amla-ppt presentation (dswd)

BRIEFING ON THE BRIEFING ON THE ANTI-MONEY ANTI-MONEY

LAUNDERING LAWLAUNDERING LAW

What is money laundering?

RA 9160 (Anti-Money Laundering Act of 2001 [AMLA]) Sec. 4: Money laundering is a CRIME

whereby the proceeds of an unlawful activity as herein defined are TRANSACTED, thereby making them appear to have originated from legitimate sources

Elements of the Crime of Elements of the Crime of Money LaunderingMoney Laundering

Unlawful activityUnlawful activity Monetary instrument or property (MI/P)Monetary instrument or property (MI/P) Transaction/Attempted transactionTransaction/Attempted transaction Knowledge that the MI/P represents, Knowledge that the MI/P represents,

involves, or relates to the proceeds of the involves, or relates to the proceeds of the unlawful activity unlawful activity


UNLAWFUL ACTIVITY [Sec. 3(i) of AMLA]UNLAWFUL ACTIVITY [Sec. 3(i) of AMLA]

Kidnapping for ransomKidnapping for ransom Comprehensive Dangerous Drugs Act of 2002Comprehensive Dangerous Drugs Act of 2002 Anti-Graft and Corrupt Practices ActAnti-Graft and Corrupt Practices Act PlunderPlunder Robbery and ExtortionRobbery and Extortion Jueteng and MasiaoJueteng and Masiao


UNLAWFUL ACTIVITY [Sec. 3(i) of AMLA]UNLAWFUL ACTIVITY [Sec. 3(i) of AMLA]

Piracy on high seas and Phil. watersPiracy on high seas and Phil. waters Qualified theftQualified theft Swindling under Art. 315 of RPCSwindling under Art. 315 of RPC SmugglingSmuggling Electronic Commerce Act of 2000Electronic Commerce Act of 2000


UNLAWFUL ACTIVITY [Sec. 3(i) of UNLAWFUL ACTIVITY [Sec. 3(i) of AMLA]AMLA]

Hijacking; Destructive Arson and murder, Hijacking; Destructive Arson and murder, including those perpetrated by terrorists including those perpetrated by terrorists against non-combatant persons and other against non-combatant persons and other targetstargets

- International Islamic Relief Organization (IIRO)- International Islamic Relief Organization (IIRO)

- IIRO (Philippines)- IIRO (Philippines)

Elements of the Crime of Elements of the Crime of Money Laundering Money Laundering

UNLAWFUL ACTIVITY [Sec. 3(i) of UNLAWFUL ACTIVITY [Sec. 3(i) of AMLA]AMLA]

Securities Regulation Code of 2000Securities Regulation Code of 2000 Felonies or offenses of a similar nature that Felonies or offenses of a similar nature that

are punishable under the penal laws of other are punishable under the penal laws of other countriescountries

a. Monetary Instruments [Sec.3(c) a. Monetary Instruments [Sec.3(c) AMLA; Rule 3.c. RIRR]AMLA; Rule 3.c. RIRR]1. coins or currency of legal tender of the 1. coins or currency of legal tender of the

Phils. or any other countryPhils. or any other country

2. 2. drafts, checks and notesdrafts, checks and notes

3. 3. securities and negotiable securities and negotiable instruments, bonds, commercial instruments, bonds, commercial papers papers

44. . deposit certificates, trust certificates deposit certificates, trust certificates


Elements of the Crime of Money Elements of the Crime of Money LaunderingLaundering

5.5. custodial receipts or deposit custodial receipts or deposit substitute substitute inst.inst.

6.6. trading orders, transaction ticketstrading orders, transaction tickets7.7. confirmation of sale or investmentsconfirmation of sale or investments8. 8. money market instruments, money market instruments, 9. 9. other similar instruments where title other similar instruments where title thereto passes to another by thereto passes to another by endorsement, endorsement, assignment or deliveryassignment or delivery

- E-Money defined in BSP Circular No. - E-Money defined in BSP Circular No. 649 649


a. Globe G-Casha. Globe G-Cash b. Smart Cashb. Smart Cash c. Bank issued cash and stored c. Bank issued cash and stored

value value prepaid cards (e.g. Visa prepaid cards (e.g. Visa prepaid prepaid card issued card issued by Unionbank)by Unionbank)

10. Insurance contracts, and contract of 10. Insurance contracts, and contract of suretyship suretyship


b. Property – as defined under b. Property – as defined under the Civil Codethe Civil Code

Art. 414. All things which are or Art. 414. All things which are or may be the object of appropriation may be the object of appropriation are considered either: are considered either:

(1) immovable or real property; (1) immovable or real property; or or

(2) movable or personal (2) movable or personal property.property.


Transaction [Sec. 3 (h) of AMLA] refers to any act establishing any right or

obligation or giving rise to any contractual or legal relationship between the parties thereto. It also includes any movement of funds by any means with a covered institution.


