FREQUENTLY ASKED QUESTIONS

(PDIC)
What is the Philippine Deposit Insurance Corporation (PDIC)?
PDIC is a government instrumentality created in 1963 by virtue of
Republic Act 3591 to insure the deposits of all banks which are entitled
to the benefits of insurance. The latest amendments to RA 3591 are
contained in RA 10846 signed into law on May 23, 2016. RA 10846
empowered PDIC with stronger authorities to protect the depositing
public and promote financial stability. The new law also includes
important provisions to ensure that the PDIC remains financially and
institutionally strong to fulfill its mandate under its Charter.
The PDIC now has the authority to help depositors have quicker access
to their insured deposits should their bank close; resolve problem banks
while still open; hasten the liquidation process for closed banks; and
mete out stiffer sanctions and penalties against those who engage in
unsafe and unsound banking practices.

The PDIC is an attached agency of the Department of Finance.

What is PDIC’s overall mandate?

PDIC exists to provide deposit insurance coverage for

the depositing public to help promote public
confidence and stability in the economy. It ensures
prompt payment of insured deposits, exercises
complementary supervision of banks, adopts
responsive resolution methods, and applies efficient
management of receivership and liquidation functions.
What are the functions of PDIC?

• Deposit Insurer
• Co-regulator of Banks
• Receiver and Liquidator of Closed Banks
What is PDIC’s maximum deposit insurance coverage?

Effective June 1, 2009, the maximum deposit insurance

coverage is P500,000 per depositor. All deposit accounts by a
depositor in a closed bank maintained in the same right and
capacity shall be added together.

Under R.A. No. 9576, the PDIC may propose to adjust the
MDIC, subject to the approval of the President of the
Philippines, in case of a condition that threatens the monetary
and financial stability of the banking system that may have
systemic consequences.
What is an insured deposit?
The term ‘insured deposit’ means the amount due to any bona fide
depositor for legitimate deposits in an insured bank net of any obligation
of the depositor to the insured bank as of date of closure, but not to
exceed P500,000.00.
A joint account shall be insured separately from any individually-owned
deposit account.
R.A. No. 9576 stipulates that PDIC will not pay deposit insurance for the
following accounts or transactions:
-Investment products such as bonds, securities and trust accounts;
-Deposit accounts which are unfunded, fictitious or fraudulent;
-Deposit products constituting or emanating from unsafe and unsound
banking practices;
-Deposits that are determined to be proceeds of an unlawful activity as
defined under the Anti-Money Laundering Law.
Are all banks members of PDIC?

Membership of banks to PDIC is mandatory; hence, all

operating banks are members of PDIC.
What types of deposits are insured by PDIC?
Except for the exclusions stipulated in RA 9576, deposits of all commercial
banks, savings and mortgage banks, rural banks, private development
banks, cooperative banks, savings and loan associations, as well as branches
and agencies in the Philippines of foreign banks and all other corporations
authorized to perform banking functions in the Philippines, are insured with
PDIC. As for Philippine banks with branches outside the country, RA 9576
stipulates that subject to the approval of the Board of Directors, any insured
bank with branch outside the Philippines may elect to include for insurance
its deposit obligations payable at such branch.
Foreign currency deposits are also insured by PDIC pursuant to RA 6426
(“An act instituting a foreign currency deposit system in the Philippines, and
for other purposes”) and Central Bank (CB) Circular No. 1389. Depositors
may receive payment in the same currency in which the insured deposit is
denominated.
Exclusions from deposit insurance coverage as stipulated in R.A. No.
9576:
• Investment products such as bonds, securities and trust accounts;

• Deposit accounts which are unfunded, fictitious or fraudulent;

• Deposit products constituting or emanating from unsafe and unsound

banking practices;

• Deposits that are determined to be proceeds of an unlawful activity as

defined under the Anti-Money Laundering Law.
Are deposits maintained in branches and subsidiaries of foreign banks
operating in the Philippines insured by the PDIC?

Yes, the PDIC Charter provides that the deposits in branches and
subsidiaries of foreign banks licensed by the Bangko Sentral ng Pilipinas
(BSP) to perform banking functions in the Philippines are insured by
the PDIC.
Are deposits maintained in Philippine banks with branches
outside the Philippines insured by the PDIC?
The PDIC Charter provides that a Philippine bank may elect to
insure with the PDIC its deposits in branches outside the
Philippines. As of 31 December 2012, no Philippine bank has
elected to insure deposits in their foreign branches with PDIC.
To verify if your deposits in a branch of a Philippine bank
outside the Philippines are covered by deposit insurance in
the host foreign country, please inquire with the account
officer of your branch.
What specific risks to a bank does PDIC cover?
PDIC covers only the risk of a bank closure ordered by the Monetary
Board. Thus, bank losses due to theft, fire, closure by reason of strike
or existence of public disorder, revolution or civil war, are not covered
by PDIC.
Shall the depositor pay any insurance premium to
PDIC?

