Anti- Money Laundering Act R.A 9160 R.

A 9160 is an act defining the crime of money laundering and providing penalties for persons who will violate such act. The state in laid down such law to protect and preserve the integrity and confidentiality of bank accounts and to ensure that the hilippines shall not be used as a money laundering site for the proceeds of any unlawful activity! such is laid down in "ection # of R.A 9160. Definition The definition of the crime of money laundering is laid down in "ection $ of R.A 9160. Section 4. Money Laundering Offense. %oney laundering is a crime whereby the proceeds of an unlawful activity are transacted! thereby making them appear to have originated from legitimate sources. &t is committed by the following' (a) Any person knowing that any monetary instrument or property represents! involves! or relates to the proceeds of any unlawful activity! transacts or attempts to transact said monetary instrument or property. (b) Any person knowing that any monetary instrument or property involves the proceeds of any unlawful activity! performs or fails to perform any act as a result of which he facilitates the offense of money laundering referred to in paragraph (a) above. (c) Any person knowing that any monetary instrument or property is re*uired under this Act to be disclosed and filed with the Anti+%oney ,aundering -ouncil (A%,-)! fails to do so. The unlawful activities that the law pertains to are crimes that are laid down in "ection . of the ,aw. As defined in "ection .! unlawful activities refer to any act or omission or series or combination thereof involving or having relation to the following crimes' (1) /idnapping for ransom under Article #60 of Revised enal -ode! as amended1 (#) "ections .! $! 2! 0! 3 and 9 of the 4angerous 4rugs Act of 190#1 (.) "ection . paragraphs 5! -! 6! 7! 8 and & of Republic Act 9o. .019! as amended1 otherwise known as the Anti+7raft and -orrupt ractices Act1 ($) lunder under Republic Act 9o. 0030! as amended1 (2) Robbery and e:tortion under Articles #9$! #92! #96! #99! .00! .01 and .0# of the Revised enal -ode! as amended1

(6) ;ueteng and %asiao punished as illegal gambling under residential 4ecree 9o. 160#1 (0) iracy on the high seas under the Revised enal -ode! as amended and residential 4ecree 9o. 2.#1 (3) <ualified theft under! Article .10 of the Revised amended1 enal -ode! as

(9) "windling under Article .12 of the Revised enal -ode! as amended1 (10) "muggling under Republic Act 9os. $22 and 19.01 (11) =iolations under Republic Act 9o. 309#! otherwise known as the 6lectronic -ommerce Act of #0001 (1#) 8i>acking and other violations under Republic Act 9o. 6#.21 destructive arson and murder! as defined under the Revised enal -ode! as amended! including those perpetrated by terrorists against non+combatant persons and similar targets1 (1.) ?raudulent practices and other violations under Republic Act 9o. 3099! otherwise known as the "ecurities Regulation -ode of #0001 (1$) ?elonies or offenses of a similar nature that are punishable under the penal laws of other countries. Coverage Institutions The covered institutions that the law refer to banks! non+banks! *uasi+ banks! trust entities! and all other institutions and their subsidiaries and affiliates supervised or regulated by the 5angko "entral ng ilipinas (5" )1 &nsurance companies and all other institutions supervised or regulated by the &nsurance -ommission1 and (i) securities dealers! brokers! salesmen! investment houses and other similar entities managing securities or rendering services as investment agent! advisor! or consultant! (ii) mutual funds! close and investment companies! common trust funds! pre+need companies and other similar entities! (iii) foreign e:change corporations! money changers! money payment! remittance! and transfer companies and other similar entities! and (iv) other entities administering or otherwise dealing in currency! commodities or financial derivatives based thereon! valuable ob>ects! cash substitutes and other similar monetary instruments or property supervised or regulated by "ecurities and 6:change -ommission.

Transaction A -overed Transaction is a single! series! or combination of transactions involving a total amount in e:cess of ?our million hilippine pesos ( hp$!000!000.00) or an e*uivalent amount in foreign currency based on the prevailing e:change rate within five (2) consecutive banking days e:cept those between a covered institution and a person who! at the time of the transaction was a properly identified client and the amount is commensurate with the business or financial capacity of the client1 or those with an underlying legal or trade obligation! purpose! origin or economic >ustification. &t likewise refers to a single! series or combination or pattern of unusually large and comple: transactions in e:cess of ?our million hilippine pesos ( hp$!000!000.00) especially cash deposits and investments having no credible purpose or origin! underlying trade obligation or contract. Thus! in violation of the said law a person may be charged with and convicted of both the offense of money laundering and the unlawful activity as herein defined and any proceeding relating to the unlawful activity shall be given precedence over the prosecution of any offense or violation under this Act without pre>udice to the free@ing and other remedies provided! as provided in "ection 0. 8owever! the law also laid down in "ection 9 actions that could prevent the act of money laundering such as customer identification! record keeping! and reporting of covered transactions. &n customer identification! all covered institutions shall establish and record the true identity of its clients based on official documents. %eanwhile in record keeping! the institutions shall store the recorded transactions for five (2) years. As for the reporting of covered transactions! the institutions shall report to the Anti+ %oney laundering -ouncil the transactions within five (2) working days unless the "upervising Authority concerned prescribes a longer period not e:ceeding ten (10) working days. The Anti+ %oney ,aundering -ouncil (A%,-) was created to to re*uire and receive covered transaction reports from covered institutions1 to issue orders addressed to the appropriate "upervising Authority or the covered institution to determine the true identity of the owner of any monetary instrument or property sub>ect of a covered transaction report involving! or related to! directly or indirectly! in any manner or by any means! the proceeds of an unlawful activity1 to institute civil forfeiture proceedings and all other remedial proceedings through the Affice of the "olicitor 7eneral1 to cause the filing of complaints with the 4epartment of ;ustice or the Ambudsman for the prosecution of money laundering offenses1 to initiate investigations of covered transactions! money laundering activities and other violations of this Act1 to free@e any monetary instrument or property alleged to be proceed of any unlawful activity1 to implement such measures as may be necessary and >ustified under this Act to counteract money laundering1 to receive and take action in respect of! any re*uest from foreign states for assistance in their own anti+money laundering operations provided in this Act1 to develop educational