TransactioTransaction includes:n includes:

• Cash and check depositsCash and check deposits

• Over-the-counter withdrawals or check Over-the-counter withdrawals or check encashmentencashment

• opening of deposit accountsopening of deposit accounts

• Loan applications/loan paymentsLoan applications/loan payments

• Sale of foreclosed properties or acquired assets Sale of foreclosed properties or acquired assets

• Issuance of credit cards, etc.Issuance of credit cards, etc.


TransactioTransaction includes: (Cont’n)n includes: (Cont’n)

• Trust related transactionsTrust related transactions• Remittance and receipt of remittanceRemittance and receipt of remittance• Foreign currency exchangeForeign currency exchange• Pawning and redemption of pawned propertyPawning and redemption of pawned property


KnowledgeKnowledge (Rule 6.5 of the RIRR)(Rule 6.5 of the RIRR)

Knowledge may be established by direct Knowledge may be established by direct evidence or inferred from the attendant evidence or inferred from the attendant circumstancescircumstances

Why is money laundering a problem?

Money laundering allows criminals to preserve and enjoy the proceeds of their crimes, thus providing them with the incentives and the means to continue their illegal activities.

How is money laundering carried out?/Stages of ML

Placement• Proceeds placed in financial

institutions Layering

• Further distancing proceeds from their origin

Integration• Funds re-enter legitimate circulation

StagesStages

1. Placement1. Placement – involves the initial – involves the initial placement or introduction of placement or introduction of the the illegal funds into the illegal funds into the financial financial system. system.

Ex. a. Smurfing or structuringEx. a. Smurfing or structuring b. Purchase of insurance b. Purchase of insurance

contractcontract

StagesStages2. Layering2. Layering – – involves a series of involves a series of

financial transactions during which the financial transactions during which the dirty money is passed through a series dirty money is passed through a series of procedures, putting layer upon layer of procedures, putting layer upon layer of persons and financial activities into of persons and financial activities into the laundering process.the laundering process.

Ex. a. electronic transfer of fundsEx. a. electronic transfer of funds

b. disguised transfer of funds as b. disguised transfer of funds as payment for goods or payment for goods or

servicesservices

3.3. IntegrationIntegration –– the money is once the money is once again again made available to the criminal made available to the criminal with the with the occupational and geographic occupational and geographic origin origin obscured or concealed. The obscured or concealed. The laundered laundered funds are now integrated funds are now integrated back into the back into the legitimate economy legitimate economy through the purchase through the purchase of properties, of properties, businesses and other businesses and other investments.investments.

StageStagess

StagesStages

REPUBLIC ACT NO. 9160REPUBLIC ACT NO. 9160otherwise known as otherwise known as THE “ANTI-MONEY THE “ANTI-MONEY

LAUNDERING ACT OF LAUNDERING ACT OF 2001”2001”

as amended byas amended byREPUBLIC ACT NO.REPUBLIC ACT NO.

91949194

FINANCIAL ACTION TASK FINANCIAL ACTION TASK FORCE (FATF)FORCE (FATF)

R.A. 9160, otherwise known as the “ANTI-R.A. 9160, otherwise known as the “ANTI-MONEY LAUNDERING ACT OF 2001” MONEY LAUNDERING ACT OF 2001” (AMLA), as amended, came into being as (AMLA), as amended, came into being as a result of the creation of the FATF. a result of the creation of the FATF.

FATFFATF

Formed in 1989Formed in 1989 Based in Paris, FranceBased in Paris, France An international body formed by G-7 with a An international body formed by G-7 with a

mission of paving the way for the effective mission of paving the way for the effective prevention and detection of money prevention and detection of money laundering by ensuring that appropriate laundering by ensuring that appropriate measures against money laundering are measures against money laundering are implemented in all nationsimplemented in all nations

FATFFATF In 1990, FATF prepared a set of In 1990, FATF prepared a set of

recommendations which provides a recommendations which provides a comprehensive plan of action needed to fight comprehensive plan of action needed to fight money laundering. It provides a complete set of money laundering. It provides a complete set of counter-measures against money laundering counter-measures against money laundering covering:covering:

1. Criminal justice system and law 1. Criminal justice system and law enforcement,enforcement,

2. Financial system and its regulation, and 2. Financial system and its regulation, and 3. International cooperation.3. International cooperation.

