IV. Anti-Money Laundering Law (AMLA) (R.A. 9160 a.k.a.

Anti Money Laundering Act of 2001

as amended by R.A. 9194 and R.A. 10168 a.k.a. Terrorism Financing Prevention and
Suppression Act of 2012) and RA 10365 a.k.a AN ACT FURTHER STRENGTHENING THE ANTI-
MONEY LAUNDERING LAW)

A. Declaration of Policy: It is hereby declared the policy of the State to protect and preserve the
integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a
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.

B. Definition of Money Laundering - Money laundering is committed by any person who, knowing
that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful
activity: (Acts punishable as Money Laundering)
1. Transacts said monetary instrument or property;
2. Converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instruments
or property or proceeds of any unlawful activity;
3. Conceals or disguises the true nature, source, location, disposition, movement or ownership of or
rights with respect to said monetary instruments or property or proceeds of unlawful activity;
4. Attempts or conspires to commit Money Laundering referred to in par. 1), 2) & 3);
5. Aids, abets, assists in or counsels the commission of the Money Laundering offenses referred to
in par. 1), 2) & 3) above;
6. Performs or fails to perform any act as a result of which he facilitates the offense of Money
Laundering referred to in par. 1), 2) & 3) above; or
7. Any covered person who, knowing that a covered or suspicious transaction is required under the
AMLA to be reported to the AMLC, fails to do so.

C. Predicate Crimes of Money Laundering (34 Crimes)

1. Kidnapping for ransom under the Revised Penal Code (RPC)
2. Drug Trafficking and other violations of the Comprehensive Dangerous Drugs Act of 2002
3. Graft and Corruption (R.A. No. 3019, as amended)
4. Plunder (R.A. No. 7080, as amended)
5. Robbery and extortion (RPC)
6. Jueteng and Masiao (PD 1602)
7. Piracy (RPC & PD 532)
8. Qualified Theft (RPC)
9. Swindling/Estafa (RPC)
10. Smuggling (R.A. Nos. 455 & 1937)
11. Violations of Electronic Commerce Act of 2000 (R.A. No. 8792)
12. Hijacking (R.A. No. 6235), Destructive Arson and Murder (RPC)
13. Terrorism and Conspiracy to Commit Terrorism (R.A. No. 9372);
14. Financing of Terrorism (R.A. No. 10168)
15. Bribery and Corruption of Public Officers (RPC);
16. Frauds and Illegal Exactions and Transactions (RPC);
17. Malversation of Public Funds (RPC);
18. Forgeries and Counterfeiting (RPC);
19. Trafficking in Persons (R.A. No. 9208
20. Violations of the Revised Forestry Code (PD 705);
21. Violations of the Philippine Fisheries Code of 1998 (R.A. No. 8550);
22. Violations of the Philippine Mining Act of 1995 (R.A. No. 7942);
 23. Violations of the Wildlife Resources Conservation and Protection Act (R.A. No. 9147);
24. Violations of the National Caves and Cave Resources Management Protection Act (R.A. No.
9072);
25. Carnapping (R.A. No. 6539);
26. Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or Disposition of Firearms,
Ammunitions and Explosives (PD 1866);
27. Fencing (PD 1612);
28. Illegal Recruitment (R.A. No. 8042);
29. Violations of the Intellectual Property Code;
30. Voyeurism (R.A. No. 9995);
31. Child Pornography (R.A. No. 9775);
32. Child Prostitution, Trafficking, and other forms of Abuse (R.A. No. 7610);
33. Fraudulent practices and other violations of the Securities Regulation Code (R.A. No. 8799); and
34. Felonies or offenses of a similar nature that are punishable under the penal laws of other
countries.

D. Types of Reportable Transactions to AMLC

 Covered Transactions are those transactions involving covered persons that breached the
quantitative threshold provided by AMLA for reporting purposes to AMLC and therefore must be
reported by covered persons to AMLC.
 Suspicious Transactions are those transactions that do not breach the quantitative threshold
provided by AMLA for reporting purposes to AMLC but must still be reported to AMLC by covered
persons because of the suspicious nature of the transactions.

E. Amount of Covered Transaction for Reporting to AMLC

 A transaction in cash or other equivalent monetary instrument exceeding Five Hundred Thousand
pesos (P500,000)
 A transaction exceeding One Million pesos (P1,000,000) in cases of jewelry dealers, dealers in
precious metals and dealers in precious stones.
 Covered transaction now includes 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.”

