amla with amendments and irr

7/26/2019 AMLA With Amendments and IRR.

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REPUBLIC ACT NO. 9160

AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING

PENALTIES THEREFOR AND FOR OTHER PURPOSES.

Secti! 1. S"#t Tit$e. % T"i& Act &"'$$ (e )!*! '& t"e +A!tiM!e-

L'!/e#i! Act 2001.+

Sec. 2. Dec$'#'ti! P$ic-. % It i& "e#e(- /ec$'#e/ t"e 3$ic- t"e St'te

t 3#tect '!/ 3#e&e#4e t"e i!te#it- '!/ c!5/e!ti'$it- ('!) 'cc!t&

'!/ t e!e t"'t t"e P"i$i33i!e& &"'$$ !t (e &e/ '& ' !e-

$'!/e#i! &ite # t"e 3#cee/& '!- !$'*$ 'cti4it-. C!&i&te!t *it"

it& #ei! 3$ic-, t"e St'te &"'$$ e7te!/ c3e#'ti! i! t#'!&!'ti!'$

i!4e&ti'ti!& '!/ 3#&ecti!& 3e#&!& i!4$4e/ i! !e- $'!/e#i!

'cti4itie& *"e#e4e# citte/.

Section 3(a) of Republic Act No. 9160, as amended, is hereb amended to read as follo!s"

#(a) $%o&ered persons', natural or uridical, refer to"

#(1) bans, non*bans, +uasi*bans, trust entities, forein e-chane dealers, pa!nshops,

mone chaners, remittance and transfer companies and other similar entities and all other

persons and their subsidiaries and affiliates super&ised or reulated b the ano Sentral

n /ilipinas (S/)

(a) A subsidiar means an entit more than fift percent (02) of the

outstandin &otin stoc of !hich is o!ned b a ban, +uasi*ban, trust

entit or an other institution super&ised or reulated b the S/.

(b) An affiliate means an entit at least t!ent percent (02) but not

e-ceedin fift percent (02) of the &otin 4stoc of !hich is o!ned b a

ban, +uasi*ban, trust entit, or an other institution super&ised

and5or reulated b the S/.

#() insurance companies, pre*need companies and all other persons super&ised or reulated

b the nsurance %ommission (%)


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(a) An insurance compan includes those entities authori7ed to transact

insurance business in the /hilippines, !hether life or non* life and !hether

domestic, domesticall incorporated or branch of a forein entit. A contract

of insurance is an areement !hereb one undertaes for a consideration to

indemnif another aainst loss, damae or liabilit arisin from an unno!n

or continent e&ent. 8ransactin insurance business includes main or

proposin to mae, as insurer, an insurance contract, or as suret, an

contract of suretship as a &ocation and not as merel incidental to an other

leitimate business or acti&it of the suret, doin an ind of business

specificall reconi7ed as constitutin the doin of an insurance business

!ithin the meanin of /residential ecree (/..) No. 61, as amended,

includin a reinsurance business and doin or proposin to do an business in

substance e+ui&alent to an of the foreoin in a manner desined to e&ade

the pro&isions of /.. No. 61, as amended.

(b) An insurance aent includes an person !ho solicits or obtains

insurance on behalf of an insurance compan or transmits for a person

other than himself an application for a polic or contract of insurance to or

from such compan or offers or assumes to act in the neotiation of such

insurance.

(c) An insurance broer includes an person !ho acts or aids in an

manner in solicitin, neotiatin or procurin the main of an insurance

contract or in placin ris or tain out insurance, on behalf of an insured

other than himself.

(d) A professional reinsurer includes an person, partnership, association or

corporation that transacts solel and e-clusi&el reinsurance business in the

/hilippines, !hether domestic, domesticall incorporated or a branch of

a forein entit. A contract of reinsurance is one b !hich an insurer procures

a third person to insure him aainst loss or liabilit b reason of such oriinal

insurance.

