ra 9160

ection 1. Short Title. – This Act shall be known as the "Anti-Money Laundering Act of 2001."

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 whenever
committed.

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

(a) "Covered Institution" refers to:

(1) banks, non-banks, quasi-banks, trust entities, and all other institutions and their subsidiaries
and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas (BSP);

(2) Insurance companies and all other institutions supervised or regulated by the Insurance
Commission; and

(3) (i) securities dealers, brokers, salesmen, investment houses and other similar entities
managing securities or rendering services as investment agent, advisor, or consultant, (ii)
mutual funds, close and investment companies, common trust funds, pre-need companies 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 or regulated by Securities and Exchange Commission.

(b) "Covered transaction" is a single, series, or combination of transactions involving a total

amount in excess of Four million Philippine pesos (Php4,000,000.00) or an equivalent amount in
foreign currency based on the prevailing exchange rate within five (5) consecutive banking days
except those between a covered institution and a person who, at the time of the transaction was
a properly identified client and the amount is commensurate with the business or financial
capacity of the client; or those with an underlying legal or trade obligation, purpose, origin or
economic justification.

It likewise refers to a single, series or combination or pattern of unusually large and complex
transactions in excess of Four million Philippine pesos (Php4,000,000.00) especially cash
deposits and investments having no credible purpose or origin, underlying trade obligation or
contract.

(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 marked instruments; and

(4) other similar instruments where title thereto passes to another by endorsement, assignment
or delivery.

(d) "Offender" refers to any person who commits a money laundering offense.

(e) "Person" refers to any natural or juridical person.

(f) "Proceeds" refers to an amount derived or realized from an unlawful activity.

(g) "Supervising Authority" refers to the appropriate supervisory or regulatory agency,

department or office supervising or regulating the covered institutions enumerated in Section
3(a).

(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.

(l) "Unlawful activity" refers to any act or omission or series or combination thereof involving or
having relation to the following:

(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the Revised
Penal Code, as amended;

(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. 6425, as amended, otherwise
known as the Dangerous Drugs Act of 1972;

(3) 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;

(4) Plunder under Republic Act No. 7080, as amended;

(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the Revised
Penal Code, as amended;

(6) Jueteng and Masiao punished as illegal gambling under Presidential Decree No. 1602;

(7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential
Decree No. 532;
(8) Qualified theft under, Article 310 of the Revised Penal Code, as amended;

(9) Swindling under Article 315 of the Revised Penal Code, as amended;

(10) Smuggling under Republic Act Nos. 455 and 1937;

(11) Violations under Republic Act No. 8792, otherwise known as the Electronic Commerce Act
of 2000;

(12) 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;

(13) Fraudulent practices and other violations under Republic Act No. 8799, otherwise known as
the Securities Regulation Code of 2000;

(14) Felonies or offenses of a similar nature that are punishable under the penal laws of other
countries.

Section 4. Money Laundering Offense. – Money laundering is a crime whereby the proceeds of
an unlawful activity 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.

Section 5. Jurisdiction of Money Laundering Cases. – The regional trial courts shall have
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.

Section 6. 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 herein defined.

(b) Any proceeding relating to the unlawful activity shall be given precedence over the
prosecution of any offense or violation under this Act without prejudice to the freezing and other
remedies provided.
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 require and receive covered 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 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, whenever 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 initiate investigations of covered transactions, money laundering activities and other
violations of this Act;

(6) to freeze any monetary instrument or property alleged to be proceed of any unlawful activity;

(7) to implement such measures as may be necessary and justified under this Act to counteract
money laundering;

(8) to receive and take action in respect of, any request from foreign states for assistance in
their own anti-money laundering operations provided in this Act;

(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; and

(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.

Section 8. Creation of a Secretariat. – The AMLC is hereby authorized to establish a secretariat

to be headed by an Executive Director who shall be appointed by the Council for a term of five
(5) years. He must be a member of the Philippine Bar, at least thirty-five (35) years of age and of
good moral character, unquestionable integrity and known probity. All members of the
Secretariat must have served for at least five (5) years either in the Insurance Commission, the
Securities and Exchange Commission or the Bangko Sentral ng Pilipinas (BSP) and shall hold
full-time permanent positions within the BSP.

