AMLA Quiz: Philippine Anti-Money Laundering Act of 2001

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main objective of the Republic Act 9160?

To prevent the Philippines from becoming a haven for money laundering (correct)

To reduce penalties for money laundering crimes

To relax bank deposit secrecy laws

To establish rules for the administration process of money laundering activities

What is the role of the Anti-Money Laundering Council (AMLC)?

To provide financial assistance to banks affected by money laundering

To oversee the implementation of the law and act as a financial intelligence unit (correct)

To investigate and prosecute money laundering cases

To impose stricter penalties for money laundering crimes

What is a requirement for covered institutions under the Anti-Money Laundering Act?

To report covered and suspicious transactions and cooperate with the government (correct)

To report only suspicious transactions

To keep records of transactions for only 5 years

To refuse to cooperate with government investigations

What is the consequence of criminalizing money laundering?

Hefty fines and imprisonment for those found guilty Signup and view all the answers

What is authorized under the Anti-Money Laundering Act?

Access to deposit and investment accounts in specific circumstances Signup and view all the answers

What is required of covered institutions in terms of knowing their customers?

To know their customers and keep records of their transactions Signup and view all the answers

What is one of the powers of the AMLC?

Receiving requests from foreign countries for assistance in anti-money laundering operations Signup and view all the answers

What type of institutions are supervised by the Bangko Sentral ng Pilipinas (BSP)?

Banks, offshore banking units, and quasi-banks Signup and view all the answers

What is the purpose of the Customer Identification Requirements – KYC (Know Your Customer Rule)?

To establish and record the true identity of clients Signup and view all the answers

What is an example of an institution supervised by the Securities and Exchange Commission (SEC)?

Securities dealers and investment houses Signup and view all the answers

What is the primary purpose of verifying the true identity of clients?

To prevent suspicious transactions Signup and view all the answers

What is the minimum amount for a transaction to be considered a covered transaction?

P500,000.00 Signup and view all the answers

What is the purpose of imposing administrative sanctions on violators?

To prevent violations of the law and regulations Signup and view all the answers

What is the purpose of developing educational programs for the public?

To educate the public about the pernicious effects of money laundering Signup and view all the answers

What is a characteristic of a suspicious transaction?

Has no underlying legal obligation Signup and view all the answers

Why is it important to identify the authority and identification of persons acting on behalf of corporate clients?

To prevent unauthorized transactions Signup and view all the answers

What happens when a client's transaction appears to be structured to avoid reporting requirements?

It is considered suspicious Signup and view all the answers

Why are internal controls and internationally compliant standards important in customer identification?

To prevent suspicious transactions and maintain integrity Signup and view all the answers

What is the initial stage of money laundering where illegal funds are introduced into the financial system?

Placement Signup and view all the answers

What is the purpose of the layering stage in money laundering?

To conceal the source of the funds Signup and view all the answers

What is the final stage of money laundering where laundered funds are made available to the criminal?

Integration Signup and view all the answers

Which of the following is NOT considered an unlawful activity under the AMLA, as amended?

Tax evasion Signup and view all the answers

What is the purpose of the AMLA, as amended?

To prevent money laundering and terrorist financing Signup and view all the answers

How many unlawful activities are listed under the AMLA, as amended?

14 Signup and view all the answers

What is the duration for which covered institutions are required to keep records?

5 years Signup and view all the answers

What is the time frame for submitting covered and suspicious transactions to the AMLC?

5 days Signup and view all the answers

What is the penalty for failure to report covered or suspicious transactions?

6 months to 4 years imprisonment or a fine of P100,000.00 to P500,000.00 Signup and view all the answers

What is the penalty for malicious reporting of a money laundering transaction?

6 months to 4 years imprisonment or a fine of P100,000.00 to P500,000.00 Signup and view all the answers

What is the offense committed by a responsible official or employee of a covered institution who fails to maintain and safely store transaction records?

Failure to keep records Signup and view all the answers

What is the fine range for the offense of failing to keep records?

P100,000.00 to P500,000.00 Signup and view all the answers

Study Notes

Anti-Money Laundering Council (AMLC)

Receives and analyzes covered and suspicious transaction reports
Oversees the implementation of the Anti-Money Laundering Act

Covered Institutions

Banks, offshore banking units, quasi-banks, trust entities, non-stock savings and loan associations, pawnshops, and all other institutions supervised and/or regulated by the Bangko Sentral ng Pilipinas (BSP)
Insurance companies, holding companies, and all other institutions supervised or regulated by the Insurance Commission (IC)
Securities dealers, brokers, pre-need companies, foreign exchange corporations, investment houses, trading advisers, and other entities supervised or regulated by the Securities and Exchange Commission (SEC)

Customer Identification Requirements – KYC (Know Your Customer Rule)

Establish and record the true identity of clients based on official documents
Verify the true identity of individual clients
Verify the legal existence and organizational structure of corporate clients, as well as the authority and identification of all persons purporting to act in their behalf
Establish appropriate systems and methods based on internationally compliant standards and adequate internal controls for verifying and recording the true and full identity of clients

Anti-Money Laundering Act (AMLA)

Criminalizes money laundering, provides penalties for its commission, including hefty fines and imprisonment
States the determination of the government to prevent the Philippines from becoming a haven for money laundering, while ensuring to preserve the integrity and confidentiality of good bank accounts
Creates an Anti-Money Laundering Council (AMLC) that oversees the implementation of the law and acts as a financial intelligence unit
Relaxes the bank deposit secrecy laws, authorizing the AMLC and the Bangko Sentral ng Pilipinas access to deposit and investment accounts in specific circumstances
Requires covered institutions to report covered and suspicious transactions and to cooperate with the government in prosecuting offenders

Covered Transactions

Transactions in cash or other equivalent monetary instruments involving a total amount in excess of P500,000.00 within one (1) business day

Suspicious Transactions

Transactions with no underlying legal or trade obligation, purpose, or economic justification
Transactions where the client is not properly identified
Transactions where the amount involved is not commensurate with the business or financial capacity of the client
Transactions structured to avoid being the subject of reporting requirements under the Act
Transactions that deviate from the profile of the client and/or the client's past transactions with the covered institution
Transactions that pose a threat to national security

Money Laundering Process

Placement: initial introduction of illegal funds into the financial system
Layering: series of financial transactions to conceal the origin of the funds
Integration: money is made available to the criminal with the occupational and geographic origin obscured or concealed

Unlawful Activities under the AMLA

Kidnapping for ransom
Drug offenses
Graft and corrupt practices
Plunder
Robbery and extortion
Jueteng and masiao
Piracy on the high seas
Qualified theft
Swindling
Smuggling
Electronic Commerce crimes
Securities fraud
Hijacking, destructive arson, and murder (including those perpetrated against non-combatant persons)

Relevant Dates/Periods

5 years: number of years covered institutions are required to keep records
Within 5 days: submission of covered and suspicious transactions to the AMLC

Sanctions for Failure to Report Covered or Suspicious Transactions

6 months to 4 years imprisonment or a fine of not less than P100,000.00 but not more than P500,000.00, or both

Other Offenses Punishable by AMLA

Failure to keep records: 6 months to 1 year imprisonment or a fine of not less than P100,000.00 but not more than P500,000.00, or both
Malicious reporting: 6 months to 4 years imprisonment and a fine of not less than P100,000.00 but not more than P500,000.00

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers the key provisions and features of the Philippine Anti-Money Laundering Act of 2001, including its purpose, penalties, and impact on financial transactions.

Philippine Anti-Money Laundering Act of 2001

Choose a study mode