from the
dates of transactions. Said records and files shall contain the
full and true identity of the owners or holders of the accounts
involved in the covered transactions and all other customer identification
documents. Covered institutions shall undertake the necessary adequate
security measures to ensure the confidentiality of such file. Covered
institutions shall prepare and maintain documentation, in accordance
with the aforementioned client identification requirements, on their
customer accounts, relationships and transactions such that any
account, relationship or transaction can be so reconstructed as
to enable the AMLC, and/or the courts to establish an audit trail
for money laundering.
Rule 9.2.b. Existing and New Accounts and New Transactions. - All
records of existing and new accounts and of new transactions shall
be maintained and safely stored for five (5) years from October
17, 2001 or from the dates of the accounts or transactions, whichever
is later.
Rule 9.2.c. Closed Accounts. 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.
Rule 9.2.d. Retention of Records in Case a Money Laundering Case
has been Filed in Court. – If a money laundering case based
on any record kept by the covered institution concerned has been
filed in court, said file must be retained beyond the period stipulated
in the three (3) immediately preceding sub-Rules, as the case may
be, until it is confirmed that the case has been finally resolved
or terminated by the court.
Rule 9.2.e. Form of Records. – Records shall be retained
as originals in such forms as are admissible in court pursuant to
existing laws and the applicable rules promulgated by the Supreme
Court.
Rule 9.3. Reporting of Covered Transactions.
Rule 9.3.a. Period of Reporting Covered Transactions and Suspicious
Transactions. - COVERED INSTITUTIONS SHALL REPORT TO THE AMLC ALL
COVERED TRANSACTIONS AND SUSPICIOUS TRANSACTIONS WITHIN FIVE (5)
WORKING DAYS FROM OCCURRENCE THEREOF, UNLESS THE SUPERVISING AUTHORITY
CONCERNED PRESCRIBES A LONGER PERIOD NOT EXCEEDING TEN (10) WORKING
DAYS.
SHOULD A TRANSACTION BE DETERMINED TO BE BOTH A COVERED AND A SUSPICIOUS
TRANSACTION, THE COVERED INSTITUTION SHALL REPORT THE SAME AS A
SUSPICIOUS TRANSACTION.
THE REPORTING OF COVERED TRANSACTIONS BY COVERED INSTITUTIONS SHALL
BE DEFERRED FOR A PERIOD OF SIXTY (60) DAYS AFTER THE EFFECTIVITY
OF REPUBLIC ACT NO. 9194, OR AS MAY BE DETERMINED BY THE AMLC, IN
ORDER TO ALLOW THE COVERED INSTITUTIONS TO CONFIGURE THEIR RESPECTIVE
COMPUTER SYSTEMS; PROVIDED THAT, ALL COVERED TRANSACTIONS DURING
SAID DEFERMENT PERIOD SHALL BE SUBMITTED THEREAFTER.
Rule 9.3.b. Covered AND SUSPICIOUS Transaction Report Forms. –
The Covered Transaction Report (CTR) AND THE SUSPICIOUS TRANSACTION
REPORT (STR) shall be in the forms prescribed by the AMLC.
Rule 9.3.b.1. COVERED INSTITUTIONS SHALL USE THE EXISTING FORMS
FOR COVERED TRANSACTION REPORTS AND SUSPICIOUS TRANSACTION REPORTS,
UNTIL SUCH TIME AS THE AMLC HAS ISSUED NEW SETS OF FORMS.
Rule 9.3.b.2. COVERED TRANSACTION REPORTS AND SUSPICIOUS TRANSACTION
REPORTS SHALL BE SUBMITTED IN A SECURED MANNER TO THE AMLC IN ELECTRONIC
FORM, EITHER VIA DISKETTES, LEASED LINES, OR THROUGH INTERNET FACILITIES,
WITH THE CORRESPONDING HARD COPY FOR SUSPICIOUS TRANSACTIONS. THE
FINAL FLOW AND PROCEDURES FOR SUCH REPORTING SHALL BE MAPPED OUT
IN THE MANUAL OF OPERATIONS TO BE ISSUED BY THE AMLC.
Rule 9.3.c. Exemption from Bank Secrecy Laws. – When reporting
covered OR SUSPICIOUS transactions to the AMLC, covered institutions
and their officers and employees, shall not be deemed to have violated
R.A. No. 1405, as amended, R.A. No. 6426, as amended, R.A. No. 8791
and other similar laws, but are prohibited from communicating, directly
or indirectly, in any manner or by any means, to any person the
fact that a covered or suspicious transaction report was made, the
contents thereof, or any other information in relation thereto.
In case of violation thereof, the concerned officer and employee
of the covered institution, shall be criminally liable.
Rule 9.3.d. Confidentiality Provisions. – When reporting
covered transactions 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, 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, or media shall
be held criminally liable.
