FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

2nd Semester, Academic Year 2023-2024

ANTI-MONEY LAUNDERING ACT1 RCS

I. COVERED INSTITUTIONS/PERSONS AND services to third parties: (i) acting as a

THEIR OBLIGATIONS formation agent of juridical persons; (ii)
acting as (or arranging for another person
A. Covered institutions to act as) a director or corporate
secretary of a company, a partner of a
1. Banks, non-banks, quasi-banks, trust partnership, or a similar position in
entities, and all other institutions and relation to other juridical persons; (iii)
their subsidiaries and aDiliates providing a registered oDice, business
supervised or regulated by the Bangko address or accommodation,
Sentral ng Pilipinas (BSP); correspondence or administrative
2. Insurance companies and all other address for a company, a partnership or
institutions supervised or regulated by any other legal person or arrangement;
the Insurance Commission; and and (iv) acting as (or arranging for
3. (i) Securities dealers, brokers, salesmen, another person to act as) a nominee
investment houses and other similar shareholder for another person; and
entities managing securities or rendering 7. Persons who provide any of the following
services as investment agent, advisor, or services:
consultant; (ii) mutual funds, closed-end i. managing of client money,
investment companies, common trust securities or other assets;
funds, pre-need companies and other ii. management of bank, savings or
similar entities; (iii) foreign exchange securities accounts;
corporations, money changers, money iii. organization of contributions for
payment, remittance, and transfer the creation, operation or
companies and other similar entities; management of companies; and
and (iv) other entities administering or iv. creation, operation or
otherwise dealing in currency, management of juridical persons
commodities or financial derivatives or arrangements, and buying and
based thereon, valuable objects, cash selling business entities
substitutes and other similar monetary
instruments or property supervised or Notwithstanding the foregoing, the term
regulated by Securities and Exchange ‘covered persons’ shall exclude lawyers
Commission. and accountants acting as independent
4. Jewelry dealers in precious metals, who, legal professionals in relation to
as a business, trade in precious metals, information concerning their clients or
for transactions in excess of one million where disclosure of information would
pesos (P1,000,000.00); compromise client confidences or the
5. Jewelry dealers in precious stones, who, attorney-client relationship: Provided,
as a business, trade in precious stones, that these lawyers and accountants are
for transactions in excess of one million authorized to practice in the Philippines
pesos (P1,000,000.00); and shall continue to be subject to the
6. Company service providers which, as a provisions of their respective codes of
business, provide any of the following

1 Unless otherwise indicated, all references to sections pertain to the Anti-Money Laundering Act.
 CONSUMER PROTECTION RCS

conduct and/or professional customer identification, account files

responsibility or any of its amendments. and business correspondence, shall be
preserved and safely stored for at least
8. Casinos, including internet and ship- five (5) years from the dates when they
based casinos, with respect to their were closed.
casino cash transactions related to their
gaming operations; 3. Reporting of covered and suspicious
9. Real estate developers and brokers; transactions
10. ODshore gaming operators, as well as
their: service providers, supervised, Covered institutions shall report to the
accredited or regulated by the Philippine AMLC all covered transactions within five
Amusement and Gaming Corporation (5) working days from occurrence
(PAGCOR) or any government agency. thereof, unless the Supervising Authority
concerned prescribes a longer period
B. Obligations of covered not exceeding ten (10) working days.
institutions/persons
II. COVERED AND SUSPICIOUS
1. Customer identification TRANSACTIONS

Covered institutions shall establish and A. Covered Transaction

record the true identity of its clients
based on oDicial documents. They shall Covered transaction is a transaction in cash or
maintain a system of verifying the true other equivalent monetary instrument involving
identity of their clients and, in case of a total amount in excess of five hundred
corporate clients, require a system of thousand pesos (P500,000.00) within one (1)
verifying their legal existence and banking day; for covered persons under Section
organizational structure, as well as the 3(a)(8), a single casino cash transaction
authority and identification of all involving an amount in excess of five million
persons purporting to act on their behalf. pesos (P5,000,000.00) or its equivalent in any
other currency.
The provisions of existing laws to the
contrary notwithstanding, anonymous For covered persons under Section 3(a)(9), a
accounts, accounts under fictitious single cash transaction involving an amount in
names, and all other similar accounts excess of seven million five hundred thousand
shall be absolutely prohibited. Peso and pesos (P7,500,000.00) or its equivalent in any
foreign currency non-checking other currency.
numbered accounts shall be allowed.
B. Suspicious Transaction

2. Record keeping Suspicious transactions are transactions with

covered persons, regardless of the amounts
All records of all transactions of covered involved, where any of the following
institutions shall be maintained and circumstances exist:
safely stored for five (5) years from the a. There is no underlying legal or trade
dates of transactions. With respect to obligation, purpose or economic
closed accounts, the records on justification;