FATFFATF

1990 - FATF issued 40 Recommendations1990 - FATF issued 40 Recommendations

2001 - FATF issued 8 Special 2001 - FATF issued 8 Special Recommendations Recommendations which requires which requires countries to have measures in countries to have measures in place to fight financing of place to fight financing of terrorism terrorism (Recommendation VIII – Calls for the review of (Recommendation VIII – Calls for the review of adequacy of laws and regulations on NPOs)adequacy of laws and regulations on NPOs)

2004 -2004 - FATF Added Recommendation FATF Added Recommendation No. 9 No. 9 (Cash Couriers)(Cash Couriers)

FATFFATF8 Special8 Special RecommendationsRecommendations

Recommendation VII-Countries should review the adequacy Recommendation VII-Countries should review the adequacy of laws and regulations that relate to entities that can be of laws and regulations that relate to entities that can be abused for the financing of terrorism. Non profit abused for the financing of terrorism. Non profit organizations are particularly vulnerable, and countries organizations are particularly vulnerable, and countries should ensure that they cannot be misused:should ensure that they cannot be misused:

(i) by terrorist organizations posing as legitimate (i) by terrorist organizations posing as legitimate entities;entities;

(ii) to exploit legitimate entities as conduits for (ii) to exploit legitimate entities as conduits for terrorist financing; and terrorist financing; and

(iii) to conceal the clandestine diversion of funds (iii) to conceal the clandestine diversion of funds intended for legitimate purpose to terrorist organizations. intended for legitimate purpose to terrorist organizations.

FATFFATF

To enforce compliance with the To enforce compliance with the recommendations, it created and recommendations, it created and maintained a list of Non Cooperative maintained a list of Non Cooperative Countries and Territories (NCCT List)Countries and Territories (NCCT List)

Countries under the list are subject to Countries under the list are subject to sanctions.sanctions.

FATFFATF In June 2000, the FATF placed the Philippines in In June 2000, the FATF placed the Philippines in

its list of Non-Cooperative Countries and its list of Non-Cooperative Countries and Territories (NCCT) for the following reasons:Territories (NCCT) for the following reasons:

1. It has no existing anti-money laundering 1. It has no existing anti-money laundering law.law.

2. It has no financial intelligence unit.2. It has no financial intelligence unit.3. The Philippines has a very strict bank 3. The Philippines has a very strict bank

deposit secrecy law.deposit secrecy law.4. Its banks and other covered institutions 4. Its banks and other covered institutions

do not report suspicious transactions.do not report suspicious transactions.

AMLAAMLAEffectivity DatesEffectivity Dates

• R.A. No. 9160 R.A. No. 9160 - October 17, 2001 - October 17, 2001

• R.A. No. 9194R.A. No. 9194 - March 23, 2003- March 23, 2003

• Revised IRRsRevised IRRs - September 7, - September 7, 20032003

FATFFATF

With the enactment of the AMLA and its With the enactment of the AMLA and its amendments by R.A. 9194, the Philippines amendments by R.A. 9194, the Philippines was removed from the NCCT List, and no was removed from the NCCT List, and no longer subject to FATF monitoring since, longer subject to FATF monitoring since, February 11, 2005.February 11, 2005.

Covered Institutions Covered Institutions [Sec. 3 (a) AMLA][Sec. 3 (a) AMLA]

1. Banks, non-banks, quasi-banks, trust 1. Banks, non-banks, quasi-banks, trust entities, and all other institutions and entities, and all other institutions and their subsidiaries and affiliates their subsidiaries and affiliates supervised or regulated by the supervised or regulated by the Bangko Bangko Sentral ng Pilipinas;Sentral ng Pilipinas;

2. 2. Insurance Companies and all other Insurance Companies and all other institutions supervised or regulated by institutions supervised or regulated by the the Insurance CommissionInsurance Commission; and; and

Covered InstitutionsCovered Institutions [Sec. 3 (a) AMLA][Sec. 3 (a) AMLA]

3. 3. All those supervised or regulated by the All those supervised or regulated by the Securities and Exchange Commission Securities and Exchange Commission

as as grantees of secondary license, such grantees of secondary license, such as: as:

i. securities dealers, brokers, salesmen, i. securities dealers, brokers, salesmen, investment houses; and investment houses; and

ii. Mutual funds, closed end investment ii. Mutual funds, closed end investment companies, common trust funds, pre- companies, common trust funds, pre- need companies, investment houses. need companies, investment houses.

AMLA’s 3 Major Requirements for Compliance by Banks and

other Covered Institutions

1. Reporting of covered and suspicious transactions

2. Customer identification and due diligence or Know Your Customer (KYC)

3. Record-keeping

Reporting of Covered and Reporting of Covered and Suspicious TransactionsSuspicious Transactions

[Sec. 8(c)AMLA][Sec. 8(c)AMLA]

All covered institutions shall report to All covered institutions shall report to the AMLC all covered transactions the AMLC all covered transactions and suspicious transactionsand suspicious transactions

Covered TransactionCovered Transaction[Sec. 3(b) AMLA][Sec. 3(b) AMLA]

‘‘Covered transaction’ is a Covered transaction’ is a transaction in cash transaction in cash or other or other equivalent monetary instrument equivalent monetary instrument

involving a total amount in involving a total amount in excess of excess of Five Hundred Five Hundred Thousand Pesos Thousand Pesos (Php500,000.00) (Php500,000.00) within one within one (1) banking day.(1) banking day.