Rule 9.3.e. Safe Harbor Provisions. – No administrative,
criminal or civil proceedings, shall lie against any person for
having made a covered transaction report OR A 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 this Act or any other Philippine law.
RULE 10
APPLICATION FOR FREEZE ORDERS
Rule 10.1. WHEN THE AMLC MAY APPLY FOR THE FREEZING OF ANY MONETARY
INSTRUMENT OR PROPERTY. -
(a) AFTER AN INVESTIGATION CONDUCTED BY THE AMLC AND UPON DETERMINATION
THAT PROBABLE CAUSE EXISTS THAT A MONETARY INSTRUMENT OR PROPERTY
IS IN ANY WAY RELATED TO ANY UNLAWFUL ACTIVITY AS DEFINED UNDER
SECTION 3 (i), THE AMLC MAY FILE AN EX-PARTE APPLICATION BEFORE
THE COURT OF APPEALS FOR THE ISSUANCE OF A FREEZE ORDER ON ANY MONETARY
INSTRUMENT OR PROPERTY subject thereof prior to the institution
or in the course of, the criminal proceedings involving the unlawful
activity to which said MONETARY INSTRUMENT OR PROPERTY is any way
related.
(b) Considering the intricate and diverse web of related and interlocking
accounts PERTAINING TO THE MONETARY INSTRUMENT(S) OR PROPERTY(IES)
that any person may create in the different covered institutions,
their branches and/or other units, the AMLC may APPLY TO THE COURT
OF APPEALS FOR THE FREEZING, NOT ONLY OF THE MONETARY INSTRUMENTS
OR PROPERTIES IN THE NAMES OF THE REPORTED OWNER(S)/HOLDER(S), AND
MONETARY INSTRUMENTS OR PROPERTIES NAMED IN THE APPLICATION OF THE
AMLC BUT ALSO ALL OTHER RELATED WEB OF ACCOUNTS PERTAINING TO OTHER
MONETARY INSTRUMENTS AND PROPERTIES, THE FUNDS AND SOURCES OF WHICH
ORIGINATED FROM OR ARE RELATED TO THE MONETARY INSTRUMENT(S) OR
PROPERTY(IES) SUBJECT OF THE FREEZE ORDER(S).
(c) THE FREEZE ORDER SHALL BE EFFECTIVE FOR TWENTY (20) DAYS UNLESS
EXTENDED BY THE COURT OF APPEALS UPON APPLICATION BY THE AMLC.
Rule 10.2. Definition of Probable Cause. - Probable cause includes
such facts and circumstances which would lead a reasonably discreet,
prudent or cautious man to believe that an unlawful activity and/or
a money laundering offense is about to be, is being or has been
committed and that the account or any monetary instrument or property
subject thereof sought to be frozen is in any way related to said
unlawful activity and/or money laundering offense.
Rule 10.3. DUTY OF COVERED INSTITUTION UPON RECEIPT THEREOF. –
Rule 10.3.a. Upon receipt of the notice of the freeze order, the
covered institution concerned shall immediately freeze the monetary
instrument or property AND RELATED WEB OF ACCOUNTS subject thereof.
Rule 10.3.b. THE COVERED INSTITUTION SHALL LIKEWISE IMMEDIATELY
FURNISH A COPY OF THE NOTICE OF THE FREEZE ORDER UPON THE OWNER
OR HOLDER OF THE MONETARY INSTRUMENT OR PROPERTY OR RELATED WEB
OF ACCOUNTS SUBJECT THEREOF.
Rule 10.3.c. Within twenty-four (24) hours from receipt of the
freeze order, the covered institution concerned shall submit to
the COURT OF APPEALS AND THE AMLC, by personal delivery, a detailed
written return on the freeze order, specifying ALL THE PERTINENT
AND RELEVANT INFORMATION WHICH SHALL INCLUDE THE FOLLOWING:
1. THE ACCOUNT NUMBER(S);
2. THE NAME(S) OF THE ACCOUNT OWNER(S) OR HOLDER(S);
3. THE AMOUNT OF THE MONETARY INSTRUMENT, PROPERTY OR RELATED WEB
OF ACCOUNTS AS OF THE TIME THEY WERE FROZEN;
4. ALL RELEVANT INFORMATION AS TO THE NATURE OF THE MONETARY INSTRUMENT
OR PROPERTY;
5. ANY INFORMATION ON THE RELATED WEB OF ACCOUNTS PERTAINING TO
THE MONETARY INSTRUMENT OR PROPERTY SUBJECT OF THE FREEZE ORDER;
AND
6. THE TIME WHEN THE FREEZE THEREON TOOK EFFECT.
Rule 10.4 DEFINITION OF RELATED WEB OF ACCOUNTS. -
“RELATED WEB OF ACCOUNTS PERTAINING TO THE MONEY INSTRUMENT
OR PROPERTY SUBJECT OF THE FREEZE ORDER” IS DEFINED AS THOSE
ACCOUNTS, THE FUNDS AND SOURCES OF WHICH ORIGINATED FROM AND/OR
ARE MATERIALLY LINKED TO THE MONETARY INSTRUMENT(S) OR PROPERTY(IES)
SUBJECT OF THE FREEZE ORDER(S).
