Anti-Money Laundering Act Definitions

Anti-Money Laundering Act: Definitions

• Account: A bank account, electronic money account, or similar contract where customer funds are held.
• Anti-Money Laundering Act (AMLA): Refers to Republic Act No. 9160, amended by other acts. It outlines the Philippines' central AML/CTF authority.
• Anti-Money Laundering Council (AMLC): The governing body of the Philippines' AML/CTF authority.
• Appropriate Government Agency: Agencies authorizing casinos, like PAGCOR, CEZA, APECO.
• Asset: A monetary instrument, property, or combination of both.
• Asset Preservation Order: A legal measure to preserve assets linked to unlawful activity.
• Average Due Diligence: The standard level of customer due diligence for medium-risk money laundering situations.
• Bangko Sentral ng Pilipinas (BSP): The central bank of the Philippines.
• Bank Inquiry: A legal procedure to investigate particular bank accounts.
• Bearer Negotiable Instruments: Instruments like checks, promissory notes, and money orders, where ownership transfers with possession (e.g., traveler's checks).  
• Bearer Shares: Negotiable instruments granting ownership rights in a juridical person to the possessor of a share certificate.
• Beneficial Owner: The person who ultimately owns, controls, or has a significant interest in a customer account (at least 20% shares).
• Beneficial Ownership Verification: Measures to identify and verify a beneficial owner's true nature and relationship with the account/transaction.
• Beneficiary: The recipient of funds in an account, trust, life insurance, or investment agreement.
• Beneficiary Financial Institution: The financial institution receiving funds on behalf of a beneficiary.
• Biometric Information: Features that uniquely identify an individual (e.g., fingerprints, facial photos).
• Casino: A business authorized for gaming operations.
• Casino Cash Transaction: Cash transactions involving casino payouts, and payments made by or on behalf of a customer.
• Civil Forfeiture: Government seizure of assets (not through conviction) linked to unlawful activity.
• Close Relationship/Associate: Individuals who have close personal or professional connections to PEPs.
• Correspondent Banking: One bank providing banking services for another.
• Company Service Provider: Individuals/firms assisting clients with company formation, administration, etc.
• Cover Payment: A wire transfer that includes a payment message directed to the beneficiary and cover instructions to intermediaries.
• Covered Transaction: Cash transactions exceeding specific thresholds (e.g., P500,000).
• Covered Transaction Report: A report on covered transactions before the AMLC.
• Cross-Border Wire Transfer: Wire transfer where both the originating and beneficiary institutions are in different countries.
• Customer: Any person who maintains an account or conducts transactions with a covered person.
• Customer Due Diligence: Procedures used to identify and verify customers.
• Customer Identification Process: The method of determining customer identity.
• Customer Verification Process: Validating documents and information provided by customers.
• Dealer in Precious Metals and Stones/Jewelry Dealer: Businesses dealing with precious metals and stones (excluding those related to mining).
• Designated Non-Financial Businesses and Professions (DNFBPs): Businesses/professions not under supervision of the BSP, SEC, or IC.
• Determination of Relationship: Identifying the intended nature of business/professional relationship.
• Domestic Wire Transfer: Wire transfers entirely within a single country.
• Demographic Data: Personal details of an individual that uniquely identify them.
• Enhanced Due Diligence: A heightened level of scrutiny in understanding and confirming customer information.
• Financial Intelligence: Information gathered and analyzed to understand financial activities of persons of interest.
• Financial Intelligence Unit (FIU): A national center for receiving and analyzing suspicious transactions and information related to money laundering and terrorism financing.
• Financial Investigation: An inquiry into the finances of persons involved in money laundering or terrorism financing.
• Freeze Order: A provisional measure to block assets linked to unlawful activities.
• Gaming Operations: Games of chance authorized by the AGA, excluding certain types like sweepstakes and lotteries.
• Identification and Verification of Agents: Establishing the identity and legitimacy of agents/representatives interacting with customers.
• Identification Data: Information or documents used to identify individuals.
• Instrumentality: A monetary instrument/property needed to finance/maintain unlawful activity.
• Insurance Commission: The Philippine regulatory body for insurance and pre-need industries.
• Intermediary Financial Institution: A financial institution acting as a middleman handling wire transfers.
• Internet-Based Casino: Online casinos.
• Jewel/Jewelry: Organic or finished products with a significant portion of their value derived from jewels, precious metals etc.
• Law Enforcement Agency (LEA): Government entities responsible for criminal investigations and enforcement.
• Metrially-Linked Accounts: Accounts or funds connected to assets that are frozen/subject to inquiry.
• Monetary Instrument: Funds, currency, credit instruments, securities etc. This is a broad term.