Section 9. Prevention of Money Laundering; Customer Identification Requirements and Record

Keeping. –

(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.

The provisions of existing laws to the contrary notwithstanding, anonymous accounts, accounts
under fictitious names, and all other similar accounts shall be absolutely prohibited. Peso and
foreign currency non-checking numbered accounts shall be allowed. The BSP may conduct
annual testing solely limited to the determination of the existence and true identity of the owners
of such accounts.

(b) Record Keeping – All records of all transactions of covered institutions shall be maintained
and safely stored for five (5) years from the date of transactions. With respect to closed
accounts, the records on customer identification, account files and business correspondence,
shall be preserved and safety stored for at least five (5) years from the dates when they were
closed.

(c) Reporting of Covered Transactions. – Covered institutions shall report to the AMLC all
covered transactions within five (5) working days from occurrence thereof, unless the
Supervising Authority concerned prescribes a longer period not exceeding ten (10) working
days.

When reporting covered transactions to the AMLC, covered institutions and their officers,
employees, representatives, agents, advisors, consultants or associates shall not be deemed to
have violated Republic Act No. 1405, as amended; Republic Act No. 6426, as amended;
Republic Act 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 transaction
report was made, the contents thereof, or any other information in relation thereto. In case of
violation thereof, the concerned officer, employee, representative, agent, advisor, consultant or
associate of the covered institution, shall be criminally liable. However, 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 this Act or any other Philippine law.

When reporting covered transactions to the AMLC, covered institutions and their officers,
employees, representatives, agents, advisors, consultants or associates 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 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, employee, representative, agent, advisor, consultant or associate of the
covered institution, or media shall be held criminally liable.

Section 10. Authority to Freeze. – Upon determination that probable cause exists that any
deposit or similar account is in any way related to an unlawful activity, the AMLC may issue a
freeze order, which shall be effective immediately, on the account for a period not exceeding
fifteen (15) days. Notice to the depositor that his account has been frozen shall be issued
simultaneously with the issuance of the freeze order. The depositor shall have seventy-two (72)
hours upon receipt of the notice to explain why the freeze order should be lifted. The AMLC has
seventy-two (72) hours to dispose of the depositor's explanation. If it falls to act within
seventy-two (72) hours from receipt of the depositor's explanation, the freeze order shall
automatically be dissolved. The fifteen (15)-day freeze order of the AMLC may be extended
upon order of the court, provided that the fifteen (15)-day period shall be tolled pending the
court's decision to extend the period.

No court shall issue a temporary restraining order or writ of injunction against any freeze order
issued by the AMLC except the Court of Appeals or the Supreme Court.

Section 11. Authority to inquire into Bank Deposits. – 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 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 in any way related to a money laundering offense:
Provided, That this provision shall not apply to deposits and investments made prior to the
effectivity of this Act.

Section 12. Forfeiture Provisions. –

(a) Civil Forfeiture. – When there is a covered transaction report made, and the court has, in a
petition filed for the purpose ordered 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.

(b) 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
defined under Section 4 of this Act, 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 or forfeiture, in default of which
the said order shall become final and executory. This provision shall apply in both civil and
criminal forfeiture.

(c) 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 defined under Section 4,
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.

Section 13. Mutual Assistance among States. –

(a) 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.

(b) Power 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 this Act; (2) giving information needed by the foreign State within the
procedures laid down in this Act; 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 properly of a person who
has been convicted of a money laundering offense in the requesting State, and a certification of
an affidavit of a competent officer of the requesting State stating that the conviction and the
order of forfeiture are final and then no further appeal lies in respect or either.

(c) 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.

(d) Limitations on Request 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.

(e) Requirements for Requests for Mutual Assistance from Foreign State. – 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) gives sufficient particulars
as to the identity of said person; (4) give particulars sufficient to identity 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
detained 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.

(f) Authentication of Documents. – For purposes of this Section, 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.

(g) Extradition. – The Philippines shall negotiate for the inclusion of money laundering offenses
as herein defined among extraditable offenses in all future treaties.

Section 14. Penal Provisions. –

(a) Penalties for the Crime of Money Laundering. The penalty of imprisonment ranging from
seven (7) to fourteen (14) years and a fine of not less than Three million Philippine pesos (Php
3,000,000.00) 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 this Act.