Covered TransactionCovered Transaction[Sec. 3(b) AMLA][Sec. 3(b) AMLA]

- It is a single transaction in excess of It is a single transaction in excess of P500,000.00 within one banking day.P500,000.00 within one banking day.

- Therefore, multiple transactions or series Therefore, multiple transactions or series of transactions with an amount not more of transactions with an amount not more than P500,000.00 each, but whose total than P500,000.00 each, but whose total amount exceeds the threshold amount, amount exceeds the threshold amount, are not reportable as “Covered are not reportable as “Covered Transaction.”Transaction.”

Suspicious transactionsSuspicious transactions [Sec. 3(b-1) AMLA]

are transactions with covered institutions, regardless of the amounts involved, where any of the following circumstances exist:

1. Client is not properly identified;1. Client is not properly identified;

2. There is no underlying legal or trade 2. There is no underlying legal or trade obligation, purpose or economic justification obligation, purpose or economic justification for the transaction;for the transaction;

3. The amount involved is not commensurate 3. The amount involved is not commensurate with the business or financial capacity of the with the business or financial capacity of the client;client;

Suspicious transactions Suspicious transactions (con’t.):(con’t.):

[Sec. 3(b-1) AMLA]

4. The transaction is structured in a manner that 4. The transaction is structured in a manner that invites suspicion that it is trying to avoid the invites suspicion that it is trying to avoid the reporting requirements under the AMLA;reporting requirements under the AMLA;

5. Any circumstance relating to the transaction 5. Any circumstance relating to the transaction which is observed to deviate from the client’s past which is observed to deviate from the client’s past transactions;transactions;

6. The transaction is in any way related to an 6. The transaction is in any way related to an unlawful activity under the AMLA; andunlawful activity under the AMLA; and

7. Any transaction that is similar or analogous to 7. Any transaction that is similar or analogous to any of the foregoing.any of the foregoing.

AMLC Resolution No. 59AMLC Resolution No. 59

Suspicious transaction indicators:Suspicious transaction indicators:

1.1. Transactions of individuals or entities that are affiliated Transactions of individuals or entities that are affiliated to people suspected of being connected to a terrorist to people suspected of being connected to a terrorist group or a group that advocates violent overthrow of a group or a group that advocates violent overthrow of a governmentgovernment

2. The NGO does not appear to have expenses normally 2. The NGO does not appear to have expenses normally related to relief or humanitarian effortsrelated to relief or humanitarian efforts

AMLC Resolution No. 59AMLC Resolution No. 59(cont’d)(cont’d)

33. . The absence of contributions from donors located within The absence of contributions from donors located within the country of origin of the NGOthe country of origin of the NGO

4. A mismatch between the pattern and size of financial 4. A mismatch between the pattern and size of financial transactions on the one hand and the stated purpose and transactions on the one hand and the stated purpose and activity of the NGO on the otheractivity of the NGO on the other

5. Incongruities between apparent sources and amount of 5. Incongruities between apparent sources and amount of funds raised or moved by the NGOfunds raised or moved by the NGO

Period of Reporting of Covered and Period of Reporting of Covered and

Suspicious TransactionsSuspicious Transactions [Sec. 8(c)AMLA][Sec. 8(c)AMLA]

Should a transaction be determined to be both Should a transaction be determined to be both a covered transaction and a suspicious a covered transaction and a suspicious transaction, the covered institution shall be transaction, the covered institution shall be required to report the same as a suspicious required to report the same as a suspicious transactiontransaction

Customer Identification and Due Diligence/Know your Customer

(CDD/KYC)1. Establishing and recording the true identity of

clients based on official documents,

2. Maintaining a system of verifying the true identity of clients.

- In case of corporate clients, the system must include a process of verifying their legal existence, organizational structure and authority of the person purporting to act in their behalf.

CDD/KYCCDD/KYCEstablishing and recording the Establishing and recording the

true identitytrue identity

--Involves:Involves:

1. Requiring a client to produce at least one (1) valid 1. Requiring a client to produce at least one (1) valid original photo bearing original photo bearing official documentofficial document ofof identity (ID)identity (ID) issued by anissued by an official authority.official authority.

2. Recording the ID of the client.2. Recording the ID of the client.

CDD/KYCCDD/KYCEstablishing and recording the Establishing and recording the

true identitytrue identity

What does “Official Document of Identity“ mean?What does “Official Document of Identity“ mean?

-Document of identity that is issued by an -Document of identity that is issued by an official official authorityauthority

What does “Official Authority” mean? What does “Official Authority” mean?

