THE ANTI-MONEY LAUNDERING ACT

Republic Act (R.A.) No. 9160

as amended by R.A. Nos. 9194, 10167, 10365, 10927 and 11521
AN ACT DEFINING THE CRIME OF MONEY LAUNDERING,
PROVIDING PENALTIES THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines

in Congress assembled:

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

SEC. 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 resolutions of
the United Nations Council. (As amended by R.A. 11521, effective 30 January 2021)

SEC. 3. Definitions. – For purposes of this Act, the following terms are hereby
defined 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; an

(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);

1
 (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;

(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. (As amended by R.A. 10365, effective 8 March 2013; and R.A.
No. 10927)

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

(9) Real estate developers and brokers; and

2
 (10) Offshore gaming operators, as well as their service providers, supervised,
accredited or regulated by the Philippine Amusement and Gaming
Corporation (PAGCOR) or any government agency. (As amended by R.A.
11521, effective 30 January 2021)

(b) "Covered transaction" is a transaction in cash or other equivalent monetary

instrument involving a total amount in excess of Five hundred thousand pesos
(P500,000.00) within one (1) banking day; for covered persons under Section
3(a)(8), a single casino cash transaction involving an amount in excess of Five
million pesos (P5,000,000.00) or its equivalent in any other currency. (As
amended by R.A. 9194, effective 23 March 2003; and R.A. 10927).

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
(7,500,000.00) or its equivalent in any other currency. (As amended by R.A.
11521, effective 30 January 2021)

(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. (New
provision under R.A. 9194, effective 23 March 2003).

(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

3
 instruments, trading orders, transaction tickets and confirmations of sale or
investments and money market 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 persons
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 person.

(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; (As
amended by R.A. 10365, effective 8 March 2013)

(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; (As amended by R.A. 10365, effective
8 March 2013)

4
(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; (As
amended by R.A. 10365, effective 8 March 2013)

(13) Terrorism and conspiracy to commit terrorism as defined and penalized under
Sections 3 and 4 of Republic Act No. 9372; (New provision under R.A. 10365,
effective 8 March 2013)

(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; (New provision
under R.A. 10365, effective 8 March 2013)

(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; (New provision under R.A. 10365, effective 8
March 2013)

(16) Frauds and Illegal Exactions and Transactions under Articles 213, 214, 215
and 216 of the Revised Penal Code, as amended; (New provision under R.A.
10365, effective 8 March 2013)

(17) Malversation of Public Funds and Property under Articles 217 and 222 of the
Revised Penal Code, as amended; (New provision under R.A. 10365,
effective 8 March 2013)

(18) Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169 and 176
of the Revised Penal Code, as amended; (New provision under R.A. 10365,
effective 8 March 2013)

(19) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known as

the Anti-Trafficking in Persons Act of 2003; (New provision under R.A. 10365,
effective 8 March 2013)

(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; (New provision under R.A. 10365, effective 8 March 2013)

(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act No. 8550,
otherwise known as the Philippine Fisheries Code of 1998; (New provision
under R.A. 10365, effective 8 March 2013)

(22) Violations of Sections 101 to 107, and 110 of Republic Act No. 7942,
otherwise known as the Philippine Mining Act of 1995; (New provision under
R.A. 10365, effective 8 March 2013)

5
(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;
(New provision under R.A. 10365, effective 8 March 2013)

(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise known as the
National Caves and Cave Resources Management Protection Act; (New
provision under R.A. 10365, effective 8 March 2013)

(25) Violation of Republic Act No. 6539, otherwise known as the Anti-Carnapping
Act of 2002, as amended; (New provision under R.A. 10365, effective 8 March
2013)

(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; (New provision under R.A.
10365, effective 8 March 2013)

(27) Violation of Presidential Decree No. 1612, otherwise known as the Anti-
Fencing Law; (New provision under R.A. 10365, effective 8 March 2013)

(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; (New provision under R.A. 10365, effective 8 March
2013)

(29) Violation of Republic Act No. 8293, otherwise known as the Intellectual
Property Code of the Philippines; (New provision under R.A. 10365, effective
8 March 2013)

(30) Violation of Section 4 of Republic Act No. 9995, otherwise known as the Anti-
Photo and Video Voyeurism Act of 2009; (New provision under R.A. 10365,
effective 8 March 2013)

(31) Violation of Section 4 of Republic Act No. 9775, otherwise known as the Anti-
Child Pornography Act of 2009; (New provision under R.A. 10365, effective 8
March 2013)

(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; (New provision under R.A. 10365,
effective 8 March 2013)

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

(34)Violation of Section 19 (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