UPON RECEIPT OF THE FREEZE ORDER ISSUED BY THE COURT OF APPEALS
AND UPON VERIFICATION BY THE COVERED INSTITUTION THAT THE RELATED
WEB OF ACCOUNTS ORIGINATED FROM AND/OR ARE MATERIALLY LINKED TO
THE MONETARY INSTRUMENT OR PROPERTY SUBJECT OF THE FREEZE ORDER,
THE COVERED INSTITUTION SHALL FREEZE THESE RELATED WEB OF ACCOUNTS
WHEREVER THESE FUNDS MAY BE FOUND.
THE RETURN OF THE COVERED INSTITUTION AS REQUIRED UNDER RULE 10.3.c
SHALL INCLUDE THE FACT OF SUCH FREEZING AND AN EXPLANATION AS TO
THE GROUNDS FOR THE IDENTIFICATION OF THE RELATED WEB OF ACCOUNTS.
Rule 10.5. Extension of the Freeze Order. - BEFORE THE TWENTY (20)
DAY PERIOD OF THE FREEZE ORDER ISSUED BY THE COURT OF APPEALS EXPIRES,
THE AMLC MAY APPLY IN THE SAME COURT FOR AN EXTENSION OF SAID PERIOD.
UPON THE TIMELY FILING OF SUCH APPLICATION AND PENDING THE DECISION
OF THE COURT OF APPEALS TO EXTEND THE PERIOD, SAID PERIOD SHALL
BE DEEMED SUSPENDED AND THE FREEZE ORDER SHALL REMAIN EFFECTIVE.
HOWEVER, THE COVERED INSTITUTION SHALL NOT LIFT THE EFFECTS OF
THE FREEZE ORDER WITHOUT SECURING OFFICIAL CONFIRMATION FROM THE
AMLC.
Rule 10.6. Prohibition against Issuance of Freeze Orders against
candidates for an electoral office during election period. –
No assets shall be frozen to the prejudice of a candidate for an
electoral office during an election period.
RULE 11.
Authority to Inquire into Bank Deposits.
Rule 11.1. Authority to Inquire into Bank Deposits WITH COURT ORDER.
- Notwithstanding the provisions of Republic Act No. 1405, as amended;
Republic Act No. 6426, as amended; Republic Act 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 AND THEIR SUBSIDIARIES AND AFFILIATES 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
or investments involved are related to AN UNLAWFUL ACTIVITY AS DEFINED
IN SECTION 3 (i) HEREOF OR a money laundering offense UNDER SECTION
4 HEREOF; EXCEPT IN CASES AS PROVIDED UNDER RULE 11.2.
Rule 11.2. Authority to Inquire into Bank Deposits WITHOUT COURT
ORDER. – The AMLC MAY INQUIRE INTO OR EXAMINE DEPOSITS AND
INVESTMENTS WITH ANY BANKING INSTITUTION OR NON-BANK FINANCIAL INSTITUTION
AND THEIR SUBSIDIARIES AND AFFILIATES WITHOUT A COURT ORDER WHERE
ANY OF THE FOLLOWING UNLAWFUL ACTIVITIES ARE INVOLVED:
(a) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise
known as the Revised Penal Code, as amended;
(b) Sections 4, 5, 6, 8, 9, 10. 12, 13, 14, 15 AND 16 of Republic
Act No. 9165, otherwise known as the COMPREHENSIVE Dangerous Drugs
Act of 2002;
(c) Hijacking and other violations under Republic Act No. 6235;
destructive arson and murder, as defined under the Revised Penal
Code, as amended, including those perpetrated by terrorists against
non-combatant persons and similar targets
Rule 11.2.a. PROCEDURE FOR EXAMINATION WITHOUT A COURT ORDER. -
WHERE ANY OF THE UNLAWFUL ACTIVITIES ENUMERATED UNDER THE IMMEDIATELY
PRECEDING RULE 11.2 ARE INVOLVED, AND THERE IS PROBABLE CAUSE THAT
THE DEPOSITS OR INVESTMENTS WITH ANY BANKING OR NON-BANKING FINANCIAL
INSTITUTION AND THEIR SUBSIDIARIES AND AFFILIATES ARE IN ANYWAY
RELATED TO THESE UNLAWFUL ACTIVITIES, THE AMLC SHALL ISSUE A RESOLUTION
AUTHORIZING THE INQUIRY INTO OR EXAMINATION OF ANY DEPOSIT OR INVESTMENT
WITH SUCH BANKING OR NON-BANKING FINANCIAL INSTITUTION AND THEIR
SUBSIDIARIES AND AFFILIATES CONCERNED.
