(complete amended version)

REPUBLIC ACT NO. 9160 as amended by Republic Acts 9164, 10167, 10365, 10927

AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING

PENALTIES THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and 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 whenever committed.

Sec. 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 transactions related to their gaming operations.

(b) ‘Covered transaction’ is a transaction in cash or other equivalent monetary

instrument involving a total amount in excess of Five hundred thousand pesos
(₱500,000.00) within one (1) banking day; for covered persons under Section 3(a)(8), a
single casino transaction involving an amount in excess of Five million pesos
(₱5,000,000.00) or its equivalent in any other currency.

(b-1) 'Suspicious transaction' are transactions with covered institutions, 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 circumstances 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;

6. the transactions is in a 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 transactions 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 practices and other violations under Republic Act No. 8799,
otherwise known as the Securities Regulation Code of 2000; and

(34) Felonies or 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.

SEC. 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.

Sec. 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.

SEC. 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 require and receive covered or suspicious transaction reports from covered
institutions;

(2) to issue orders addressed to the appropriate Supervising Authority or the

covered institutions 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 for 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 the 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.

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 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 date of transactions.
With respect to closed accounts, the records on customer identification, account
files and business correspondence, shall be preserved and safety 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 an 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 of 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.

Sec. 10. Freezing of Monetary Instrument or Property. - 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 Cout 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 upon 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 seemed 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 no working 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 the 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 to 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.

SEC. 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.

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) Power 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 properly of a person who has been convicted of a money laundering offense in
the requesting State, and a certification of an affidavit of a competent officer of
the requesting State stating that the conviction and the order of forfeiture are final
and then no further appeal lies in respect or 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 State. –

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) gives sufficient particulars
as to the identity of said person; (4) give particulars sufficient to identity 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
detained 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.

SEC. 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 (Php 100,000.00) but not more than Five hundred thousand
Philippine pesos (Php 500,000.00), 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 to six (6) months to
four (4) years imprisonment and 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), 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 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 (Php500,000.00) but not more than One Million Philippine pesos
(Php1,000,000.00) shall be imposed on a person convicted for a violation under
Section 9(c). 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 DELETED BY RA 9194]

Section 16. Prohibitions Against Political Harassment. – This Act shall not be used for
political prosecution 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 effectivity 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.

SEC. 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 operations of
the BIR.

SEC. 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 (Php 25,000,000.00) 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.

SEC. 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.

SOURCES:

https://lawphil.net/statutes/repacts/ra2001/ra_9160_2001.html

https://lawphil.net/statutes/repacts/ra2002/ra_9164_2002.html

https://lawphil.net/statutes/repacts/ra2012/ra_10167_2012.html

https://lawphil.net/statutes/repacts/ra2013/ra_10365_2013.html

https://lawphil.net/statutes/repacts/ra2017/ra_10927_2017.html

NOTES AND CASES ON SPECIAL PENAL LAWS by Leonor D. Boado (2019)