RFBT 110 Anti Money Laundering Act PDF

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS ATTY. JOHNSON A.H. ONG RFBT. 110 —ANTI-MONEY LAUNDERING ACT MAY 2024 CPALE REVIEW Anti-Money Laundering Act of 2001 (AM...

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS ATTY. JOHNSON A.H. ONG RFBT. 110 —ANTI-MONEY LAUNDERING ACT MAY 2024 CPALE REVIEW Anti-Money Laundering Act of 2001 (AMLA) regime. It will be developed and sustained through capacity R.A. 9160, as amended by R.A. No. 9194, R.A. 10167, R.A. building and deterrence of violations through imposition of 10365, R.A. 10927 and R.A. 11521 including Sec 35, and 36 appropriate, proportionate and dissuasive sanctions. of R.A. 11479) d. A sound risk management system to identify, assess, mitigate, monitor, and control risks associated with money CPA Board Exam Syllabus (October 2022) laundering/terrorism financing is essential. AMLA Law (6 questions) e. Timely and effective domestic and international cooperation 1. Purpose, policies and Principles and established coordination mechanism are critical in the 2. Definition of terms investigation and prosecution of money 3. Unlawful activities laundering/terrorism financing and associated unlawful 4. Covered persons activities. 5. Money laundering, terrorism and financing and asset f. The implementation of AML laws, rules and regulations shall forfeiture conform to international AML/CTF standards and best 6. Preventive measures and obligations of covered persons practices. 7. Prohibited accounts g. The observance of the constitutional requirements on due 8. Customer due diligence process, and injunction against ex post facto laws and bills of 9. Beneficial ownership attainder. (2018 IRR of AMLA) 10. Record keeping requirements 11. Safe Harbor Definition Anti-Money Laundering Council” (AMLC) refers to the State Policies on AML/CTF Philippines’ central AML/CTF authority and financial (a) To protect and preserve the integrity of the Philippine intelligence unit, which is the government instrumentality financial system, including the confidentiality of bank mandated to implement the AMLA and TFPSA. It also refers accounts. to the official name of the Council, which is the governing (b) To ensure that the Philippines shall not be used as a money body of the said government agency. laundering site for the proceeds of any unlawful activity. “Asset Preservation Order” (APO) refers to a provisional (c) To extend cooperation, consistent with Philippines’ foreign remedy aimed at preserving monetary instruments or policy, in transnational investigations and prosecutions of properties in any way related to an unlawful activity or persons involved in money laundering activities wherever money laundering offense defined herein, during the committed, as well as in the implementation of targeted pendency of civil forfeiture proceedings. financial sanctions related to the financing of the “Bearer Negotiable Instruments” (BNIs) refers to proliferation of weapons of mass destruction, terrorism, monetary instruments in bearer form such as, traveler’s and terrorism financing, pursuant to the resolutions of checks; negotiable instruments, including checks, the United Nations Security Council. (As amended by AMLC promissory notes and money orders, that are either in bearer regulatory issuance 2021) form, endorsed without restriction, made out to a fictitious (d) To protect life, liberty and property from acts of terrorism payee, or otherwise in such form that title thereto passes and to condemn terrorism and those who support and upon delivery; and incomplete instruments, including finance it; and to recognize it as inimical and dangerous to checks, promissory notes and money orders, signed, but with national security and the welfare of the people; and to make the payee’s name omitted. the financing of terrorism a crime against the Filipino people, “Bearer Shares” refers to negotiable instruments that against humanity and against the law of nations. accord ownership in a juridical person to the person who (e) To recognize and to adhere to international commitments to possesses the bearer share certificate. combat the financing of terrorism, specifically to the “Beneficial Owner” refers to any natural person who: International Convention for the Suppression of the (1) Ultimately owns or controls the customer and/or on Financing of Terrorism, as well as other binding terrorism whose behalf a transaction or activity is being conducted; related resolutions of the United Nations Security Council, (2) Has ultimate effective control over a juridical person or pursuant to Chapter 7 of the United Nations Charter. legal arrangement; or (f) To reinforce the fight against terrorism by preventing and (3) Owns, at least, twenty percent (20%) shares, suppressing the commission of said offenses through contributions or equity interest in a juridical person or legal freezing and forfeiture of property or funds while protecting arrangement human rights. (2018 IRR oof AMLA) Control includes whether the control is exerted by means of trusts, agreements, arrangements, understandings, or Governing Principles practices, and whether or not the individual can exercise a. The AMLC, as the country’s financial intelligence unit, is control through making decisions about financial and vested by law with independence to perform its mandate. It operating policies. upholds the continuous development of a team of highly “Beneficial Ownership Verification” (BOV) is the process ethical and professional personnel and implements efficient of taking reasonable measures to identify and verify the processes in the delivery of its mandate. beneficial owner, including the determination of the true b. The AML/CTF laws, rules and regulations and other relevant nature of the beneficial owner’s capacities and duties vis-à- issuances are implemented using a risk-based approach in a vis his agent, nominee or trustee. way that responds to the need to bring the financially “Biometric Information” refers to front facing photograph, excluded into the regulated financial sector, while at the fingerprint, iris scan, and/or such other unique identifiable same time maintaining effective safeguards and effective features of an individual. controls against money laundering/terrorism financing “Casino” refers to a business authorized by the appropriate risks. government agency to engage in gaming operations. c. A strong compliance culture, good governance and “Casino Cash Transaction” refers to transactions involving observance of high ethical standards in the conduct of the receipt of cash by a casino paid by or on behalf of a business are good foundations for an effective AML/CTF 0998-539-40-22 www.arccpalereview.com Page 1 of 12  (ATTY. ONG – OCT 2024) customer; or transactions involving the payout of cash by a under the supervision or regulation of the BSP, SEC and IC, casino to a customer or to any person in his behalf. and designated as covered persons under the AMLA. “Close Relationship/Associate” refers to persons who are “Determination of the Purpose of Relationship” (DPR) widely and publicly known, socially or professionally, to refers to the process of identifying the purpose and intended maintain a particularly close relationship with the PEP, and nature of the account, transaction, or business or include persons who are in a position to conduct substantial professional relationship. domestic and international financial transactions on behalf “Domestic Wire Transfer” refers to any wire transfer of the PEP. (t) “Correspondent Banking” refers to the where the originating and beneficiary financial institutions provision of banking services by one bank, called the are located in the same country. It shall refer to any chain of correspondent bank, to another bank, called the respondent wire transfers that takes place entirely within the borders of bank. a single country, even though the system used to transfer the “Company Service Provider” (CSP) refers to a person payment message may be located in another country. engaged in the business of providing the following services “Demographic Data” refers to a person’s full name, sex, date for customers, who need to perform or offer a service or and place of birth, address, citizenship or nationality, and activity, but are not capable of doing or do not want to do so such other personal information from which the identity of a directly due to financial or operational reasons, or business person can be ascertained. judgment: (1) acting as a formation agent of juridical “Financial Intelligence” refers to the gathering and analysis persons; (2) acting as (or arranging for another person to act of information about the transactions and financial activities as) a director or corporate secretary of a company, a partner of persons of interest, to understand their nature and of a partnership, or a similar position in relation to other capabilities, and predict their future actions. It may also refer juridical persons; (3) providing a registered office; business to intelligence information, which is the result of the analysis address or accommodation, correspondence or of the information gathered. administrative address for a company, a partnership or any “Financial Intelligence Unit” (FIU) refers to the national other juridical person or legal arrangement; and (4) acting as center for the receipt and analysis of: (or arranging for another person to act as) a nominee (a) suspicious transaction reports; and shareholder