F. Suspicious Transactions that shall also be reported to AMLC

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 AMLA;
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 person;
6. the transaction is in any way related to an unlawful activity or any money laundering activity or
offense that is about to be committed, is being or has been committed; or
7. any transaction that is similar, analogous or identical to any of the foregoing.

G. Politically Exposed Person (PEP) – refers to an individual who is or has been entrusted with
prominent public position in (a) the Philippines with substantial authority over policy, operations or the
use or allocation of government-owned resources; (b) a foreign State; or (c) an international
organization. The term PEP shall include immediate family members, and close relationships and
associates that are reputedly known to have:1)Joint beneficial ownership of a legal entity or legal
arrangement with the main/principal PEP; or Sole beneficial ownership of a legal entity or legal
arrangement that is known to exist for the benefit of the main/principal PEP
 1. Under Implementing Rules and Regulations of AMLA issued by AMLC, the following
are the politically exposed persons (High Risk Government Personnel)
a. AFP or PNP Officials such as Colonel or General
b. Senators or Congressmen or Mayor or Governor
c. Chairman or Commissioners of COMELEC or CoA or CSC
d. President or Vice-President or Department Secretary and Undersecretary
e. Justices of Court of Appeals, Court of Tax Appeals, Sandiganbayan or Supreme Court

H. Covered persons, natural or juridical, required to report to AMLC covered transactions and
suspicious transactions
1. Under Bangko Sentral ng Pilipinas (BSP)
a. Banks
b. Non-banks
c. Quasi-banks
d. Trust entities
e. Nonstock savings and loan associations
f. Foreign exchange dealers,
g. Electronic money issuers
h. Pawnshops,
i. Money changers,
j. Remittance and transfer companies
k. All other persons and their subsidiaries and affiliated supervised or regulated by the BSP.
2. Under Insurance Commission (IC)
a. Insurance companies
b. Pre-need companies
c. Insurance agents
d. Insurance brokers
e. Professional reinsurers
f. Holding companies
g. Holding company system
h. Mutual benefit associations
i. All other persons and their subsidiaries and affiliated supervised or regulated by the
Insurance Commission
3. Under Securities and Exchange Commission (SEC)
a. Securities dealers, brokers, salesmen, investment houses, and other similar persons
managing securities or rendering services such as investment agents.
b. mutual funds or open-end companies, close-end investment, investment companies or
issuers and other similar
c. other entities administering or otherwise dealing in commodities, or financial derivatives
based thereon, valuable objects, cash substitutes and other similar monetary instruments
or properties supervised and regulated by the SEC.

4. Other Designated Non-Financial Business and Professionals

a. Jewelry dealers, dealers in precious metals, and dealers in precious stones for
transactions in excess of 1,000,000.
b. Land Registration Authority and all of its Register of Deeds on all real estate
transaction with price exceeding P500,000.
c. Casino refers to a business authorized by the appropriate government agency to engage
in gaming operations for single casino transaction in excess of P5,000,000.
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.
 ii. Ship-based casino shall refer to casinos, the operation of which is undertaken
on board at vessel, ship, boat or any other water-based craft wholly or partly
intended for gambling.
d. Company service providers to 3rd parties including CPAs and Lawyers
1. acting as a formation agent of juridical persons;
2. acting as (or arranging for another person to act as) a director or corporate secretary
of a company, a partner of a partnership, or a similar position in relation to other
juridical persons;
3. providing a registered office; business address or accommodation, correspondence or
administrative address for a company, a partnership or any other legal person or
arrangement; and
4. acting as (or arranging for another person to act as) a nominee shareholder for
another person.
e. Person providing the following services including CPAs and lawyers
1. managing of client money, securities or other assets;
2. management of bank, savings or securities accounts;
3. organization of contributions for the creation, operation or management of
companies; and
4. creation, operation or management of juridical persons or arrangements, and buying
and selling business entities.

Note: A shell company is an incorporated company that possesses no significant assets and
does not perform any significant operations. To launder money, the shell company purports to
perform some service that would reasonably require its customers to often pay with cash. Cash
transactions increase the anonymity of customers and therefore decrease the government’s
ability to trace the initial recipient of the dirty money. Money launderers commonly select beauty
salons and plumbing services as shell companies. The launderer then deposits the money with
the shell company, which deposits it into its accounts. The shell company then creates fake
invoices and receipts to account for the cash. Such transactions create the appearance of
propriety and clean money. The shell company can then make withdrawals and either return the
money to the initial criminal or pass the money on to further shell companies before returning it
to further cloud who first deposited the money.

