Anti-Money Laundering Act Overview

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Questions and Answers

What constitutes unlawful activities under the Philippines law?

  • Legal activities that are improperly documented.
  • Participation in community service.
  • Robbery without the use of force.
  • Acts related to illegal fishing and mining activities. (correct)

Which act is committed when a domestic servant exploits entrusted confidence?

  • Robbery
  • Qualified theft (correct)
  • Kidnapping
  • Plunder

Under the Anti-Graft and Corrupt Practices Act, what is a primary concern?

  • The acceptance of gifts by public officials. (correct)
  • Direct involvement in illegal mining activities.
  • Performing illegal gambling.
  • Infringement of intellectual property.

What is the minimum amount involved in plunder according to Philippine law?

<p>₱50 Million (C)</p> Signup and view all the answers

Which activity is classified as illegal under PD 1602?

<p>Jueteng and Masiao. (D)</p> Signup and view all the answers

What type of theft involves the use of force and violence?

<p>Robbery (C)</p> Signup and view all the answers

Which act governs the protection of wildlife resources in the Philippines?

<p>RA 9147 (C)</p> Signup and view all the answers

What is the consequence of illegal recruitment under RA 8042?

<p>Recruitment with or without a license. (D)</p> Signup and view all the answers

What does an Asset Preservation Order (APO) aim to achieve?

<p>To preserve properties related to unlawful activities (B)</p> Signup and view all the answers

Which of the following is considered a violation under RA 9775?

<p>Child pornography (A)</p> Signup and view all the answers

Which act regulates fraudulent practices such as wash sales and insider trading?

<p>RA 8799 (A)</p> Signup and view all the answers

What is the main purpose of the Strategic Trade Management Act under RA 10697?

<p>To regulate the proliferation of weapons of mass destruction (A)</p> Signup and view all the answers

Which type of institution acts as an intermediary in a serial payment chain?

<p>Intermediary Financial Institution (B)</p> Signup and view all the answers

What aspect does RA 7610 address regarding children?

<p>Exploitation and abuse of children (B)</p> Signup and view all the answers

Which of the following is NOT a type of violation listed related to money laundering?

<p>Violate child pornography laws (A)</p> Signup and view all the answers

What guideline does AMLC aim to enforce within financial and business sectors?

<p>Compliance culture (D)</p> Signup and view all the answers

What is defined as a suspicious transaction in the Philippines?

<p>Any transaction with no underlying legal or trade obligation (D)</p> Signup and view all the answers

Which financial institutions are prohibited from entering agreements to defraud the Government?

<p>Banks and credit unions (B)</p> Signup and view all the answers

What is the threshold for transactions that must be reported to the AMLC?

<p>₱500,000 (B)</p> Signup and view all the answers

Which of the following is NOT a consequence of malversation of public funds?

<p>Suspension of business operations (D)</p> Signup and view all the answers

Under the Anti-Trafficking in Persons Act, which situation describes a violation?

<p>Transporting a large number of undocumented individuals across borders (D)</p> Signup and view all the answers

Which of the following actions would fall under the criminal classifications of RA 9160?

<p>Conducting illegal logging activities (C)</p> Signup and view all the answers

What power does the AMLC have concerning bank inquiries?

<p>To inquire about suspicious transactions from banks (C)</p> Signup and view all the answers

Which of the following actions constitutes a violation under the Revised Forestry Code?

<p>Illegal logging activities (A)</p> Signup and view all the answers

Flashcards

Illegal Fishing

Violations of Sections 86-106 of Republic Act 8550 (Fisheries Code of 1998).

Illegal Mining

Violations of Republic Act 7942 (Philippine Mining Act of 1995).

Wildlife Protection Violation

Violations of Republic Act 9147 (Wildlife Resources Conservation and Protection Act).

Cave Resources Violation

Violation of Section 7(b) of Republic Act 9072 (National Caves and Cave Resources Management Protection Act).

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Anti-Carnapping Violation

Violation of Republic Act 6539 (Anti-Carnapping Act of 2002).

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Illegal Firearm Violation

Violations of Presidential Decree 1866 (Laws on Illegal Possession, Manufacture, Dealing in, Acquisition of Firearms).

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Anti-Fencing Violation

Violations of Presidential Decree 1612 (Anti-Fencing Law).

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Illegal Recruitment Violation

Violation of Section 6 of Republic Act 8042 (Migrant Workers and Overseas Filipino Act of 1995), as amended by Republic Act 10022.

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Intellectual Property Violation

Violation of Republic Act 8293 (Intellectual Property Code).

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Unlawful Activities

Any act or omission relating to kidnapping, drug offenses, corruption, plunder, robbery, illegal gambling, piracy, or qualified theft.