Rule 11.2.b. DUTY OF THE BANKING INSTITUTION OR NON-BANKING INSTITUTION
UPON RECEIPT OF THE AMLC RESOLUTION. - THE BANKING INSTITUTION OR
THE NON-BANKING FINANCIAL INSTITUTION AND THEIR SUBSIDIARIES AND
AFFILIATES SHALL, IMMEDIATELY UPON RECEIPT OF THE AMLC RESOLUTION,
ALLOW THE AMLC AND/OR ITS AUTHORIZED REPRESENTATIVE(S) FULL ACCESS
TO ALL RECORDS PERTAINING TO THE DEPOSIT OR INVESTMENT ACCOUNT.
Rule 11.3. - BSP Authority to Examine deposits and investments;
Additional Exception to the Bank Secrecy Act. - TO ENSURE COMPLIANCE
WITH THIS ACT, THE BANGKO SENTRAL NG PILIPINAS (BSP) MAY INQUIRE
INTO OR EXAMINE ANY PARTICULAR DEPOSIT OR INVESTMENT WITH ANY BANKING
INSTITUTION OR NON-BANK FINANCIAL INSTITUTION AND THEIR SUBSIDIARIES
AND AFFILIATES WHEN THE EXAMINATION IS MADE IN THE COURSE OF A PERIODIC
OR SPECIAL EXAMINATION, IN ACCORDANCE WITH THE RULES OF EXAMINATION
OF THE BSP.
Rule 11.3.a. BSP Rules of Examination. - THE BSP SHALL PROMULGATE
ITS RULES OF EXAMINATION FOR ENSURING COMPLIANCE BY BANKS AND NON-BANK
FINANCIAL INSTITUTIONS AND THEIR SUBSIDIARIES AND AFFILIATES WITH
THE AMLA AND THESE RULES.
ANY FINDINGS OF THE BSP WHICH MAY CONSTITUTE A VIOLATION OF ANY
PROVISION OF THIS ACT SHALL BE TRANSMITTED TO THE AMLC FOR APPROPRIATE
ACTION.
RULE 12
Forfeiture Provisions
Rule 12.1. Authority to Institute Civil Forfeiture Proceedings.
– The AMLC is authorized under Section 7 (3) of the AMLA to
institute civil forfeiture proceedings and all other remedial proceedings
through the Office of the Solicitor General.
Rule 12.2. When Civil Forfeiture May be Applied. – When there
is a SUSPICIOUS TRANSACTION REPORT OR A COVERED TRANSACTION REPORT
DEEMED SUSPICIOUS AFTER INVESTIGATION BY THE AMLC, and the court
has, in a petition filed for the purpose, ordered the seizure of
any monetary instrument or property, in whole or in part, directly
or indirectly, related to said report, the Revised Rules of Court
on civil forfeiture shall apply.
Rule 12.3. Claim on Forfeited Assets. - Where the court has issued
an order of forfeiture of the monetary instrument or property in
a criminal prosecution for any money laundering offense under Section
4 of the AMLA, the offender or any other person claiming an interest
therein 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. The
verified petition shall be filed with the court which rendered the
judgment of conviction and order of forfeiture within fifteen (15)
days from the date of the order of forfeiture, in default of which
the said order shall become final and executory. This provision
shall apply in both civil and criminal forfeiture.
Rule 12.4. Payment in lieu of Forfeiture. - Where the court has
issued an order of forfeiture of the monetary instrument or property
subject of a money laundering offense under Section 4 of the AMLA,
and said order cannot be enforced because any particular monetary
instrument or property cannot, with due diligence, be located, or
it has been substantially altered, destroyed, diminished in value
or otherwise rendered worthless by any act or omission, directly
or indirectly, attributable to the offender, or it has been concealed,
removed, converted or otherwise transferred to prevent the same
from being found or to avoid forfeiture thereof, or it is located
outside the Philippines or has been placed or brought outside the
jurisdiction of the court, or it 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,
the court may, instead of enforcing the order of forfeiture of the
monetary instrument or property or part thereof or interest therein,
accordingly order the convicted offender to pay an amount equal
to the value of said monetary instrument or property. This provision
shall apply in both civil and criminal forfeiture.
RULE 13.
Mutual Assistance among States
Rule 13.1. Request for Assistance from a Foreign State. - Where
a foreign state makes a request for assistance in the investigation
or prosecution of a money laundering offense, the AMLC may execute
the request or refuse to execute the same and inform the foreign
state of any valid reason for not executing the request or for delaying
the execution thereof. The principles of mutuality and reciprocity
shall, for this purpose, be at all times recognized.