CDD/KYCCDD/KYCEstablishing and recording the true Establishing and recording the true

identityidentity““Official Authority” refers to any of the following:Official Authority” refers to any of the following:

1. Government of the Republic of the Philippines;1. Government of the Republic of the Philippines;2. Its political subdivisions and instrumentalities;2. Its political subdivisions and instrumentalities;3. Government-owned and/or controlled corporations 3. Government-owned and/or controlled corporations

(GOCCs); and(GOCCs); and4. Private entities or institutions registered with or 4. Private entities or institutions registered with or

supervised or regulated either by the BSP or SEC or supervised or regulated either by the BSP or SEC or IC.IC.


identityidentityValid IDs:Valid IDs:

PassportPassport Driver’s licenseDriver’s license Professional Regulations Commission (PRC) IDProfessional Regulations Commission (PRC) ID National Bureau of Investigation (NBI) clearanceNational Bureau of Investigation (NBI) clearance Police clearancePolice clearance Postal ID Postal ID Voter’s ID Voter’s ID Barangay certification Barangay certification Government Service and Insurance System (GSIS) e-Government Service and Insurance System (GSIS) e-

CardCard



Certification from the National Council for the Welfare Certification from the National Council for the Welfare of Disabled Persons (NCWDP)of Disabled Persons (NCWDP)

Department of Social Welfare and Development Department of Social Welfare and Development (DSWD) Certification(DSWD) Certification

Company issued by private entities or institutions Company issued by private entities or institutions registered with or supervised or regulated either registered with or supervised or regulated either by the BSP, SEC or ICby the BSP, SEC or IC

Integrated Bar of the Philippines IDIntegrated Bar of the Philippines ID



Social Security System (SSS) card Social Security System (SSS) card Senior Citizen Card Senior Citizen Card Overseas Workers Welfare Administration (OWWA) Overseas Workers Welfare Administration (OWWA)

IDID OFW ID OFW ID Seaman’s Book Seaman’s Book Alien Certification of Registration/Immigrant Alien Certification of Registration/Immigrant

Certificate of Registration Certificate of Registration Government Office and GOCC ID e.g. Armed Forces Government Office and GOCC ID e.g. Armed Forces

of the Philippines (AFP), Home Development Mutual of the Philippines (AFP), Home Development Mutual Fund (HDMF) Fund (HDMF)


identityidentity

Valid IDs:Valid IDs: Passports issued by foreign governmentsPassports issued by foreign governments

For purpose of remittance to students who are not yet of For purpose of remittance to students who are not yet of voting age, voting age, photo-bearing school ID photo-bearing school ID duly signed by the duly signed by the principal of head of the schoolprincipal of head of the school

CDD/KYCCDD/KYCunder the Revised Implementing under the Revised Implementing

Rules & Regulations (RIRR)Rules & Regulations (RIRR)

Minimum information required:Minimum information required: NameName Present addressPresent address Permanent addressPermanent address Date and place of birthDate and place of birth NationalityNationality Nature of work and name of employer or nature of self-Nature of work and name of employer or nature of self-

employment/businessemployment/business

CDD/KYCCDD/KYCunder the RIRRunder the RIRR

Minimum Information Required: (cont.)Minimum Information Required: (cont.) Contact numbersContact numbers TIN, SSS No., GSIS No.TIN, SSS No., GSIS No. Specimen signatureSpecimen signature Source of fund(s), andSource of fund(s), and Names of beneficiaries in case of insurance contracts Names of beneficiaries in case of insurance contracts

and whenever applicable.and whenever applicable.


(for juridical persons)(for juridical persons)

Covered institutions shall endeavor to ensure that a:Covered institutions shall endeavor to ensure that a:

1.1. corporate juridical entity has not been or is not corporate juridical entity has not been or is not being dissolved, wound up or voided.being dissolved, wound up or voided.

2.2. its business or operations has not been or is not its business or operations has not been or is not being closed, shut down, phased out, or being closed, shut down, phased out, or terminated.terminated.

3.3. Shell companies should be dealt with extreme Shell companies should be dealt with extreme caution.caution.



Minimum information/documents: Minimum information/documents: • Articles of Incorporation/PartnershipArticles of Incorporation/Partnership• By-lawsBy-laws• Official address/principal business addressOfficial address/principal business address• List of directors/partnersList of directors/partners• List of principal stockholders owning at least 2% of List of principal stockholders owning at least 2% of

the capital stockthe capital stock



Minimum information/documents: (cont.)Minimum information/documents: (cont.)

• Contact numbersContact numbers• Beneficial owners, if any; andBeneficial owners, if any; and• Verification of the authority and identification of the Verification of the authority and identification of the

person purporting to act on behalf of the client.person purporting to act on behalf of the client.

RECORD-KEEPING RECORD-KEEPING REQUIREMENTSREQUIREMENTS

All covered institutions shall:All covered institutions shall: maintain and safely store all records of all their maintain and safely store all records of all their

transactions for 5 years from the transaction dates.transactions for 5 years from the transaction dates. anent closed accounts, preserve and safely store the anent closed accounts, preserve and safely store the

records on customer identification, account files records on customer identification, account files and business correspondence for at least 5 years from and business correspondence for at least 5 years from closure dates.closure dates.

if a money laundering case based on any record kept by if a money laundering case based on any record kept by the covered institution has been filed in court, retain said the covered institution has been filed in court, retain said file until it is confirmed that the case has been finally file until it is confirmed that the case has been finally resolved or terminated by the court.resolved or terminated by the court.