No. Insurance premium is paid by the banks, not by the

depositors. The bank is assessed 1/5 of 1% per annum
of the assessment base of the bank.
How is insurance coverage determined?

In determining the insured amount, the outstanding balance

of each account is adjusted, such that interests are updated,
withholding taxes are deducted, accounts maintained by a
depositor in the same right and capacity are added together;
and whenever applicable, unpaid loans and other obligations
of the depositor are deducted; and in no case shall insured
deposit exceed P500,000.
R.A. No. 9576 stipulates that PDIC will not pay deposit insurance
for the following accounts or transactions:
• Investment products such as bonds, securities and trust
accounts;
• Deposit accounts which are unfunded, fictitious or fraudulent;
• Deposit products constituting or emanating from unsafe and
unsound banking practices;
• Deposits that are determined to be proceeds of an unlawful
activity as defined under the Anti-Money Laundering Law.
Can PDIC insurance coverage be increased by having several accounts
in the same name in an insured bank?
No. Deposit insurance coverage is not determined on a per-account
basis. The type of account (whether checking, savings, time or other
form of deposit) has no bearing on the amount of insurance coverage.
If I have deposits in several different insured banks, will my
deposits be added together for insurance purposes?

No. Deposits in different banking institutions are insured

separately. However, if a bank has one or more branches, the
main office and all branch offices are considered as one bank.
Thus, if you have deposits at the main office and at one or
more branch offices of the same bank, the deposits are added
together when determining deposit insurance coverage, the
total of which shall not exceed P500,000.
Is there a need for a depositor to file his claim for
insured deposit with PDIC?
Yes. Depositors will be advised through the national
and/or local media and posters at the premises of the
closed insured bank and other public places within the
locality on the schedule of distribution of claim forms
by PDIC, receiving of claim forms by PDIC, and the
prescriptive date of filing claims by the depositors.
When should the depositor of a closed insured
bank file his claim with PDIC?
The depositor of the closed insured bank has 24
months from date of bank takeover to file his
deposit insurance claim.
What happens when the depositor of a closed bank
fails to file his claim within the 24-month period?

• All rights of the depositor with respect to the insured

deposit shall no longer be honored. But he may still
make a claim against the assets of the closed bank.
How long does it take PDIC to settle a claim for insured deposit?
PDIC aims to pay valid claims as soon as possible. Prior to payout, claims are
examined thoroughly. This is to protect the Deposit Insurance Fund (DIF)
which is the source of insurance payments. Sometimes, depositors
mistakenly assume that the payouts are sourced from their deposits. This is
not the case. The payouts are from PDIC’s own funds.

The claim for insured deposit should be settled within six (6) months from
the date of filing provided all requirements are met but the claim must be
filed within twenty-four (24) months after bank takeover. The six-month
period shall not apply if the documents of the claimant are incomplete or if
the validity of the claim requires the resolution of issues of facts and law by
another office, body or agency, independently or in coordination with PDIC.
What processes are involved before PDIC starts
servicing claims?

Deposit records are subjected to an examination prior

to the start of servicing/settlement of claims. Claims
are evaluated and processed according to PDIC's
standard procedures.
How long does the pre-settlement examination take?
The length of time needed for the pre-settlement examination
of deposit liabilities of a closed insured bank largely depends
on the completeness and accuracy of records turned over by
the Bank to PDIC and the number of deposit accounts to be
examined.
If the deposit account in a closed bank is more than P500,000.00, what
happens to the excess of the maximum amount of insured deposit?
If the closed bank is not rehabilitated or taken over by another bank,
amount in excess of the P500,000 coverage can still be claimed upon
the final liquidation of the remaining assets of the closed bank.

