IX.

ANTI-MONEY LAUNDERING ACT (RA 9160 as (iv) acting as (or arranging for another person to
amended) in relation to RA 10365 also known as act as) a nominee shareholder for another person; and
AN ACT FURTHER STRENGTHENING THE ANTI-
MONEY LAUNDERING LAW f. Persons who provide any of the following
services:
1. Declaration of Policy. (i) managing of client money, securities or other
– It is hereby declared the policy of the State to protect assets;
and preserve the integrity and confidentiality of bank (ii) management of bank, savings or securities
accounts and to ensure that the Philippines shall not be accounts;
used as a money laundering site for the proceeds of any (iii) organization of contributions for the creation,
unlawful activity. Consistent with its foreign policy, the operation or management of companies; and
State shall extend cooperation in transnational (iv) creation, operation or management of
investigations and prosecutions of persons involved in juridical persons or arrangements, and buying and selling
money laundering activities wherever committed. business entities.

2. What are the Covered institutions? 3. What is a Covered Transaction?

- a transaction in cash or other equivalent monetary
a.) Banks, non-banks, quasi-banks, trust entities instrument involving a total amount in excess of Five
and all other institutions and their subsidiaries and hundred thousand pesos (P500,000.00) within one (1)
affiliates under the regulation and supervision of banking day.
the Central Bank
4. what is a Suspicious Transaction?
b.) Insurance companies and all other institutions - are transactions with covered institutions, regardless of
supervised and regulated by the Insurance the amounts involved, where any of the following
Commissioner circumstances exist:
a.) No underlying legal trade/obligation, purpose
c.) Securities, dealers, brokers, salesmen, or economic justification
investment houses and other similar entities managing b.) Client isn't properly identified
securities or rendering services as investment agents, c.) Amount involved isn't commensurate with the
advisers, consultants; mutual funds, close-end client's business or financial capacity
investment companies and other similar entities; forex d.) Client's transaction is structured in order to
corporations, money changers, money payment, avoid being subject to the reporting requirements of the
remittance and transfer companies and other similar money laundering act(!)
entities; and entities administering or otherwise dealing e.) Any circumstance related to the transaction is
in currency, commodities or financial derivatives based observed to deviate from the client's profits or his past
thereon, valuable objects, cash substitutes and other transactions with the covered institution
similar monetary instruments or property supervised f.) The transaction is related to any illegal activity
by the SEC; or offense under the money laundering law and is about
to be, is being or has been committed
d. Jewelry dealers of precious metals and g.) Any transaction similar or analogous to any of
stones, who, as a business, trade in precious stones, for the above
transactions in excess of 1Million Pesos;
5. what are the unlawful activities under RA 9160
e. Company service providers which, as a a.) Kidnapping for ransom
business, provide any of the following services to third b.) Drug trafficking
parties: c.) Violations of the Anti-Graft and Corrupt
(i) acting as a formation agent of juridical Practices Act
persons; d.) Plunder
(ii) acting as (or arranging for another person to e.) Robbery and extortion
act as) a director or corporate secretary of a company, a f.) Jueteng and masiao
partner of a partnership, or a similar position in relation g.) Piracy on the high seas
to other juridical persons; h.) Qualified theft
(iii) providing a registered office, business i.) Swindling/estafa
address or accommodation, correspondence or j.) Violations of the E-Commerce Act
administrative address for a company, a partnership or k.) Hijacking and other violations of RA 6235
any other legal person or arrangement; and

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 l.) Destructive arson and murder, including those e. aids, abets, assists in or counsels the
committed by terrorists against non-combatants and commission of the money laundering offenses referred to
similar targets in paragraphs (a), (b) or (c) above; and
m.) Fraudulent practices and other violations
under the Securities Regulations Code f. performs or fails to perform any act as a
n.) Acts of terrorism result of which he facilitates the offense of money
o.) Felonies/offenses of a similar nature laundering referred to in paragraphs (a), (b) or (c) above.
punishable under the criminal laws of other countries
10. Who has authority to inquire into Bank
6. Safe Harbor Provision, meaning. Deposits
- No administrative, criminal or civil proceeding - the AMLC may inquire into or examine any
shall lie against any person for having made a covered particular deposit or investment with any banking
transaction report in the regular performance of his duties institution or non-bank financial institution upon order
and in good faith, whether or not such reporting result in of any competent court in cases of violation of this Act
any criminal prosecution under the AMLA or any other when it has been established that there is probable cause
phil. Law. that the deposits or investments involved are [in any way]
related to an unlawful activity as defined in Section 3(i)
7. Three basic steps in Money Laundering: hereof or a money laundering offense under Section 4
a. Placement - the launderer inserts the dirty hereof;
money into a legitimate financial institution usually in the
form of cash bank deposits; Except that no court order shall be required in
cases involving unlawful activities defined in Sections 3(i)
b. Layering – involves sending money through (1), (2) and (12):
various financial transactions to change its form and make
it difficult to follow; (1) Kidnapping for ransom under Article 267
of the RPC,
c. Integration – the money re-enters
mainstream economy in legitimate looking form, (2) Sections 4, 5, 6, 8, 9, 10, 12, 13, 14, 15, and
appearing to have come from some legitimate 16 of Republic Act No. 9165, otherwise known as the
transaction. Comprehensive Dangerous Drugs Act of 2002; and