5. Persons excluded to report covered transactions or suspicious transactions to AMLC

1. Lawyers if acting as independent legal professionals in relation to information concerning their
clients or where disclosure of information would compromise client confidences or the attorney-
client relationship
2. Certified public accountants if acting as independent legal professionals in relation to information
concerning their clients or where disclosure of information would compromise client confidences
or the CPA-client relationship.

I. Jurisdiction over Money Laundering Cases

a. Regional Trial Court. - The regional trial courts shall have the jurisdiction to try money
laundering cases committed by private individuals, and public officers not covered by the
jurisdiction of the Sandiganbayan.
b. Sandiganbayan. - The Sandiganbayan shall have jurisdiction to try money laundering cases
committed by public officers under its jurisdiction (salary grade of 27 or higher), and private
persons who are in conspiracy with such public officers.

J. Prosecution of Money Laundering Cases

 a. Independent Proceedings. - The prosecution of money laundering and the unlawful activity
shall proceed independently. Any person may be charged with and convicted of both money
laundering and the unlawful activity.
b. Separate and Distinct Elements. - The elements of money laundering are separate and
distinct from the elements of the unlawful activity. The elements of the unlawful activity,
including the identity of the perpetrators and the details of the commission of the unlawful
activity, need not be established by proof beyond reasonable doubt in the case for money
laundering.
c. Knowledge. - The element of knowledge may be established by direct or circumstantial
evidence.

K. Anti-Money Laundering Council - refers to the financial intelligence unit of the Republic of the
Philippines which is the government agency tasked to implement the AMLA.
a. Composition of Anti-Money Laundering Council
i. Chairperson – BSP Governor
ii. Member – Insurance Commissioner
iii. Member – SEC Chairperson
b. Unanimous Decision. - The AMLC shall act unanimously in discharging its functions. In case of
incapacity, absence, or disability of any member, the officer duly designated or authorized to
discharge the functions of the Governor of the BSP, the Commissioner of the IC, and the
Chairperson of the SEC, as the case may be, shall act in his stead in the AMLC.

L. Preventive Measures

1. Customer Due Diligence. - Covered persons shall establish and record the true identity of their
clients based on official documents, as defined under Rule 3 of RIRR of AMLA.

2. Customer Identification
a. Face-to-Face Contact. - Covered persons shall conduct face-to-face contact at the
commencement of the relationship, or as reasonably practicable so as not to interrupt
the normal conduct of business
b. Minimum Customer Information and Identification Documents
i. Name of customer;
ii. Date and place of birth;
iii. Name of beneficial owner, if applicable;
iv. Name of beneficiary (in case of insurance contracts or remittance transactions);
v. Present address;
vi. Permanent addresses;
vii. Contact number or information;
viii. Nationality;
ix. Specimen signatures or biometrics of the customer;
x. Nature of work and name of employer or nature of self-employment, business, if
applicable;
xi. Sources of funds or property; and
xii. Tax Identification Number (TIN), Social Security System . (SSS) number or
Government Service Insurance System (GSIS) number, if applicable.
3. Prohibited Accounts
a. Anonymous Accounts and Accounts under Fictitious Names. - Covered persons
shall maintain customers' account only in the true and full name of the account owner or
holder. Anonymous accounts, accounts under fictitious names, and all other accounts
shall be absolutely prohibited.
 b. Numbered Accounts. Numbered accounts, except non-checking numbered accounts,
shall not be allowed. Covered and suspicious transaction reports involving non-checking
numbered accounts shall contain the true name of the account holder.
4. Record Keeping. - Covered persons shall maintain and safely store for five (5) years from the
dates of transactions all records of customer identification and transaction documents of their
customers or five (5) years from the date the account is closed.

5. Transaction Reporting. - Covered persons shall report to the AMLC all covered transactions
and suspicious transactions within five (5) working days, unless the AMLC prescribes a different
period not exceeding fifteen (15) working days, from the occurrence thereof.

6. For Suspicious transactions, "occurrence" refers to the date of determination of the

suspicious nature of the transaction, which determination should be made not exceeding ten (10)
calendar days from the date of transaction . However, if the transaction is in any way related to,
or the person transacting is involved in or connected to, an unlawful activity or money laundering
offense, the 10-day period for determination shall be reckoned from the date the covered person
knew or should have known the suspicious transaction indicator.