for another person. (b) other information relevant to ML/TF and associated “Cover Payment” refers to a wire transfer that combines a unlawful activities, and for the dissemination of the results payment message sent directly by the originating/ordering of that analysis. financial institution to the beneficiary financial institution “Financial Investigation” refers to an inquiry into the with the routing of the funding instruction, called the cover, financial affairs of persons related to ML/TF and associated from the originating/ordering financial institution to the unlawful activity, with a view to: beneficiary financial institution through one or more (1) identifying the extent of criminal networks and/or the intermediary financial institutions. scale of criminality; “Covered Transaction Report” (CTR) refers to a report on (2) identifying and tracing the proceeds and a covered transaction, as herein defined, filed by a covered instrumentalities of crime, terrorism funds or any other person before the AMLC. assets that are, or may become, subject to forfeiture “Cross-Border Wire Transfer” refers to any wire transfer proceedings; and where the originating and/or beneficiary financial (3) developing and/or gathering of evidence which can be institutions are located in different countries. It shall also used in litigation of cases. refer to any chain of wire transfers in which, at least, one of “Identification and Verification of Agents” (IVA) refers to the financial institutions involved is located in a different the process of establishing and recording the true and full country. identity and existence of an agent, nominee, trustee or other “Customer Due Diligence” (CDD) refers to the procedure of authorized representatives who is acting as an account identifying and verifying the true identity, of customers, and holder or transactor, and other person who is acting in behalf their agents and beneficial owners, including understanding of a beneficial owner or principal, including verifying the and monitoring of their transactions and activities. validity of the authority of the agent, nominee, trustee, or “Customer Identification Process” (CIP) refers to the authorized representative. process of determining the identity of the customer vis-à-vis “Identification Data” refers to both the identification the valid and acceptable identification document submitted information and identification document, as herein defined. to, and/or presented before, the covered person. “Identification Information/Personal Information” “Customer Verification Process” (CVP) refers to the refers to the demographic data and biometric information of process of validating the truthfulness of the information, and a natural person, or information about a juridical person or confirming the authenticity of the identification documents, legal arrangement, from which the identity of a person is presented, submitted and provided by the customer; or other apparent or can be reasonably and directly ascertained by ways of verifying the identity and assessing the risk profile the person holding the information, or when put together of customers, and their agents and beneficial owners, with other information would directly and certainly identify through the use of reliable and independent sources, a person. documents, data or information. “Immediate Family Member” refers to individuals related “Dealer in Precious Metals and Stones/Jewelry Dealer” to the PEP within the second degree of consanguinity or refers to an individual or entity who buys and/or sells affinity. precious metals, precious stones, and/or jewelry in the “Information and Communication Technology” (ICT) course of its business activities. The purchases or sales of refers to the totality of electronic means to access, create, precious metals, precious stones, and/or jewelry, as referred collect, store, process, receive, transmit, present and to herein, exclude those carried out for, connected with, or disseminate information. for the purpose of extracting precious metals or precious “Institutional Risk Assessment” refers to a comprehensive stones from a mine, or cutting or polishing precious stones. exercise to identify, assess and understand a covered “Designated Non-Financial Businesses and Professions” person’s ML/TF threats, vulnerabilities and the (DNFBP) refer to businesses and professions, which are not Page 2 of 12  (ATTY. ONG – OCT 2024) consequential risks, with a view to mitigate illicit flow of (PAGCOR), Cagayan Economic Zone Authority (CEZA), funds and transactions. Aurora Pacific Economic Zone and Freeport Authority “Instrumentality” refers to any monetary instrument or (APECO), or other government agency, as may be property used to finance, operate, and/or maintain an determined by law, which may authorize casinos to unlawful activity. This definition is in relation to “monetary engage in gaming operations. instrument or property related to unlawful activity. o “Law Enforcement Agency” (LEA) refers to the “Intermediary Financial Institution” refers to a financial Philippine National Police, National Bureau of institution in a serial payment or cover payment chain that Investigation, and other government agencies that are receives and transmits a wire transfer on behalf of the responsible for the prevention, investigation, ordering financial institution and the beneficiary financial apprehension, and/or detention of individuals institution, or another intermediary financial institution. suspected of, or convicted for, violations of criminal “Money Laundering/Terrorism Financing Prevention laws. Program” (MTPP) refers to a covered person’s “Parallel Financial Investigation” refers to conducting a comprehensive, risk-based, and written internal policies, financial investigation or investigation into the ML/TF controls and procedures to implement the relevant laws, aspect of a case alongside, or in the context of, the rules and regulations, and best practices to prevent and investigation into the associated unlawful activity. combat ML/TF and associated unlawful activities in the “Payable-through Accounts” refers to correspondent operational level. accounts that are used directly by third parties to transact “Money or Value Transfer Service” (MVTS) refers to business on their own behalf. financial services that involve the acceptance of cash, checks, “Philippine Identification Card” (PhilID) refers to the non- other monetary instruments or other stores of value, and the transferrable identification card issued by the Philippine payment of a corresponding sum in cash or other form to a Statistics Authority (PSA) to all citizens and resident aliens beneficiary by means of a communication, message, transfer, registered under the Philippine Identification System. It shall or through a clearing network to which the service provider serve as the official government-issued identification belongs. document of cardholders in dealing with all government “Mutual Legal Assistance” (MLA) refers to the formal agencies, local government units, government and controlled method of cooperation between two jurisdictions for corporations, government financial institutions, and all purposes of seeking assistance in the production of private sector entities. documents, asset freezing and forfeiture, extradition, “Philippine Identification System” (PhilSys) refers to the enforcement of foreign judgment, and other kinds of legal Philippine Government’s central identification platform, assistance in criminal matters. established under Republic Act No. 11055, otherwise known “National Risk Assessment” (NRA) refers to a as the “Philippine Identification System Act” (PhilSys Act), comprehensive exercise to identify, assess and understand a for all citizens and resident aliens of the Philippines. country’s ML/TF threats, vulnerabilities and the “PhilSys Number” (PSN) refers to the randomly generated, consequential risks, with a view to mitigate illicit flow of unique and permanent identification number assigned to funds and transactions. every citizen or resident alien, upon birth or registration, by “Non-Profit Organization” (NPO) refers to a juridical the PSA. person, legal arrangement or organization that primarily “Politically-Exposed Person” (PEP) refers to an individual engages in raising or disbursing funds for purposes such as who is or has been entrusted with prominent public position charitable, religious, cultural, educational, social or fraternal in (a) the Philippines with substantial authority over policy, purposes, or for the carrying of other types of “good works”. operations or the use or allocation of government-owned “Offender” refers to any person who commits a money resources; (b) a foreign State; or (c) an international laundering offense. organization. “Ongoing Monitoring Process” (OMP) refers to the process “Proliferation of Weapons of Mass Destruction of conducting continuing due diligence, including continually Financing/Proliferation Financing” (PF) refers when a assessing the risks, understanding the transactions and person: activities, and updating, based on risk and materiality, the (1) makes available an asset; or identification information and/or identification documents, (2) provides a financial service; or of customers, their agents and beneficial owners. (3) conducts a financial transaction; and the person knows “Originating/Ordering Financial Institution” refers to the that, or is reckless as to whether, the asset, financial service financial