(e) A reinsurance broer includes an person !ho, not bein a dul

authori7ed aent, emploee or officer of an insurer in !hich an reinsurance is

effected, acts or aids in an manner in neotiatin contracts of reinsurance or


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placin riss of effectin reinsurance, for an insurance compan authori7ed

to do business in the /hilippines.

(f) A holdin compan includes an person !ho directl or indirectl controls an

authori7ed insurer. A holdin compan sstem includes a holdin compan toether !ith

its controlled insurers and controlled persons.

#(3) (i) securities dealers, broers, salesmen, in&estment houses and other similar persons

manain securities or renderin ser&ices as in&estment aent, ad&isor, or consultant, (ii)

mutual funds, close*end in&estment companies, common trust funds, and other similar

persons, and (iii) other entities administerin or other!ise dealin in currenc, commodities

or financial deri&ati&es based thereon, &aluable obects, cash substitutes and other similar

monetar instruments or propert super&ised or reulated b the Securities and :-chane

%ommission (S:%)

(a) A securities broer includes a person enaed in the business of buin

and sellin securities for the account of others.

(b) A securities dealer includes an person !ho bus and sells securities for

his5her account in the ordinar course of business.

(c) A securities salesman includes a natural person, emploed as such*or as an

aent, b a dealer, issuer or broer to bu and sell securities.

(d) An associated person of a broer or dealer includes an emploee thereof

!ho directl e-ercises control or super&isor authorit, but does not include a

salesman, or an aent or a person !hose functions are solel clerical or

ministerial.

(e) An in&estment house includes an enterprise !hich enaes or purports to

enae, !hether reularl or on an isolated basis, in the under!ritin of

securities of another person or enterprise, includin securities of the

;o&ernment and its instrumentalities.

(f) A mutual fund or an open*end in&estment compan includes an in&estment


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compan !hich is offerin for sale or has outstandin, an redeemable

securit of !hich it is the issuer.

() A closed*end in&estment compan includes an in&estment compan other

than open*end in&estment compan.

(h) A common trust fund includes a fund maintained b an entit

authori7ed to perform trust functions under a !ritten and formall established

plan, e-clusi&el for the collecti&e in&estment and

rein&estment of certain mone representin participation in the plan recei&ed

b it in its capacit as trustee, for the purpose of

administration, holdin or manaement of such funds and5or properties for

the use, benefit or ad&antae of the trustor or of others no!n as beneficiaries.

(i) A pre*need compan or issuer includes an corporation super&ised and5or

reulated b the S:% and is authori7ed or licensed to sell or offer for sale

pre*need plans. /re*need plans are contracts !hich pro&ide for the

performance of future ser&ice(s) or pament of future monetar consideration

at the time of actual need, paable either in cash or installment b the plan

holder at prices stated in the contract !ith or !ithout interest or insurance

co&erae and includes life, pension, education, internment and other plans,

!hich the %ommission ma, from time to time, appro&e.

() A forein e-chane corporation includes an enterprise !hich enaes or

purports to enae, !hether reularl or on isolated basis, in the sale and

purchase of forein currenc notes and such other forein* currenc

denominated non*ban deposit transactions as ma be authori7ed under its

articles of incorporation.

() n&estment Ad&isor5Aent5%onsultant shall refer to an person"

(1) !ho for an ad&isor fee is enaed in the business of ad&isin others,

either directl or throuh circulars, reports, publications or !ritins, as to

the &alue of an securit and as to the ad&isabilit of tradin in an


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securit or

() !ho for compensation and as part of a reular business, issues or

promulates, anal7es reports concernin the capital maret, e-cept"

(a) an ban or trust compan

(b) an ournalist, reporter, columnist, editor, la!er, accountant,

teacher

(c) the publisher of an bonafide ne!spaper, ne!s, business or financial

publication of eneral and reular circulation, includin their

emploees

(d) an contract maret

(e) such other person not !ithin the intent of this definition, pro&ided that

the furnishin of such ser&ice b the foreoin persons is solel

incidental to the conduct of their business or profession.

