ANTI-MONEY

LAUNDERING
ANTI-MONEY LAUNDERING LAW
MONEY LAUNDERING

is a scheme whereby the proceeds of an illegal

.
activity are transacted and made to appear to
have originated from legitimate sources.
 Kidnapping
Drug trafficking Robbery & Extortion
Graft & corruption Illegal gambling
Plunder (Jueteng & Masiao)
Swindling
Smuggling

Types of Unlawful Activities

Types of Unlawful Activities

Qualified Theft
Piracy on the High Seas
Hijacking, destructive arson & murder
Offenses under the E-Commerce Act
Violations of the Securities &
Regulation Code
Felonies or offenses of similar nature
under penal laws of other countries
 STAGES OF MONEY LAUNDERING
1. Placement
Involves initial placement or introduction of the illegal funds
into the financial system.

2. LAyering
Involves a series of transactions during which the dirty money
is passed through a series of procedures, putting layer upon
layer of persons and financial activities in the laundering
process.

3. INtegration
The money is once again made available to the criminals. The
laundered funds are now integrated back into the legitimate
economy.
 Covered Institutions

Banks, non-banks, quasi-banks, trust entities, and all

other institutions supervised and regulated by
BANGKO SENTRAL NG PILIPINAS.

Insurance companies and all other institutions

supervised and regulated by INSURANCE
COMMISSION.
COMMISSION.

Securities dealers, investment houses, mutual funds

and other entities regulated by SECURITIES and
EXCHANGE COMMISSION.
 AMLA REQUIREMENTS

Customer Identification

Record-keeping

Reporting of Covered and Suspicious

Transactions

AMLA Training and Awareness Program

 Covered transaction is a transaction
in cash or other equivalent monetary
instrument involving a total amount

in excess of FIVE HUNDRED THOUSAND

PESOS (Php500,000) within one (1)
banking day.

REPORTING of COVERED TRANSACTIONS

 SUSPICIOUS TRANSACTIONS
Client refusal to provide
identification.

Amount/property involved is not

commensurate with the business
or financial capacity.

Circumstance related to the

transaction deviate from the
client profile based on past
transactions.
PERIOD OF REPORTING COVERED and
SUSPICIOUS TRANSACTIONS

Covered institutions shall report to the

AMLC all covered and suspicious
transactions within ten (10) working days
from occurrence thereof.
 Who Commits the Crime of Money
Laundering?
Any person knowing that any monetary instrument or
property represents the proceeds of any unlawful activity,

OFFENDERS: PENALTIES:
1. Persons who transact or attempt 7-14YRS imprisonment and
to transact Fine of at least P3M

2. Persons who failed to perform 4-7YRS imprisonment and

and facilitated the offense of Fine of at least P1.5M but
money laundering not more than P3M

3. Persons who is required under 6MOS to 4YRS imprisonment or

the Act to disclose and file with Fine of at least .1M but not
AMLC but failed to do so more than .5M, or both
 Who Commits the Crime of
Money Laundering?
Any person knowing that any monetary instrument or
property represents the proceeds of any unlawful activity,

OFFENDERS: PENALTIES:
4. Non-compliance with record- 6MOS to 1YR imprisonment; OR
keeping fine not less than P100K but
not more than P500K or both
5. Malicious filing of Transaction 6MOS to 4YRS imprisonment; OR
Report fine not less than P100K but
not more than P500K
- Offender cannot avail of the
Probation Law
6. Breach of Confidentiality 3-8YRS imprisonment; AND fine
Obligation not less than P500K but not
more than P1M
 Safe Harbor Provision
 No liability if reporting was in
regular performance of duties
& in good faith.
 No administrative, criminal or
civil proceedings whether or
not reporting results in criminal
prosecution of client.
 No liability for loss, any act or
omission, as a consequence of
disclosure or reporting
Freezing of Monetary Instrument or Property

 The
The Court
Court of
of Appeals,
Appeals, upon
upon
application
application ex parte (without
ex parte (without
notice
notice to
to the
the other
other party)
party) by
by the
the
AMLC
AMLC and
and after
after determination
determination that
that
probable
probable cause
cause exists
exists that
that any
any
monetary
monetary instrument
instrument or or property
property
is
is in
in any
any way
way related
related to
to an
an
unlawful
unlawful activity,
activity, may
may issue
issue a
a
freeze
freeze order
order which
which shall
shall be
be
effective
effective immediately.
immediately.


 The
The freeze
freeze order
order shall
shall be
be for
for a
a
period
period of
of 20
20 days
days unless
unless extended
extended
by
by the
the court.
court.