institution, which initiates the wire transfer and or financial transaction is intended to, in whole or in part, transfers the funds upon receiving the request for a wire facilitate proliferation of WMD in relation to UNSC transfer on behalf of the originator. Resolution Nos. 1718 of 2006 and 2231 of 2015. “Originator” refers to the account holder who allows the “Proceeds” refers to an amount derived or realized from any wire transfer from that account or where there is no account, unlawful activity, as herein defined. the person that places an order with the “Relationship” refers to business or professional originating/ordering financial institution to perform a wire relationship between the covered person and its customer. transfer. “Request for Information” (RFI) refers to a request for “Other Government Agency” (OGA) refers to a government information by FIUs, LEAs and OGAs, whether domestic or agency that is not an Supervising Authority (SA), foreign, for intelligence or investigative purposes only. Appropriate Government Agency (AGA) or Law Enforcement “Real Estate” refers to the land and all those items which are Agency (LEA). attached to the land. It is the physical, tangible entity, o “Supervising Authority” (SA) refers to the BSP, the SEC, together with all the additions or improvements on, above or the IC, or other government agencies designated by law below the ground. (ARI 2021) to supervise or regulate a particular financial institution “Risk” refers to risk of loss arising from ML/TF activities. or DNFBP. “Risk-Based Approach” refers to the process by which o “Appropriate Government Agency” (AGA) refers to countries, competent authorities, and covered persons the Philippine Amusement and Gaming Corporation identify, assess, and understand the ML/TF risks to which Page 3 of 12  (ATTY. ONG – OCT 2024) they are exposed, and take the appropriate mitigation “Trustee” refers to a person in whom confidence is reposed measures in accordance with the level of risk. This includes as regards property for the benefit of another person called prioritization and efficient allocation of resources by the the trustor/grantor/settlor. relevant key players and stakeholders in applying AML/CTF “Trustor/Grantor/Settlor” refers to a person who measures in their operations in a way that ensures that they establishes a trust, or who transfers ownership of his assets are commensurate with the risks involved. to a trustee by means of a trust deed or similar arrangement. “Sectoral Risk Assessment” refers to a comprehensive “Unique Transaction Reference Number” refers to a exercise to identify, assess and understand an industry’s, or combination of letters, numbers or symbols, determined by business or professional sector’s, threats, vulnerabilities and the payment service provider, in accordance with the the consequential risks, with a view to mitigate illicit flow of protocols of the payment and settlement system or funds and transactions. messaging system used for the wire transfer. “Serial Payment” refers to a direct sequential chain of “Virtual Asset Provider” refers to any person who, as a payment where the wire transfer and accompanying business, conducts one or more of the following activities or payment message travel together from the operations for or on behalf of another person: originating/ordering financial institution to the beneficiary (a) Exchange between virtual assets and fiat currencies; financial institution, directly or through one or more (b) Exchange between one or more forms of virtual assets; intermediary financial institutions. (c) Transfer (the conduct of a transaction on behalf of “Shell Bank” refers to a bank that has no physical presence another person that moves a virtual asset from one one in the country in which it is incorporated and licensed, and virtual asset address or account to another) of virtual assets; which is unaffiliated with a regulated financial group that is (d) Safekeeping and/or administration of virtual assets or subject to effective consolidated supervision. instruments enabling control over virtual assets; and “Source of Fund” refers to the origin of the funds or other (e) Participation in and provision of financial services related monetary instrument that is the subject of the transaction, or to an issuer’s offer and/or sale of a virtual asset. business or professional relationship between a covered o “Virtual Asset” refers to a digital representation of person and its customer, such as cash on hand, safety deposit value that can be digitally traded, or transferred, and can box with a covered person, and a particular bank or be used for payment or investment purposes. investment account. “United Nations Security Council” (UNSC) refers to the “Source of Wealth” refers to the resource from which the principal organ of the United Nations that has primary customer’s wealth, including all monetary instruments and responsibility for the maintenance of international peace properties, came, comes, or will come from, such as and security. (ARI 2021) employment, business, investment, foreign remittance, Wire Transfer” refers to any transaction carried out on inheritance, donation, and winnings. behalf of an originator, through an originating/ordering “Straight-through Processing” refers to payment financial institution, by electronic means, with a view to transactions that are conducted electronically without the making an amount of funds available to a beneficiary at a need for manual intervention. beneficiary financial institution, irrespective of whether the “Strategic Trade Management Office” (STMO) refers to the originator and the beneficiary are the same person. bureau under the administrative supervision of the Department of Trade and Industry (DTI) which serves as the Money Laundering Offense executive and technical agency of the national government Money laundering is committed by any person who, knowing that for the establishment of the management systems for the any monetary instrument or property represents, involves, or trade in strategic goods. (ARI 2021) relates to the proceeds of any unlawful activity: “Substantial Evidence” refers to such level of evidence (a) transacts said monetary instrument or property; which a reasonable mind might accept as adequate to justify (b) converts, transfers, disposes of, moves, acquires, possesses or support a conclusion that a specific violation was or uses said monetary instrument or property; committed. (c) conceals or disguises the true nature, source, location, “Targeted Financial Sanctions” (TFS) refer to both asset disposition, movement or ownership of or rights with freezing and prohibition to prevent funds or other assets respect to said monetary instrument or property; from being made available, directly or indirectly, for the (d) attempts or conspires to commit money laundering offenses benefit of any individual, natural or legal persons or entity referred to in paragraphs (a), (b) or (c); designated pursuant to UNSC resolutions and its designation (e) aids, abets, assists in or counsels the commission of the process. (ARI 2021) money laundering offenses referred to in paragraphs (a), (b) “Strategic Analysis” refers to the high-level macro analysis or (c) above; and of data to decipher the underlying patterns and trends that (f) performs or fails to perform any act as a result of which he would enable the AMLC to draw conclusions and develop facilitates the offense of money laundering referred to in long-term strategies for the prevention of ML/TF, and to paragraphs (a), (b) or (c) above. provide input for policy formulation. Money laundering is also committed by any covered person who, “Tactical Analysis” refers to the analysis of data directed knowing that a covered or suspicious transaction is required towards the short-term development of investigative under this Act to be reported to the Anti-Money Laundering priorities and deployment of resources, which include the Council (AMLC), fails to do so. (As amended by R.A. 10365) analysis of time, space, offender, victim, and modus operandi for individual high profile crimes, repeat incidents, and crime Covered Transactions patterns, with a specific focus on crime series. 