ANTI-MONEY LAUNDERING ACT OF 2001 (RA 9160)
MONEY LAUNDERING
is the process of creating the appearance that large
amounts of money obtained from criminal activity,
such as drug trafficking or terrorist activity,
originated from a legitimate source. The money
from the illicit activity is considered dirty, and the
process "launders" the money to make it look
clean.
STEPS IN MONEY LAUNDERING
Placement – involves initial placement or
introduction of the illegal funds into the financial
system. Financial institution are usually used at
this point
Layering – involves a series of financial
transaction during which the dirty money is passed
through a series of procedures, putting layer upon
layer of person and financial activities into the
laundering process. Ex. wire transfers, use of shell
corporations, etc.
Integration – the money is once again made
available to the criminal with the occupational and
geographic origin obscured or concealed. The
laundered funds are now integrated back into the
legitimate economy through the purchase of
properties, businesses and other investment.
ANTI-MONEY LAUNDERING
Anti-money-laundering refers to a set of
procedures, laws and regulations designed to stop
the practice of generating income through illegal
actions.
ANTI-MONEY LAUNDERING ACT OF 2001
(AMLA)
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.
HISTORY
Republic Act No. 9160 otherwise known as The
Anti-Money Laundering Act of 2001 was signed
into law on September 29, 2001 and took effect on
October 17, 2001. The implementing Rules and
Regulations took effect on April 2, 2002. On
March 7, 2003, R.A. No. 9194 (An Act Amending
R.A. No. 9160) was signed into law and took
effect on March 23, 2003. The revised
Implementing Rules and Regulations took effect
on September 7, 2003.
COVERED INSTITUTION
 Banks and all other entities, including
their subsidiaries and affiliates,
supervised and regulated by the Bangko
Sentral ng Pilipinas
 Insurance companies, pre-need
companies and all other institutions
supervised or regulated by the Insurance
Commission
 Securities dealers and other entities
supervised or regulated by the Securities
and Exchange Commission
 Jewelry dealers
COVERED TRANSACTION
is a transaction in cash or other equivalent
monetary instrument involving a total amount in
excess of five hundred thousand pesos
(php500,000.00) within one (1) banking day.
 a transaction exceeding one million
pesos (php1,000,000.00) in cases of
jewelry dealers, dealers in precious
metals and dealers in precious stones.
 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.
Regardless of the Amount:
 there is no underlying legal or trade
obligation, purpose or economic
justification;
  the client is not properly identified;  Hijacking; destructive arson; and murder,
including those perpetrated by terrorists
 the amount involved is not commensurate against non-combatant persons and
with the business or financial capacity of similar targets
the client;  Fraudulent practices and other violations
 taking into account all known under the Securities Regulation Code of
circumstances, it may be perceived that 2000
the client’s transaction is structured in  Felonies or offenses of a similar nature
order to avoid being the subject of that are punishable under the penal laws
reporting requirements under the AMLA. of other countries.
 Terrorism financing and organizing or
UNLAWFUL ACTIVITIES directing others to commit terrorism
financing (R.A. 10168).

Kidnapping for ransom  Attempt/conspiracy to commit terrorism

Drug trafficking and related offenses financing and organizing or directing

Graft and corrupt practices others to commit terrorism financing

Plunder (R.A. 10168).

Robbery and Extortion  Attempt/conspiracy to commit dealing

Jueteng and Masiao with property or funds of designated

Piracy person.

Qualified theft  Accomplice to terrorism financing or

Swindling conspiracy to commit terrorism financing.

Smuggling  Accessory to terrorism financing.

Violations under the Electronic
Commerce Act of 2000
MONEY LAUNDERING OFFENSES AND PENALTIES

Knowingly transacting or attempting to transact any monetary Penalty is 7 to 14 years imprisonment and a fine of not less than
instrument/property which represents, involves or relates to the proceeds of P3M but not more than twice the value of the monetary
an unlawful activity. instrument/property.

Knowingly failing to disclose and file with the AMLC any monetary Penalty is 6 months to 4 years imprisonment or a fine of not less
instrument/property required to be disclosed and filed. than P100,000 but not more than P500,000, or both.

Knowingly performing or failing to perform an act in relation to any Penalty is 4 to 7 years imprisonment and a fine of not less than
monetary instrument/property involving the proceeds of any unlawful P1.5M but not more than P3M.
activity as a result of which he facilitated the offense of money laundering.

OTHER OFFENSES
Failure to keep records is committed by any responsible official or Penalty is 6 months to 1 year imprisonment or a fine of not less than
employee of a covered institution who fails to maintain and safely store P100,000 but not more than P500,000, or both.
all records of all transactions of said institution, including closed
accounts, for five (5) years from the date of the transaction/closure of the
account.

Malicious reporting is committed by any person who, with malice or in Penalty is 6 months to 4 years imprisonment and a fine of not less than
bad faith, reports/files a completely unwarranted or false information P100,000 but not more than P500,000, at the discretion of the court. The
relative to money laundering transaction against any person. offender is not entitled to avail the benefits of the Probation Law.
PERSON WHO COMMITTED THE
OFFENSE
 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 prescribed, be
deported without further proceedings after
serving the penalties prescribed.
 If the offender is a public official or
employee, he shall, in addition to the
penalties prescribed, suffer perpetual or
temporary absolute disqualification from
office, as the case may be.
ANTI-MONEY LAUNDERING COUNCIL
(AMLC)
(AMLC) Philippines is the government agency
tasked to implement the provisions of Republic
Act No. 9160, also known as the “Anti-Money
Laundering Act of 2001”
COMPOSITION
The AMLC is composed of:
 Governor of the Bangko Sentral ng
Pilipinas (BSP) as Chairman,
 The Commissioner of the Insurance
Commission (IC) as Member
 The Chairperson of the Securities and
Exchange Commission (SEC) as Member
AUTHOTIRY TO FREEZE
Upon determination that probable cause exists that
any deposit or similar account is in any way
related to an unlawful activity, the AMLC may
issue a freeze order, which shall be effective
immediately, on the account for a period not
exceeding fifteen (15) days.
LAW ON SECRECY OF BANK DEPOSITS
An act prohibiting the disclosure of or inquiry into
deposits with any banking institution. According to
the law, all deposits with banks or banking
institutions in the country are confidential, and
may not be examined or looked into by any person,
government, officials, bureau, or office.
AUTHORITY TO INQUIRE INTO BANK
DEPOSITS
Notwithstanding the provisions of Republic Act
No. 1405, as amended; Republic Act No. 6426, as
amended; Republic Act No. 8791, and other laws,
the AMLC may inquire into or examine any
particular deposit or investment with any banking
institution or non-bank financial institution upon
order of any competent court in cases of violation
of this Act when it has been established that there
is probable cause that the deposits or investments
involved are in any way related to a money
laundering offense: Provided, That this provision
shall not apply to deposits and investments made
prior to the effectivity of this Act.
MONEY LAUNDERING CASE IN THE
PHILIPPINES
The Anti-Money Laundering Council
(AMLC) has reported P10.2 billion worth of
funds laundered in the country in 2015 and
2016
 money laundering is a serious concern due
to the philippines' international narcotics
trade, high degree of corruption among
government officials, trafficking in
persons, and the high volume
of remittances from filipinos living
abroad,
 according to the report, drug trafficking
remains the biggest source of illicit funds
amounting to about p6.18 billion in 2014,
followed by those from plunder and
corruption
RCBC Money Laundering Case
PREVENTION OF MONEY LAUNDERING
 Customer Identification
 Record Keeping
 Reporting of Covered Transactio