The claim may be filed with the Liquidator of the closed bank but
payment of the said claim will depend on the bank's available assets to
settle its preferred claims (Government taxes, labor claims, secured
credits and trust funds) and approval of the Liquidation Court. The
schedule of payment beyond the P500,000.00 maximum insurance
shall be based on priorities set by law.
Law on Secrecy of Bank Deposits
Republic Act 1405
RA 10641: An Act Allowing the Full Entry of
Foreign Banks in the Philippines
• Amendments to RA 7721
• Amending the more important provisions of RA 7721, RA 10641 may be considered to be
providing for a revision of its predecessor. The latter law provided changes in the following
reasons:
• Modes of Entry;
• Guidelines for Approval;
• Capital Requirements;
• Limitations on Entrants;
• Equal Treatment; and
• Participation in Foreclosure Proceedings.
• In addition to the said substantial changes, RA 10641 also amended the provisions on the
delegation of powers and applicability of banking laws to reflect the changes in the laws which
became effective after the enactment of RA 7721 such as Republic Act No. 7653, otherwise
known as the “New Central Bank Act,” and Republic Act No. 8791, otherwise known as “The
General Banking Law.”
RA 10641: An Act Allowing the Full Entry of
Foreign Banks in the Philippines
• RA 10641 became big news in the business industry is because it amended
Section 2 of RA 7721, which provided for the different modes of entry, by making
the intention of the law to allow the full entry of foreign banks in the Philippines
clear. RA 10641, while retaining the grant of authority to the Monetary Board
(“MB”) to authorize foreign banks to operate in the Philippines under three
different modes completely removed all the limitations which the former law
provided.
• Under RA 7721, there was a limitation on ownership and two provisos that
effectively restricted the entry of foreign banks. First, the limitation on ownership
provides that only sixty percent (60%) of the voting stock of an existing bank or
new banking subsidiary may be owned or acquired by the foreign bank. Second,
the proviso limited the mode of entry of a foreign bank to only one mode. Lastly,
a proviso also dictated that a foreign bank may only own up to sixty percent
(60%) of only one domestic bank or new banking subsidiary.
RA 10641: An Act Allowing the Full Entry of
Foreign Banks in the Philippines
• The aforementioned restrictions are all removed by RA 10641. As it
stands right now, the law provided that the MB may authorize foreign
banks to operate in the Philippines still under three modes of entry,
i.e., 1) acquiring, purchasing or owning up to one hundred percent
(100%) of the voting stock of an existing bank; 2) investing up to one
hundred percent (100%) of the voting stock of a new banking
subsidiary; or 3) by establishing branches with full banking authority.
Guidelines for Approval
• The previous guidelines for approval under Section 3 of RA 7721 were also amended by RA 10641
by removing the following:
• a. The clause which provided that only top foreign banks may be allowed to enter the Philippine
banking industry; and
• b. The clause which provided that the MB should adopt measures to prevent a dominant market
position by one bank and to secure the listing in the Philippine Stock Exchange of the banking
corporations established under RA 7721;
• Further, the previous requirement that measures in relation to the control of the banking system
was also amended. The amendment reduced the percentage of assets and resources that must be
held by domestic banks which are at least majority-owned by Filipinos from seventy percent
(70%) to sixty percent (60%).
• With these changes, aside from the measures in relation to the control of the assets and
resources previously mentioned, the only remaining guidelines for the approval of entry were the
five factors enumerated under Section 3 and the additional requirements provided under the
same, to wit:
• Capital Requirements
• Unlike in the former law under Section 4 where it is provided that
foreign banks shall permanently assign a capital, the U.S. Dollar
equivalent of Thirty Five Million Pesos (PhP 35,000,000.00), RA 10641
does away with the fixed amount and instead fixes the capital
requirement of the foreign banks to an amount not less than the
minimum capital required for domestic banks of the same category. In
addition to this, RA 10641 also provides that foreign bank branches
may now open up to five (5) sub-branches—an improvement from
the 3-branch limitation provided by the former law. Furthermore,
Section 4 also provided that local incorporated subsidiaries of foreign
banks shall have the same branching privileges as domestic banks.
• Limitations on Entrants
• Previously, entrants were limited by Section 6 of RA 7721 such that 1) entry under Section 2(iii) shall only be
allowed within five (5) years from the effectivity of RA 7721, and that 2) only six (6) new foreign banks shall
be allowed entry. These limitations are expressly repealed by RA 10641.
• Equal Treatment
• The provision on the equal treatment of foreign banks under Section 8 was made concise by RA 10641. As
such, it remains that foreign banks similar to Philippine banks shall:
• Perform the same functions;
• Enjoy the same privileges; and
• Be subject to the same limitations.
• The provision also emphasized that foreign banks shall guarantee the observance of the rights of the
employees under the Constitution of the Philippines and that the single borrower’s limit of a foreign bank
branch must be aligned with that of domestic banks.
• Also, it is important to note that the clause in relation to shares of stock listed in the Philippine Stock
Exchange as part of the requirements under RA 7721 was also removed. This complements the removal of
such requirement under Section 3.
• Participation in Foreclosure Proceedings
• This is an additional provision inserted to replace the previously repealed Section 9 of RA 7721 which deals
with the Development of Loan Incentives. Now, Section 9 provides for the authority of the foreign banks
who were authorized to do banking business in the Philippines to do the following acts:
• Bid and take part in the foreclosure sales of real property mortgaged to them;
• Avail of enforcement and other proceedings in relation to the same; and
• Take possession of the mortgaged property for a period not exceeding five (5) years from actual possession.
• Note, however, that although the foreign banks may take part in such foreclosure proceedings and then, take
possession of the real property, the provision provided for certain limitations. First, the title cannot be
transferred to said foreign bank; and second, the foreign bank is required to transfer its rights to a qualified
Philippine national during the five-year period provided, without prejudice to a borrower’s rights under the
applicable laws. In order to enforce this limitation, RA 10641 provided for penalties in case of failure to
transfer the property, i.e., the bank will be penalized one half (1/2) of one percent (1%) per annum of the
price at which the property is foreclosed until it is able to transfer the property to a qualified Philippine
national.
• Factors to be considered by the MB in approving entry applications:
• Geographic representation and complementation;
• Strategic trade and investment relationships between the Philippines and the
country of incorporation of the foreign bank;
• Demonstrated capacity, global reputation for financial innovations and stability in
a competitive environment of the applicant;
• Reciprocity rights enjoyed by Philippine banks in the applicant’s country; and
• Willingness to fully share technology.
• In addition to these factors, the foreign banks must also be established, reputable
and financially-stable. Applicants must also be widely-owned and publicly-listed
in its country of origin, unless such bank is owned and controlled by the
government of its country of origin.
A Bangko Sentral ng Pilipinas briefer on the
Anti-Money Laundering Act of 2001
What is money laundering?