1.) Transaction in cash or other equivalent monetary “Transaction” refers to any act establishing any right or instrument exceeding Five Hundred Thousand pesos obligation, or giving rise to any contractual or legal (Php500,000.00) relationship between the covered person and its customer. It 2.) A transaction exceeding One Million pesos also includes any movement of funds, by any means, in the (Php1,000,000.00) in cases of jewelry dealers, dealers in ordinary course of business of a covered person. precious metals and dealers in precious stones. Page 4 of 12  (ATTY. ONG – OCT 2024) 3.) Single casino cash transaction involving an amount in excess o “Precious Metals” refers to gold, silver, platinum, of Five million pesos (P5,000,000.00) or its equivalent in any palladium, rhodium, ruthenium, iridium, and osmium at other currency. a level of purity of five hundred (500) parts per one 4.) A transactions by real estate developers and brokers with thousand (1,000), singly or in any combination, and single cash transactions involving an amount in excess of alloys of precious metals, solders, and plating chemicals, Seven million five hundred thousand pesos (P7,500,000) or such as rhodium and palladium plating solutions, its equivalent in any other currency. (As amended by Sec 2, potassium gold cyanide containing at least sixty-eight R.A. 11521) and three-tenths percent (68.3%) gold, potassium silver cyanide containing at least sixty-eight percent (68%) Suspicious transaction silver and silver cyanide in salt solution containing at “Suspicious Transaction” refers to a transaction, regardless of least fifty-four percent (54%) silver. amount, where any of the suspicious circumstances, as herein (5) jewelry dealers in precious stones, who, as a business, trade defined, is determined, based on suspicion or, if available, in precious stones, for transactions in excess of One million reasonable grounds, to be existing. pesos (P1,000,000.00); “Suspicion” refers to a person’s state of mind—based on his o “Precious Stones” refers to all gems and stones used in skills, experience, and/or understanding of the customer jewelry making, such as gemstones, jewels, and those profile—which considers that there is a possibility that any substances that have market-recognized gem level of of the suspicious circumstances exists. (2018 IRR) quality, beauty, and rarity, such as diamond, corundum Suspicious transactions are transactions with covered person, (including rubies and sapphires), beryl (including regardless of the amounts involved, where any of the following emeralds and aquamarines), chrysoberyl, spinel, topaz, circumstances exist: zircon, tourmaline, garnet, crystalline and 1. there is no underlying legal or trade obligation, purpose or cryptocrystalline quartz, olivine peridot, tanzanite, economic justification; jadeite jade, nephrite jade, spodumene, feldspar, 2. the client is not properly identified; turquoise, lapis lazuli, opal and pearl. 3. the amount involved is not commensurate with the business (6) company service providers which, as a business, provide any or financial capacity of the client; of the following services to third parties: (i) acting as a 4. taking into account all known circumstances, it may be formation agent of juridical persons; (ii) acting as (or perceived that the client's transaction is structured in order arranging for another person to act as) a director or to avoid being the subject of reporting requirements under corporate secretary of a company, a partner of a partnership, the Act; or a similar position in relation to other juridical persons; 5. any circumstances relating to the transaction which is (iii) providing a registered office, business address or observed to deviate from the profile of the client and/or the accommodation, correspondence or administrative address client's past transactions with the covered institution; for a company, a partnership or any other legal person or 6. the transactions is in a way related to an unlawful activity or arrangement; and (iv) acting as (or arranging for another offense under this Act that is about to be, is being or has been person to act as) a nominee shareholder for another person; committed; or and 7. any transactions that is similar or analogous to any of the (7) persons who provide any of the following services: foregoing." (As amended by R.A. 9194 and R.A. 11521) (i) managing of client money, securities or other assets; (ii) management of bank, savings or securities accounts; Covered persons, natural or juridical, refer to: (iii) organization of contributions for the creation, (1) banks, non-banks, quasi-banks, trust entities, foreign operation or management of companies; and exchange dealers, pawnshops, money changers, remittance (iv) creation, operation or management of juridical persons and transfer companies and other similar entities and all or arrangements, and buying and selling business other persons and their subsidiaries and affiliates entities. supervised or regulated by the Bangko Sentral ng Pilipinas (8) Casinos, including internet and ship-based casinos, with (BSP); respect to their casino cash transactions related to their (2) insurance companies, pre-need companies and all other gaming operations. (As inserted by Sec 2, R.A. 10927) persons supervised or regulated by the Insurance o “Internet-Based Casino” refers to casinos in which Commission (IC); persons participate by the use of remote communication (3) (i) securities dealers, brokers, salesmen, investment houses facilities such as, but not limited to, internet, telephone, and other similar persons managing securities or rendering television, radio or any other kind of electronic or other services as investment agent, advisor, or consultant, (ii) technology for facilitating communication. (2018 IRR) mutual funds, close-end investment companies, common o “Ship-Based Casino” refers to casinos, the operation of trust funds, and other similar persons, and (iii) other entities which is undertaken on board a vessel, ship, boat or any administering or otherwise dealing in currency, other water-based craft wholly or partly intended for commodities or financial derivatives based thereon, valuable gambling. (2018 IRR) objects, cash substitutes and other similar monetary o instruments or property supervised or regulated by the (9) Real estate developers and brokers; (As inserted by R.A. Securities and Exchange Commission (SEC); Sec 2, 11521) (4) jewelry dealers in precious metals, who, as a business, trade o 'Real estate developer' refers to any natural or juridical in precious metals, for transactions in excess of One million person engaged in the business of developing real estate pesos (P1,000,000.00); development project for the account of the developer o “Jewelry” refers to finished goods deriving fifty percent and offering them for sale or lease. (ARI 2021) (50%) or more of their value from jewels, precious o 'Real estate broker' refers to a duly registered and metals or precious stones constituting, forming part of, licensed natural person who, for a professional fee, or attached to said finished goods. omission or other valuable consideration, acts as an o “Jewel” refers to organic substances that have a agent of a party in a real estate transaction to offer, market-recognized gem level of quality, beauty and advertise, solicit, list, promote, mediate, negotiate, or rarity, such as pearl, amber and coral. effect the meeting of the minds on the sale, purchase, Page 5 of 12  (ATTY. ONG – OCT 2024) exchange, mortgage, lease or joint venture, or other (8) Qualified theft under Article 310 of the Revised Penal Code, similar transaction on real estate or any interest therein. as amended; (ARI 2021) (9) Swindling under Article 315 and Other Forms of Swindling (10) Offshore gaming operation, as well as their service under Article 316 of the Revised Penal Code, as amended; providers, supervised, accredited or regulated by the (10) Smuggling under Republic Act Nos. 455 and 1937; Philippine Amusement and Gaming Corporation (11) Violations of Republic Act No. 8792, otherwise known as the (PAGCOR) or any government agency. (As inserted by R.A. Electronic Commerce Act of 2000; Sec 2, 11521) (12) Hijacking and other violations under Republic Act No. 6235; o Offshore gaming operator' refers to an entity engaged destructive arson and murder, as defined under the Revised in offering online games of chance or sporting events via Penal Code, as amended; the internet using a network and software program, by (13) Terrorism and conspiracy to commit terrorism as defined themselves or through local service providers. and penalized under Sections 3 and 4 of Republic Act No. o “Offshore Gaming Operator Service Provider” 9372; (OGO-SP) refers to a duly constituted business (14) Financing of terrorism under Section 4 and offenses corporation who provides components of offshore punishable under Sections 5, 6, 7 and 8 of Republic Act No. gaming operations to offshore gaming operators. 10168, otherwise known as the Terrorism Financing (ARI 2021) Prevention and Suppression Act of 2012: o “Gaming Operations” refers to games of chance and (15) Bribery under Articles 210, 211 and 211-A of the Revised variations thereof offered by casinos, and approved by Penal Code, as amended, and Corruption of Public Officers the AGA under their enabling laws and other applicable under Article 212 of the Revised Penal Code, as amended; issuances. It shall exclude: (1) Traditional bingo (16) Frauds and Illegal Exactions and Transactions under operations authorized by the AGA; (2) Lotteries and Articles 213, 214, 215 and 216 of the Revised Penal Code, as sweepstakes of the Philippine Charity Sweepstakes amended; Office; and (3) Such other games of chance and (17) Malversation of Public Funds and Property under Articles variations as may be declared exempt by the AGA based 217 and 222 of the Revised Penal Code, as amended; on the result of their risk assessment, in consultation (18) Forgeries and Counterfeiting under Articles 163, 166, 167, with AMLC. 168, 169 and 176 of the Revised Penal Code, as amended; (19) Violations of Sections 4 to 6 of Republic Act No. 9208, Notwithstanding the foregoing, the term ‘covered persons’ shall otherwise known as the Anti-Trafficking in Persons Act of exclude lawyers and accountants acting as independent legal 2003; professionals in relation to information concerning their clients (20) Violations of Sections 78 to 79 of Chapter IV, of Presidential or where disclosure of information would compromise client Decree No. 705, otherwise known as the Revised Forestry confidences or the attorney-client relationship: Provided, That Code of the Philippines, as amended; these lawyers and accountants are authorized to practice in the (21) Violations