AMLA Quiz: Anti-Money Laundering Law in the Philippines

10 Questions

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

To ensure the Philippines is not used as a money laundering site for the proceeds of unlawful activities

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

To promote economic development and reduce poverty through corporate governance and public office transparency

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

Promotes economic development and reduces poverty

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

2001

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

To promote transparency and good governance in public offices

What are the 3 main steps involved in money laundering?

Placement, Layering, Integration

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

Tax evasion

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

To gather and analyze financial information for combating money laundering

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

Using legitimate funds for personal expenses

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

Knowing about the need to report but not doing so

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

Anti-Money Laundering Law (AMLA) in the Philippines