Abud, Thrixie Joy O.

BSA – 2
RFBT – Saturday/ 10:00 AM – 12:00 PM

ANTI-LAUNDERNG MONEY ACT

As amended by R.A. 9194, R.A. 10167, R.A. 10365, R.A. 10927, and R.A
11521
[REPUBLIC ACT NO. 9160]
AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING
PENALTIES THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and the 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.”
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 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, 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.”
(8) casinos, including internet and ship-based casinos, with respect to their
casino cash transactiotus related to they gaming operations.
(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.

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

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.
(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 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, 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 an investigation by AMLC, money laundering activities, and other
violations of this Act;
(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;
(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; and
(11) to impose administrative sanctions for the violation of laws, rules, regulations
and orders and resolutions issued pursuant thereto.”
(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.”
(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 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 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 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 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.
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.
Should a transaction be determined to be both a covered transaction and a
suspicious transaction, the covered institution shall be required to report the
same as a suspicious transaction.
When reporting covered or suspicious transactions to the AMLC, covered
institutions 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 institution 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.
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 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. 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 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 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, 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.”
(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 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 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 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
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
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.
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
(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) 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 (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, 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.
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 (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."
(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.
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.”

[SEC. 15. System of Incentives and Rewards. — Deleted]

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.
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 effectively
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.
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 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. 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 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 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.

SECTION 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.

SECTION 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.

SECTION 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.