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 (Php 1,500,000.00) but not more than Three
million Philippine pesos (Php 3,000,000.00), shall be imposed upon a person convicted under
Section 4(b) of this Act.

The penalty of imprisonment from six (6) months to four (4) years or a fine of not less than One
hundred thousand Philippine pesos (Php 100,000.00) but not more than Five hundred thousand
Philippine pesos (Php 500,000.00), or both, shall be imposed on a person convicted under
Section 4(c) of this Act.

(b) 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 (Php 100,000.00)
but not more than Five hundred thousand Philippine pesos (Php 500,000.00), or both, shall be
imposed on a person convicted under Section 9(b) of this Act.

(c) Malicious Reporting. Any person who, with malice, or in bad faith, report 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 (Php 100,000.00) but not more than Five
hundred thousand Philippine pesos (Php 500,000.00), at the discretion of the court: Provided,
That the offender is not entitled to avail the benefits of the Probation Law.

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 the
commission of the crime or who shall have knowingly permitted or failed to prevent its
commission. 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;

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.

(d) 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 (Php 500,000.00) 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).

Section 15. System of Incentives and Rewards. – A system of special incentives and rewards is
hereby established to be given to the appropriate government agency and its personnel that led
and initiated an investigation, prosecution and conviction of persons involved in the offense
penalized in Section 4 of this Act.

Section 16. Prohibitions Against Political Harassment. – This Act shall not be used for political
prosecution or harassment or as an instrument to hamper competition in trade and commerce.

No case for money laundering may be filed against and no assets shall be frozen, attached or
forfeited to the prejudice of a candidate for an electoral office during an election period.

Section 17. Restitution. – Restitution for any aggrieved party shall be governed by the
provisions of the New Civil Code.

Section 18. Implementing Rules and Regulations. – Within thirty (30) days from the effectivity of
this Act, the Bangko Sentral ng Pilipinas, the Insurance Commission and the Securities and
Exchange Commission shall promulgate the rules and regulations to implement effectivity the
provisions of this Act. Said rules and regulations shall be submitted to the Congressional
Oversight Committee for approval.

Covered institutions shall formulate their respective money laundering prevention programs in
accordance with this Act including, but not limited to, information dissemination on money
laundering activities and its prevention, detection and reporting, and the training of responsible
officers and personnel of covered institutions.

Section 19. 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.

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.

Section 20. Appropriations Clause. – The AMLC shall be provided with an initial appropriation of
Twenty-five million Philippine pesos (Php 25,000,000.00) to be drawn from the national
government. Appropriations for the succeeding years shall be included in the General
Appropriations Act.

Section 21. Separability Clause. – If any provision or section of this Act or the application
thereof to any person or circumstance is held to be invalid, the other provisions or sections of
this Act, and the application of such provision or section to other persons or circumstances,
shall not be affected thereby.
Section 22. 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 this Act, are hereby repealed, amended or modified accordingly.

Section 23. Effectivity. – This Act shall take effect fifteen (15) days after its complete publication
in the Official Gazette or in at least two (2) national newspapers of general circulation.

The provisions of this Act shall not apply to deposits and investments made prior to its
effectivity.

ra 10167

Section 1. Section 10 of Republic Act No. 9160, as amended, is hereby amended to read as
follows:

"SEC. 10. Freezing of Monetary Instrument or Property. – 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 as defined in Section 3(i) hereof, the Court
of Appeals may issue a freeze order, which shall be effective immediately. The freeze order
shall be for a period of twenty (20) days unless extended by the court. 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."

"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 twenty (20)-day original freeze order."

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

Section 2. Section 11 of the same Act is hereby amended to read as follows:

"SEC. 11. Authority to Inquire into Bank Deposits. – 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,
including related accounts, with any banking institution or non-bank financial institution upon
order of any competent court based on an ex parte application in cases of violations of this Act,
when it has been established that there is probable cause that the deposits or investments,
including related accounts involved, are related to an unlawful activity as defined in Section 3(i)
hereof or a money laundering offense under Section 4 hereof; except that no court order shall
be required in cases involving activities defined in Section 3(i)(1), (2), and (12) hereof, and
felonies or offenses of a nature similar to those mentioned in Section 3(i)(1), (2), and (12), which
are Punishable under the penal laws of other countries, and terrorism and conspiracy to commit
terrorism as defined and penalized under Republic Act No. 9372."

