AMLA Student-Copy PDF

AMLA (R.A. No. 9160) Atty. John D. Ayson CPA, CIA, CISA, CFE, CEH, CCNA, CISS, ISO 27001 AMLA LAW CPALE Syllabus 1. Discuss the purpose, policies, and principles 2. Discuss the definition of terms 3. Illustrate unlawful activities 4. Determine who are covered persons 5. Desc...

AMLA (R.A. No. 9160) Atty. John D. Ayson CPA, CIA, CISA, CFE, CEH, CCNA, CISS, ISO 27001 AMLA LAW CPALE Syllabus 1. Discuss the purpose, policies, and principles 2. Discuss the definition of terms 3. Illustrate unlawful activities 4. Determine who are covered persons 5. Describe money laundering, terrorism and financing and asset forfeiture 6. Apply and illustrate preventive measures and obligations of covered persons 1. Prohibited accounts 2. Customer due diligence 7. Explain and apply beneficial ownership 8. Identify the record keeping requirements 9. Discuss safe harbor  Anti-Money Laundering Act - AMLA ▪ Anti-Money Laundering Act (R.A. No. 9160, as amended) ▪ Terrorism Financing Prevention and Suppression Act (R.A No. 10168) ▪ Anti-Terrorism Act (R.A No. 11479) VISION To be a world-class financial intelligence unit that will help establish and maintain an internationally compliant and effective anti-money laundering regime which will provide the Filipino people with a sound, dynamic, and strong financial system in an environment conducive to the promotion of social justice, political stability, and sustainable economic growth. Towards this goal, the AMLC shall, without fear or favor, investigate and cause the prosecution of money laundering offenses. 4 AMLA 17 Oct 23 Mar 2001 2003 06 Jul 2012 RA 9160 RA 9194 RA 10167 Threshold reporting was established with AMLC’s Freezing power given to Ex Parte Petitions authority to freeze and inquire courts. STR now required. bank deposit. 29 Jan 29 July 07 Mar 2021 2017 2013 RA 11521 RA 10927 RA 10365 Inclusion of POGOs, Real Inclusions of casinos (internet Expanded Covered Persons Estate Developer and Brokers. and ship-based, single casino (CPs). Additional predicate Inclusion of tax crimes as a cash transaction in excess of crimes. predicate offense, Php 5Million Discuss the purpose, policies, and principles 6 Purpose, Policies (Sec. 2, R.A 9160) ▪ To protect and preserve the integrity and confidentiality of bank accounts ▪ To ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity. ▪ To pursue the State’s foreign policy to extend cooperation in transnational investigation and prosecutions of persons involved in money laundering activities wherever committed. Describe Money Laundering 8 What Money Launderers Are Looking For? Anonymity Paperless Non-Reporting Requirement  9 Stages of Money Laundering Placement Layering Integration The physical disposal of cash or The separation of illicit proceeds Supplying apparent legitimacy to other assets derived from from their source by layers of illicit wealth through the reentry of criminal activity. During this financial transactions intended to the funds into the economy in conceal the origin of the proceeds. what appears to be normal phase, the money launder This second stage involves business or personal transactions. introduces the illicit proceeds converting the proceeds of the This stage entails using laundered into the financial system. Often, crime into another form and proceeds in seemingly normal this is accomplished by placing creating complex layers of financial transactions to create the the funds into circulation transactions to obfuscate the perception of legitimacy. The through formal financial source and ownership of funds. launderer, for instance, might institutions, casinos and other choose to invest the funds in real legitimate businesses, both estate, financial ventures or luxury domestic and international. assets.  