Money laundering is an act or series or combination of acts whereby

proceeds of an unlawful activity, whether in cash, property or other
assets, are converted, concealed or disguised to make them appear to
have originated from legitimate sources. One way of laundering money is
through the financial system.

Republic Act No. 9160, otherwise known as the Anti-Money Laundering

Act of 2001 (AMLA), as amended, defined money laundering as a scheme
whereby proceeds of an unlawful activity are transacted or attempted to
be transacted, thereby making them appear to have originated from
legitimate sources.
What has the Philippine government done to curb money
laundering?

The government enacted Republic Act (R.A.) No. 9160 (The

Anti-Money Laundering Act of 2001), which took effect on 17
October 2001. Certain provisions of AMLA were amended by
R.A. No. 9194 (An Act Amending R.A. 9160) effective 23 March
2003.
It has also issued the Revised Implementing Rules and
Regulations (RIRR) implementing R.A. No. 9160, as amended.
What are considered unlawful activities under the AMLA, as
amended?
There are 14 unlawful activities or predicate crimes covered by
the AMLA. These are, in the order enumerated in the law:
• Kidnapping for ransom
• Drug offenses
• Graft and corrupt practices
• Plunder
• Robbery and extortion
• Jueteng and masiao
• Piracy on the high seas
• Qualified theft
• Swindling
• Smuggling
• Electronic Commerce crimes
• Hijacking, destructive arson and murder, including those
perpetrated against non-combatant persons (terrorist acts)
• Securities fraud
• Felonies or offenses of a similar nature punishable under penal
laws of other countries
 How is money laundered through the financial system?
1. Placement – involves initial placement or introduction of the illegal
funds into the financial system. Financial institutions are usually used at
this point.
2. Layering – involves a series of financial transactions during which the
dirty money is passed through a series of procedures, putting layer upon
layer of persons and financial activities into the laundering process. Ex.
wire transfers, use of shell corporations, etc.
3. 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 investments.
Why is Money Laundering a problem?

Money laundering allows criminals to preserve and enjoy the

proceeds of their crimes, thus providing them with the
incentives and the means to continue their illegal activities. At
the same time, it provides them the opportunity to appear in
public like legitimate entrepreneurs. Organized crime, through
money laundering, is known to have the capacity to destabilize
governments and undermine their financial systems. It is thus a
threat to national security.
Why is Money Laundering a problem?