6
 Security Council Resolution Numbers 1718 of 2006 and 2231 of 2015; (New
provision under R.A. 11521, effective 30 January 2021)

(35)Violations 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 misrepresentation 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 (New provision under
R.A. 11521, effective 30 January 2021)

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

(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. (New provision under R.A. 10365, effective 8 March 2013)

(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. (New provision under R.A. 10365, effective 8
March 2013)

(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 government

agency to engage in gaming operations;

(i) “Internet-based casino” shall refer to casinos in which persons participate

by the use of remote communication facilities such as, but not limited to,
internet, telephone, television, radio or any other kind of electronic or other
technology for facilitating communication; and

(ii) “Ship-based casino” shall refer to casinos, the operation of which is

undertaken on board a vessel, ship, boat or any other water-based craft
wholly or partly intended for gambling;

(2) “Casino cash transaction” refers to transactions involving the receipt of cash
by a casino paid by or in 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;

7
 (3) “Gaming operations” refers to the activities of the casino offering games of
chance and any variations thereof approved by the appropriate government
authority; (New provision under R.A. 10927)

(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; and (New
provision under R.A. 11521, effective 30 January 2021)

(5) “Service providers” refer to duly constituted business corporations who

provide components of offshore gaming operations to offshore gaming
operators. (New provision under R.A. 11521, effective 30 January 2021)

(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. (New provision under R.A. 11521,
effective 30 January 2021)

(n) “Real estate broker” refers to a duly registered and licensed natural person who,
for a professional fee, commission 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
transactions on real estate or any interest therein. (New provision under R.A.
11521, effective 30 January 2021)

(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 resolutions and its
designation processes. (New provision under R.A. 11521, effective 30 January
2021)

(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 Numbers 1718 of 2006 and 2231 of
2015. (New provision under R.A. 11521, effective 30 January 2021)

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;

8
 (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. (As amended by R.A. 10365,
effective 8 March 2013)

SEC. 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.

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. (As amended
by R.A. 10365, effective 8 March 2013)

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:

(1) to require, receive and analyze covered or suspicious transactions reports

from covered persons; (As amended by R.A. 11521, effective 30 January
2021)

(2) to issue orders addressed to the appropriate Supervising Authority or the

covered person to determine the true identity of the owner of any monetary
instrument or property subject of a covered transaction or suspicious
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,

9
 wherever 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 investigate suspicious transactions and covered transactions deemed

suspicious after determination by AMLC, money laundering activities, and
other violations of this Act; (As amended by R.A. 11521, effective 30 January
2021)

(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; (As amended by R.A. 10365, effective 8 March 2013)

(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;

(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;

(11) to impose administrative sanctions for the violation of laws, rules, regulations
and orders and resolutions issued pursuant thereto; (New provision under
R.A. 9194, effective 23 March 2003)

(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; (As amended by R.A. 10365,
effective 8 March 2013)

10
 (13) in the conduct of its investigation, the AMLC shall apply for the issuance of a
search and seizure order with any competent court; (New provision under
R.A. 11521, effective 30 January 2021)

(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; (New provision under R.A. 11521, effective 30 January 2021)

(15) to implement target 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 (New provision under R.A. 11521, effective 30 January 2021)

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

preservation order, or judgement 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. (New provision under R.A. 11521,
effective 30 January 2021)

SEC. 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.

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
matter, 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. (New provision under R.A. 11521, effective 30 January 2021)

SEC. 9. Prevention of Money Laundering; Customer Identification Requirements

and Record Keeping.

(a) Customer Identification. – Covered persons 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

11
 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 persons shall be
maintained and safely stored for five (5) years from the dates of transactions.
With respect to closed accounts, the records on customer identification, account
files and business correspondence, shall be preserved and safely stored for at
least five (5) years from the dates when they were closed.

(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. (As amended by R.A.
10365, effective 8 March 2013)

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. (New provision under R.A. 10365, effective 8 March
2013)

Should a transaction be determined to be both a covered transaction and a

suspicious transaction, the covered person shall be required to report the same
as a suspicious transaction. (New provision under R.A. 9194, effective 23 March
2003)

When reporting covered or suspicious transactions to the AMLC, covered

persons and their officers and employees 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 or suspicious transaction report was made, the
contents thereof, or any other information in relation thereto. In case of violation
thereof, the concerned officer and employee of the covered person shall be
criminally liable. However, no administrative, criminal or civil proceedings, shall
lie against any person for having made a covered or suspicious transaction
report in the regular performance of his duties in good faith, whether or not such
reporting results in any criminal prosecution under this Act or any other law. (As
amended by R.A. 9194, effective 23 March 2003)

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

12
 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. (As amended by R.A. 10365, effective 8
March 2013)

SEC. 10. Freezing of 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 to 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. (As amended by R.A.
10365, effective 8 March 2013; and R.A. No. 10927)

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

proliferation of weapons of mass destruction and its financing, as provided

13
 under Section 3(15), the AMLC shall have the power to issue, ex parte, 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 the monthly family
needs and sustenance including the services of counsel and the family
medical needs of such person.