8. What is Money Laundering, defined. (12). Hijacking and other violations under
- it is a crime whereby the proceeds of an Republic Act No. 6235; destructive arson and murder,
unlawful activity are transacted, thereby making them as defined under the Revised Penal Code, as amended,
appear to have originated from legitimate sources. including those perpetrated by terrorists against non-
combatant persons and similar targets.
9. When is Money laundering committed?
-committed by any person knowing that any 11. Who has power to Freeze accounts?
monetary instrument or property represents, involves, or - the power of AMLC to freeze accounts has been
relates to the proceeds of any unlawful activity: deleted under Sec. 7 of RA 9194.

a. transacts said monetary instrument or The Court of Appeals may issue a freeze order
property; which shall be effective immediately, and which shall not
exceed six (6) months depending upon the circumstances
b. converts, transfers, disposes of, moves, of the case.
acquires, possesses or uses said monetary instrument or Provided, that if there is no case filed against a
property; person whose account has been frozen within the period
determined by the court, the freeze order shall be deemed
c. conceals or disguises the true nature, source, ipso facto lifted.
location, disposition, movement or ownership of or rights Provided, further, that this new rule shall not
with respect to said monetary instrument or property; apply to pending cases in the courts.

d. attempts or conspires to commit money In any case, the court should act on the petition to freeze
laundering offenses referred to in paragraphs (a), (b) or within twenty-four (24) hours from filing of the petition.
(c); 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.
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12. Freezing of Monetary instrument or property The verified petition shall be filed with the court
- The Court of Appeals, upon application ex parte which rendered the judgment of forfeiture, within fifteen
by the AMLC and after determination that probable cause (15) days from the date of the finality of the order of
exists that any monetary instrument or property is in any forfeiture, in default of which the said order shall become
way related to an unlawful activity as defined in Section final and executory. This provision shall also apply in civil
3(i) hereof, may issue a freeze order which shall be forfeiture.
effective immediately. The freeze order shall be for a
period of twenty (20) days unless extended by the court. c. Payment in Lieu of Forfeiture. - Where the
court has issued an order of forfeiture of the monetary
13. What is the remedy against freeze order? instrument or property subject of a money laundering
A person whose account has been frozen may file offense, and said order cannot be enforced because any
a motion to lift the freeze order and the court must particular monetary instrument or property cannot, with
resolve this motion before the expiration of the freeze due diligence,
order. a. be located, or it has been substantially
No court shall issue a temporary restraining order altered, destroyed, diminished in value or
or a writ of injunction against any freeze order, except the otherwise rendered worthless by any act or omission,
Supreme Court. directly or indirectly, attributable to the offender, or
b. it has been concealed, removed,
14. Effects lifting of Freeze order converted, or otherwise transferred to prevent the
- The freeze order shall be deemed ipso facto same from being found or to avoid forfeiture thereof, or
lifted after its expiration, unless a money laundering c. it is located outside the Philippines or has
complaint against the person whose monetary instrument been placed or brought outside the jurisdiction of
or property was frozen, or a petition for civil forfeiture the court, or
against the frozen monetary instrument or property, has d. it has been commingled with other
been filed, in which case the freeze order shall remain monetary instruments or property belonging to
effective until the money laundering case is terminated or either the offender himself or a third person or
an asset preservation order is issued, respectively. entity, thereby rendering the same difficult to identify or
be segregated for purposes of forfeiture,
Upon the expiration of the freeze order, the covered
person shall secure a written confirmation from the AMLC the court may, instead of enforcing the order of forfeiture
Secretariat to ascertain if a petition for civil forfeiture or of the monetary instrument or property or part thereof or
money laundering complaint has been filed. interest therein, accordingly order the convicted
offender to pay an amount equal to the value of
15. Forfeiture provisions: said monetary instrument or property. This
a. Civil Forfeiture - Upon determination that provision shall apply in both civil and criminal forfeiture.
probable cause exists that any monetary instrument or
property is in any way related to an unlawful activity or a 16. Jurisdiction
money laundering offense, the AMLC shall file with the
regional trial court, through the Office of the Solicitor a. RTC all cases on money
General, a verified petition for civil forfeiture. laundering;

No prior criminal charge, pendency of or b. Sandiganbayan Those committed by

conviction for an unlawful activity or money laundering public officers and [rivate
offense is necessary for the commencement or the person in conspiracy with
resolution of a petition for civil forfeiture. them;
c. Court of Appeals Freezing of monetary
b. Claim on Forfeited Assets. - Where the court instrument or property
has issued an order of forfeiture of the monetary
instrument or property in a criminal prosecution for any
money laundering offense, 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.

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