Money Laundering Money Laundering Offenses/PenaltiesOffenses/Penalties

1. Knowingly transacting or attempting1. Knowingly transacting or attempting to to transact any monetary instrument or transact any monetary instrument or property which represents, involves or property which represents, involves or relates to the proceeds of any unlawful relates to the proceeds of any unlawful activity (The money launderer himself) activity (The money launderer himself)

PenaltyPenalty7 to 14 years imprisonment and a fine of not 7 to 14 years imprisonment and a fine of not less than P 3 Million but not more than twice less than P 3 Million but not more than twice the value of the monetary instrument or the value of the monetary instrument or property.property.

2 Knowingly performing or failing to perform an act in relation to any monetary instrument or property involving the proceeds of any unlawful activity as a result of which he facilitated the offense of money laundering (The person who assists the money launderer) (Crim. Case No. 127802, “PP vs. Eric Allagadan” – first money laundering conviction )

Penalty 4 to 7 years imprisonment and a fine of not less

than P1.5 Million but not more than P3 Million.

Money Laundering Money Laundering Offenses / PenaltiesOffenses / Penalties

3. Knowingly failing to disclose and file with 3. Knowingly failing to disclose and file with the AMLC any monetary instrument or the AMLC any monetary instrument or property required to be disclosed and property required to be disclosed and filed –filed –

PenaltyPenalty

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

Money Laundering Money Laundering Offenses/PenaltiesOffenses/Penalties

Other Offenses under R.A. Other Offenses under R.A. 9160, 9160, as as amendedamended

1.1. For failure to keep records –For failure to keep records –All records of all transactions of covered All records of all transactions of covered institutions shall be maintained and safely institutions shall be maintained and safely stored for five (5) years from the dates of stored for five (5) years from the dates of transactions/when they were closed. transactions/when they were closed.

PenaltyPenalty6 months to 1 year imprisonment or a fine of 6 months to 1 year imprisonment or a fine of not less than P100,000.00 but not more than not less than P100,000.00 but not more than P500,000.00, or both.P500,000.00, or both.

2.2. For malicious reporting –For malicious reporting – Any person who reports or files a Any person who reports or files a

completely unwarranted or false completely unwarranted or false information relative to money laundering information relative to money laundering transaction against any person shall be transaction against any person shall be held criminally liable.held criminally liable.

PenaltyPenalty6 months to 4 years imprisonment and a fine 6 months to 4 years imprisonment and a fine

of not less than P100,000.00 but not more than of not less than P100,000.00 but not more than P500,000.00; provided that the offender is not P500,000.00; provided that the offender is not entitled to the benefits of the Probation Law. entitled to the benefits of the Probation Law. (Sec. 14 (c), AMLA)(Sec. 14 (c), AMLA)

Other Offenses under R.A. Other Offenses under R.A. 9160, 9160, as as amendedamended

No administrative, criminal or civil No administrative, criminal or civil proceedings, shall lie against any proceedings, shall lie against any person for having made a covered person for having made a covered or suspicious transactionor suspicious transaction report in report in the the regular performance of his regular performance of his duties in good faithduties in good faith, whether or , whether or not such reporting results in any not such reporting results in any criminal prosecution under this Act criminal prosecution under this Act or any other law.or any other law.

Safe Harbor ProvisionSafe Harbor Provision When reporting covered or When reporting covered or suspicious suspicious

transactionstransactions to the AMLC, to the AMLC, covered covered institutions and their officers and institutions and their officers and employeesemployees shall not be deemed to have shall not be deemed to have violated Republic Act No. 1405, as violated Republic Act No. 1405, as amended, Republic Act No. 6426, as amended, Republic Act No. 6426, as amended, Republic Act No. 8791 and amended, Republic Act No. 8791 and other similar laws.other similar laws. (Sec. 9, AMLA)(Sec. 9, AMLA)

Other Offenses under Other Offenses under R.A. 9160, R.A. 9160, as as

amendedamended

Other offenses under R.A. Other offenses under R.A. 9160, as amended9160, as amended

3.For breach of confidentiality3.For breach of confidentiality When reporting covered or When reporting covered or suspicious suspicious

transactions to the AMLC, covered transactions to the AMLC, covered institutions and their officers and institutions and their officers and employees are employees are prohibited from prohibited from communicating directly or indirectly, communicating directly or indirectly, in any manner or by any meansin any manner or by any means, to , to any person or entity, the media, the fact any person or entity, the media, the fact that a covered or that a covered or suspicioussuspicious transaction transaction report was made, the contents thereof, or report was made, the contents thereof, or any other information in relation thereto. any other information in relation thereto.