10 How is Money Laundering Committed? How is Money Laundering a. transacts said monetary instrument or property; Committed? It is committed by any person b. converts, transfers, disposes of, moves, acquires, possesses or uses said who, knowing that any monetary instrument or property; monetary instrument or property represents, c. conceals or disguises the true nature, source, location, disposition, involves, or relates to the movement or ownership of or rights with respect to said monetary proceeds of any unlawful instrument or property; activity: (TC-CAAP) d. attempts or conspires to commit money laundering offenses referred to in Money laundering is also paragraphs (a), (b) or (c); committed by any covered person who, knowing that a e. aids, abets, assists in or counsels the commission of the money laundering covered or suspicious offenses referred to in paragraphs (a), (b) or (c) above; and transaction is required under this Act to be reported to the f. performs or fails to perform any act as a result of which he facilitates the Anti-Money Laundering offense of money laundering referred to in paragraphs (a), (b) or (c) above. Council (AMLC), fails to do so. Section 4, 10365 Discuss the definition of terms 11 12 DEFINITION OF TERMS Money Laundering Money laundering is a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources. Section 3c R.A. 9160 13 DEFINITION OF TERMS Monetary Instrument 1. coins or currency of legal tender of the Philippines, or of any other country; 2. drafts, checks and notes; 3. securities or negotiable instruments, bonds, commercial papers, deposit certificates, trust certificates, custodial receipts or deposit substitute instruments, trading orders, transaction tickets and confirmations of sale or investments and money marked instruments; and 4. other similar instruments where title thereto passes to another by endorsement, assignment or delivery. 5. Contracts or policies of insurance, life or non-life, and contracts of suretyship; Section 3c R.A. 9160 14 Elements of Money Laundering Unlawful Activity Dirty Money - Must be related to any of - Should always be related the 36 enumerated to the proceeds of an predicate offenses under unlawful activity the AMLA, as amended. Money Laundering Knowledge Acts/Transactions If there is no knowledge, - A single act may suffice there is only civil liability 15 DEFINITION OF TERMS Unlawful activity" refers to any act or omission or series or combination thereof involving or having relation to the following: ▪ R.A. 9160 (2001) - 14 ▪ R.A. 9194 (2003) – 14 ▪ R.A. 10167 (2012) ▪ R.A. 10365 (2013) – 34 ▪ R.A. 10927 (2017) ▪ R.A. 11521 (2021) - 36 Illustrate unlawful activities 17 UNLAWFUL ACTIVITY Unlawful activity’ refers to any act or omission or series or combination thereof involving or having direct relation to the following: BTW S PARE KD JP FCM Q HIV I Bank Secrecy HK-MADS I, 8, 14, 21, 30, - take note 27 to 34 1. Kidnapping for ransom 12. Hijacking, destruction arson and 23. Child abuse. 2. Drug offenses (violation of murder, including those perpetrated 24. Child porno specific provisions of the by terrorists against non-combatants 25. Malversation Comprehensive Dangerous and similar (civilian) targets. 26. Mining laws. Drugs Act of 2002) 13. Securities fraud. 27. Migrant Workers and 3. Anti-Graft and Corrupt 14. Similar offenses punishable under the OFWs Practices Act penal laws of foreign countries. 28. Terrorism. 4. Plunder 15. Frauds and illegal transactions under 29. Terrorism Financing 5. Robbery and extortion Articles 213-216 RPC. 30. Wildlife Protection. 6. Jueteng and Masiao 16. Forgeries and Counterfeiting 31. Bribery and Corruption 7. Piracy on the high seas 17. Forestry violations of Public Officers 8. Qualified theft 18. Fisheries violations 32. Human Trafficking 9. Swindling 19. Firearms violations 33. Intellectual Property Law 10. Smuggling 20. Fencing. violations 11. E-commerce violations 21. Caves protection law. 34. Voyeurism (Photo and 22. Carnapping Video) 18 UNLAWFUL ACTIVITY Exceptions: No court order shall be required in the following: (HK-MADS) a. Hijacking b. Kidnapping with ransom c. Murder d. Destructive Arson and e. Violations of the Dangerous Drugs Act f. Acts of Terrorism or in violation of Human Security Act Determine who are covered persons 20 Covered Persons ▪ Covered “Institutions” was changed to Covered “Persons” under R.A. 10365. ▪ Reporting of Covered and Suspicious Transactions. – Covered persons shall report to the AMLC all covered transactions and suspicious transactions within five (5) working days from occurrence thereof, unless the AMLC prescribes a different period not exceeding fifteen (15) working days. ▪ Note that the term “covered persons” shall exclude lawyers and accountants. These persons must be acting as independent legal professionals in relation to information concerning their clients or where disclosure of information would compromise client confidences or the attorney-client relationship. 