Money laundering allows criminals to preserve and enjoy the

proceeds of their crimes, thus providing them with the
incentives and the means to continue their illegal activities. At
the same time, it provides them the opportunity to appear in
public like legitimate entrepreneurs. Organized crime, through
money laundering, is known to have the capacity to destabilize
governments and undermine their financial systems. It is thus
a threat to national security.
Effect of AMLA
It creates an Anti-Money Laundering Council (AMLC) that is
tasked to oversee the implementation of the law and to act as a
financial intelligence unit to receive and analyze covered and
suspicious transaction reports.
It establishes the rules and the administration process for the
prevention, detection and prosecution of money laundering
activities.
It relaxes the bank deposit secrecy laws authorizing the AMLC
and the Bangko Sentral ng Pilipinas access to deposit and
investment accounts in specific circumstances.
It requires covered institutions to report covered and suspicious
transactions and to cooperate with the government in prosecuting
offenders. It also requires them to know their customers and to
safely keep all records of their transactions.

It carries provisions to protect innocent parties by providing

penalties for causing the disclosure to the public of confidential
information contained in the covered and suspicious transactions.

It establishes procedures for international cooperation and

assistance in the apprehension and prosecution of money
laundering suspects.
What is the Anti-Money Laundering Council (AMLC)? What are its
powers?

The AMLC is the Philippines’ financial intelligence unit, which is tasked to

implement the AMLA.
It is composed of the Governor of the Bangko Sentral ng Pilipinas (BSP) as
Chairman & the Commissioner of the Insurance Commission (IC) and the
Chairman of the Securities and Exchange Commission (SEC) as members.
The AMLC is authorized to:
1. Require and receive covered or suspicious transaction reports from
covered institutions.
2. Issue orders to determine the true identity of the owner of
any monetary instrument or property that is the subject of a
covered or suspicious transaction report, and to request the
assistance of a foreign country if the Council believes it is
necessary.

3. Institute civil forfeiture and all other remedial proceedings

through the Office of the Solicitor General.
4. Cause the filing of complaints with the Department of Justice or
the Ombudsman for the prosecution of money laundering offenses.

5. Investigate suspicious transactions, covered transactions deemed

suspicious, money laundering activities and other violations of the
AMLA.

6. Secure the order of the Court of Appeals to freeze any monetary

instrument or property alleged to be the proceeds of unlawful
activity.

7. Implement such measures as may be necessary and justified to

counteract money laundering.
8. Receive and take action on any request from foreign countries for
assistance in their own anti-money laundering operations.
9. Develop educational programs to make the public aware of the
pernicious effects of money laundering and how they can participate in
bringing the offenders to the fold of the law.
10. Enlist the assistance of any branch of government for the prevention,
detection and investigation of money laundering offenses and the
prosecution of offenders. In this connection, the AMLC can require
intelligence agencies of the government to divulge any information that
will facilitate the work of the Council in going after money launderers.
11. Impose administrative sanctions on those who violate the law, and the
rules, regulations, orders and resolutions issued in connection with the
enforcement of the law.
What are the covered institutions?
Banks, offshore banking units, quasi-banks, trust entities, non-
stock savings and loan associations, pawnshops, and all other
institutions, including their subsidiaries and affiliates supervised
and/or regulated by the Bangko Sentral ng Pilipinas (BSP)
• Insurance companies, holding companies and all other
institutions supervised or regulated by the Insurance
Commission (IC)
• Securities dealers, brokers, pre-need companies, foreign
exchange corporations, investment houses, trading advisers, as
well as other entities supervised or regulated by the Securities
and Exchange Commission (SEC)
What are the Customer Identification Requirements – KYC (Know Your
Customer Rule)?
Covered institutions shall:
• Establish and record the true identity of their clients based on official
documents.
• In case of individual clients, maintain a system of verifying the true identity
of their clients.
• In case of corporate clients, require a system verifying their legal existence
and organizational structure, as well as the authority and identification of all
persons purporting to act in their behalf.
• Establish appropriate systems and methods based on internationally
compliant standards and adequate internal controls for verifying and
recording the true and full identify of their customers.
What are the Record-Keeping Requirements?
All covered institutions shall:
• Maintain and safely store all records of all their transactions for five years
from the transaction dates;
• Ensure that said records/files contain the full and true identity of the
owners or holders of the accounts involved in the covered transactions
and all other identification documents;
• Undertake the necessary adequate measures to ensure the
confidentiality of such files;
• Prepare and maintain documentation, in accordance with client
identification requirements, on their customer accounts, relationships
and transactions such that any account, relationship or transaction can be
so reconstructed as to enable the AMLC and/or the courts to establish an
audit trail for money laundering;
Maintain and safely store all records of existing and new accounts
and of new transactions for 5 years from October 17, 2001 or from
the dates of the accounts or transactions, whichever is later;
Anent closed accounts, preserve and safely store the records on
customer identification, account files and business correspondence
for at least 5 years from the dates they were closed;
If a money laundering case based on any record kept by the covered
institution has been filed in court, retain said files until it is confirmed
that the case has been finally resolved or terminated by the court;
and
Retain records as originals in such forms as are admissible in court
What are covered transactions?
Transaction in cash or other equivalent monetary instruments
involving a total amount in excess of P500,000.00 within one
business day.
What are suspicious transactions?
Transactions, regardless of the amount involved, where the
following circumstances exist:
a. there is no underlying legal or trade obligation, purpose or
economic justification;
b. the client is not properly identified;
c. the amount involved is not commensurate with the business or
financial capacity of the client;

