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?

₱50 Million Signup and view all the answers

Which activity is classified as illegal under PD 1602?

Jueteng and Masiao. Signup and view all the answers

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

Robbery Signup and view all the answers

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

RA 9147 Signup and view all the answers

What is the consequence of illegal recruitment under RA 8042?

Recruitment with or without a license. Signup and view all the answers

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

To preserve properties related to unlawful activities Signup and view all the answers

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

Child pornography Signup and view all the answers

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

RA 8799 Signup and view all the answers

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

To regulate the proliferation of weapons of mass destruction Signup and view all the answers

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

Intermediary Financial Institution Signup and view all the answers

What aspect does RA 7610 address regarding children?

Exploitation and abuse of children Signup and view all the answers

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

Violate child pornography laws Signup and view all the answers

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

Compliance culture Signup and view all the answers

What is defined as a suspicious transaction in the Philippines?

Any transaction with no underlying legal or trade obligation Signup and view all the answers

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

Banks and credit unions Signup and view all the answers

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

₱500,000 Signup and view all the answers

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

Suspension of business operations Signup and view all the answers

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

Transporting a large number of undocumented individuals across borders Signup and view all the answers

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

Conducting illegal logging activities Signup and view all the answers

What power does the AMLC have concerning bank inquiries?

To inquire about suspicious transactions from banks Signup and view all the answers

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

Illegal logging activities Signup and view all the answers

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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Description

This quiz covers the key aspects of the Anti-Money Laundering Act (AMLA) in the Philippines, including its objectives, amendments, and coverage of transactions. It also explores money laundering offenses and the responsibilities of covered persons. Test your knowledge on AMLA's provisions and its role in combating financial crime.