21 Covered Persons Covered persons’, natural or juridical, refer to: 1. Banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops, money changers, remittance and transfer companies and other similar entities and all other persons and their subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas (BSP); 2. Insurance companies, pre-need companies and all other persons supervised or regulated by the Insurance Commission (IC); 22 Covered Persons 3. i. Securities dealers, brokers, salesmen, investment houses and other similar persons managing securities or rendering services as investment agent, advisor, or consultant, ii. Mutual funds, close-end investment companies, common trust funds, and other similar persons, and iii. Other entities administering or otherwise dealing in currency, commodities or financial derivatives based thereon, valuable objects, cash substitutes and other similar monetary instruments or property supervised or regulated by the Securities and Exchange Commission (SEC); 23 Covered Persons –DNFBP’s ❑Jewelry Dealers ❑Dealers in Precious Metals and Precious Stones ❑ Trust and Company Service Providers ❑Lawyers, accountants, and other professionals ❑Casinos ❑Real Estate Brokers and Developers ❑Offshore Gaming Operators, as well as their Service Providers 24 Covered Persons 4. Jewelry dealers in precious metals, who, as a business, trade in precious metals, for transactions in excess of One million pesos (P1,000,000.00); 5. Jewelry dealers in precious stones, who, as a business, trade in precious stones, for transactions in excess of One million pesos (P1,000,000.00); 25 Covered Persons 6. Company service providers which, as a business, provide any of the following services to third parties: i. acting as a formation agent of juridical persons; ii. acting as (or arranging for another person to act as) a director or corporate secretary of a company, a partner of a partnership, or a similar position in relation to other juridical persons; iii. providing a registered office, business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement; and iv. acting as (or arranging for another person to act as) a nominee shareholder for another person; and 26 Covered Persons 7. Persons who provide any of the following services: i. managing of client money, securities or other assets; ii. management of bank, savings or securities accounts; iii. organization of contributions for the creation, operation or management of companies; and iv. creation, operation or management of juridical persons or arrangements, and buying and selling business entities. "Notwithstanding the foregoing, the term ‘covered persons’ shall exclude lawyers and accountants acting as independent legal professionals in relation to information concerning their clients or where disclosure of information would compromise client confidences or the attorney-client relationship: Provided, That these lawyers and accountants are authorized to practice in the Philippines and shall continue to be subject to the provisions of their respective codes of conduct and/or professional responsibility or any of its amendments." 27 Covered Persons 8. Casinos, including internet and ship-based casinos, with respect to their casino cash transactions related to gaming operations. R.A. 10927 (2017) 28 Covered Persons ▪ The board of directors of the covered person shall exercise active control and supervision in the formulation and implementation of institutional risk management. They shall be ultimately responsible for the covered person’s compliance with the AMLA and TFPSA, their respective IRR and other AMLC issuances. (Rule 15, Section 2.1, 2018 IRR) ▪ Covered persons shall develop sound risk management policies, controls and procedures (i.e. MTPP), which are approved by the board of directors to enable them to manage and mitigate the risks that have been identified in the NRA, or by the AMLC, SAs or the covered person itself. (Rule 15, Section 2.2(a), 2018 IRR) Discuss Safe Harbor 29 30 SAFE HARBOR PROVISION No administrative, criminal or civil proceedings, shall lie against any person for having made a covered or suspicious transaction