"The Court of Appeals shall act on the application to inquire into or examine any deposit or
investment with any banking institution or non-bank financial institution within twenty-four (24)
hours from filing of the application."

"To ensure compliance with this Act, the Bangko Sentral ng Pilipinas may, in the course of a
periodic or special examination, check the compliance of a Covered institution with the
requirements of the AMLA and its implementing rules and regulations."

"For purposes of this section, ‘related accounts’ shall refer to 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)."

"A court order ex parte must first be obtained before the AMLC can inquire into these related
Accounts: Provided, That the procedure for the ex parte application of the ex parte court order
for the principal account shall be the same with that of the related accounts."

"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, which are
hereby incorporated by reference."

Section 3. Separability Clause. – If any provision of this Act or the application thereof to any
person or circumstance is held to be void, or unconstitutional, any other provision not affected
thereby shall remain in full force and effect.

Section 4. Repealing Clause. – All laws, decrees, executive orders, rules and regulations or
parts thereof as are inconsistent with this Act are hereby repealed, amended or modified
accordingly: Provided, That the penal provisions shall not apply to acts done prior to the
effectivity of the AMLA on October 17, 2001 .

Section 5. Effectivity. – This Act shall take effect fifteen (15) days after its complete publication
in the Official Gazette or in at least two (2) national newspapers of general circulation

ra 10365

Section 1. Section 3(a) of Republic Act No. 9160, as amended, is hereby amended to read as
follows:

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

"(1) banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops,
money changers, remittance and transfer companies and other similar entities and all other
persons and their subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng
Pilipinas (BSP);

"(2) insurance companies, pre-need companies and all other persons supervised or regulated
by the Insurance Commission (IC);

"(3) (i) securities dealers, brokers, salesmen, investment houses and other similar persons
managing securities or rendering services as investment agent, advisor, or consultant, (ii)
mutual funds, close-end investment companies, common trust funds, and other similar persons,
and (iii) 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 or regulated by the Securities and Exchange Commission
(SEC);

"(4) jewelry dealers in precious metals, who, as a business, trade in precious metals, for
transactions in excess of One million pesos (P1,000,000.00);

"(5) jewelry dealers in precious stones, who, as a business, trade in precious stones, for
transactions in excess of One million pesos (P1,000,000.00);

"(6) company service providers which, as a business, provide any of the following services to
third parties: (i) acting as a formation agent of juridical persons; (ii) 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; (iii) 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 (iv) acting as (or
arranging for another person to act as) a nominee shareholder for another person; and

"(7) persons who provide any of the following services:

(i) managing of client money, securities or other assets;

(ii) management of bank, savings or securities accounts;

(iii) organization of contributions for the creation, operation or management of companies; and

(iv) creation, operation or management of juridical persons or arrangements, and buying and
selling business entities.

"Notwithstanding the foregoing, the term ‘covered persons’ shall exclude lawyers and
accountants 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: Provided, That these lawyers and accountants are authorized to
practice in the Philippines and shall continue to be subject to the provisions of their respective
codes of conduct and/or professional responsibility or any of its amendments."
Section 2. Section 3(i) of the same Act is hereby amended to read as follows:

"(i) ‘Unlawful activity’ refers to any act or omission or series or combination thereof involving or
having direct relation to the following:

"(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the Revised
Penal Code, as amended;

"(2) 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;

"(3) 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;

"(4) Plunder under Republic Act No. 7080, as amended;

"(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the Revised
Penal Code, as amended;

"(6) Jueteng and Masiao punished as illegal gambling under Presidential Decree No. 1602;

"(7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential
Decree No. 532;

"(8) Qualified theft under Article 310 of the Revised Penal Code, as amended;

"(9) Swindling under Article 315 and Other Forms of Swindling under Article 316 of the Revised
Penal Code, as amended;

"(10) Smuggling under Republic Act Nos. 455 and 1937;