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Suspicious Transaction

A transaction that lacks a legitimate economic purpose, regardless of amount.

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Covered Transaction (Philippines)

Any bank transaction exceeding ₱500,000, automatically reported to AMLC, per AMLA.

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AMLC

Anti-Money Laundering Council in the Philippines.

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AMLA

Anti-Money Laundering Act (Philippines)

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Malversation of Public Funds

Misappropriation or misuse of public funds.

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Forgeries and Counterfeiting

Creating fake documents, money, or identities.

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Anti-Trafficking in Persons Act

RA 9208 concerning the illegal transport of people across borders.

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Revised Forestry Code (violation)

Illegal logging (violation of PD 705).

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Violation of Section 4, RA 9995

Violation of the Anti-Photo and Video Voyeurism Act of 2009, Section 4.

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Violation of Section 4, RA 9775

Violation of the Anti-Child Pornography Act of 2009, Section 4.

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Violations of RA 7610

Violations of the Special Protection of Children Against Abuse, Exploitation and Discrimination.

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Violations of RA 8799

Fraudulent practices or violations of the Securities Regulation Code of 2000 (e.g., wash sales, insider trading, short swing transactions).

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Asset Preservation Order (APO)

A provisional remedy to preserve assets in money laundering cases.

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Intermediary Financial Institution

A financial institution that transmits wire transfers in serial payment chains.

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Violation of RA 11521, Section 19(A)(3)

Violating the Strategic Trade Management Act in relation to weapons of mass destruction.

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Study Notes

Anti-Money Laundering Act (AMLA)

  • A crime where the proceeds of illegal activity are made to appear legitimate
  • Aims to protect the integrity of bank accounts and prevent the Philippines from being a money laundering hub
  • Amended multiple times, most recently by RA 11521
  • Covers various transactions, including cash transactions over PHP 7.5 million with real estate developers/brokers
  • Includes offshore gaming operators, service providers, and real estate brokers and developers as covered persons
  • Includes updated definitions of terms, targeted financial sanctions, and indicators for suspicious activity
  • Newly covered persons and unregistered DNFBPs must register with the AMLC within six months

Money Laundering Offenses

  • Illegal acts where someone knows an instrument or property is linked to illegal activity:
    • Handling the item
    • Converting, transferring, or disposing of it
    • Concealing or disguising its true nature, source, or ownership
    • Attempting or helping commit these acts
    • Failing to report to the AMLC about suspicious transactions
  • These crimes are committed under RA 10365, approved February 15th, 2013

Monetary Instruments

  • Defined in IRR 2018
  • Includes: coins, currency, credit instruments, checks, stocks, securities, insurance policies, and others
  • Includes proceeds and components of illegal activity

Covered Transactions

  • Transactions exceeding certain thresholds:
    • PHP 4 million (RA 9160 amended)
    • PHP 500,000 (real estate transactions)
    • PHP 7.5 million (real estate developers/brokers)
  • Specific timeframes in certain transactions
  • Transactions with jewelry dealers or casinos also covered

Covered Institutions / Persons

  • Banks, quasi-banks, trust entities, pawnshops.
  • Non-bank financial institutions regulated by the BSP.
  • Insurance companies, pre-need companies, and their agents
  • Securities dealers, brokers, investment houses, and managing securities.

Suspicious Transactions (PCA-SDUS)

  • Transactions with lack of trade obligation, unidentifiable client, or unusual amounts
  • Actions that seem unusual or unrelated to the customer's normal transactions
  • Transactions related to illegal activity that has been, is being, or is planned

Duty of Covered Persons

  • Report covered transactions and suspicious transactions within five (5) working days, unless the AMLC mandates a different timeframe (not exceeding 15 days)
  • Report these transactions without disclosing confidential details about the suspect

Obligations of Covered Persons

  • Identify customers, their true identities, and organizational structures
  • Maintain records of transactions for five years (for closed accounts, for at least 5 years from when they were closed)

Suspicious Activity Indicators (SAIs)

  • Indicators used to identify potential money laundering or terrorist financing transactions
  • Listed in the guidelines including types of accounts, amount, frequency, complexity of transactions

Unlawful Activities

  • Includes many types of crimes, outlined in the document, such as kidnapping, drug offences, various types of theft and fraud, and others

Freeze Order

  • Temporary order to prevent assets from being transferred
  • Issued by the Court of Appeals (or Supreme Court in special circumstances)
  • Usually for up to six months
  • Allows the government to investigate potential illegal activity or money laundering

Bank Inquiry

  • AMLC can investigate bank deposits if ordered by a court with probable cause of a money laundering offense

Penalties

  • Imprisonment and fines for money laundering offences; administrative sanctions also possible.
  • Penalty amounts vary depending on the specific violation

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Related Documents

AMLA (Updated) PDF

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