• Money Laundering/Terrorism Financing Prevention Program: Internal policies, controls, and best practices for preventing ML/TF.
• Money Laundering: The crime defined under Section 4 of the AMLA.
• Money or Value Transfer Service: Services accepting/transferring cash, checks, etc.
• Mutual Legal Assistance: Formal international cooperation in criminal matters.
• National Risk Assessment: A risk analysis process for money laundering and terrorism financing.
• Non-Profit Organization: Organizations typically with charitable, social or similar purposes, and fund-raising activities.
• Offender: A person who commits a money laundering offense.
• Offshore Gaming Operator: Entities offering online gambling or sports events.
• Offshore Gaming Operator Services Provider: Entities providing components to offshore gaming operations.
• Ongoing Monitoring Process: Continuously assessing risks, understanding transactions and updating customer information.
• Originating/Ordering Financial Institution: The institution initially initiating a wire transfer.
• Originator: The person placing an order for a wire transfer.
• Other Government Agency: Agencies not specifically an SA, AGA, or LEA.
• Parallel Financial Investigation: Investigation into money laundering/terrorism financing alongside other investigations.
• Payable-Through Accounts: Correspondent accounts used for transactions on behalf of third parties.
• Person/Entity: Refers to a natural person or a juridical person.
• Philippine Identification Card: A government-issued identification card.
• Philippine Identification System (PhilSys): A government-run central identification platform for citizens and resident aliens.
• PhilSys Number: Unique identification number for every citizen or resident alien in the PhilSys System.
• Politically Exposed Person (PEP): Individuals in prominent public positions who have substantial authority over policy, operations, etc.
• Precious Metals: Precious metals like gold, silver, platinum, palladium etc.
• Precious Stones: Gems and stones with market recognized value and rarity.
• Probable Cause: Factors to believe that a monetary instrument or asset is related to money laundering etc.
• Proceeds: Amounts derived from unlawful activity.
• Proliferation of Weapons of Mass Destruction: The development or use of weapons of mass destruction.
• Property: Items/assets, real or personal, tangible or intangible.
• Request for Information: Information requests to other entities for purposes of investigations.
• Real Estate/Real Estate Broker/Real Estate Developer: Individuals dealing in real estate.
• Realty Transaction/Realty Transaction Report: Real estate transactions exceeding a certain amount.
• Reduced Due Diligence: The lowest level of customer due diligence used in low-risk transactions.
• Related Account: An account connected to the assets being frozen or subject to inquiry
• Risk-Based Approach: Assessments of risks for money laundering and terrorism financing from different perspectives.
• Sectoral Risk Assessment: Comprehensive risk assessments of specific industries or business sectors.
• Securities and Exchange Commission (SEC): The Philippine regulatory body for the securities industry.
• Serial Payment: A sequence of payments directly transferred.
• Shell Bank: Banks without physical presence in the country of incorporation or regulation.
• Ship-Based Casino: Casinos located on ships or boats.
• Source of Funds/Source of Wealth: Sources of funds/assets, e.g., employment, investment, etc.
• Strategic Trade Management Act: Refers to Republic Act No. 10697, a law related to the management of strategic goods trade.
• Supervising Authority: Government agencies overseeing specific financial institutions or entities.
• Suspicious Circumstances: Various circumstances raising doubts about a transaction(e.g., no clear justification, excessive amount).
• Suspicion: A feeling/assessment that a transaction/person is involved in something suspicious.
• Suspicious Transaction: An action that triggers suspicion; it may not involve crime.
• Suspicious Transaction Report: A document filed for suspicious transactions to the AMLC.
• Tactical Analysis: Analysis on time, location, perpetrator, victims etc. to understand a crime series.
• Targeted Financial Sanctions: Penalties for individuals or entities violating international agreements or orders
• Terrorism Financing Prevention and Suppression Act: A Philippine law addressing terrorism financing.
• Transaction: An action taking place/any business engagement. 
• Trustee: A person holding assets for another
• Trustor/Grantor/Settlor: The person originally/legally responsible for an asset/giving money/property over to a trustee. 
• Unique Transaction Reference Number: A combination of letters/numbers to identify a transaction uniquely.
• United Nations Security Council: The UN body responsible for international peace and security.
• Virtual Asset: Digital representation of value like cryptocurrencies.
• Virtual Asset Provider: A business related to virtual assets. 
• Weapons of Mass Destruction: Chemical, biological, radiological or nuclear weapons.
• Wire Transfer: Electronic transfer of funds.

Test your knowledge on the key definitions related to the Anti-Money Laundering Act (AMLA) in the Philippines. This quiz will cover terms such as accounts, asset preservation orders, and the role of appropriate government agencies. Ideal for students and professionals in finance and law.