7. Safe Harbor Provision of AMLA. No administrative, criminal or civil proceedings shall lie
against any person for having made a covered transaction report in the regular performance of
his duties and in good faith, whether or not such reporting results in any criminal prosecution
under the AMLA or any other Philippine law.

8. Freeze Order. - Upon 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, the Court of Appeals may issue a freeze order, which shall be effective
immediately for a period of 20 days. Within 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 to extend its effectivity
a. Freezing of Related Accounts and Materially-Linked Accounts. - Considering the intricate
and diverse web of interlocking accounts that a person may create in different covered
persons, and the high probability that these accounts are utilized to divert, move,
conceal, and disguise the monetary instrument or property subject of the freeze order,
the AMLC may include in its petition the freezing of related and materially-linked
accounts.
b. Period to Resolve Petition. - The Court of Appeals shall resolve the petition to freeze
within twenty-four (24) hours from filing thereof.
c. Effectivity of Freeze Order. – The total period of the freeze order issued by the Court of
Appeals under this provision shall not exceed six months. This is without prejudice to an
asset preservation order that the Regional Trial Court having jurisdiction over the
appropriate money-laundering case or civil forfeiture case may issue on the same
accounting 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, no exceeding six months, the freeze order shall be deemed ipso 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 24 hours from filing of the petition. If the
application is filed a day before a nonworking day, the computation of the 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 or value of the
proceeds of the predicate offense

9. Bank Inquiry with Court Order. - Notwithstanding the provisions of Republic Act No. 140S, 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 account, including related
accounts, with any banking institution or non-bank financial institution, upon order by the Court
of Appeals based on an ex parte application in cases of violation of the AMLA when it has been
established that probable cause exists that the deposits or investments involved, including related
accounts, are in any way related to an unlawful activity or a money laundering offense.
a. Period to Resolve Application. - The Court of Appeals shall resolve the application within
twenty-four (24) hours from filing thereof.
b. Inquiry Into or Examination of Related Accounts. - A court order ex parte must be
obtained before the AMLC can inquire into the related accounts. The procedure for the
ex parte application for an order of inquiry into the principal account shall be the same
for that of the related accounts.
c. Compliance with Article III, Sections 2 and 3 of the Constitution. - The authority to
inquire into or examine the main account and the related accounts shall comply with the
requirements of Article III, Sections 2 and 3 of the 1987 Constitution.

10. Bank Inquiry without Court Order. - The AMLC shall issue a resolution authorizing the AMLC
Secretariat to inquire into or examine any particular deposit or investment account, including
related accounts, with any banking institution or non-bank financial institution and their
subsidiaries and affiliates when it has been established that probable cause exists that the
deposits or investments involved, including related accounts, are in any way related to any of the
following unlawful activities: (Predicate crimes that may authorize AMLC to inquire bank
accounts even without Court Order from Court of Appeals)
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, 11, 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;
d. Destructive arson and murder, as defined under the Revised Penal Code, as amended;
e. Felonies or offenses of a nature similar to those mentioned in Section 3(i) (1), (2) and
(12) of the AMLA which are punishable under the penal laws of other countries;
f. Terrorism and conspiracy to commit terrorism as defined and penalized under Republic
Act No. 9372; and
g. Financing of terrorism under Section 4 and offenses punishable under Sections 5, 6, 7
and 8 of Republic Act No. 10168, otherwise known as the Terrorism Financing Prevention
and Suppression Act of 2012.

11. Asset Forfeiture

h. Civil Forfeiture. - Upon determination that probable cause exists that any monetary
instrument or property is in any way related to an unlawful activity or a money
laundering offense, the AMLC shall file with the regional trial court, through the Office of
the Solicitor General, a verified petition for civil forfeiture.
i. No Prior Criminal Charge, Pendency of or Conviction Necessary. - No prior
criminal charge, pendency of or conviction for an unlawful activity or money laundering
offense is necessary for the commencement or the resolution of a petition for civil
forfeiture.
j. Asset Forfeiture in Money Laundering Cases. - Where there is conviction for money
laundering, 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 an unlawful activity.
 RA 11521 : AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW,
AMENDING FOR THE PURPOSE 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 2 of Republic Act No. 9160, as amended, is hereby amended to read as follows:

"Section 2. Declaration of Policy. - It is hereby declared the policy of the State to

protect and preserve the integrity and confidentiality of bank accounts and to ensure that
the Philippines shall not be used as a money laundering site for the proceeds of any
unlawful activity. Consistent with its foreign policy, the State shall extend cooperation in
transnational investigations and prosecutions of persons involved in money laundering
activities wherever committed, as well as in the implementation of targeted financial
sanctions related to the financing of the proliferation of weapons of mass destruction,
terrorism, and financing of terrorism, pursuant to the resolution of the United Nations
Security Council."