(3) an person !ho undertaes the manaement of portfolio securities of

in&estment companies, includin the arranement of purchases, sales or

e-chanes of securities.

(l) A monechaner includes an person in the business of buin or sellin

forein currenc notes.

(m) A mone pament, remittance and transfer compan includes an

person offerin to pa, remit or transfer or transmit mone on behalf of an

person to another person.

(n) #%ustomer< refers to an person or entit that eeps an account, or

other!ise transacts business, !ith a co&ered institution and an person or

entit on !hose behalf an account is maintained or a transaction is

conducted, as !ell as the beneficiar of said transactions. A customer alsoincludes the beneficiar of a trust, an in&estment fund, a pension fund or a

compan or person !hose assets are manaed b an asset manaer, or a

rantor of a trust. t includes an insurance polic holder, !hether actual


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or prospecti&e.

(o) ne million pesos (/1,000,000.00)

#() e!elr dealers in precious stones, !ho, as a business, trade in precious stones, for

transactions in e-cess of >ne million pesos (/1,000,000.00)

#(6) compan ser&ice pro&iders !hich, as a business, pro&ide an of the follo!in ser&ices

to third parties" (i) actin as a formation aent of uridical persons (ii) actin as (or

arranin for another person to act as) a director or corporate secretar of a compan, a

partner of a partnership, or a similar position in relation to other uridical persons (iii)

pro&idin a reistered office, business address or accommodation, correspondence or

administrati&e address for a compan, a partnership or an other leal person or

arranement and (i&) actin as (or arranin for another person to act as) a nominee

shareholder for another person and

#(?) persons !ho pro&ide an of the follo!in ser&ices"

(i) manain of client mone, securities or other assets

(ii) manaement of ban, sa&ins or securities accounts

(iii) orani7ation of contributions for the creation, operation or manaement of companies

and

(i&) creation, operation or manaement of uridical persons or arranements, and buin and

sellin business entities.

#Not!ithstandin the foreoin, the term $co&ered persons' shall e-clude la!ers andaccountants actin as independent leal professionals in relation to information concernin

their clients or !here disclosure of information !ould compromise client confidences or the

attorne*client relationship" /ro&ided, 8hat these la!ers and accountants are authori7ed to

practice in the /hilippines and shall continue to be subect to the pro&isions of their


7/35

respecti&e codes of conduct and5or professional responsibilit or an of its amendments.@


8/35

/e3&it ce#ti5c'te&, t#&t ce#ti5c'te&, c&t/i'$ #ecei3t& # /e3&it

&(&titte i!&t#e!t&, t#'/i! #/e#&, t#'!&'cti! tic)et& '!/

c!5#'ti!& &'$e # i!4e&te!t& '!/ !e- '#)et i!&t#e!t&; '!/

8= t"e# &ii$'# i!&t#e!t& *"e#e tit$e t"e#et 3'&&e& t '!t"e# (-

e!/#&ee!t, '&&i!e!t # /e$i4e#-.

(=) %ontracts or policies of insurance, life or non*life, and contracts of suretship and

8/ +O>e!/e#+ #ee#& t '!- 3e#&! *" cit& ' !e- $'!/e#i!

>e!&e.

8e +Pe#&!+ #ee#& t '!- !'t#'$ # ?#i/ic'$ 3e#&!.

8 +P#cee/&+ #ee#& t '! '!t /e#i4e/ # #e'$i@e/ # '! !$'*$

'cti4it-.

t includes"

(1) All material results, profits, effects and an amount reali7ed from an

unla!ful acti&it

() All monetar, financial or economic means, de&ices, documents, papers or thins

used in or ha&in an relation to an unla!ful acti&it and

(3) All mones, e-penditures, paments, disbursements, costs, outlas,

chares, accounts, refunds and other similar items for the financin, operations,

and maintenance of an unla!ful acti&it.

