Anti-Money laundering At ( RA 9160)
1) Policy
The AMLA aims to protect and preserve the integrity of the Philippine financial system by preventing
it from being used as a conduit for money laundering. It seeks to ensure that the Philippines is not
used as a money laundering site for proceeds of unlawful activities, thereby promoting transparency
and accountability in financial transactions.
2) Covered Institutions and Their Obligations
Covered institutions include banks, insurance companies, securities dealers, casinos, and other
entities engaged in financial transactions. Their obligations under the AMLA encompass:
Customer Due Diligence (CDD): Identifying and verifying the identity of clients.
Record-Keeping: Maintaining and safeguarding records of transactions.
Reporting: Submitting Covered Transaction Reports (CTRs) and Suspicious Transaction Reports (STRs)
to the Anti-Money Laundering Council (AMLC).
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Case Reference:
In Republic of the Philippines represented by AMLC v. Sandiganbayan, G.R. No. 232724, February 15,
2021, the Supreme Court held that the AMLC is not a "covered institution" under the AMLA and is
thus not prohibited from disclosing information necessary for criminal investigations.
3) Covered Transactions
A covered transaction is a single transaction in cash or other equivalent monetary instrument
involving a total amount exceeding ₱500,000 within one banking day. Covered institutions are
mandated to report such transactions to the AMLC within five (5) working days from their occurrence.
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4) Suspicious Transactions
Suspicious transactions are those, regardless of amount, where any of the following circumstances
exist:
No underlying legal or trade obligation.
Client is not properly identified.
Transaction deviates from the client's known profile.
Use of structured transactions to avoid reporting thresholds.
Involvement of unlawful activities.
Such transactions must be reported to the AMLC within five (5) working days from the date of
occurrence.
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5) Safe Harbor Provision
The AMLA provides a safe harbor to covered institutions and their officers for reporting covered and
suspicious transactions in good faith. This means they are protected from any administrative, criminal,
or civil liability arising from such reports.
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6) How Money Laundering is Committed
Money laundering involves the following acts:
Transacting, converting, transferring, disposing of, moving, acquiring, possessing, using, concealing, or
disguising the true nature, source, location, disposition, or ownership of monetary instruments or
property derived from unlawful activities.
Case Reference:
In Lingad v. People of the Philippines, G.R. No. 224945, October 11, 2022, the Supreme Court affirmed
the conviction of a bank employee who facilitated unauthorized withdrawals and fund transfers
amounting to ₱83 million, highlighting the elements constituting money laundering.
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7) AMLC and Its Functions
The Anti-Money Laundering Council (AMLC) is the primary government agency tasked with
implementing the AMLA. Its functions include:
Receiving and analyzing covered and suspicious transaction reports.
Investigating money laundering offenses.
Instituting civil forfeiture proceedings and other remedial measures.
Coordinating with other agencies and international bodies.
8) Authority to Inquire into Bank Deposits
Under Section 11 of the AMLA, the AMLC, upon order of the Court of Appeals, may inquire into or
examine any particular deposit or investment with any banking institution or non-bank financial
institution.
Case Reference:
In Subido Pagente Certeza Mendoza and Binay Law Offices v. Court of Appeals, G.R. No. 216914,
December 6, 2016, the Supreme Court upheld the constitutionality of this provision, emphasizing its
necessity for effective anti-money laundering investigations.
9) Freezing of Monetary Instrument or Property
The AMLC may file an ex parte application with the Court of Appeals for the issuance of a freeze order
on any monetary instrument or property related to unlawful activities.
Case References:
In Republic of the Philippines v. Ongpin, G.R. No. 207078, June 20, 2022, the Supreme Court
emphasized the necessity of establishing a direct link between the assets and the alleged unlawful
activity to justify a freeze order.
In BCD Foreign Exchange Corp. v. Republic of the Philippines, G.R. No. 231495, October 13, 2021, the
Court reiterated that the issuance of a freeze order under the AMLA requires the presence of
probable cause to believe that the account is related to unlawful activity.
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