programs on the pernicious effects of money laundering! the methods and techni*ues used in money laundering! the viable means of preventing money laundering and the effective ways of prosecuting and punishing offenders1 and to enlist the assistance of any branch! department! bureau! office! agency or instrumentality of the government! including government+owned and Bcontrolled 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! as laid down in "ection 0. Ane of the functions of A%,- is to free@e any monetary instrument or property alleged to be proceed of any unlawful activity. The A%,- is authori@ed to free@e upon determination that probable cause e:ists that any deposit or similar account is in any way related to an unlawful activity. 9otice to the depositor that his account has been fro@en shall be issued simultaneously with the issuance of the free@e order. The depositor shall have seventy+two (0#) hours upon receipt of the notice to e:plain why the free@e order should be lifted. The A%,- has seventy+two (0#) hours to dispose of the depositorCs e:planation. &f it falls to act within seventy+two (0#) hours from receipt of the depositorCs e:planation! the free@e order shall automatically be dissolved. The fifteen (12)+day free@e order of the A%,- may be e:tended upon order of the court! provided that the fifteen (12)+day period shall be tolled pending the courtCs decision to e:tend the period! as provided in "ection 10. "ection 1$ of R.A 9160 provides for the penalties for persons who are liable for violation of the anti+money laundering act. "ection 1$ provides for penalties that are divided into four ($) acts. "ec. 1$ (A) penali@es persons who commit the act of money laundering1 "ec. 1$ (5) penali@es institutions who fail to keep their records! "ec. 1$ (-) penali@es persons who! with malice! or in bad faith! report or files a completely unwarranted or false information relative to money laundering transaction! and "ec. 1$ (4) penali@es for breach of confidentiality or persons who shall violate acts that are under "ec. 9 (-) of the Act. Penaltie Thus "ection 1$ provides' Section 14. Penal Provisions. (a) Penaltie for t!e Cri"e of Money Laundering. The penalty of imprisonment ranging from seven (0) to fourteen (1$) years and a fine of not less than Three million hilippine pesos ( hp .!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 "ection $(a) of this Act. The penalty of imprisonment from four ($) to seven (0) years and a fine of not less than Ane million five hundred thousand hilippine pesos ( hp 1!200!000.00) but not more than Three million hilippine pesos ( hp .!000!000.00)! shall be

imposed upon a person convicted under "ection $(b) of this Act. The penalty of imprisonment from si: (6) months to four ($) years or a fine of not less than Ane hundred thousand hilippine pesos ( hp 100!000.00) but not more than ?ive hundred thousand hilippine pesos ( hp 200!000.00)! or both! shall be imposed on a person convicted under "ection $(c) of this Act. (b) Penaltie for #ailure to $ee% Record . The penalty of imprisonment from si: (6) months to one (1) year or a fine of not less than Ane hundred thousand hilippine pesos ( hp 100!000.00) but not more than ?ive hundred thousand hilippine pesos ( hp 200!000.00)! or both! shall be imposed on a person convicted under "ection 9(b) of this Act. (c) Maliciou Re%orting. Any person who! with malice! or in bad faith! report or files a completely unwarranted or false information relative to money laundering transaction against any person shall be sub>ect to a penalty of si: (6) months to four ($) years imprisonment and a fine of not less than Ane hundred thousand hilippine pesos ( hp 100!000.00) but not more than ?ive hundred thousand hilippine pesos ( hp 200!000.00)! at the discretion of the court' Provided, That the offender is not entitled to avail the benefits of the robation ,aw. &f the offender is a corporation! association! partnership or any >uridical person! the penalty shall be imposed upon the responsible officers! as the case may be! who participated in the commission of the crime or who shall have knowingly permitted or failed to prevent its commission. &f the offender is a >uridical person! the court may suspend or revoke its license. &f 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. &f the offender is a public official or employee! he shall! in addition to the penalties prescribed herein! suffer perpetual or temporary absolute dis*ualification from office! as the case may be1 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) &reac! of Confidentiality. The punishment of imprisonment ranging from three (.) to eight (3) years and a fine of not less than ?ive hundred thousand hilippine pesos ( hp 200!000.00) but not more than Ane million hilippine pesos ( hp 1!000!000.00)! shall be imposed on a person convicted for a violation under "ection 9(c). The state also provide rewards and incentives that would be given to appropriate government agency and its personnel that will lead and initiate an investigation! prosecution and conviction of persons who shall commit acts that are penali@ed under "ection $. "uch is laid down in "ection 12 of the said act.