of Sections 86 to 106 of Chapter VI, of Republic Philippines and shall continue to be subject to the provisions of Act No. 8550, otherwise known as the Philippine Fisheries their respective codes of conduct and/or professional Code of 1998; responsibility or any of its amendments." (Sec 3 (a), as amended (22) Violations of Sections 101 to 107, and 110 of Republic Act by R.A. 10365) No. 7942, otherwise known as the Philippine Mining Act of “Independent Legal/Accounting Professional” refers to 1995; lawyers/accountants working in a private firm or as a sole (23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic practitioner who, by way of business or occupation, provides Act No. 9147, otherwise known as the Wildlife Resources purely legal or accounting services to their clients. (2018 Conservation and Protection Act; IRR) (24) Violation of Section 7(b) of Republic Act No. 9072, o “Purely Legal/Accounting Service” refers to: otherwise known as the National Caves and Cave Resources (1) Rendition of purely litigation, notarial, legal Management Protection Act; counseling, and/or other services that can only be (25) Violation of Republic Act No. 6539, otherwise known as the undertaken by a lawyer, as a professional; or Anti-Carnapping Act of 2002, as amended; (2) Rendition of purely accounting, auditing and/or (26) Violations of Sections 1, 3 and 5 of Presidential Decree No. other services that can only be undertaken by a 1866, as amended, otherwise known as the decree certified public accountant, as a professional. Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or Disposition of Unlawful activity Firearms, Ammunition or Explosives; Refers to any act or omission or series or combination thereof (27) Violation of Presidential Decree No. 1612, otherwise known involving or having direct relation to the following: as the Anti-Fencing Law; (1) Kidnapping for ransom under Article 267 of Act No. 3815, (28) Violation of Section 6 of Republic Act No. 8042, otherwise otherwise known as the Revised Penal Code, as amended; known as the Migrant Workers and Overseas Filipinos Act (2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic of 1995, as amended by Republic Act No. 10022; Act No. 9165, otherwise known as the Comprehensive (29) Violation of Republic Act No. 8293, otherwise known as the Dangerous Drugs Act of 2002; Intellectual Property Code of the Philippines; (3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. (30) Violation of Section 4 of Republic Act No. 9995, otherwise 3019, as amended, otherwise known as the Anti-Graft and known as the Anti-Photo and Video Voyeurism Act of 2009; Corrupt Practices Act; (31) Violation of Section 4 of Republic Act No. 9775, otherwise (4) Plunder under Republic Act No. 7080, as amended; known as the Anti-Child Pornography Act of 2009; (5) Robbery and extortion under Articles 294, 295, 296, 299, (32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and 300, 301 and 302 of the Revised Penal Code, as amended; 14 of Republic Act No. 7610, otherwise known as the Special (6) Jueteng and Masiao punished as illegal gambling under Protection of Children Against Abuse, Exploitation and Presidential Decree No. 1602; Discrimination; (7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential Decree No. 532; Page 6 of 12  (ATTY. ONG – OCT 2024) (33) Fraudulent practices and other violations under Republic (5) to investigate suspicious transactions and covered Act No. 8799, otherwise known as the Securities Regulation transactions deemed suspicious after an investigation by Code of 2000; AMLC, money laundering activities and other violations of (34) Violation of Section 9 (a)(3) of Republic Act No. 10697, this Act; otherwise known as the "Strategic Trade Management (6) to apply before the Court of Appeals, ex parte, for the Act", in relation to the proliferation of weapons of mass freezing of any monetary instrument or property alleged destruction and its financing pursuant to United Nations to be laundered, proceeds from, or instrumentalities used Security Council Resolution Numbers 1718 of 2006 and in or intended for use in any unlawful activity as defined in 2231 of 2015" (As inserted by R.A. 11521) Section 3(i) hereof; (As amended by R.A. 10365) o “Proliferation of Weapons of Mass Destruction” (7) to implement such measures as may be necessary and refers to the manufacture, acquisition, possession, justified under this Act to counteract money laundering; development, export, trans-shipment, brokering, (8) to receive and take action in respect of, any request from transport, transfer, stockpiling or use of weapons of foreign states for assistance in their own anti-money mass destruction, in contravention of national laws or, laundering operations provided in this Act; where applicable, international obligations. (9) to develop educational programs on the pernicious effects o “Weapons of Mass Destruction” (WMD) refers to of money laundering, the methods and techniques used in chemical, biological, radiological, or nuclear weapons the money laundering, the viable means of preventing which are capable of high order of destruction or money laundering and the effective ways of prosecuting causing mass casualties. It excludes the means of and punishing offenders; transporting or propelling the weapon where such (10) to enlist the assistance of any branch, department, bureau, means is a separable and divisible part from the office, agency, or instrumentality of the government, weapon. (ARI 2021) including government-owned and -controlled (35) Violation of Section 254 of Chapter II, Title X of the corporations, in undertaking any and all anti-money National Internal Revenue Code of 1997, as amended, laundering operations, which may include the use of its where the deficiency basic tax due in the final assessment personnel, facilities and resources for the more resolute is in excess of Twenty-five million pesos (P25,000,000.00) prevention, detection, and investigation of money per taxable year, for each tax type covered and there has laundering offenses and prosecution of offenders; and been a finding of probable cause by the competent (11) to impose administrative sanctions for the violation of authority: Provided,further, That there must be a finding laws, rules, regulations, and orders and resolutions issued of fraud, willful misrepresenting or malicious intent on pursuant thereto." the part of the taxpayer: Provided, finally, That in no (12) to require the Land Registration Authority and all its case shall the AMLC institute forfeiture proceedings to Registries of Deeds to submit to the AMLC, reports on all recover monetary instruments, property or proceeds real estate transactions involving an amount in excess of representing, involving, or relating to a tax crime, if the Five hundred thousand pesos (P500,000.00) within fifteen same has already been recovered or collected by the (15) days from the date of registration of the transaction, Bureau of Internal Revenue (BIR) in a separate in a form to be prescribed by the AMLC. The AMLC may proceeding; and (As inserted by R.A. 11521) also require the Land Registration Authority and all its (36) Felonies or offenses of a similar nature that are punishable Registries of Deeds to submit copies of relevant documents under the penal laws of other countries. (Sec 3 (i), as of all real estate transactions. (As inserted by R.A. 10365) amended by R.A. 10365 and renumbered by R.A. 11521) o “Realty Transaction Report” (RTR) refers to a report, including copies of the relevant documents, on a realty Composition of the Anti-Money Laundering Council (AMLC) transaction, as herein defined, filed by the Land Registration 1. Governor of the Bangko Sentral ng Pilipinas - Chairman Authority and all its Registry of Deeds, before the AMLC. 2. Commissioner of the Insurance Commission - Member o “Realty Transaction” refers to a real estate 3. Chairman of the Securities and Exchange Commission - transaction involving an amount in excess of member. Five Hundred Thousand Pesos (PHP500,000.00). Power of the AMLC (13) in the conduct of its investigation, the AMLC shall apply The AMLC shall act unanimously in the discharge of its functions for the issuance of a search and seizure order with any as defined hereunder: competent court; (1) to require and receive covered or suspicious transaction (14) in the conduct of its investigation, the AMLC shall apply reports from covered institutions; for the issuance of subpoena ad (2) to issue orders addressed to the appropriate Supervising testificandum and/or subpoena duces tecum with any Authority or the covered institutions to determine the true competent court; identity of the owner of any monetary instrument or (15) to implement targeted financial sanctions in relation to property subject of a covered transaction or suspicious proliferation of weapons of mass destruction and its transaction report or request for assistance from a foreign financing, including ex parte freeze, without delay, State, or believed by the Council, on the basis of substantial against all funds and other assets that are owned and evidence, to be, in whole or in part, wherever located, controlled, directly or indirectly, including funds and representing, involving, or related to directly or indirectly, assets derived or generated therefrom, by individuals in any manner or by any means, the proceeds of an or entities designated and listed under United Nations unlawful activity. Security Council Resolution Numbers 1718 