REPUBLIC ACT NO.

1405

AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH

ANY BANKING INSTITUTIONAND PROVIDING PENALTY THEREFOR

SECTION 1. It is hereby declared to be the policy of the Government to give

encouragement to the people to deposit their money in banking institutions and to
discourage private hoarding so that the same may be properly utilized by banks in
authorized loans to assist in the economic development of the country.

SECTION 2. All deposits of whatever nature with banks or banking institutions in the
Philippines including investments in bonds issued by the Government of the Philippines,
its political subdivisions and its instrumentalities, are hereby considered as of an
absolutely confidential nature and may not be examined, inquired or looked into by any
person, government official, bureau or office, except upon written permission of the
depositor, or in cases of impeachment, or upon order of a competent court in cases of
bribery or dereliction of duty of public officials, or in cases where the money deposited
or invested is the subject matter of the litigation.

SECTION 3. It shall be unlawful for any official or employee of a banking institution to

disclose to any person other than those mentioned in Section two hereof any
information concerning said deposits.

SECTION 4. All Acts or parts of Acts, Special Charters, Executive Orders, Rules and
Regulations which are inconsistent with the provisions of this Act are hereby repealed.

SECTION 5. Any violation of this law will subject offender upon conviction, to an
imprisonment of not more than five years or a fine of not more than twenty thousand
pesos or both, in the discretion of the court.

SECTION 6. This Act shall take effect upon its approval.

Approved, September 9, 1955

 ANTI-MONEY LAUNDERING COUNCIL
2018 IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO.
9160, OTHERWISE KNOWN AS THE ANTI-MONEY LAUNDERING ACT OF 2001,
AS AMENDED

The provisions of this IRR are in line with the following State Policies:

(a) To protect and preserve the integrity of the Philippine financial system, including the
confidentiality of bank accounts.

(b) To ensure that the Philippines shall not be used as a money laundering site for the proceeds
of any unlawful activity.

RULE 2 – DEFINITION OF TERMS

Section 1. Definitions. For purposes of this IRR, the following terms are hereby defined as follows:

(a) “Account” refers to a bank account, electronic money account, investment account, insurance
policy, membership account, and other similar contract or service agreement, business or professional
relationships between a covered person and its customers where funds or any monetary instrument of
the latter are held by the former;

(d) “Appropriate Government Agency” (AGA) refers to the Philippine Amusement and Gaming
Corporation (PAGCOR), Cagayan Economic Zone Authority (CEZA), Aurora Pacific Economic Zone and
Freeport Authority (APECO), or other government agency, as may be determined by law, which may
authorize casinos to engage in gaming operations.

(w) “Covered Transaction” refers to: (1) A transaction in cash or other equivalent monetary
instrument exceeding Five Hundred Thousand pesos (PHP500,000.00). (2) A transaction with or
involving jewelry dealers, dealers in precious metals and dealers in precious stones in cash or other
equivalent monetary instrument exceeding One Million pesos (Php1,000,000.00). (3) A casino cash
transaction exceeding Five Million Pesos (PHP5,000,000.00) or its equivalent in other currency.

“Suspicious Circumstance” refers to any of the following circumstances, the existence of which
makes a transaction suspicious:

(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; Page 19 of
94
(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 ML/TF or related unlawful activity 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, such as the
relevant transactions in related and materially-linked accounts, as herein defined.
RULE 4 – COVERED PERSONS Section 1. Covered Persons. The following are the covered
persons under the AMLA:

(a) The following financial institutions:

(1) Persons supervised and/or regulated by BSP, including their subsidiaries and affiliates, which
are also covered persons, supervised and/or regulated by the BSP such as:

(a) Banks;
(b) Quasi-banks;
(c) Trust entities
(d) Pawnshops;
(e) Non-stock savings and loan associations;
(f) Other Non-bank financial institutions which under special laws are subject to BSP
supervision and/or regulation;
(g) Electronic money issuers; and
(h) Foreign exchange dealers, money changers, and remittance and transfer companies.

(2) Persons supervised or regulated by IC, such as:

(a) Insurance companies;

(b) Pre-need companies;
(c) Insurance agents;
(d) Insurance brokers;
(e) Professional reinsurers;
(f) Reinsurance brokers;
(g) Holding companies;
(h) Holding company systems;
(i) Mutual benefit associations; and
(j) All other persons and their subsidiaries and affiliates supervised or regulated by the IC.