"(11) Violations of Republic Act No. 8792, otherwise known as the Electronic Commerce Act of
2000;

"(12) Hijacking and other violations under Republic Act No. 6235; destructive arson and murder,
as defined under the Revised Penal Code, as amended;

"(13) Terrorism and conspiracy to commit terrorism as defined and penalized under Sections 3
and 4 of Republic Act No. 9372;

"(14) 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:

"(15) Bribery under Articles 210, 211 and 211-A of the Revised Penal Code, as amended, and
Corruption of Public Officers under Article 212 of the Revised Penal Code, as amended;
"(16) Frauds and Illegal Exactions and Transactions under Articles 213, 214, 215 and 216 of the
Revised Penal Code, as amended;

"(17) Malversation of Public Funds and Property under Articles 217 and 222 of the Revised
Penal Code, as amended;

"(18) Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169 and 176 of the
Revised Penal Code, as amended;

"(19) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known as the
Anti-Trafficking in Persons Act of 2003;

"(20) Violations of Sections 78 to 79 of Chapter IV, of Presidential Decree No. 705, otherwise
known as the Revised Forestry Code of the Philippines, as amended;

"(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act No. 8550, otherwise known
as the Philippine Fisheries Code of 1998;

"(22) Violations of Sections 101 to 107, and 110 of Republic Act No. 7942, otherwise known as
the Philippine Mining Act of 1995;

"(23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic Act No. 9147, otherwise known
as the Wildlife Resources Conservation and Protection Act;

"(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise known as the National Caves
and Cave Resources Management Protection Act;

"(25) Violation of Republic Act No. 6539, otherwise known as the Anti-Carnapping Act of 2002,
as amended;

"(26) Violations of Sections 1, 3 and 5 of Presidential Decree No. 1866, as amended, otherwise
known as the decree Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing
In, Acquisition or Disposition of Firearms, Ammunition or Explosives;

"(27) Violation of Presidential Decree No. 1612, otherwise known as the Anti-Fencing Law;

"(28) Violation of Section 6 of Republic Act No. 8042, otherwise known as the Migrant Workers
and Overseas Filipinos Act of 1995, as amended by Republic Act No. 10022;

"(29) Violation of Republic Act No. 8293, otherwise known as the Intellectual Property Code of
the Philippines;

"(30) Violation of Section 4 of Republic Act No. 9995, otherwise known as the Anti-Photo and
Video Voyeurism Act of 2009;

"(31) Violation of Section 4 of Republic Act No. 9775, otherwise known as the Anti-Child
Pornography Act of 2009;
"(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and 14 of Republic Act No. 7610,
otherwise known as the Special Protection of Children Against Abuse, Exploitation and
Discrimination;

"(33) Fraudulent practices and other violations under Republic Act No. 8799, otherwise known
as the Securities Regulation Code of 2000; and

"(34) Felonies or offenses of a similar nature that are punishable under the penal laws of other
countries."

Section 3. Section 3 of the same Act shall have new paragraphs (j) and (k).

"(j) Precious metals’ shall mean gold, silver, platinum, palladium, rhodium, ruthenium, iridium
and osmium. These include alloys of precious metals, solders and plating chemicals such as
rhodium and palladium plating solutions and potassium gold cyanide and potassium silver
cyanide and silver cyanide in salt solution.

"(k) ‘Precious stones’ shall mean diamond, ruby, emerald, sapphire, opal, amethyst, beryl,
topaz, and garnet that are used in jewelry making, including those formerly classified as
semi-precious stones."

Section 4. Section 4 of the same Act is hereby amended to read as follows:

"SEC. 4. Money Laundering Offense. – 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:

"(a) transacts said monetary instrument or property;

"(b) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary
instrument or property;

"(c) conceals or disguises the true nature, source, location, disposition, movement or ownership
of or rights with respect to said monetary instrument or property;

"(d) attempts or conspires to commit money laundering offenses referred to in paragraphs (a),
(b) or (c);

"(e) aids, abets, assists in or counsels the commission of the money laundering offenses
referred to in paragraphs (a), (b) or (c) above; and

"(f) performs or fails to perform any act as a result of which he facilitates the offense of money
laundering referred to in paragraphs (a), (b) or (c) above.

