On 17 – 21 July 2017, the Asia Pacific group (APG) on Money Laundering held its annual plenary meeting in Colombo, Sri Lanka. The Philippine delegation consists of members of the Anti-Money Laundering Council Secretariat, the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, the Insurance Commission and the Office of the Ombudsman.

Among the issues discussed during the plenary is Philippines’ compliance to the Financial Action Task Force (FATF) Forty Recommendations, particularly on the inclusion of casinos as covered persons. It would be recalled that in 2013, the FATF removed the Philippines from the list of vulnerable jurisdictions (“grey list”) but enjoined it to “work with the APG as it continues to address the full range of AML/CFT issues identified in its Mutual Evaluation Report, in particular, regulating the casino sector in the Philippines for AML/CFT purposes and making it subject to AML/CFT requirements.”

During the annual meeting, the Philippine delegation reported to APG membership that the casino bill has been signed into law by the President. As such, the Philippines has been taken out from APG membership action.

The APG (a FATF-Style Regional Body) is an autonomous and collaborative international organization founded in 1997 in Bangkok, Thailand and the Philippines is one of the founding members. Currently, it consists of 41 members and a number of international and regional observers, including the FATF. APG members and observers are committed to the effective implementation and enforcement of internationally accepted standards against money laundering and the financing of terrorism, in particular the Forty Recommendations.

S No 1468
H No 5663

 

Republic of the Philippines
Congress of the Philippines
Metro Manila
Seventeenth Congress
First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-fifth day of July, two thousand sixteen.

[REPUBLIC ACT NO. 10927]

AN ACT DESIGNATING CASINOS AS COVERED PERSONS UNDER REPUBLIC ACT NO. 9160 ,
OTHERWISE KNOWN AS THE "ANTI -MONEY LAUNDERING ACT OF 2001", AS AMENDED 

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 3(a) of Republic Act No. 9160. as
amended, is hereby further amended to read as follows:
"(a) 'Covered persons', natural or Juridical, refer
to:

"x x x

"(8) casinos, including internet and ship-based
casinos. with respect to their casino cash
transactions related to their gaming operations.

x x x."

SEC. 2. Section 3(b) of Republic Act No. 9160 is hereby
further amended to read as follows:

"(b)     Covered transaction' is a transaction in
cash or other equivalent monetary instrument
involving a total amount in excess of Five hundred
thousand pesos (P500,000.00) within one (1) banking
day; for covered persons under Section 3(a)(8), a
single casino cash transaction involving an amount
in excess of Five million pesos (P5,000,000.00) or its
equivalent in any other currency."

SEC. 3. Section 3 of Republic Act No. 9160, as amended,
is hereby [mther amended by inserting a new paragraph (I)
to read as follow s:

"x x x

" (I) For purposes of covered persons under
Section 3(a)(8), the following terms are hereby
defined as follows:

"(l) 'Casino' refers to a business authorized by
the appropriate government agency to engage in
gaming operations:

"(i) 'Internet-based casino' shall refer to casinos
in which persons participate by the use of remote
communication facilities such as, but not limited to,
internet, telephone, television, radio or any other
kind of electronic Or other technology for facilitating
communication; and

"(ii) 'Ship-based casino' shall refer to casinos,
the operation of which is undertaken on board a
vessel, ship, boat or any other water-based craft
wholly or partly intended for gambling;

"(2) 'Casino cash transaction refers to
transactions involving the receipt of cash by a casino
paid by or on behalf of a customer; or transactions
involving the payout of cash by a casino to a customer
or to any person in his/her behalf; and

"(3) 'Gaming operations' refer to the activities
or the casino offering games of chance and any
variations thereof approved by the appropriate
government authority."