report in the regular performance of his duties in good faith, whether or not such reporting results in any criminal prosecution under this Act or any other law. DO NOT BE AFRAID TO FILE CTR AND STR! ▪ CTR and STR are not necessarily proof that the customer is involved in unlawful activity. ▪ CTR and STR are mere triggers for possible investigation. ▪ Non-Reporting of CTR and STR is a Criminal Offense ▪ 6 month – 4 years imprisonment, P100,000 – P500,000 fine or both 31 COVERED TRANSACTONS ▪ Transaction, in cash or other equivalent monetary instrument, involving a total amount in excess of Php 500,000 (threshold amount) within one banking day. (Other DNFBPs) ▪ Jewelry dealers in precious metals and stones in excess of One million pesos (Php 1,000,000.00) ▪ For casinos: a single casino transaction involving an amount in excess of Five million pesos (Php 5,000,000.00) or its equivalent in any other currency. (R.A. 10927) ▪ For covered persons under Section 3(a)(9) herein REDs and REBs, a single cash transaction involving an amount in excess of Seven million five hundred thousand pesos (P7,500,000.00) or its equivalent in any other currency. (RA 11521) 32 SUSPICIOUS TRANSACTIONS Suspicious transaction are transactions with covered institutions, regardless of the amounts involved, where any of the following circumstances exist: DUAL-CIS 1. No underlying legal or trade obligation, purpose or economic justification; 2. Client is not properly identified; 3. Amount involved is not commensurate with the business or financial capacity of the client 4. Transaction is structured in order to avoid being the subject of reporting requirements under the Act; 5. Transaction which is observed to deviate from the profile of the client and/or the client's past transactions with the covered institution; 6. Transactions is in a way related to an unlawful activity or offense under this Act that is about to be, is being or has been committed; or 7. Similar or analogous to any of the foregoing. Section 2, RA 11521 Apply and illustrate preventive measures and obligations of covered persons 1.Prohibited accounts 2.Customer due diligence 33  PREVENTIVE MEASURES & OBLIGATIONS OF 34 COVERED PERSONS 1. Customer Identification 2. Record Keeping 3. Reporting of Covered and Suspicious Transactions.  PREVENTIVE MEASURES & OBLIGATIONS OF 35 COVERED PERSONS 1. Customer Identification a. establish and record the true identity of its clients based on official documents; b. Maintain a system of verifying the true identity of their clients; and c. In case of corporate clients, require a system of verifying their legal existence and organizational structure, as well as the authority and identification of all persons purporting to act on their behalf.  PREVENTIVE MEASURES & OBLIGATIONS OF 36 COVERED PERSONS 2. Record Keeping All records of all transactions of covered institutions shall be maintained and safely stored for five (5) years from the dates of transactions. Said records and files shall contain the full and true identity of the owners or holders of the accounts involved in the covered transactions and all other customer identification documents. Retention of Records where there is a Case If a case has been filed in court involving the account, records must be retained and safely kept beyond the 5-year period, until it is officially confirmed by the AMLC Secretariat that the case has been resolved, decided or terminated with finality.  PREVENTIVE MEASURES & OBLIGATIONS OF 37 COVERED PERSONS 3. Reporting of Covered and Suspicious Transactions. Covered institutions shall report to the AMLC all covered or suspicious transactions within 5 working days from occurrence thereof, unless AMLC prescribes a longer period not exceeding 15 working days. Conviction of the unlawful activity is not necessary before a report is made. Covered Transaction Report It refers to a report on a covered transaction filed by covered person before the AMLC. Suspicious Transaction Report It refers to a report on a suspicious transaction filed by a covered person before the AMLC.  PREVENTIVE MEASURES & OBLIGATIONS OF 38 COVERED PERSONS Covered Transaction Report A transaction (in case or equivalent monetary instrument) in excess of the threshold amount.  