Rule 13.2. Powers of the AMLC to Act on a Request for Assistance
from a Foreign State. - The AMLC may execute a request for assistance
from a foreign state by: (1) tracking down, freezing, restraining
and seizing assets alleged to be proceeds of any unlawful activity
under the procedures laid down in the AMLA and in these Rules; (2)
giving information needed by the foreign state within the procedures
laid down in the AMLA and in these Rules; and (3) applying for an
order of forfeiture of any monetary instrument or property in the
court: Provided, That the court shall not issue such an order unless
the application is accompanied by an authenticated copy of the order
of a court in the requesting state ordering the forfeiture of said
monetary instrument or property of a person who has been convicted
of a money laundering offense in the requesting state, and a certification
or an affidavit of a competent officer of the requesting state stating
that the conviction and the order of forfeiture are final and that
no further appeal lies in respect of either.
Rule 13.3. Obtaining Assistance from Foreign States. - The AMLC
may make a request to any foreign state for assistance in (1) tracking
down, freezing, restraining and seizing assets alleged to be proceeds
of any unlawful activity; (2) obtaining information that it needs
relating to any covered transaction, money laundering offense or
any other matter directly or indirectly related thereto; (3) to
the extent allowed by the law of the foreign state, applying with
the proper court therein for an order to enter any premises belonging
to or in the possession or control of, any or all of the persons
named in said request, and/or search any or all such persons named
therein and/or remove any document, material or object named in
said request: Provided, That the documents accompanying the request
in support of the application have been duly authenticated in accordance
with the applicable law or regulation of the foreign state; and
(4) applying for an order of forfeiture of any monetary instrument
or property in the proper court in the foreign state: Provided,
That the request is accompanied by an authenticated copy of the
order of the Regional Trial Court ordering the forfeiture of said
monetary instrument or property of a convicted offender and an affidavit
of the clerk of court stating that the conviction and the order
of forfeiture are final and that no further appeal lies in respect
of either.
Rule 13.4. Limitations on Requests for Mutual Assistance. - The
AMLC may refuse to comply with any request for assistance where
the action sought by the request contravenes any provision of the
Constitution or the execution of a request is likely to prejudice
the national interest of the Philippines, unless there is a treaty
between the Philippines and the requesting state relating to the
provision of assistance in relation to money laundering offenses.
Rule 13.5. Requirements for Requests for Mutual Assistance from
Foreign States. - A request for mutual assistance from a foreign
state must (1) confirm that an investigation or prosecution is being
conducted in respect of a money launderer named therein or that
he has been convicted of any money laundering offense; (2) state
the grounds on which any person is being investigated or prosecuted
for money laundering or the details of his conviction; (3) give
sufficient particulars as to the identity of said person; (4) give
particulars sufficient to identify any covered institution believed
to have any information, document, material or object which may
be of assistance to the investigation or prosecution; (5) ask from
the covered institution concerned any information, document, material
or object which may be of assistance to the investigation or prosecution;
(6) specify the manner in which and to whom said information, document,
material or object obtained pursuant to said request, is to be produced;
(7) give all the particulars necessary for the issuance by the court
in the requested state of the writs, orders or processes needed
by the requesting state; and (8) contain such other information
as may assist in the execution of the request.
Rule 13.6. Authentication of Documents. - For purposes of Section
13 (f) of the AMLA and Section 7 of the AMLA, a document is authenticated
if the same is signed or certified by a judge, magistrate or equivalent
officer in or of, the requesting state, and authenticated by the
oath or affirmation of a witness or sealed with an official or public
seal of a minister, secretary of state, or officer in or of, the
government of the requesting state, or of the person administering
the government or a department of the requesting territory, protectorate
or colony. The certificate of authentication may also be made by
a secretary of the embassy or legation, consul general, consul,
vice consul, consular agent or any officer in the foreign service
of the Philippines stationed in the foreign state in which the record
is kept, and authenticated by the seal of his office.
Rule 13.7. Suppletory Application of the Revised Rules of Court.
–
Rule 13.7.1. For attachment of Philippine properties in the name
of persons convicted of any unlawful activity as defined in Section
3 (i) of the AMLA, execution and satisfaction of final judgments
of forfeiture, application for examination of witnesses, procuring
search warrants, production of bank documents and other materials
and all other actions not specified in the AMLA and these Rules,
and assistance for any of the aforementioned actions, which is subject
of a request by a foreign state, resort may be had to the proceedings
pertinent thereto under the Revised Rules of Court.
Rule 13.7.2. Authority to Assist the United Nations and other International
Organizations and Foreign States. – The AMLC is authorized
under Section 7 (8) and 13 (b) and (d) of the AMLA to receive and
take action in respect of any request of foreign states for assistance
in their own anti-money laundering operations. It is also authorized
under Section 7 (7) of the AMLA to cooperate with the National Government
and/or take appropriate action in respect of conventions, resolutions
and other directives of the United Nations (UN), the UN Security
Council, and other international organizations of which the Philippines
is a member. However, the AMLC may refuse to comply with any such
request, convention, resolution or directive where the action sought
therein contravenes the provision of the Constitution or the execution
thereof is likely to prejudice the national interest of the Philippines.