Section 2. Section 3 of the same Act is hereby amended as follows:

"Section 3. Definitions. - For purposes of this Act, the following terms are hereby
defined as follows:

"(a) Covered persons', natural or juridical refer to:

"(1) x x x;

"(9) Real estate developers and brokers;

"(10) Offshore gaming operation, as well as their service providers,

supervised, accredited or regulated by the Philippine Amusement and
Gaming Corporation (PAGCOR) or any government agency;

"(b) 'Covered transactions' 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.

"For covered persons under Section 3(a)(9) herein, a single cash transaction
involving an amount in excess of Seven million five hundred thousand pesos
(P7,500,000.00) or its equivalent in any other currency.

"(b-1) 'Suspicious transactions' are transactions with covered persons,

regardless of the amounts involved, where any of the following
circumstances exist:

"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 person;

"6. The transaction is in any way related to an unlawful activity

or offense under this Act that is about to be, is being or has
been committed; or

"7. Any transaction that is similar or analogous to any of the

foregoing.

"x x x

"(i) 'Unlawful activity' refers to any act or omission or series or combination

thereof involving or having relation to the following:

"(1) x x x;

"(33) Fraudulent practice and other violations under Republic

Actr No. 8799, otherwise known as "The Securities Regulation
Code of 2000;

"(34) Violation of Section 9 (a)(3) of Republic Act No. 10697,

otherwise known as the "Strategic Trade Management Act", in
relation to the proliferation of weapons of mass destruction and
its financing pursuant to United Nations Security Council
Resolution Numbers 1718 of 2006 and 2231 of 2015";

"(35) Violation of Section 254 of Chapter II, Title X of the

National Internal Revenue Code of 1997, as amended, where the
deficiency basic tax due in the final assessment is in excess of
Twenty-five million pesos (P25,000,000.00) per taxable year, for
each tax type covered and there has been a finding of probable
cause by the competent authority: Provided,further, That there
must be a finding of fraud, willful misrepresenting or malicious
intent on the part of the taxpayer: Provided, finally, That in no
case shall the AMLC institute forfeiture proceedings to recover
monetary instruments, property or proceeds representing,
involving, or relating to a tax crime, if the same has already
been recovered or collected by the Bureau of Internal Revenue
(BIR) in a separate proceeding and
 "(36) Felonies and offenses of a similar nature that are
punishable under the penal laws of other countries.

"x x x.

"(4) 'Offshore gaming operator' refers to an entity engaged in offering

online games of chance or sporting events via the internet using a
network and software program, by themselves or through local service
providers.

"(5) 'Service providers' refer to duly constituted business corporations

who provide components of offshore gaming operations to offshore
gaming operators.

"x x x.

"(m) 'Real estate developer' refers to any natural or juridical person engaged in
the business of developing real estate development project for the account of the
developer and offering them for sale or lease.

"(n) 'Real estate broker' refers to a duly registered and licensed natural person
who, for a professional fee, omission or other valuable consideration, acts as an
agent of a party in a real estate transaction to offer, advertise, solicit, list,
promote, mediate, negotiate, or effect the meeting of the minds on the sale,
purchase, exchange, mortgage, lease or joint venture, or other similar
transaction on real estate or any interest therein.

"(o) 'Targeted financial sanctions' refer to both asset freezing and prohibition to
prevent funds or other assets from being made available, directly or indirectly,
for the benefit of any individual, natural or legal persons or entity designated
pursuant to relevant United Nations Security Council resolution and its
designation processes.

"(p) 'Proliferation financing' refers when a person:

"(1) Makes available an asset; or

"(2) Provides a financial service; or

"(3) Conducts a financial transaction; and the person knows that, or is

reckless as to whether, the asset, financial service or financial
transaction is intended to, in whole or in part, facilitate proliferation of
weapons of mass destruction in relation to UN Security Council
Resolution Number 1718 0f 2006 and 2231 of 2015."