(3) Persons supervised or regulated by SEC, such as:

(a) Securities dealers, brokers, salesmen, investment houses, and other similar persons
managing securities or rendering services, such as investment agents, advisors, or
consultants;
(b) mutual funds or open-end investment companies, close-end investment companies or
issuers, and other similar entities; and
(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 or regulated by the SEC. Page 24 of 94 (b)

The following DNFBPs:

(1) Jewelry dealers.

(2) Dealers in precious metals, and dealers in precious stones.
(3) Company service providers, which, as a business, provide any of the following
services to third parties:
(a) acting as a formation agent of juridical persons;
(b) 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;
(c) providing a registered office; business address or accommodation,
correspondence or administrative address for a company, a partnership or any other
 juridical person or legal arrangement; and
(d) acting as (or arranging for another person to act as) a nominee shareholder for
another person.

(4) Persons, including lawyers, accountants and other professionals, who provide any of
the following services:

(a) Managing of client money, securities or other assets;

(b) Management of bank, savings, securities or other assets;
(c) Organization of contributions for the creation, operation or management of
companies; and
(d) Creation, operation or management of juridical persons or arrangements, and
buying and selling business entities.

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

The “Casino Implementing Rules and Regulations of Republic Act No. 10927” shall
govern the implementation of the AMLA with regard to casinos, unless, otherwise
indicated therein by the AMLC and the AGAs.

Section 1. The Government Instrumentality.

1.1. Implementing Agency. The AMLC is the independent government instrumentality

mandated to implement the AMLA and TFPSA.

Section 2. The Council.

2.1. Composition. The powers and functions of the AMLC shall be exercised by a Council
composed of the following persons:

(a) Chairperson - Governor of the BSP;

(b) Member - Chairperson of the SEC; and
(c) Member - Commissioner of the IC.

MONEY LAUNDERING, TERRORISM FINANCING AND ASSET FORFEITURE

RULE 9 – MONEY LAUNDERING AND TERRORISM FINANCING

Section 1. Money Laundering. Money laundering is committed by:

(a) Any person who, knowing that any monetary instrument or property represents, involves, or
relates to the proceeds of any unlawful activity:
(1) transacts said monetary instrument or property;
(2) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary
instrument or property;
(3) conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument or property;
(4) attempts or conspires to commit ML offenses referred to in (1), (2), or (3) above;
(5) aids, abets, assists in, or counsels the commission of the ML offenses referred to in
(1), (2), or (3) above; and
(6) performs or fails to perform any act as a result of which he facilitates the offense of ML
referred to in items (1), (2), or (3) above.

(b) 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.
 Section 2. Predicate Offenses to Money Laundering.

All unlawful activities, as defined herein, are the predicate offenses to ML committed under Rule
9, Section 1(a) hereof.

Section 3. Jurisdiction over Money Laundering Cases.

3.1. Regional Trial Court. The regional trial courts shall have jurisdiction to try ML cases
committed by private individuals, and public officers not covered by the jurisdiction of the
Sandiganbayan.

3.2. Sandiganbayan. The Sandiganbayan shall have jurisdiction to try ML cases

committed by public officers under its jurisdiction, and private persons who are in conspiracy with
such public officers.

4.5. No ML Case During Election Period. No case for ML may be filed against a candidate
for an electoral office during an election period.

RULE 11 – BANK INQUIRY

Section 1. Bank Inquiry Order by the Court.

1.1. Application for Issuance of Bank Inquiry Order. By authority of the Council, the AMLC
Secretariat shall file before the Court of Appeals, through the Office of the Solicitor General, an Ex Parte
Application for the Issuance of Bank Inquiry Order to examine or inquire into any particular deposit or
investment account that is related an unlawful activity or ML offense.

RULE 17 – PROHIBITED ACCOUNTS

Section 1. Anonymous Accounts and Accounts under Fictitious Names.

1.1. Covered persons shall maintain customers’ account only in the true and full name of the
account owner or holder.
1.2. Anonymous accounts, accounts under fictitious names, and all other similar accounts shall
be absolutely prohibited.

Section 2. Numbered Accounts.

2.1. Numbered accounts, except non-checking numbered accounts, shall not be allowed.