of 2006 and (3) to institute civil forfeiture proceedings and all other 2231 of 2015 and their successor resolutions as well as remedial proceedings through the Office of the Solicitor any binding resolution of the Security Council; and General; (16) to preserve, manage or dispose assets pursuant to a (4) to cause the filing of complaints with the Department of freeze order, asset preservation order, or judgment of Justice or the Ombudsman for the prosecution of money forfeiture: Provided, however, That pending their laundering offenses; turnover to the national government, all expenses incurred in relation to the duties herein mentioned shall Page 7 of 12  (ATTY. ONG – OCT 2024) be deducted from the amount to be turned over to the b. Minimum Customer Information and Identification national government. (As inserted by Sec 7, R.A. 11521) Documents. – I. For individual customers and authorized signatories Creation of a Secretariat of juridical entities, covered persons shall gather the The AMLC is hereby authorized to establish a secretariat to be following customer information: headed by an Executive Director who shall be appointed by the a. Name of customer; Council for a term of five (5) years. He must be a member of the b. Date and place of birth; Philippine Bar, at least thirty-five (35) years of age and of good c. Name of beneficial owner, if applicable; moral character, unquestionable integrity and known probity. All d. Name of beneficiary (in case of insurance members of the Secretariat must have served for at least five (5) contracts or remittance transactions); years either in the Insurance Commission, the Securities and e. Present address; Exchange Commission or the Bangko Sentral ng Pilipinas (BSP) f. Permanent addresses; and shall hold full-time permanent positions within the BSP. (SEC 8, R.A. 9160) g. Contact number or information; The AMLC and its Secretariat shall securely protect information h. Nationality; received or processed and shall not reveal, in any manner, any i. Specimen signatures or biometrics of the information known to them by reason of their office. This customer; prohibition shall apply even after their separation from the AMLC. j. Nature of work and name of employer or nature The AMLC shall formulate rules governing information exchange of self-employment/business, if applicable; and dissemination, the security and confidentiality of such k. Sources of funds or property; and information, including procedures for handling, storage, and l. Tax Identification Number (TIN), Social Security protection of, as well as access to such information. (As inserted by System (SSS) number or Government Service Sec 8-A of R.A. 11521) Insurance System (GSIS) number, if applicable. Customers who engage in a transaction with a covered Jurisdiction of Money Laundering Cases person for the first time shall be required to present the The regional trial courts shall have jurisdiction to try all cases on original and submit a clear copy of at least one (1) official money laundering. Those committed by public officers and identification document. private persons who are in conspiracy with such public officers Where the customer or authorized representative is a shall be under the jurisdiction of the Sandiganbayan. (Sec 5) foreign national, covered person shall require said foreign national to present passport or Alien Certificate Prosecution of Money Laundering of Registration issued by the Bureau of Immigration. (a) Any person may be charged with and convicted of both the II. For business entities, covered persons shall gather offense of money laundering and the unlawful activity as the following customer information, and shall herein defined. obtain all of the following official documents: (b) The prosecution of any offense or violation under this Act shall proceed independently of any proceeding relating to (a) Customer (b) Identification Documents the unlawful activity. (Sec 6, As amended by R.A. 10365) Information 1.) Name of entity; 1.) Certificates of Registration Prevention of Money Laundering; Customer Identification 2.) Name of authorized issued by the Department of Requirements and Record Keeping. – signatory Trade and Industry (DTI) for (a) Customer Identification, - Covered institutions shall 3.) Name of beneficial sole proprietors, or Certificate establish and record the true identity of its clients based on owner, if applicable of Incorporation issued by the official documents. They shall maintain a system of verifying 4.) Official address; Securities and Exchange the true identity of their clients and, in case of corporate 5.) Contact number or Commission (SEC) for clients, require a system of verifying their legal existence and information; corporations and organizational structure, as well as the authority and 6.) Nature of business; partnerships, and by the BSP identification of all persons purporting to act on their behalf. and for money changers/foreign The provisions of existing laws to the contrary 7.) Specimen signatures exchange dealers and notwithstanding, anonymous accounts, accounts under or biometrics of the remittance agents; fictitious names, and all other similar accounts shall be authorized 2.) Secondary License or absolutely prohibited. Peso and foreign currency non- signatory Certificate of Authority issued checking numbered accounts shall be allowed. The BSP may by the Supervising Authority conduct annual testing solely limited to the determination of or other government agency; the existence and true identity of the owners of such 3.) Articles of accounts. Incorporation/Partnership; a. Face-to-Face Contact. - Covered persons shall conduct 4.) Latest General Information face-to-face contact at the commencement of the Sheet; relationship, or as reasonably practicable so as not to 5.) Corporate/Partners' interrupt the normal conduct of business, taking into Secretary Certificate citing the account the nature of the product, type of business and pertinent portion of the Board the risks involved; provided that money laundering risks or Partners' Resolution are effectively managed. authorizing the signatory to The use of Information and Communication Technology sign on behalf of the entity; in the conduct of face-to-face contact may be allowed, and provided that the covered person is in possession of and 6.) For entities registered outside has verified the identification documents submitted by of the Philippines, similar the prospective client prior to the interview and that the documents and/or entire procedure is documented. information duly authenticated by a senior Page 8 of 12  (ATTY. ONG – OCT 2024) officer of the covered person more comprehensive understanding of the risks assigned in the country of associated with the client, as well as confirmation of registration; in the absence of factual information provided by the client, to said officer, the documents mitigate risks presented. should be authenticated by “Reduced Due Diligence” (RDD) refers to the the Philippine Consulate, lowest level of customer due diligence that is company register or notary appropriate in cases where there is low risk of public, where said entities are money laundering or terrorism financing. registered (b) Record Keeping – All records of all transactions of covered institutions shall be maintained and safely stored for five (5) c. Third Party Reliance. - A covered person may rely on a years from the date of transactions. With respect to closed third party to perform customer identification, including accounts, the records on customer identification, account face-to face contact. The third party shall be: files and business correspondence, shall be preserved and 1. Covered person; or safety stored for at least five (5) years from the dates when 2. A financial institution or DNFBP operating they were closed. outside the Philippines that is covered by 1. Retention of Records Where the Account is the Subject equivalent customer identification and face-to of a Case. - If a case has been filed in court involving the face requirements. account, records must be retained and safely kept Notwithstanding the foregoing, the ultimate beyond the five (5)-year period, until it is officially responsibility for identifying the customer remains confirmed by the AMLC Secretariat that the case has with the covered person relying on the third party. been resolved, decided or terminated with finality. d. Outsourcing the Conduct of Customer Identification. - 2. Closed Accounts. - Covered persons shall maintain and Covered persons may outsource the conduct of customer safely store for at least five (5) years from the dates the identification, including face-to-face contact, to a accounts were closed, all records of customer counter-party, intermediary or agent. The outsource, identification and transaction documents. counter-party or intermediary shall be regarded as 3. Form of Records. - Covered persons shall retain all agent of the covered person-that is, the processes and records as originals or in such forms as are admissible documentation are those of the covered person itself. in court. The ultimate responsibility for identifying the customer Covered persons shall, likewise, keep the electronic and keeping the identification documents remains with copies of all covered and suspicious transaction reports the covered person. for, at least, five (5) years from the dates of submission The covered person outsourcing the conduct of to the AMLC. customer identification, including