The AMLC, if circumstances warrant, may initiate civil forfeiture

proceedings to preserve the assets and to protect it from dissipation. 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. (New provision under R.A. 11521, effective 30 January 2021)

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
person 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

14
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. (As amended by
R.A. 10167, effective 6 July 2012)

SEC. 12. Forfeiture Provisions. –

(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..

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. (As amended by R.A. 10365,
effective 8 March 2013)

(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 executory.
This provision shall apply in both civil and criminal forfeiture. (As amended by
R.A. 10365, effective 8 March 2013)

(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

15
 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.

(d) No court shall issue a temporary restraining order (TRO) or a writ of injunction
against any provisional asset preservation order or asset preservation order,
except the Court of Appeals or the Supreme Court. (New provision under R.A.
11521, effective 30 January 2021)

SEC. 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) Powers 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 property of a person who has been convicted of a money laundering offense
in the requesting State, and a certification or an affidavit of a competent officer of
the requesting State stating that the conviction and the order of forfeiture are
final and that no further appeal lies in respect of 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

16
 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 Requests 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 States. - 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) give sufficient
particulars as to the identity of said person; (4) give particulars sufficient to
identify any covered person believed to have any information, document,
material or object which may be of assistance to the investigation or prosecution;
(5) ask from the covered person 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 obtained 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.

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

17
 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. (As amended by R.A. 10365, effective 8 March 2013)

(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 (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 Section 9(b) of this Act.

(c) Malicious Reporting. Any person who, with malice, or in bad faith, reports 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 (Php100,000.00) but not more than Five hundred thousand
Philippine pesos (Php500,000.00), 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, or allowed by their gross negligence, the
commission of the crime. 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. (As
amended by R.A. 9194, effective 23 March 2003)

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 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 (Php500,000.00) but not more than One
million Philippine pesos (Php1,000,000.00) shall be imposed on a person
convicted for a violation under Section 9(c) or Section 8-A on information security
and confidentiality of this Act. If the offender is a public official or employee, he

18
 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. (As amended by R.A. 9194, effective 23 March
2003, and R.A. 11521, effective 30 January 2021)

(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 personnel who knowingly participated in the
commission of the crime of money laundering. (New provision under R.A. 10365,
effective 8 March 2013)

(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.

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. (New provision under R.A. 10365, effective 8 March 2013)

(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. (New provision under R.A. 10365, effective 8 March 2013)

[SEC. 15. System of Incentives and Rewards. – Deleted under Sec. 10 of R.A. No.
9194]

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

19
 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.

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

SEC. 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 effectively the provisions of this Act. Said rules and
regulations shall be submitted to the Congressional Oversight Committee for
approval.

Covered persons 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 persons.

Within ninety (90) days from the effectivity of this Act, the AMLC, the
Philippine Amusement and Gaming Corporation (PAGCOR) and other government
regulatory agencies shall jointly promulgate the rules and regulations to implement
the provisions of this Act as applicable to casinos, as covered institutions. The
implementing rules applicable to other covered institutions shall not apply to casinos
unless it is expressly so provided under the rules and regulations to implement the
provisions of this Act. (New provision under R.A. 10927)

SEC. 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.

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. (New provision under R.A. 10365, effective 8 March 2013). The AMLC
may, however, coordinate with the BIR on investigations in relation to violations of
Section 254 of the NIRC, as amended, as a predicate offense to money laundering.
(As amended by R.A. 11521, effective 30 January 2021)

20
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. (New provision under R.A. 10365,
effective 8 March 2013)

SEC. 22. Appropriations Clause. – The AMLC shall be provided with an initial
appropriation of Twenty-five million Philippine pesos (Php25,000,000.00) to be
drawn from the national government. Appropriations for the succeeding years shall
be included in the General Appropriations Act. (As renumbered by R.A. 10365,
effective 8 March 2013)

SEC. 23. 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. (As renumbered by
R.A. 10365, effective 8 March 2013)

SEC. 24. 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. (As renumbered by R.A. 10365,
effective 8 March 2013)

SEC. 25. 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. (As amended by R.A. 9194, effective 23 March 2003)

21