Rule 13.8. Extradition. – The Philippines shall negotiate
for the inclusion of money laundering offenses as defined under
Section 4 of the AMLA among the extraditable offenses in all future
treaties. With respect, however, to the state parties that are signatories
to the United Nations Convention Against Transnational Organized
Crime that was ratified by the Philippine Senate on October 22,
2001, money laundering is deemed to be included as an extraditable
offense in any extradition treaty existing between said state parties,
and the Philippines shall include money laundering as an extraditable
offense in every extradition treaty that may be concluded between
the Philippines and any of said state parties in the future.
RULE 14
Penal Provisions
Rule 14.1. Penalties for the Crime of Money Laundering.
Rule 14.1.a. Penalties under Section 4 (a) of the AMLA. - The penalty
of imprisonment ranging from seven (7) to fourteen (14) years and
a fine of not less than Three Million Philippine Pesos (Php3,000,000.00)
but not more than twice the value of the monetary instrument or
property involved in the offense, shall be imposed upon a person
convicted under Section 4 (a) of the AMLA.
Rule 14.1.b. Penalties under Section 4 (b) of the AMLA. - The penalty
of imprisonment from four (4) to seven (7) years and a fine of not
less than One Million Five Hundred Thousand Philippine Pesos (Php1,500,000.00)
but not more than Three Million Philippine Pesos (Php3,000,000.00),
shall be imposed upon a person convicted under Section 4 (b) of
the AMLA.
Rule 14.1.c. Penalties under Section 4 (c) of the AMLA. - The penalty
of imprisonment from six (6) months to four (4) years or a fine
of not less than One Hundred Thousand Philippine Pesos (Php100,000.00)
but not more than Five Hundred Thousand Philippine Pesos (Php500,000.00),
or both, shall be imposed on a person convicted under Section 4(c)
of the AMLA.
Rule 14.1.d. Administrative Sanctions. – (1) AFTER DUE NOTICE
AND HEARING, THE AMLC SHALL, AT ITS DISCRETION, IMPOSE FINES UPON
ANY COVERED INSTITUTION, ITS OFFICERS AND EMPLOYEES, OR ANY PERSON
WHO VIOLATES ANY OF THE PROVISIONS OF REPUBLIC ACT NO. 9160, AS
AMENDED BY REPUBLIC ACT NO. 9194 AND RULES, REGULATIONS, ORDERS
AND RESOLUTIONS ISSUED PURSUANT THERETO. THE FINES SHALL BE IN AMOUNTS
AS MAY BE DETERMINED
BY THE COUNCIL, TAKING INTO CONSIDERATION ALL THE ATTENDANT CIRCUMSTANCES,
SUCH AS THE NATURE AND GRAVITY OF THE VIOLATION OR IRREGULARITY,
BUT IN NO CASE SHALL SUCH FINES BE LESS THAN ONE HUNDRED THOUSAND
PESOS (PHP100,000.00) BUT NOT TO EXCEED FIVE HUNDRED THOUSAND PESOS
(PHP500,000.00). THE IMPOSITION OF THE ADMINISTRATIVE SANCTIONS
SHALL BE WITHOUT PREJUDICE TO THE FILING OF CRIMINAL CHARGES AGAINST
THE PERSONS RESPONSIBLE FOR THE VIOLATIONS.
Rule 14.2. Penalties for Failure to Keep Records - The penalty of
imprisonment from six (6) months to one (1) year or a fine of not
less than One Hundred Thousand Philippine Pesos (Php100,000.00)
but not more than Five Hundred Thousand Philippine Pesos (Php500,000.00),
or both, shall be imposed on a person convicted under Section 9
(b) of the AMLA.
Rule 14.3. Penalties for Malicious Reporting. - Any person who,
with malice, or in bad faith, reports or files a completely unwarranted
or false information relative to money laundering transaction against
any person shall be subject to a penalty of six (6) months to four
(4) years imprisonment and a fine of not less than One Hundred Thousand
Philippine Pesos (Php100, 000.00) but not more than Five Hundred
Thousand Philippine Pesos (Php500, 000.00), at the discretion of
the court: Provided, That the offender is not entitled to avail
the benefits of the Probation Law.
Rule 14.4. Where Offender is a Juridical Person. - 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. If the offender is a juridical person,
the court may suspend or revoke its license. If the offender is
an alien, he shall, in addition to the penalties herein prescribed,
be deported without further proceedings after serving the penalties
herein prescribed. If the offender is a public official or employee,
he shall, in addition to the penalties prescribed herein, suffer
perpetual or temporary absolute disqualification from office, as
the case may be.