"Money laundering is also committed by any covered person who, knowing that a covered or
suspicious transaction is required under this Act to be reported to the Anti-Money Laundering
Council (AMLC), fails to do so."
Section 5. Section 6(a) of the same Act is hereby amended to read as follows:

"SEC. 6. 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 herein defined.

"(b) The prosecution of any offense or violation under this Act shall proceed independently of
any proceeding relating to the unlawful activity."

Section 6. Section 7 of the same Act is hereby amended to read as follows:

"SEC. 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:

"x x x

"(6) to apply before the Court of Appeals, ex parte, for the freezing of any monetary instrument
or property alleged to be laundered, proceeds from, or instrumentalities used in or intended for
use in any unlawful activity as defined in Section 3(i) hereof;

"x x x

"(12) to require the Land Registration Authority and all its Registries of Deeds to submit to the
AMLC, reports on all real estate transactions involving an amount in excess of Five hundred
thousand pesos (P500,000.00) within fifteen (15) days from the date of registration of the
transaction, in a form to be prescribed by the AMLC. The AMLC may also require the Land
Registration Authority and all its Registries of Deeds to submit copies of relevant documents of
all real estate transactions."

Section 7. Section 9(c), paragraphs 1 and 4 of the same Act are hereby amended to read as
follows:

"SEC. 9. Prevention of Money Laundering; Customer Identification Requirements and Record

Keeping. –

"(a) x x x

"(b) x x x

"(c) Reporting of Covered and Suspicious Transactions. – Covered persons shall report to the
AMLC all covered transactions and suspicious transactions within five (5) working days from
occurrence thereof, unless the AMLC prescribes a different period not exceeding fifteen (15)
working days.
"Lawyers and accountants acting as independent legal professionals are not required to report
covered and suspicious transactions if the relevant information was obtained in circumstances
where they are subject to professional secrecy or legal professional privilege.

"x x x

"x x x

"When reporting covered or suspicious transactions to the AMLC, covered persons and their
officers and employees are prohibited from communicating, directly or indirectly, in any manner
or by any means, to any person or entity, the media, the fact that a covered or suspicious
transaction has been reported or is about to be reported, the contents of the report, 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 person and media shall be held criminally
liable."

Section 8. Section 10 of the same Act, as amended by Republic Act No. 10167, is hereby
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, and which shall not
exceed six (6) months depending upon the circumstances of the case: Provided, That if there is
no case filed against a person whose account has been frozen within the period determined by
the court, 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.

"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."

Section 9. Section 12 of the same Act is hereby amended to read as follows:

"(a) Civil Forfeiture. – Upon determination by the AMLC 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) or a money laundering offense under Section 4 hereof, the AMLC shall file with the
appropriate court through the Office of the Solicitor General, a verified ex parte petition for
forfeiture, and the Rules of Court on Civil Forfeiture shall apply.
"The forfeiture shall include those other monetary instrument or property having an equivalent
value to that of the monetary instrument or property found to be related in any way to an
unlawful activity or a money laundering offense, when with due diligence, the former cannot be
located, or it has been substantially altered, destroyed, diminished in value or otherwise
rendered worthless by any act or omission, or it has been concealed, removed, converted, or
otherwise transferred, 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 instrument
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.

"(b) 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
defined under Section 4 of this Act, 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 forfeiture, within
fifteen (15) days from the date of the finality of the order of forfeiture, in default of which the said
order shall become final and executor. This provision shall apply in both civil and criminal
forfeiture.

"(c) 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 defined under Section 4,
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."

Section 10. Section 14 of the same Act, as amended, is hereby further amended to read as
follows:

"SEC. 14. Penal Provisions. – (a) Penalties for the Crime of Money Laundering. 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), (b), (c) and (d) of this Act.
"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(e) and (f) of this Act.

"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 the
last paragraph of Section 4 of this Act.

"(b) x x x

"(c) x x x

"(d) x x x

"(e) The penalty of imprisonment ranging from four (4) to seven (7) years and a fine
corresponding to not more than two hundred percent (200%) of the value of the monetary
instrument or property laundered shall be imposed upon the covered person, its directors,
officers or pesonnel who knowingly participated in the commission of the crime of money
laundering.