8 +S3e#4i&i! At"#it-+ #ee#& t t"e '33#3#i'te &3e#4i- #

#e$'t#- 'e!c-, /e3'#te!t # ce &3e#4i&i! # #e$'ti! t"e

c4e#e/ i!&titti!& e!e#'te/ i! Secti!


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8" +T#'!&'cti!+ #ee#& t '!- 'ct e&t'($i&"i! '!- #i"t # ($i'ti! #

i4i! #i&e t '!- c!t#'ct'$ # $e'$ #e$'ti!&"i3 (et*ee! t"e 3'#tie&

t"e#et. It '$& i!c$/e& '!- 4ee!t !/& (- '!- e'!& *it" '

c4e#e/ i!&titti!.

Section 3(i) of the same Act is hereb amended to read as follo!s"

#(i) $Fnla!ful acti&it' refers to an act or omission or series or combination thereof

in&ol&in or ha&in direct relation to the follo!in"

#(1) Gidnappin for ransom under Article 6? of Act No. 3H1, other!ise no!n as the

Re&ised /enal %ode, as amended

(1=) Gidnappin for ransom

#() Sections =, , 6, H, 9, 10, 11, 1, 13, 1=, 1 and 16 of Republic Act No. 916, other!ise

no!n as the %omprehensi&e anerous rus Act of 00

(1=) mportation of prohibited drus

( 1 ) Sale of prohibited drus

(16) Administration of prohibited drus

(1?) eli&er of prohibited drus

(1H) istribution of prohibited drus

(19) 8ransportation of prohibited drus

(0) Daintenance of a en, i&e or Resort for prohibited users

(1) Danufacture of prohibited drus

() /ossession of prohibited drus

(3) Fse of prohibited drus

(=) %ulti&ation of plants !hich are sources of prohibited drus

() %ulture of plants !hich are sources of prohibited drus

#(3) Section 3 pararaphs , %, :, ;, I and of Republic Act No. 3019, as amended,

other!ise no!n as the Anti*;raft and %orrupt /ractices Act

(1=) irectl or indirectl re+uestin or recei&in an ift, present,

share, percentae or benefit for himself or for an other person in

connection !ith an contract or transaction bet!een the ;o&ernment


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and an part, !herein the public officer in his official capacit has to

inter&ene under the la!

(1) irectl or indirectl re+uestin or recei&in an ift, present or

other pecuniar or material benefit, for himself or for another, from

an person for !hom the public officer, in an manner or capacit, has

secured or obtained, or !ill secure or obtain, an o&ernment permit or

license, in consideration for the help i&en or to be i&en, !ithout

preudice to Section 13 of R.A. 3019

(16) %ausin an undue inur to an part, includin the

o&ernment, or i&in an pri&ate part an un!arranted benefits,

ad&antae or preference in the dischare of his official, administrati&e

or udicial functions throuh manifest partialit, e&ident bad faith or

ross ine-cusable nelience

(1?) :nterin, on behalf of the o&ernment, into an contract or

transaction manifestl and rossl disad&antaeous to the same,

!hether or not the public officer profited or !ill profit thereb

(1H) irectl or indirectl ha&in financial or pecuniar interest in an

business contract or transaction in connection !ith !hich he

inter&enes or taes part in his official capacit, or in !hich he is

prohibited b the %onstitution or b an la! from ha&in an interest

(19) irectl or indirectl becomin interested, for personal ain, or

ha&in material interest in an transaction or act re+uirin the appro&al

of a board, panel or roup of !hich he is a member, and !hich

e-ercise of discretion in such appro&al, e&en if he &otes aainst the

same or he does not participate in the action of the board, committee,

panel or roup.