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 CONSUMER PROTECTION RCS

b. The client is not properly identified; d. Attempts or conspires to commit

c. The amount involved is not money laundering oDenses referred
commensurate with the business or to in paragraphs (a), (b) or (c);
financial capacity of the client; e. Aids, abets, assists in or counsels the
d. Taking into account all known commission of the money laundering
circumstances, it may be perceived oDenses referred to in paragraphs (a),
that the client’s transaction is (b) or (c) above; and
structured in order to avoid being the f. Performs or fails to perform any act
subject of reporting requirements as a result of which he facilitates the
under the Act; oDense of
e. Any circumstance relating to the g. money laundering referred to in
transaction which is observed to paragraphs (a), (b) or (c) above.
deviate from the profile of the client
and/or the client’s past transactions Money laundering is also committed by any
with the covered person; covered person who, knowing that a covered or
f. The transaction is in any way related suspicious transaction is required under this
to an unlawful activity or oDense Act to be reported to the Anti-Money Laundering
under the Act that is about to be, is Council (AMLC), fails to do so.
being or has been committed; or
g. Any transaction that is similar or IV. PREDICATE CRIMES UNDER THE ANTI-
analogous to any of the foregoing. MONEY LAUNDERING LAW
III. MONEY LAUNDERING Save for the omission to report covered and
suspicious transactions, a money laundering
Money laundering is a crime whereby the oDense, by definition, assumes the commission
proceeds of an unlawful activity are transacted, of an unlawful activity. For instance, kidnapping
thereby making them appear to have originated is an unlawful activity. If the kidnapper deposits
from legitimate sources. the ransom money with a bank, another oDense
is committed—money laundering. There is
How committed money laundering because the proceeds of the
Money laundering is committed by any person unlawful activity were transacted to make it
who, knowing that any monetary instrument or appear that they originated from lawful sources.
property represents, involves, or relates to the To constitute money laundering, however, the
proceeds of any unlawful activity: predicate crime must be based on any of the
a. Transacts said monetary instrument unlawful activities enumerated by law.
or property;
b. Converts, transfers, disposes of, Unlawful activity, as defined by AMLA, refers to
moves, acquires, possesses or uses any act or omission or series or combination
said monetary instrument or thereof involving or having direct relation to the
property; following:
c. Conceals or disguises the true 1. Kidnapping for ransom under Article 267
nature, source, location, disposition, of Act No. 3815, otherwise known as the
movement or ownership of or rights Revised Penal Code, as amended;
with respect to said monetary 2. Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14,
instrument or property; 15, and 16 of R.A. No. 9165, otherwise

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CONSUMER PROTECTION RCS

known as the Comprehensive 215 and 216 of the Revised Penal Code,
Dangerous Drugs Act of 2002; as amended;
3. Section 3 paragraphs B, C, E, G, H and I 17. Malversation of Public Funds and
of R.A. No. 3019, as amended, otherwise Property under Articles 217 and 222 of
known as the Anti-Graft and Corrupt the Revised Penal Code, as amended;
Practices Act; 18. Forgeries and Counterfeiting under
4. Plunder under R.A. No. 7080, as Articles 163, 166, 167, 168, 169 and 176
amended; of the Revised Penal Code, as amended;
5. Robbery and extortion under Articles 19. Violations of Sections 4 to 6 of Republic
294, 295, 296, 299, 300, 301 and 302 of Act No. 9208, otherwise known as the
the Revised Penal Code, as amended; Anti-TraDicking in Persons Act of 2003;
6. Jueteng and masiao punished as illegal 20. Violations of Sections 78 to 79 of
gambling under P.D. No. 1602; Chapter IV, of P.D. No. 705, otherwise
7. Piracy on the high seas under the known as the Revised Forestry Code of
Revised Penal Code, as amended and the Philippines, as amended;
P.D. No. 532; 21. Violations of Sections 86 to 106 of
8. Qualified theft under Article 310 of the Chapter VI, of R.A. No. 8550, otherwise
Revised Penal Code, as amended; known as the Philippine Fisheries Code
9. Swindling under Article 315 and Other of 1998;
Forms of Swindling under Article 316 of 22. Violations of Sections 101 to 107, and
the Revised Penal Code, as amended; 110 of R.A. No. 7942, otherwise known
10. Smuggling under R.A. Nos. 455 and as the Philippine Mining Act of 1995;
1937; 23. Violations of Section 27(c), (e), (f), (g) and
11. Violations of R.A. No. 8792, otherwise (i), of R.A. No. 9147, otherwise known as
known as the Electronic Commerce Act the Wildlife Resources Conservation and
of 2000; Protection Act;
12. Hijacking and other violations under R.A. 24. Violation of Section 7(b) of R.A. No. 9072,
No. 6235; destructive arson and murder, otherwise known as the National Caves
as defined under the Revised Penal and Cave Resources Management
Code, as amended; Protection Act;
13. Terrorism and conspiracy to commit 25. Violation of R.A. No. 6539, otherwise
terrorism as defined and penalized known as the Anti-Carnapping Act of
under Sections 3 and 4 of R.A. No. 9372; 2002, as amended;
14. Financing of terrorism under Section 4 26. Violations of Sections 1, 3 and 5 of P.D.
and oDenses punishable under Sections No. 1866, as amended, otherwise known
5, 6, 7 and 8 of R.A. No. 10168, otherwise as the decree Codifying the Laws on
known as the Terrorism Financing Illegal/Unlawful Possession,
Prevention and Suppression Act of 2012; Manufacture, Dealing In, Acquisition or
15. Bribery under Articles 210, 211 and 211- Disposition of Firearms, Ammunition or
A of the Revised Penal Code, as Explosives;
amended, and Corruption of Public 27. Violation of P.D. No. 1612, otherwise
ODicers under Article 212 of the Revised known as the Anti-Fencing Law;
Penal Code, as amended; 28. Violation of Section 6 of R.A. No. 8042,
16. Frauds and Illegal Exactions and otherwise known as the Migrant Workers
Transactions under Articles 213, 214, and Overseas Filipinos Act of 1995, as
amended by R.A. No. 10022;