"(f) Imposition of Administrative Sanctions. The imposition of the administrative sanctions shall
be without prejudice to the filing of criminal charges against the persons responsible for the
violation.

"After due notice and hearing, the AMLC shall, at its discretion, impose sanctions, including
monetary penalties, warning or reprimand, upon any covered person, its directors, officers,
employees or any other person for the violation of this Act, its implementing rules and
regulations, or for failure or refusal to comply with AMLC orders, resolutions and other
issuances. Such monetary penalties shall be in amounts as may be determined by the AMLC to
be appropriate, which shall not be more than Five hundred thousand Philippine pesos
(P500,000.00) per violation.1âwphi1

"The AMLC may promulgate rules on fines and penalties taking into consideration the attendant
circumstances, such as the nature and gravity of the violation or irregularity.

"(g) The provision of this law shall not be construed or implemented in a manner that will
discriminate against certain customer types, such as politically-exposed persons, as well as
their relatives, or against a certain religion, race or ethnic origin, or such other attributes or
profiles when used as the only basis to deny these persons access to the services provided by
the covered persons. Whenever a bank, or quasi-bank, financial institution or whenever any
person or entity commits said discriminatory act, the person or persons responsible for such
violation shall be subject to sanctions as may be deemed appropriate by their respective
regulators."
Section 11. New sections are hereby inserted after Section 19 of the same Act, as amended, to
read as follows:

"SEC. 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 operations of the BIR."

"SEC. 21. 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,
which are hereby incorporated by reference. Likewise, the constitutional injunction against ex
post facto laws and bills of attainder shall be respected in the implementation of this Act."

Section 12. The succeeding sections are hereby renumbered accordingly.

Section 13. Separability Clause. – If any provision of this Act is declared unconstitutional, the
same shall not affect the validity and effectivity of the other provisions hereof.

Section 14. Repealing Clause. – All laws, decrees, orders, and issuances or portions thereof,
which are inconsistent with the provisions of this Act, are hereby repealed, amended or modified
accordingly.

Section 15. Effectivity. – This Act shall take effect fifteen (15) days following its publication in at
least two (2) national newspapers of general circulation.

ra 10927

Section 1. Section 3(a) of Republic Act No. 9160, as amended, is hereby further amended to
read as follows:

"(a) ‘Covered persons’, natural on juridical, refer to:

"x x x

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

"x x x"

Section 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 (₱500,000.00) within one (1)
banking day; for covered persons under Section 3(a)(8), a single casino transaction involving an
amount in excess of Five million pesos (₱5,000,000.00) or its equivalent in any other currency.
Section 3. Sector 3 of Republic Act No. 9160, as amended, is hereby further amended by
inserting a new paragraph (l) to read as follows:

"x x x

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

"(1) ‘Casino’ refers to a business authorized by the appropriate goverment agency to engage in
gaming operations:

"(i) ‘Internet-based casinos’ shall refer a 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 of the casino offering games of chance and any
variations thereof approved by the appropriate government authorities."

Section 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 Cout 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 seemed 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 no working 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 or
value of the proceeds of the predicate offense.

"x x x."

Section 5. Section of Republic Act No. 9160 is hereby amended by inserting a new paragraph a
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 institiations
shall not apply to casinos unless it is expressly so provided under the rules and regulations to
implement the provisions of this Act."

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

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

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

ra 11521

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.ℒαwρhi৷ 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."

Section 9. Implementing Rules and Regulations. - The AMLC shall, within ninety (90) days from
the effectivity of this Act, issue the necessary rules and regulations.

Section 10. Separability Clause. - If any provision or section of this Act is held to be
unconstitutional or invalid, the other provisions or sections hereof, which are not affected
thereby shall continue to be in full force and effect.

Section 11. Repealing Clause. - All provisions of existing laws, orders, rules and regulations, or
parts thereof which are in conflict or inconsistent with provisions of this Act are hereby repealed
or modified accordingly: Provided, That all provisions of Republic Act No. 9160, as amended,
which are not inconsistent with this Act are hereby adopted.

Section 12. Effectivity.- This Act shall take effect immediately after the completion of its
publication in the Official Gazette or in a newspaper of general circulation.