PenaltyPenalty

3 to 8 years imprisonment and a fine 3 to 8 years imprisonment and a fine of not less than P500,000.00 but not of not less than P500,000.00 but not more than P1.0 Million.more than P1.0 Million.

Confidentiality Provision of the RIRRConfidentiality Provision of the RIRR

Rule 8.4. Confidentiality Provision-The Rule 8.4. Confidentiality Provision-The members of the AMLC, xxx and all members of the AMLC, xxx and all members of the Secretariat, shall not members of the Secretariat, shall not reveal , in any manner, any information reveal , in any manner, any information known to them by reason of their office. known to them by reason of their office. This provision shall apply even after their This provision shall apply even after their separation from the AMLC. Violation is separation from the AMLC. Violation is punished in accordance with the provision punished in accordance with the provision of the Central Bank Act. of the Central Bank Act.

ADMINISTRATIVE OFFENSES ADMINISTRATIVE OFFENSES AND SANCTIONAND SANCTION

Rule 14.1.d of Revised Implementing Rules Rule 14.1.d of Revised Implementing Rules and Regulationsand Regulations

Violations of AMLA, rules, issuances, order, Violations of AMLA, rules, issuances, order, resolutions, regulationsresolutions, regulations

Not less than P100,000.00 but not exceeding Not less than P100,000.00 but not exceeding P500,000.00P500,000.00

Prosecution of Money Prosecution of Money Laundering CasesLaundering Cases

Any person may be charged with and Any person may be charged with and convicted of both the offense of money convicted of both the offense of money laundering (subject offense) and the laundering (subject offense) and the unlawful activity (predicate offense)unlawful activity (predicate offense)

Any proceeding relating to the unlawful Any proceeding relating to the unlawful activity shall be given precedence over the activity shall be given precedence over the prosecution of any offense or violation prosecution of any offense or violation under R.A. No. 9160 without prejudice to under R.A. No. 9160 without prejudice to the freezing and other legal remedies.the freezing and other legal remedies.


Rule 6.6. further provides that “All the elements of every money laundering offense under Section 4 of the AMLA must be proved by evidence beyond reasonable doubt, including the element of knowledge that the monetary instrument or property represents, involves or relates to the proceeds of any unlawful activity.”


Rule 6.7 clearly states that “No element of the unlawful activity, however, including the identity of the perpetrators and the details of the actual commission of the unlawful activity need be established by proof beyond reasonable doubt. The elements of the offense of money laundering are separate and distinct from the elements of the felony or offense constituting the unlawful activity.”

THE ANTI-MONEYLAUNDERING COUNCILOF THE PHILIPPINES

(AMLC)

The Philippines’ Financial Intelligence Unit

INSURANCECOMMISSIONER

BSP GOVERNOR

SECCHAIRMAN

ExecutiveDirector

Legal Evaluation

InformationManagement

AndAnalysis

AdministrativeAnd

FinancialServices

ComplianceAnd

Investigation

SECRETARIAT

AMLCAMLC

Acts unanimously in the discharge of their Acts unanimously in the discharge of their functionsfunctions

SecretariatSecretariat Members of the Secretariat hold full time Members of the Secretariat hold full time

permanent position within the BSP (Sec. permanent position within the BSP (Sec. 8, AMLA)8, AMLA)

Members of the Secretariat are regular Members of the Secretariat are regular employees of the BSP (Rule 8.2., RIRR)employees of the BSP (Rule 8.2., RIRR)

Functions of the Functions of the AMLCAMLC

(1)(1) to require submission of and to require submission of and receive covered or suspicious receive covered or suspicious transaction reports from transaction reports from covered institutions (Sections covered institutions (Sections 7[1] & 9[c].7[1] & 9[c].

Functions of the AMLCFunctions of the AMLC(2)(2) to issue orders to the appropriate to issue orders to the appropriate

Supervising Authority or the covered Supervising Authority or the covered institution to determine the true institution to determine the true identity of the owner of any identity of the owner of any monetary instrument or property monetary instrument or property subject of a CTR or STR or request subject of a CTR or STR or request for assistance from a foreign state, for assistance from a foreign state, or believed by the Council on or believed by the Council on substantial evidence to be related to substantial evidence to be related to an unlawful activity. [Sec. 7(2) an unlawful activity. [Sec. 7(2) AMLA]AMLA]


(3) institute civil forfeiture (3) institute civil forfeiture proceedings and all other remedial proceedings and all other remedial proceedings through the Office of proceedings through the Office of the Solicitor General.the Solicitor General.

-G.R. No. 170281, “R.P. vs. -G.R. No. 170281, “R.P. vs. Glasgow Credit and Collection Glasgow Credit and Collection Services, Inc., et al. Services, Inc., et al.


(4) cause the filing of complaints with (4) cause the filing of complaints with the Department of Justice or the the Department of Justice or the Ombudsman for the prosecution of Ombudsman for the prosecution of money laundering offenses.money laundering offenses.