PREVENTIVE MEASURES & OBLIGATIONS OF 39 COVERED PERSONS 3. Reporting of Covered and Suspicious Transactions. Malicious Reporting is a Criminal Offense ▪ 6 months – 4 years imprisonment ▪ No Probation 40 PREVENTIVE MEASURES 4. Confidentiality Reports Covered persons, and their officers and employees, are prohibited from communicating, directly or indirectly, in any manner or by any means, to any person or entity, or the media, the fact that a CTR or STR has been or is about to be filed, the contents of the report, or any other information in relation thereto. Any information about such reporting shall not be published or aired, in any manner or form, by the mass media, or through electronic mail, or other similar devices. Breach of Confidentiality is a Criminal Offense 3-8 years imprisonment, P500,000 – P1,000,000 41 PROHIBITION AGAINST CERTAIN ACCOUNTS ▪ Covered institutions shall maintain accounts only in the true and full name of the account owner or holder. The prohibitions of existing laws to the contrary notwithstanding, anonymous accounts, accounts under fictitious name, and all other similar accounts shall be absolutely prohibited. ▪ Numbered Accounts. Numbered accounts, except non-checking numbered accounts, shall not be allowed. ▪ Covered and suspicious transaction reports involving non-checking numbered accounts shall contain the true name of the account holder. 42 Customer Due Diligence It refers to the procedure of identifying and verifying the true identity of customers, and their agents and beneficial owners, including understanding and monitoring of their transactions and activities. 43 Customer Due Diligence (Know your Customer) Customer Due Diligence (CDD) Measures (Section 2.1, Rule 18, 2018 IRR) a. Customer Identification Process (CIP) b. Customer Verification Process (CVP) c. Identification and Verification of Agents (IVA) d. Beneficial Ownership Verification (BOV) e. Determination of the Purpose of Relationship (DPR) f. Ongoing Monitoring Process (OMP) Timing (Section 2.2, Rule 18, 2018 IRR) May be conducted simultaneously, consecutively, or at such timing and frequency as the covered person may determine to be appropriate, depending on the risks involved. 44 Customer Due Diligence (Know your Customer) ▪ AMLC Advisory posted on the AMLC Website on May 19, 2019 ▪ To remind Covered Persons (CPs) dealing with customers who are DNFBPs to require the presentation of the Provisional Certificate of Registration (PCOR) and/or Certificate of Registration (COR) with the AMLC as part of its CDD measures. 45 Customer Due Diligence (Know your Customer) Minimum Information required for Individuals ▪ Name ▪ Present Address ▪ Date & Place of Birth ▪ Nature of work, Self Employment, Business, Name of Employer ▪ Contact Details ▪ Specimen Signature ▪ Source of Funds ▪ Nationality ▪ TIN, SSS or GSIS number, if any ▪ Permanent Address 46 Customer Due Diligence (Know your Customer) Minimum Information required for: Juridical Entity ▪ Board / Partner’s Resolution ▪ Certificate of Registration (SEC/DTI/BSP) ▪ Principal Business Address ▪ Articles of Incorporation or Association and By-Laws ▪ Latest GIS which lists the names of Directors/Trustees/Partners, principal stockholders owning at least 20% of outstanding capital stocks and primary officers ▪ Name, present address, date and place of birth, nature of work and source of funds of beneficial owner or beneficiary, if applicable. ▪ Source of funds and nature of business ▪ Contact details and entity and authorized signatory 47 Customer Due Diligence (Know your Customer) Customer Profile Risk Rating Individual Non-Individual ▪ Source of Funds ▪ Nature of Business or Economic ▪ Origin of Funds Activities ▪ Present Address ▪ Origin of Funds ▪ Nationality ▪ Business Address ▪ Type of Products ▪ Place of Business Operation ▪ Type of Products Explain and apply beneficial ownership 48 49 Beneficial Owners “Beneficial owners” refers to those individuals or natural persons who ultimately own or control the customer or those for whom another person conducts a transaction. Money launderers and terrorists routinely use the cloak of anonymity to prevent the AMLC and law enforcement agencies (LEAs) to track them down. In the case of the AMLC, they also seek to avoid freezing and forfeiture of their assets obtained through criminal activities. 