face-to-face contact, For low risk customers, it is sufficient that covered shall ensure that the employees or representatives of the persons shall maintain and store, in whatever form, a counter-party, intermediary or agent undergo record of customer information and transactions. equivalent training program as that of the covered (c) Reporting of Covered and Suspicious Transactions. – person's own employees undertaking similar activity. Covered persons shall report to the AMLC all covered e. Identification and Verification of a Beneficial Owner, transactions and suspicious transactions within five (5) Trustee, Nominee, or Agent. - Where an account is working days from occurrence thereof, unless the AMLC opened or a transaction is conducted by any person in prescribes a different period not exceeding fifteen (15) behalf of another, covered persons shall establish and working days. record the true and full identity and existence of both the For Suspicious transactions, "occurrence" refers to the (1) account holder or transactor and the (2) beneficial date of determination of the suspicious nature of the owner or person on whose behalf the transaction is transaction, which determination should be made not being conducted. exceeding ten (10) calendar days from the date of The covered person shall determine the true nature of transaction. However, if the transaction is in any way the parties' capacities and duties by obtaining a copy of related to, or the person transacting is involved in or the written document evidencing their relationship and connected to, an unlawful activity or money laundering apply the same standards for assessing the risk profile offense, the la-day period for determination shall be and determining the standard of due diligence to be reckoned from the date the covered person knew or applied to both. In case it entertains doubts as to should have known the suspicious transaction indicator. whether the account holder or transactor is being used 1. Substance and Form of Reports. - Covered persons shall as a dummy in circumvention of existing laws, it shall ensure the accuracy and completeness of Covered apply enhanced due diligence or file a Suspicious Transaction Report (CTR) and Suspicious Transaction Transaction Report, if warranted. Report (STR), which shall be filed in the forms “Account” refers to a bank account, electronic prescribed by the AMLC and shall be submitted in a money account, investment account, insurance secured manner to the AMLC in electronic form. policy, membership account, and other similar 2. Confidentiality of Reporting. - When reporting covered or contract or service agreement, business or suspicious transactions, covered persons and their professional relationships between a covered officers and employees are prohibited from person and its customers where funds or any communicating, directly or indirectly, in any manner or monetary instrument of the latter are held by the by any means, to any person or entity, or the media, the former. (Rule 2, Sec 1 a, 2018 IRR) fact that a covered or suspicious transaction has been or “Average Due Diligence” (ADD) refers to the is about to be reported, the contents of the report, or any normal level of customer due diligence that is other information in relation thereto. Any information appropriate in cases where there is medium risk of about such reporting shall not be published or aired, in money laundering or terrorism financing. any manner or form, by the mass media, or through “Enhanced Due Diligence” (EDD) refers to the electronic mail, or other similar devices. In case of enhanced level of scrutiny intended to provide a violation thereof, the concerned officer, and employee, of Page 9 of 12  (ATTY. ONG – OCT 2024) the covered person and media shall be held criminally o “Probable Cause” refers to such facts and liable. circumstances which would lead a reasonably discreet, 3. Safe Harbor Provision. - No administrative, criminal or prudent, or cautious man to believe that: civil proceedings shall lie against any person for having (1) any monetary instrument or property sought to made a CTR or STR in the regular performance of his be frozen, inquired into or preserved is in any way duties and in good faith, whether or not such reporting related to any unlawful activity and/or money results in any criminal prosecution under the AMLA or laundering offense; or any other Philippine law. (2) ML/TF has been committed and that the Lawyers and accountants acting as independent legal respondent is probably guilty thereof. professionals are not required to report covered and suspicious transactions if the relevant information was 2. No Court order is required obtained in circumstances where they are subject to 1. Kidnapping for ransom professional secrecy or legal professional privilege. (As 2. Violation of Comprehensive Dangerous Act of 2002 amended by R.A. 10365) under Sections 4, 5, 6, 8, 9, 10, 12, 13, 14, 15, and 16. Should a transaction be determined to be both a covered 3. Hijacking and other violations under Republic Act No. transaction and a suspicious transaction, the covered 6235; destructive arson and murder, including those institution shall be required to report the same as a perpetrated by terrorists against non-combatant suspicious transaction. persons and similar targets; 4. felonies or offenses of a nature similar to those When reporting covered or suspicious transactions to the mentioned above, which are Punishable under the penal AMLC, covered institutions and their officers and employees laws of other countries, and terrorism and conspiracy to shall not be deemed to have violated Republic Act No. 1405, commit terrorism as defined and penalized under as amended, Republic Act No. 6426, as amended, Republic Republic Act No. 9372. Act No. 8791 and other similar laws, but are prohibited from communicating, directly or indirectly, in any manner or by Authority of AMLA to Investigate, Inquire into and Examine an means, to any person, the fact that a covered or suspicious Bank Deposits under The Anti-Terrorism Act of 2020 transaction report was made, the contents thereof, or any Upon the issuance by the court of a preliminary order of other information in relation thereto. In case of violation proscription or in case of designation under Section 25 of this Act, thereof, the concerned officer and employee of the covered the AMLC, either upon its own initiative or at the request of the institution shall be criminally liable. However, no ATC, is hereby authorized to investigate: (a) any property or administrative, criminal or civil proceedings, shall lie against funds that are in any way related to financing of terrorism as any person for having made a covered or suspicious defined and penalized under Republic Act No. 10168, or violation transaction report in the regular performance of his duties in of Sections 4, 6, 7, 10, 11 or 12 of this Act: and (b) property or good faith, whether or not such reporting results in any funds of any person or persons in relation to whom there is criminal prosecution under this Act of any other law. probable cause to believe that such persons are committing or attempting or conspiring to commit, or participating in or When reporting covered or suspicious transactions to the facilitating the financing of the aforementioned sections of this AMLC, covered persons and their officers and employees are Act. prohibited from communicating, directly or indirectly, in any The AMLC may also enlist the assistance of any branch, manner or by any means, to any person or entity, the media, department, bureau, office, agency or instrumentality of the the fact that a covered or suspicious transaction has been government, including government-owned and -controlled reported or is about to be reported, the contents of the corporations in undertaking measures to counter the financing of report, or any other information in relation thereto. Neither terrorism, which may include the use of its personnel, facilities may such reporting be published or aired in any manner or and resources. form by the mass media", electronic mail, or other similar For purposes of this section and notwithstanding the provisions devices. In case of violation thereof, the concerned officer of Republic Act no. 1405, otherwise known as the "Law on and employee of the covered person and media shall be held Secrecy of Bank Deposits", as amended; Republic Act No. 6426, criminally liable. (As amended by R.A. 10365) otherwise known as the "Foreign Currency Deposit Act of the Philippines", as amended; Republic Act No. 8791, otherwise Authority to Inquire into Bank Deposits known as "The General Banking Law of 2000" and other laws, the 1. Upon order of competent court AMLC is hereby authorized to inquire into or examine deposits Notwithstanding the provisions of Republic Act No. 1405, as and investments with any banking institution or non-bank amended; Republic Act No. 6426, as amended; Republic Act financial institution and their subsidiaries and affiliates without No. 8791; and other laws, the AMLC may inquire into or a court order. (Sec 35, R.A. 11479) examine any particular deposit or investment, including related accounts, with any banking institution or non-bank Authority to Freeze under The Anti-Terrorism Act of 2020 financial institution upon order of any competent court “Freeze Order” (FO) refers to a provisional remedy aimed at based on an ex parte application in cases of violations of this blocking or restraining