Rule 14.5. Refusal by a Public Official or Employee 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 herein.
Rule 14.6. Penalties for Breach of Confidentiality. – The
punishment of imprisonment ranging from three (3) to eight (8) years
and a fine of not less than Five Hundred Thousand Philippine Pesos
(Php500,000.00) but not more than One Million Philippine Pesos (Php
1,000,000.00), shall be imposed on a person convicted for a violation
under Section 9(c). IN CASE OF A BREACH OF CONFIDENTIALITY THAT
IS PUBLISHED OR REPORTED BY MEDIA, THE RESPONSIBLE REPORTER, WRITER,
PRESIDENT, PUBLISHER, MANAGER AND EDITOR-IN-CHIEF SHALL BE LIABLE
UNDER THIS ACT.
RULE 15
Prohibitions Against Political Harassment
Rule 15.1. Prohibition against Political Persecution. – The
AMLA and these Rules shall not be used for political persecution
or harassment or as an instrument to hamper competition in trade
and commerce. No case for money laundering may be filed to the prejudice
of a candidate for an electoral office during an election period.
Rule 15.2. Provisional Remedies Application; Exception. -
Rule 15.2.a. - The AMLC may apply, in the course of the criminal
proceedings, for provisional remedies to prevent the monetary instrument
or property subject thereof from being removed, concealed, converted,
commingled with other property or otherwise to prevent its being
found or taken by the applicant or otherwise placed or taken beyond
the jurisdiction of the court. However, no assets shall be attached
to the prejudice of a candidate for an electoral office during an
election period.
Rule 15.2.b. Where there is conviction for money laundering under
Section 4 of the AMLA, the court shall issue a judgment of forfeiture
in favor of the Government of the Philippines with respect to the
monetary instrument or property found to be proceeds of one or more
unlawful activities. However, no assets shall be forfeited to the
prejudice of a candidate for an electoral office during an election
period.
RULE 16
Restitution
Rule 16. Restitution. - Restitution for any aggrieved party shall
be governed by the provisions of the New Civil Code.
RULE 17
Implementing Rules and Regulations and
Money Laundering Prevention Programs
Rule 17.1. Implementing Rules and Regulations. –
(a) Within thirty (30) days from the effectivity of REPUBLIC ACT
NO. 9160, as amended by REPUBLIC ACT NO. 9194, the Bangko Sentral
ng Pilipinas, the Insurance Commission and the Securities and Exchange
Commission shall promulgate the Implementing Rules and Regulations
of the AMLA, which shall be submitted to the Congressional Oversight
Committee for approval.
(b) The Supervising Authorities, the BSP, the SEC and the IC shall,
under their own respective charters and regulatory authority, issue
their Guidelines and Circulars on anti-money laundering to effectively
implement the provisions of REPUBLIC ACT NO. 9160, AS AMENDED BY
REPUBLIC ACT NO. 9194.
Rule 17.2. Money Laundering Prevention Programs. –
Rule 17.2.a. Covered institutions shall formulate their respective
money laundering prevention programs in accordance with Section
9 and other pertinent provisions of the AMLA and these Rules, including,
but not limited to, information dissemination on money laundering
activities and their prevention, detection and reporting, and the
training of responsible officers and personnel of covered institutions,
subject to such guidelines as may be prescribed by their respective
supervising authority. Every covered institution shall submit its
own money laundering program to the supervising authority concerned
within the non-extendible period that the supervising authority
has imposed in the exercise of its regulatory powers under its own
charter.
Rule 17.2.b. Every money laundering program shall establish detailed
procedures implementing a comprehensive, institution-wide “know-your-client”
policy, set-up an effective dissemination of information on money
laundering activities and their prevention, detection and reporting,
adopt internal policies, procedures and controls, designate compliance
officers at management level, institute adequate screening and recruitment
procedures, and set-up an audit function to test the system.
Rule 17.2.c. Covered institutions shall adopt, as part of their
money laundering programs, a system of flagging and monitoring transactions
that qualify as suspicious transactions, regardless of amount or
covered transactions involving amounts below the threshold to facilitate
the process of aggregating them for purposes of future reporting
of such transactions to the AMLC when their aggregated amounts breach
the threshold. All covered institutions, including banks insofar
as non-deposit and non-government bond investment transactions are
concerned, shall incorporate in their money laundering programs
the provisions of these Rules and such other guidelines for reporting
to the AMLC of all transactions that engender the reasonable belief
that a money laundering offense is about to be, is being, or has
been committed.
Rule 17.3. Training of Personnel. - Covered institutions shall
provide all their responsible officers and personnel with efficient
and effective training and continuing education programs to enable
them to fully comply with all their obligations under the AMLA and
these Rules.