50 Beneficial Owners General Policy on Customer Due Diligence – These Guidelines are intended to assist covered persons (CPs) in meeting the requirements to perform customer due diligence (CDD) on the beneficial owners. Accordingly, CPs are required to: a. Establish and record the true identity of its clients based on official documents. Where an account is opened or a transaction is conducted by any person in behalf of another, CPs shall also establish and record the true and full identity, and existence of both the account holder or transactor, and the beneficial owner or person on whose behalf the transaction is being conducted. b. Maintain a system of verifying the true identity of their clients and, in case of legal persons, require a system of verifying their legal existence, organizational structure, as well as the authority and identification of all persons purporting to act on their behalf, and of understanding the nature of the clients’ business; 51 Beneficial Owners c. Establish appropriate systems and methods, and adequate internal controls, compliant with the AMLA, and its Implementing Rules and Regulations (IRR); resolutions, directives and issuances of the AMLC; and internationally accepted anti-money laundering and counter-terrorism financing (AML/CTF) standards, for verifying and recording the true and full identity of their customers; d. Grant immediate and full access to authorized personnel of the AMLC Secretariat, the Supervising Authorities (SAs), and the Appropriate Government Agencies (AGAs), to all information, documents or objects pertaining to the account, transaction and/or persons subject of an investigation. Provided, that transaction documents pertaining to specific deposits and investments in banks shall be subject to the provisions on bank inquiry under the AMLA, its IRR, and issuances of the AMLC. CPs must therefore identify the beneficial owners of accounts and when requested, to immediately give relevant beneficial ownership information to the AMLC Secretariat. 52 53 AMLC and its Powers 54 55 Anti-Money Laundering Council (AMLC) The AMLC shall be composed of: ▪ The Governor of the Bangko Sentral ng Pilipinas as Chairman ▪ The Commissioner of the Insurance Commission as member; and ▪ The Chairman of the Securities and Exchange Commission (SEC) as member RA 9160, as amended by RA 9194, Sec. 7)  The Anti-Money Laundering Council (AMLC) and 56 its Secretariat Government Central AML/CTF Financial ML/TF Investigator Representative in Authority Intelligence Unit ML/TF Cases AML/CTF National Center Identify Verifier Initiator of Freeze Supervisor and for Receipt and Financial Order Enforcer analysis of CTRs Investigator Proceedings Lead Agency on and STRs Initiator of Civil AML/CTF Matters National Center Forfeiture Authority to for Receipt and Proceedings Resolve Analysis of RTRs Complainant in Administrative ML/TF cases Cases International Cooperation Advocate AML/CTF Educator 57 Powers of AMLC a) Inquire into deposits or investments Upon order of any competent court based on an ex parte application in cases of violations of this Act, when it has been established that there is probable cause that the deposits or investments, including related accounts involved, are related to an unlawful activity or a money laundering offense. (Sec. 11, R.A. 10167) Under the Anti-Terror Law: 1. Any property or funds that are in any way related to financing of terrorism as defined and penalized under RA 10168 2. Violation of Sections 4,6,7,10,11 or of the Anti-Terrorism Law 3. Property or funds of any person or persons in relation to whom there is probable cause to believe that such person or persons are committing or attempting or conspiring to commit or participating in or facilitating the financing of terrorism. 58 Powers of AMLC b. Freezing Monetary Instrument or Property. a) Upon a verified ex parte petition by the AMLC and after determination that probable cause exists that any monetary instrument or property is in any way related to an unlawful activity as defined in Section 3(i) hereof, the Court of Appeals may issue a freeze order which shall be effective immediately, for a period of twenty (20) days. Within the twenty (20) day period, the Court of Appeals shall conduct a summary hearing, with notice to the parties, to determine whether or not to modify or lift the freeze order, or extend its effectivity. The total period of the freeze order issued by the Court of Appeals under this provision shall not exceed six (6) months. If there is no case filed against a person whose account has been frozen within the period determined by the Court of Appeals, not exceeding six (6) months, the freeze order shall be deemed ipso facto lifted. Section 10. 