Anti-Money Laundering Law (AMLA) in the Philippines

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Questions and Answers

What is the primary rationale for enacting the Anti-Money Laundering Act (AMLA) in the Philippines?

  • To protect life, liberty and property from acts of terrorism
  • To protect the integrity of the Philippine financial system and confidentiality of bank accounts
  • To extend cooperation in transnational investigations and prosecution of persons involved in money laundering
  • To ensure the Philippines is not used as a money laundering site for the proceeds of unlawful activities (correct)

Which of the following is NOT stated as a key state policy in the Anti-Money Laundering Act (AMLA)?

  • To ensure that the Philippines is not used as a money laundering site for the proceeds of any unlawful activity
  • To extend cooperation in transnational investigations and prosecution of persons involved in money laundering activities wherever committed
  • To protect and preserve the integrity of the Philippine financial system, including the confidentiality of bank accounts
  • To promote economic development and reduce poverty through corporate governance and public office transparency (correct)

Which of the following is not mentioned as a salient feature of the Anti-Money Laundering Act (AMLA) in the Philippines?

  • Extends cooperation in transnational investigations and prosecution of money laundering
  • Promotes economic development and reduces poverty (correct)
  • Retains confidentiality and integrity of legitimate bank accounts
  • Prevents the Philippines from being a money laundering site

What is the year that the Anti-Money Laundering Act (AMLA) was enacted in the Philippines?

<p>2001 (D)</p> Signup and view all the answers

Which of the following is NOT mentioned as a reason for the enactment of the Anti-Money Laundering Act (AMLA) in the Philippines?

<p>To promote transparency and good governance in public offices (B)</p> Signup and view all the answers

What are the 3 main steps involved in money laundering?

<p>Placement, Layering, Integration (A)</p> Signup and view all the answers

Which of the following is NOT considered an Unlawful Activity (Predicate Crime) related to money laundering?

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

What is the purpose of a financial intelligence unit in the context of anti-money laundering?

<p>To gather and analyze financial information for combating money laundering (D)</p> Signup and view all the answers

Which of the following is NOT a form of money laundering as described in the text?

<p>Using legitimate funds for personal expenses (A)</p> Signup and view all the answers

What action constitutes a failure to report a covered or suspicious transaction to the AMLC by a covered person?

<p>Knowing about the need to report but not doing so (B)</p> Signup and view all the answers

Flashcards

Anti-Money Laundering Law (AMLA)

Philippine law enacted in 2001 (R.A. 9160) to combat money laundering and transnational crimes.

Rationale for AMLA

To prevent the Philippines from becoming a haven for laundered money and to bolster economic stability.

State Policies of AMLA

Protect the financial system, prevent money laundering, cooperate internationally, combat terrorism financing.

Salient Features of AMLA

Criminalizes money laundering, creates a financial intelligence unit, imposes customer due diligence, allows bank inquiry.

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Money Laundering

Transactions involving proceeds of unlawful activities with the intent to conceal their origins.

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Money Laundering Process

Placement, layering, and integration.

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Placement (Money Laundering)

The initial introduction of illicit funds into the financial system.

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Layering (Money Laundering)

Series of transactions obscuring the illegal source of funds.

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Integration (Money Laundering)

Using laundered money as legitimate funds.

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Unlawful Activity (Predicate Crime)

Crimes that generate illicit funds, such as drug trafficking, fraud, and corruption.

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Study Notes

Anti-Money Laundering Law (AMLA)

  • Enacted in 2001 as R.A. 9160
  • Aims to contribute to the global fight against money laundering and transnational crimes

Rationale for Enacting AMLA

  • To sustain economic development and poverty alleviation through corporate governance and public office transparency
  • To prevent the Philippines from being used as a site to launder proceeds of unlawful activities

State Policies

  • Protect and preserve the integrity of the Philippine financial system
  • Prevent the Philippines from being used as a money laundering site
  • Extend cooperation in transnational investigations and prosecution of money laundering activities
  • Protect life, liberty, and property from acts of terrorism
  • Recognize and adhere to international commitments to combat the financing of terrorism

Salient Features of AMLA

  • Retains confidentiality and integrity of legitimate bank accounts
  • Prevents the Philippines from being a money laundering site
  • Criminalizes money laundering
  • Creates a financial intelligence unit
  • Imposes requirements on customer due diligence (Know Your Customer - KYC)
  • Relaxes strict bank deposits secrecy laws
  • Provides for bank inquiry and freeze ex parte petition/seizure/forfeiture/recovery of dirty money/property
  • Provides for international cooperation

Money Laundering Definition

  • Committed by any person knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity
  • Includes transactions, conversions, transfers, disposal, movement, acquisition, possession, or use of dirty money
  • Conceals or disguises the true nature, source, location, disposition, involvement, or ownership of or rights

Money Laundering Process

  • Placement: introduce dirty money into the financial system
  • Layering: a series of transactions to erase signs of illegal activity
  • Integration: use the money as legitimate funds

Unlawful Activity (Predicate Crime)

  • Refers to any act or omission involving or having direct relation to various crimes, including:
  • Drug trafficking and related offenses
  • Child Pornography
  • Jueteng and Masiao
  • Piracy
  • Forgery and counterfeiting
  • Kidnapping for ransom
  • Carnapping
  • Graft and plunder
  • Bribery and malversation
  • Qualified theft and robbery
  • Extortion and swindling
  • Smuggling and violations of intellectual property code
  • Fraudulent practices and other crimes

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