Section 3. Section 7 of the same Act is hereby amended to read as follows:

"Section 7. Creation of Anti-Money Laundering Council (AMLC). - 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. The AMLC
shall act unanimously in the discharge of its functions as defined hereunder:

"(1) to investigate suspicious transactions and covered transactions deemed

suspicious after determination by AMLC, money laundering activities and other
violations of this Act.

"x x x;

"(13) in the conduct of its investigation, the AMLC shall apply for the issuance of
a search and seizure order with any competent court;

"(14) in the conduct of its investigation, the AMLC shall apply for the issuance
of subpoena ad testificandum and/or subpoena duces tecum with any competent
court;

"(15) to implement targeted financial sanctions in relation to proliferation of

weapons of mass destruction and its financing, including ex parte freeze, without
delay, against all funds and other assets that are owned and controlled, directly
or indirectly, including funds and assets derived or generated therefrom, by
individuals or entities designated and listed under United Nations Security Council
Resolution Numbers 1718 of 2006 and 2231 of 2015 and their successor
resolutions as well as any binding resolution of the Security Council; and

"(16) to preserve, manage or dispose assets pursuant to a freeze order, asset

preservation order, or judgment of forfeiture: Provided, however, That pending
their turnover to the national government, all expenses incurred in relation to the
duties herein mentioned shall be deducted from the amount to be turned over to
the national government."

Section 4. A new Section 8-A is hereby inserted after Section 8 (Creation of a Secretariat) of Republic
Act No. 9160, as amended to read as follows:

"SEC. 8-A. Information Security and Confidentiality. - The AMLC and its Secretariat shall securely
protect information received or processed and 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.

"The AMLC shall formulate rules governing information exchange and dissemination, the security
and confidentiality of such information, including procedures for handling, storage, and protection
of, as well as access to such information."

Section 5. Section 10 of the same Act, is hereby further amended by inserting a new paragraph to read
as follows:

"Section 10. Freezing Monetary Instrument or Property. -

"(a) 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 on 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 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 tyo amounts in the same account in
excess of the amount or value of the proceeds of the predicate offense.

"A person whose account has been frozen may file a motion to lift the freeze order and
the court must resolve this motion before the expiration of the freeze order.

"No court shall issue a temporary restraining order or a writ of injunction against any
freeze order, except the Supreme Court.

"(b) For purposes of implementing targeted financial sanctions in relation to proliferation

of weapons of mass destruction and its financing, as provided under Section 3(15), the
AMLC shall have the power to issue, ex porte, an order to freeze without delay.

"The freeze order shall be effective until the basis for its issuance shall have been lifted.
During the effectivity of the freeze order, the aggrieved party may, within twenty (20)
days from issuance, file with the Court of Appeals a petition to determine the basis of the
freeze order according to the principle of effective judicial protection: Provided, That the
person whose property or funds have been frozen may withdraw such sums as the AMLC
determines to be reasonably needed for monthly family needs and sustenance including
the services of counsel and the family medical needs of such person.

"The AMLC, if circumstance warrant, may initiate civil forfeiture proceedings to preserve
the assets and to protect it from dissipation.ℒαwρhi ৷ No court shall issue a temporary
restraining order or a writ of injunction against the freeze order, except the Court of
Appeals or the Supreme Court."

Section 6. Section 12 of the same Act is hereby amended by inserting a new paragraph to read as
follows:

"(d) No court shall issue a temporary restraining order (TRO) or a writ of injunction
against any provisional asset preservation order or asset preservation, except the Court
of Appeals or the Supreme Court."
Section 7. Section 14, paragraph (d) of Republic Act No. 9160, as amended, is hereby further amended
to read as follows:

"Section 14. Penal Provisions. -

"x x x

"(d) Breach of Information Security and 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 (P500,000.00) but not more than One million Philippine pesos
(P1,000,000.00), shall be imposed on a person convicted for a violation under Section
9(c) 0r Section 8-A on information security and confidentiality of this Act. If the offender
is public official or employee, he shall, in addition to the penalties prescribed herein,
suffer the penalty of perpetual or temporary absolute disqualification from public office,
as the case may be. In the 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."

Section 8. Section 20 of the same Act is hereby amended to read as follows:

"Section 20. Non-Intervention in the Bureau of Internal Revenue (BIR) Operations. -

Nothing contained in this Act nor in related antecedent laws or existing agreements shall
be construed to allow the AMLC to participate in any manner in the operation of the BIR.
The AMLC, may, however, coordinate with the BIR On investigations in relating to
violations of Section 254 of NIRC, as amended, as a predicate offense to money
laundering."