#(=) /lunder under Republic Act No. ?0H0, as amended

(0) /lunder throuh misappropriation, con&ersion, misuse ormal&ersation of public funds or raids upon the public treasur

(1) /lunder b recei&in, directl or indirectl, an commission, ift,

share, percentae, icbacs or an other form of pecuniar benefit


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from an person and5or entit in connection !ith an o&ernment

contract or proect or b reason of the office or position of the public

officer concerned

() /lunder b the illeal or fraudulent con&eance or disposition of

assets belonin to the National ;o&ernment or an of its

subdi&isions, aencies, instrumentalities or o&ernment*o!ned or

controlled corporations or their subsidiaries

(3) /lunder b obtainin, recei&in or acceptin, directl or

indirectl, an shares of stoc, e+uit or an other form of interest

or participation includin the promise of future

emploment in an business enterprise or undertain

(=) /lunder b establishin aricultural, industrial or commercial

monopolies or other combinations and5or implementation of decrees

and orders intended to benefit particular persons or special interests

() /lunder b tain undue ad&antae of official position, authorit,

relationship, connection or influence to unustl enrich himself or

themsel&es at the e-pense and to the damae and preudice of the

ilipino people and the Republic of the /hilippines

#() Robber and e-tortion under Articles 9=, 9, 96, 99, 300, 301 and 30 of the


(6) Robber !ith &iolence or intimidation of persons

(?) Robber !ith phsical inuries, committed in an uninhabited

place and b a band, or !ith use of firearms on a street, road or alle

(H) Robber in an uninhabited house or public buildin or edifice

de&oted to !orship.

#(6) Jueten and Dasiao punished as illeal amblin under /residential ecree No. 160

#(?) /irac on the hih seas under the Re&ised /enal %ode, as amended and /residential


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ecree No. 3

(31) /irac on the hih seas

(3) /irac in inland /hilippine !aters

(33) Aidin and abettin pirates and briands.

#(H) Kualified theft under Article 310 of the Re&ised /enal %ode, as amended

#(9) S!indlin under Article 31 and >ther orms of S!indlin under Article 316 of the


(3) :stafa !ith unfaithfulness or abuse of confidence b alterin the

substance, +ualit or +uantit of anthin of &alue !hich the offender

shall deli&er b &irtue of an obliation to do so, e&en thouh such

obliation be based on an immoral or illeal consideration

(36) :stafa !ith unfaithfulness or abuse of confidence b

misappropriatin or con&ertin, to the preudice of another, mone,

oods or an other personal propert recei&ed b the offender in trust

or on commission, or for administration, or under an other

obliation in&ol&in the dut to mae deli&er or to return the same,

e&en thouh such obliation be totall or partiall uaranteed b a

bond or b denin ha&in recei&ed such mone, oods, or other

propert

(3?) :stafa !ith unfaithfulness or abuse of confidence b tain

undue ad&antae of the sinature of the offended part in blan, and b

!ritin an document abo&e such sinature in blan, to the preudice

of the offended part or an third person

(3H) :stafa b usin a fictitious name, or falsel pretendin to

possess po!er, influence, +ualifications, propert, credit,

aenc, business or imainar transactions, or b means of other

similar deceits

(39) :stafa b alterin the +ualit, fineness or !eiht of anthin

pertainin to his art or business

(=0) :stafa b pretendin to ha&e bribed an o&ernment emploee

(=1) :stafa b postdatin a chec, or issuin a chec in pament of an

obliation !hen the offender has no funds in the ban, or his funds

deposited therein !ere not sufficient to co&er the amount of the chec


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(=) :stafa b inducin another, b means of deceit, to sin an

document

(=3) :stafa b resortin to some fraudulent practice to ensure

success in a amblin ame

(==) :stafa b remo&in, concealin or destroin, in !hole or in part,

an court record, office files, document or an other papers.

#(10) Smulin under Republic Act Nos. = and 193?

(=) raudulent importation of an &ehicle (=6)

raudulent e-portation of an &ehicle (=?)