Rule 17.4. Amendments. - These Rules or any portion thereof may
be amended by unanimous vote of the members of the AMLC and submitted
to the Congressional Oversight Committee as provided for under Section
19 of REPUBLIC ACT NO. 9160, as amended BY REPUBLIC ACT NO. 9194.
RULE 18
Congressional Oversight Committee
Rule 18.1. Composition of Congressional Oversight Committee. -
There is hereby created a Congressional Oversight Committee composed
of seven (7) members from the Senate and seven (7) members from
the House of Representatives. The members from the Senate shall
be appointed by the Senate President based on the proportional representation
of the parties or coalitions therein with at least two (2) Senators
representing the minority. The members from the House of Representatives
shall be appointed by the Speaker also based on proportional representation
of the parties or coalitions therein with at least two (2) members
representing the minority.
Rule 18.2. Powers of the Congressional Oversight Committee. - The
Oversight Committee shall have the power to promulgate its own rules,
to oversee the implementation of this Act, and to review or revise
the implementing rules issued by the Anti-Money Laundering Council
within thirty (30) days from the promulgation of the said rules.
Rule 19
Appropriations For and Budget of the AMLC
Rule 19.1. Budget. – The budget of Php25,000,000.00 appropriated
by Congress under the AMLA shall be used to defray the initial operational
expenses of the AMLC. Appropriations for succeeding years shall
be included in the General Appropriations Act. The BSP shall advance
the funds necessary to defray the capital outlay, maintenance and
other operating expenses and personnel services of the AMLC subject
to reimbursement from the budget of the AMLC as appropriated under
the AMLA and subsequent appropriations.
Rule 19.2. Costs and Expenses .- The budget shall answer for indemnification
for legal costs and expenses reasonably incurred for the services
of external counsel in connection with any civil, criminal or administrative
action, suit or proceedings to which members of the AMLC and the
Executive Director and other members of the Secretariat may be made
a party by reason of the performance of their functions or duties.
The costs and expenses incurred in defending the aforementioned
action, suit or proceeding may be paid by the AMLC in advance of
the final disposition of such action, suit or proceeding upon receipt
of an undertaking by or on behalf of the member to repay the amount
advanced should it be ultimately determined that said member is
not entitled to such indemnification.
RULE 20
Separability Clause
Rule 20. Separability Clause. – If any provision of these
Rules or the application thereof to any person or circumstance is
held to be invalid, the other provisions of these Rules, and the
application of such provision or Rule to other persons or circumstances,
shall not be affected thereby.
RULE 21
Repealing Clause
Rule 21. Repealing Clause. – All laws, decrees, executive
orders, rules and regulations or parts thereof, including the relevant
provisions of Republic Act No. 1405, as amended; Republic Act No.
6426, as amended; Republic Act No. 8791, as amended, and other similar
laws, as are inconsistent with the AMLA, are hereby repealed, amended
or modified accordingly.
RULE 22
Effectivity of The Rules
Rule 22.1. Effectivity. – These Rules shall take effect after
approval by the Congressional Oversight Committee and fifteen (15)
days after complete publication in the Official Gazette or in a
newspaper of general circulation.
RULE 23
Transitory Provisions
Rule 23.1. – Transitory Provisions. - EXISTING FREEZE ORDERS
ISSUED BY THE AMLC SHALL REMAIN IN FORCE FOR A PERIOD OF THIRTY
(30) DAYS AFTER EFFECTIVITY OF THIS ACT, UNLESS EXTENDED BY THE
COURT OF APPEALS.
Rule 23.2. – EFFECT OF REPUBLIC ACT NO. 9194 ON CASES FOR
EXTENSION OF FREEZE ORDERS RESOLVED BY THE COURT OF APPEALS. –
ALL EXISTING FREEZE ORDERS WHICH THE COURT OF APPEALS HAS EXTENDED
SHALL REMAIN EFFECTIVE, UNLESS OTHERWISE DISSOLVED BY THE SAME COURT.
APPROVED, this 6th day of August, 2003 in the City of Manila.
BY THE CONGRESSIONAL OVERSIGHT COMMITTEE:
SENATE PANEL: HOUSE OF
REPRESENTATIVES PANEL:
HON. RAMON B. MAGSAYSAY, JR. HON. JAIME C. LOPEZ
Chairman Chairman
HON. FRANCIS N. PANGILINAN HON. OSCAR S. MORENO
Member Member
HON. RENATO L. CAYETANO HON. MARCELINO C. LIBANAN
Member Member
HON. ROBERT Z. BARBERS HON. TEODORO L. LOCSIN, JR.
Member Member
HON. VICENTE C. SOTTO III HON. JOSE CARLOS V. LACSON
Member Member
HON. EDGARDO J. ANGARA HON. CELSO L. LOBREGAT
Member Member
HON. SERGIO R. OSMENA III HON. DIDAGEN P. DILANGALEN
Member Member
|