monetary instruments or properties in Act, when it has been established that there is probable cause any way related to an unlawful activity, as herein defined, from that the deposits or investments, including related accounts being transacted, converted, concealed, moved or disposed involved, are related to an unlawful activity or a money without affecting the ownership thereof. laundering offense. (Sec 11, R.A. 9160 as amended by R.A. Upon the issuance by the court of a preliminary order of 9194) proscription or in case of designation under Section 25 of this Act, o “Related Account” refers to an account, the funds and the AMLC, either upon its own initiative or request of the ATC, is sources of which originated from and/or are materially- hereby authorized to issue an ex parte order to freeze without linked to the monetary instruments or properties delay: (a) any property or funds that are in any way related to subject of the freeze order or an order of inquiry, financing of terrorism as defined and penalized under Republic regardless of the layer of accounts that the funds had Act No. 10168 (The Terrorism Financing Prevention and passed through or transactions that they had undergone. Suppression Act of 2012”), or any violation of Sections 4, 5, 6, 7, Page 10 of 12  (ATTY. ONG – OCT 2024) 8, 9, 10, 11 or 12 of this Act ; and (b) property or funds of any account in excess of the amount or value of the proceeds of the person or persons in relation to whom there is probable cause to predicate offense. believe that such person or persons are committing or "A person whose account has been frozen may file a motion to lift attempting or conspiring to commit, or participating in or the freeze order and the court must resolve this motion before the facilitating the financing of the aforementioned sections of this expiration of the freeze order. Act. "No court shall issue a temporary restraining order or a writ of The freeze order shall be effective for a period not exceeding injunction against any freeze order, except the Supreme Court. twenty (20) days. Upon a petition filed by the AMLC before the "(b) For purposes of implementing targeted financial sanctions in expiration of the period, the effectivity of the freeze order may be relation to proliferation of weapons of mass destruction and its extended up to a period not exceeding six (6) months upon order financing, as provided under Section 3(15), the AMLC shall have the of the Court of Appeals: Provided, That, the twenty-day period power to issue, ex porte, an order to freeze without delay. shall be tolled upon filing of a petition to extend the effectivity of "The freeze order shall be effective until the basis for its issuance the freeze order. shall have been lifted. During the effectivity of the freeze order, the Notwithstanding the preceding paragraphs, the AMLC, consistent aggrieved party may, within twenty (20) days from issuance, file with the Philippines international obligations, shall be with the Court of Appeals a petition to determine the basis of the authorized to issue a freeze order with respect to property or freeze order according to the principle of effective judicial funds of a designated organization, association, group or any protection: Provided, That the person whose property or funds individual to comply with binding terrorism-related resolutions, have been frozen may withdraw such sums as the AMLC determines including UNSCR No. 1373 pursuant to Article 41 of the charter to be reasonably needed for monthly family needs and sustenance of the UN. Said freeze order shall be effective until the basis for including the services of counsel and the family medical needs of the issuance thereof shall have been lifted. During the effectivity such person. of the freeze order, an aggrieved party may, within twenty (20) "The AMLC, if circumstance warrant, may initiate civil forfeiture days from issuance, file with the Court of Appeals a petition to proceedings to preserve the assets and to protect it from determine the basis of the freeze order according to the principle dissipation. No court shall issue a temporary restraining order or a of effective judicial protection: Provided, That the person whose writ of injunction against the freeze order, except the Court of property or funds have been frozen may withdraw such sums as Appeals or the Supreme Court. (Sec 10, As amended by R.A. 11521) the AMLC determines to be reasonably needed for monthly family needs and sustenance including the services of counsel Forfeiture Provisions (Sec 12, R.A. 9160 as amended by R.A and the family medical needs of such person. 10365) However, if the property or funds subject of the freeze order “Civil Forfeiture” (CF) refers to the non-conviction-based under the immediately preceding paragraph are found to be in proceedings aimed at forfeiting, in favor of the government, any way related to financing of terrorism as defined and monetary instruments or properties related to an unlawful penalized under Republic Act No. 10168, or any violation of activity or money laundering offense defined herein. (2018 IRR) Sections 4, 5, 6, 7, 8, 9, 10, 11 or 12 of this Act committed within (a) Civil Forfeiture. – Upon determination by the AMLC that the jurisdiction of the Philippines, said property or funds shall be probable cause exists that any monetary instrument or the subject of civil forfeiture proceedings as provided under property is in any way related to an unlawful activity as Republic Act No. 10168. (Sec 36, R.A. 11479) defined in Section 3(i) or a money laundering offense under Section 4 hereof, the AMLC shall file with the appropriate Freezing of Monetary Instrument or Property court through the Office of the Solicitor General, a verified ex (a) Upon a verified ex parte petition by the AMLC and after parte petition for forfeiture, and the Rules of Court on Civil determination that probable cause exists that any monetary Forfeiture shall apply. instrument or property is in any way related to an unlawful activity The forfeiture shall include those other monetary instrument as defined in Section 3(i) hereof, the Court of Appeals may issue a or property having an equivalent value to that of the freeze order which shall be effective immediately, for a period of monetary instrument or property found to be related in any twenty (20) days. Within the twenty (20) day period, the Court of way to an unlawful activity or a money laundering offense, Appeals shall conduct a summary hearing, with notice to the when with due diligence, the former cannot be located, or it parties, to determine whether or not to modify or lift the freeze has been substantially altered, destroyed, diminished in order, or extend its effectivity. The total period of the freeze order value or otherwise rendered worthless by any act or issued by the Court of Appeals under this provision shall not exceed omission, or it has been concealed, removed, converted, or six (6) months. This is without prejudice to an asset preservation otherwise transferred, or it is located outside the Philippines order that the Regional Trial Court having jurisdiction over the or has been placed or brought outside the jurisdiction of the appropriate anti-money laundering case or civil forfeiture case court, or it has been commingled with other monetary may issue on the same account depending on the circumstances of instrument or property belonging to either the offender the case, where the Court of Appeals will remand the case and its himself or a third person or entity, thereby rendering the records: Provided, That if there is no case filed against a person same difficult to identify or be segregated for purposes of whose account has been frozen within the period determined by the forfeiture. Court of Appeals, not exceeding six (6) months, the freeze order (b) Claim on Forfeited Assets. – Where the court has issued an shall be deemed ipso facto lifted: Provided,further, That this new order of forfeiture of the monetary instrument or property rule shall not apply to pending cases in the courts. In any case, the in a criminal prosecution for any money laundering offense court should act on the petition to freeze within twenty-four (24) defined under Section 4 of this Act, the offender or any other hours from filing of the petition. If the application is filed a day person claiming an interest therein may apply, by verified before a nonworking day, the computation of the twenty-four (24) petition, for a declaration that the same legitimately belongs hour period shall exclude the nonworking days. to him and for segregation or exclusion of the monetary "The freeze order or asset preservation order issued under this Act instrument or property corresponding thereto. The verified shall be limited only to the amount of cash or monetary instrument petition shall be filed with the court which rendered the or value of property that court finds there is probable cause to be judgment of forfeiture, within fifteen (15) days from the date considered as proceeds of a predicate offense, and the freeze order of the finality of the order of forfeiture, in default of which or asset preservation order shall not apply tyo amounts in the same the said order shall become final and executor. This provision shall apply in both civil and criminal forfeiture. Page 11 of 12  (ATTY. ONG – OCT 2024) (c) Payment in Lieu of Forfeiture. – Where the court has issued an order of forfeiture of the monetary instrument or property subject of