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CONSUMER PROTECTION RCS

29. Violation of R.A. No. 8293, otherwise the Bureau of Internal Revenue (BIR) in a
known as the Intellectual Property Code separate proceeding; and
of the Philippines; 36. Felonies and oDenses of a similar nature
30. Violation of Section 4 of R.A. No. 9995, that are punishable under the penal laws
otherwise known as the Anti-Photo and of other countries.
Video Voyeurism Act of 2009;
31. Violation of Section 4 of R.A. No. 9775, V. FORFEITURE PROVISIONS
otherwise known as the Anti-Child
Pornography Act of 2009; Upon determination by the AMLC that probable
32. Violations of Sections 5, 7, 8, 9, 10(c), (d) cause exists that any monetary instrument or
and (e), 11, 12 and 14 of R.A. No. 7610, property is in any way related to an unlawful
otherwise known as the Special activity as defined in Section 3(i) or a money
Protection of Children Against Abuse, laundering oDense under Section 4 hereof, the
Exploitation and Discrimination; AMLC shall file with the appropriate court
33. Fraudulent practices and other through the ODice of the Solicitor General, a
violations under R.A. No. 8799, verified ex parte petition for forfeiture, and the
otherwise known as ‘The Securities Rules of Court on Civil Forfeiture shall apply.
Regulation Code of 2000’;
34. Violation of Section 19 (a)(3) of R.A. No. The forfeiture shall include those other
10697, otherwise known as the ‘Strategic monetary instrument or property having an
Trade Management Act’, in relation to the equivalent value to that of the monetary
proliferation of weapons of mass instrument or property found to be related in any
destruction and its financing pursuant to way to an unlawful activity or a money
United Nations Security Council laundering oDense, when with due diligence,
Resolution Numbers 1718 of 2006 and the former cannot be located, or it has been
2231 of 2015”; substantially altered, destroyed, diminished in
35. Violations of Section 254 of Chapter II, value or otherwise rendered worthless by any
Title X of the National Internal Revenue act or omission, or it has been concealed,
Code of 1997, as amended, where the removed, converted, or otherwise transferred,
deficiency basic tax due in the final or it is located outside the Philippines or has
assessment is in excess of twenty-five been placed or brought outside the jurisdiction
million pesos (P25,000,000.00) per of the court, or it has been commingled with
taxable year, for each tax type covered other monetary instrument or property
and there has been a finding of probable belonging to either the oDender himself or a
cause by the competent authority: third person or entity, thereby rendering the
Provided, further, that there must be a same diDicult to identify or be segregated for
finding of fraud, willful purposes of forfeiture.
misrepresentation or malicious intent on
the part of the taxpayer: Provided, finally, In the conduct of its investigation, the AMLC
that in no case shall the AMLC institute may also apply for the issuance of search and
forfeiture proceedings to recover seizure order with any competent court.
monetary instruments, property or
proceeds representing, involving, or VI. SAFE HARBOR CLAUSE
relating to a tax crime, if the same has
already been recovered or collected by When reporting covered or suspicious
transactions to the AMLC, covered institutions

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 CONSUMER PROTECTION RCS

and their oDicers and employees shall not be

deemed to have violated R.A. No. 1405, as
amended, R.A. No. 6426, as amended, R.A. No.
8791 and other similar laws, x x x.

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.” (Sec. 9(c) of R.A. 9160 as amended by R.A.
9194)

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