11521 59 Powers of AMLC b. Freezing Monetary Instrument or Property. Authority to Freeze. – The AMLC, either upon its own initiative or at the request of the ATC, is hereby authorized to issue an ex parte order to freeze without delay: (a) property or funds that are in any way related to financing of terrorism or acts of terrorism; or (b) property or funds of any person, group of persons, terrorist organization, or association, in relation to whom there is probable cause to believe that they are committing or attempting or conspiring to commit, or participating in or facilitating the commission of financing of terrorism or acts of terrorism as defined herein. The freeze order shall be effective for a period not exceeding twenty (20) days. Upon a petition filed by the AMLC before the expiration of the period, the effectivity of the freeze order may be extended up to a period not exceeding six (6) months upon order of the Court of Appeals: Provided, That the twenty-day period shall be tolled upon filing of a petition to extend the effectivity of the freeze order. 60 Powers of AMLC Freeze Order (FO) ▪ Period: Total not exceeding six (6) months ▪ No case filed = FO deemed ipso facto lifted ▪ Remedy of the Owner: File Motion to Lift ▪ No Temporary Restraining Order (TRO) Exception: Issued by the Supreme Court 61 Duties of Covered Persons 1. Immediately freeze the monetary instrument or property and related accounts; and 2. Within 24 hours, submbit to the CA and the AMLC a detailed within return on the freeze order - ▪ Account numbers ▪ Name(s) of account holders ▪ Amount ▪ Other relevant information ▪ Time 62 Powers of AMLC Civil Forfeiture ▪ Total for Asset Recovery ▪ Filed with Regional Trial Court (RTC) ▪ Non-Conviction based Asset Forfeiture - Preponderance of Evidence, not Proof Beyond Reasonable Doubt ▪ Judgment of Forfeiture - Turned over to the National Gov’t or - Returned to the victims 63 Powers of AMLC c) Asset Forfeiture AMLC may institute civil forfeiture proceedings and all other remedial proceedings through the Office of the Solicitor General when there is a covered transaction or suspicious transaction report made and the court has, in a petition filed for the purpose, ordered the seizure of any monetary instrument or property, in whole or in part, directly or indirectly, related to said report. If the monetary instrument or property to be forfeited cannot be located, the convicted may be ordered to pay the value of the monetary instrument or property in lieu of forfeiture. R.A. 10365 64 Other Powers or Functions 1. To require and receive covered or suspicious transaction reports from covered institutions 2. To cause the filing of complaints with the DOJ or the Ombudsman for the prosecution of money laundering offenses 3. To investigate suspicious transactions and covered transactions deemed suspicious after an investigation by AMLC, money laundering activities and other violations of this Act; 4. To apply before the CA ex parte, for the freezing of any monetary instrument or property alleged to be laundered, proceeds from, or instrumentalities used in or intended for use in any unlawful activity as defined in Section 3(i) hereof; 5. To impose administrative sanctions for the violations of laws, rules, regulations, and order and resolutions issued pursuant thereto. 6. To require the LRA and all its Registries of Deeds to submit to the AMLC, reports on all real estate transactions involving an amount in excess of 500,000 within 15 days from the date of registration of the transaction. 65 Investigation and Prosecution 66 Civil Forfeiture ▪ Tool for Asset Recovery ▪ Filed with the Regional Trial Court (RTC) ▪ Non-Conviction based Asset Forfeiture - Preponderance of Evidence, not Proof Beyond Reasonable Doubt ▪ Judgement of Forfeiture - Turned over to the National Gov’t; or - Returned to the victims ❑Thank You ! 67