SEC. 4. Section 10 of Republic Act No. 9160, as amended,
is hereby further amended to read as follows:

 

"SEC. 10. Freezing of Monetary Instrument or
Property. - Upon a verified ex parte petition 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 as defined
in Section 3(i) hereof, the Court of Appeals may issue
a freeze order which shall be effective immediately,
for a period of twenty (20) days. Within the twenty
(20)-day period, the Court of Appeals shall conduct
a summary hearing, with notice to the parties, to
determine whether or not to modify or lift the freeze
order, or extend its effectivity. The total period of
the freeze order issued by the Court of Appeals under
this provision shall not exceed six (6) months. This
is without prejudice to an asset preservation order
that the Regional Trial Court having jurisdiction over
the appropriate anti-money laundering case or civil
forfeiture case may issue on the same account
depending upon the circumstances of the case, where
the Court of Appeals will remand the case and its
records: Provided , That if there is no case filed
against a person whose account has been frozen
within the period determined by the Court of
Appeals, not exceeding six (6) months, the freeze
order shall be deemed ipso facto lifted: Provided,
further, That this new rule shall not apply to
pending cases in the courts . In any case, the court
should act on the petition to freeze within
twenty-four (24) hours from filing of the petition. If
the application is filed a day before a nonworking
day, the computation of the twenty-four (24)-hour
period shall exclude the nonworking days.

"The freeze order or asset preservation order
issued under this Act shall be limited only to the
amount of cash or monetary instrument or value of
property that the court finds there is probable cause
to be considered as proceeds of a predicate offense,
and the freeze order or asset preservation order shall
not apply to amounts in the same account in excess
of the amount of value of the proceeds of the
predicate offense.

"x x x

SEC. 5. Section 18 of Republic Act No. 9160 is hereby
amended by inserting a new paragraph to read as follows:

"SEC. 18. Implementing Rules and Regulations. -

"x x x

"x x x

"Within ninety (90) days from the effectivity of
this Act, the AMLC, the Philippine Amusement and
Gaming Corporation (PAGCOR) and other
government regulatory agencies shall jointly
promulgate the rules and regulations to implement
the provisions of this Act as applicable to casinos as
covered institutions. The implementing rules
applicable to other covered institutions shall not
apply to casinos unless it is expressly so provided
under the rules and regulations to implement the
provisions of this Act."

SEC . 6. Separability Clause. - If any provision of this
Act IS declared unconstitutional, the same shall not affect the
validity and effectivity of other provisions hereof.

SEC. 7. Repealing Clause. - All laws, decrees, orders, and
issuances or portions hereof, which are Inconsistent with the
provisions of this Act, are hereby repealed, amended or modified
accordingly.

SEC. 8. Effectivity - This Act shall take effect fifteen
(15) days following its publication in the Official Gazelle or
In any newspaper of general circulation .

 

 

 

Senate Bill No. 1468, which was approved by the Senate
on May 30, 2017, was adopted as an amendment to House
Bill No . 5663 by the House of Representatives on
May 30, 2017.

 

Click on this link to download pdf file

 

AMLC Issues Rules on Administrative Sanctions

The “Rules on the Implementation of Administrative Sanctions under Republic Act No. 9160, as Amended” (“Rules”) takes effect today, 08 August 2017.

The purpose of the “Rules” is to ensure that covered persons comply with and to deter commission of money laundering and other violations of the Anti-Money Laundering Act of 2001, as amended; its implementing rules and regulations; and all issuances of the Anti-Money Laundering Council (AMLC).

The “Rules” details the procedure in administrative cases wherein due process and the requirement of substantial evidence shall be strictly observed.

Administrative sanctions range from simple reprimand to a fine not exceeding Five Hundred Thousand Pesos (Php500,000.00) per violation, or such other measures as may be necessary and justified to prevent and counteract money laundering.

With the issuance of the Rules, the AMLC and its Secretariat expect better compliance from covered persons which would greatly contribute to the fulfillment of the AMLC’s mandate to preserve the integrity of the Philippine financial system.

Click on this link to download pdf copy of Rules on Administrative Sanction.

 

It is advised that you re-register on your prescribed dates except when there are changes in your current registration information. For Money Service Businesses who have been issued Certificate of Registration (COR), schedule of re-registration will be on or before the Expiration date indicated in the COR.

Please click on this link for your online registration schedule.