(5)(5) investigate suspicious investigate suspicious transactions and covered transactions and covered transactions transactions deemed suspiciousdeemed suspicious after an investigation by AMLC, after an investigation by AMLC, money laundering activities, and money laundering activities, and other violations of this Act.other violations of this Act.

To inquire into or examine any particular deposits or investments upon order of a competent court, except in cases where the unlawful activity involves kidnapping for ransom, drug-related cases and terrorist related cases. AMLC Resolution Court Order

KFR the rest of the Drugs-related predicate crimes Terrorist-related under Sec. 3 (i)

-G.R. No. 174629, “RP vs. Hon. Antonio Eugenio, et al.”

AMLC Authority to Inquire AMLC Authority to Inquire (Sec. 11)(Sec. 11)


(6) (6) To apply before the Court of To apply before the Court of Appeals, Appeals, ex parteex parte, for the freezing , for the freezing of any monetary instrument or of any monetary instrument or property alleged to be the property alleged to be the proceeds of any unlawful activity proceeds of any unlawful activity as defined in Section 3(i) hereof.as defined in Section 3(i) hereof.- The freeze order issued is - The freeze order issued is effective for a period of 20 days effective for a period of 20 days and extendible for a period not and extendible for a period not exceeding 6 months. exceeding 6 months.

Freezing of Monetary Freezing of Monetary Instrument or PropertyInstrument or Property

The Court of Appeals, upon application ex parte 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, may issue a freeze order which shall be effective immediately. The freeze order shall be for a period of twenty (20) days unless extended by the court.

G.R. No. 165800, “Maj. Gen. Garcia vs. RP, represented by the AMLC”

Extension of the Freeze Extension of the Freeze OrderOrder

Before the 20 day effectivity period of the freeze order issued by the CA expires, the AMLC may apply in the same court for an extension not exceeding a period of six (6) months.

During the effectivity of the freeze order, the AMLC may avail itself of other legal remedies, such as inquiry, civil forfeiture and/or the inquiry, civil forfeiture and/or the filing of money laundering case/s.filing of money laundering case/s.

• Monetary instrumentMonetary instrument• PropertyProperty• Related Web of Accounts – Related Web of Accounts – Rule Rule

10.410.4 “ “Related web of accounts - those Related web of accounts - those

accounts, the funds and sources of which accounts, the funds and sources of which originated from and/or are materially originated from and/or are materially linked to the monetary instrument(s) or linked to the monetary instrument(s) or property(ies) subject of the freeze order.property(ies) subject of the freeze order.

What can be frozen?What can be frozen?

Duty of Respondent, Covered Institution or Government

Agency Upon Receipt of Freeze Order

Immediately desist from and not allow any transaction, withdrawal, deposit, transfer, removal, conversion, other movement or concealment of the account representing, involving or relating to the subject monetary instrument, property, proceeds or its related web of accounts.


(11)(11) to impose administrative to impose administrative sanctions for the violation of laws, sanctions for the violation of laws, rules, regulations and orders and rules, regulations and orders and resolutions issued pursuant resolutions issued pursuant thereto.thereto.


(7)(7) to implement such measures as to implement such measures as may be necessary and justified may be necessary and justified under this Act to counteract money under this Act to counteract money laundering.laundering.

(8)(8) to receive and take action in to receive and take action in respect of, any request from foreign respect of, any request from foreign states for assistance in their own states for assistance in their own anti-money laundering operations anti-money laundering operations provided in thisprovided in this Act.


(9)(9) to develop educational to develop educational programs on the pernicious effects programs on the pernicious effects of money laundering, the methods of money laundering, the methods and techniques used in money and techniques used in money laundering, the viable means of laundering, the viable means of preventing money laundering and preventing money laundering and the effective ways of prosecuting the effective ways of prosecuting and punishing offenders.and punishing offenders.


(10) to enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the government, including government-owned and controlled corporations, in undertaking any and all anti-money laundering operations, which may include the use of its personnel, facilities and resources for the more resolute prevention, detection and investigation of money laundering offenses and prosecution of offenders.

HOW TO REQUEST HOW TO REQUEST ASSISTANCE/REFER CASE TO ASSISTANCE/REFER CASE TO

AMLC?AMLC?

HOW TO REQUEST HOW TO REQUEST ASSISTANCE/REFER CASE TO AMLC?ASSISTANCE/REFER CASE TO AMLC?

AML Desks email to [email protected] Call (02) 523-44-21/Fax (02) 524-60-85 Referral Letter (please state case

circumstances/details) Prevent fishing expedition Drop by 5

th Flr, EDPC Bldg., BSP Complex, Roxas

Blvd., Malate, Manila

Thank you!Thank you!

Rommel D. TrijoLegal Officer III

Legal and Services GroupAnti-Money Laundering Council Secretariat

amla-ppt presentation (dswd)

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