d. 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;

e. 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 institution;

f. 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

g. any transaction that is similar or analogous to the foregoing.

What are the reporting requirements?

• Covered institutions shall report to the AMLC all

covered transactions and suspicious transactions
within five working days from occurrence thereof,
unless the Supervision Authority (the Bangko Sentral
ng Pilipinas, the Securities and Exchange Commission,
or the Insurance Commission) prescribes a longer
period not exceeding ten working days.
Should a transaction be determined to be both a covered
transaction and a suspicious transaction, it shall be reported as
suspicious transaction.

How is reporting done?

The reports on covered and/or suspicious transactions shall be
accomplished in the prescribed formats and submitted within five
business days from occurrence of the transactions in a secured
manner to the AMLC in electronic form, either via diskettes, leased
lines, or through internet facilities. The corresponding hard copy
for suspicious transactions shall be sent to AMLC at the 5th Floor
EDPC Building, Bangko Sentral ng Pilipinas Complex, Manila,
Philippines. All pawnshops should coordinate with the AMLC thru
tel. nos. 523-4421, 521-5662 or 302-3979 on reporting
requirements, procedures and deadlines.
 Are there sanctions for failure to report covered or suspicious
transactions and non-compliance with R.A. 9160, as
amended?

• Sanctions/penalties shall be imposed on pawnshops that will

fail to comply with the provisions of R.A. 9160, as amended.
What are the sanctions for failure to report covered or
suspicious transactions?

Any person, required to report covered and suspicious

transactions failed to do so will be subjected to penalty
of 6 months to 4 years imprisonment or a fine of not
less than P100,000.00 but not more than P500,000.00,
or both.
Are there confidentiality restrictions on the reporting of
covered transaction and/or suspicious transaction?

When reporting covered transactions or suspicious

transactions to the AMLC, covered institutions and their
officers and employees, are prohibited from communicating,
directly or indirectly, in any manner or by any means, to any
person, entity, the media, the fact that a covered or suspicious
transaction report was made, the contents thereof, 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 institution, or media shall be held criminally
liable.
 What are the other offenses punishable under the AMLA, as amended?
a. Failure to keep records is committed by any responsible official or
employee of a covered institution who fails to maintain and safely store
all records of transactions for 5 years from the dates the transactions
were made or when the accounts were closed.
The penalty is 6 months to 1 year imprisonment or a fine of not less than
P100,000.00 but not more than P500,000.00, or both.
b. Malicious reporting is committed by any person who, with malice or in
bad faith, reports or files a completely unwarranted or false information
regarding a money laundering transaction against any person. The
penalty is 6 months to 4 years imprisonment and a fine of not less than
P100,000.00 but not more than P500,000.00. The offender is not entitled
to the benefits of the Probation Law.
c. Breach of Confidentiality. For this offense, the penalty is 3 to 8 years
imprisonment and a fine of not less than P500,000.00 but not more than
P1 million. In case the prohibited information is reported by media, the
responsible reporter, writer, president, publisher, manager, and editor-in-
chief are held criminally liable.

d. Administrative offenses. The AMLC, after due investigation, can

impose fines from P100,000.00 to P500,000.00 on officers and
employees of covered institutions or any person who violates the
provisions of the AMLA, as amended, the Implementing Rules and
Regulations, and orders and resolutions issued pursuant thereto.