Assistin in an fraudulent importation

(=H) Assistin in an fraudulent e-portation

(=9) Recei&in smuled article after fraudulent importation

(0) %oncealin smuled article after fraudulent importation (1)

uin smuled article after fraudulent importation

() Sellin smuled article after fraudulent importation

(3) 8ransportation of smuled article after fraudulent importation (=)

raudulent practices aainst customs re&enue.

#(11) Liolations of Republic Act No. H?9, other!ise no!n as the :lectronic %ommerce

Act of 000

G.1. Iacin or cracin, !hich refers to"

() unauthori7ed access into or interference in a computer

sstem5ser&er or information and communication sstem or

(6) an access in order to corrupt, alter, steal, or destro usin a

computer or other similar information and communication de&ices,

!ithout the no!lede and consent of the o!ner of the computer or

information and communications sstem, includin

(?) the introduction of computer &iruses and the lie, resultin in thecorruption, destruction, alteration, theft or loss of electronic data

messaes or electronic document


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G.. /irac, !hich refers to"

(H) the unauthori7ed copin, reproduction,

(9) the unauthori7ed dissemination, distribution, (60)

the unauthori7ed importation,

(61) the unauthori7ed use, remo&al, alteration, substitution,

modification,

(6) the unauthori7ed storae, uploadin, do!nloadin,

communication, main a&ailable to the public, or

(63) the unauthori7ed broadcastin,

of protected material, electronic sinature or coprihted !ors includin

leall protected sound recordins or phonorams or information material on

protected !ors, throuh the use of telecommunication net!ors, such but not

limited to, the internet, in a manner that infrines intellectual propert rihts

G.3. Liolations of the %onsumer Act or Republic Act No. ?39= and other

rele&ant or pertinent la!s throuh transactions co&ered b or usin electronic

data messaes or electronic documents"

(6=) Sale of an consumer product that is not in conformit !ith

standards under the %onsumer Act

(6) Sale of an product that has been banned b a rule under the

%onsumer Act ,

(66) Sale of an adulterated or mislabeled product usin electronic

documents

(6?) Adulteration or misbrandin of an consumer product

(6H) orin, counterfeitin or simulatin an mar, stamp, ta, label or

other identification de&ice (69) Re&ealin trade secrets

(?0) Alteration or remo&al of the labelin of an dru or de&ice heldfor sale

(?1) Sale of an dru or de&ice not reistered in accordance !ith the

pro&isions of the :*%ommerce Act


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(?) Sale of an dru or de&ice b an person not licensed in

accordance !ith the pro&isions of the :*%ommerce Act (?3)

Sale of an dru or de&ice beond its e-piration date

(?=) ntroduction into commerce of an mislabeled or banned

ha7ardous substance

(?) Alteration or remo&al of the labelin of a ha7ardous substance (?6)

ecepti&e sales acts and practices

(??) Fnfair or unconscionable sales acts and practices

(?H) raudulent practices relati&e to !eihts and measures

(?9) alse representations in ad&ertisements as the e-istence of a

!arrant or uarantee

(H0) Liolation of price ta re+uirements

(H1) Dislabelin consumer products

(H) alse, decepti&e or misleadin ad&ertisements

(H3) Liolation of re+uired disclosures on consumer loans

(H=) >ther &iolations of the pro&isions of the :*%ommerce Act

#(1) Iiacin and other &iolations under Republic Act No. 63 destructi&e arson and

murder, as defined under the Re&ised /enal %ode, as amended

(H) Iiacin

(H6) estructi&e arson

(H?) Durder

(HH) Iiacin, destructi&e arson or murder perpetrated b terrorists

aainst non*combatant persons and similar tarets

#(13) 8errorism and conspirac to commit terrorism as defined and penali7ed under Sections

3 and = of Republic Act No. 93?

#(1=) inancin of terrorism under Section = and offenses punishable under Sections , 6, ?

and H of Republic Act No. 1016H, other!ise no!n as the 8errorism inancin /re&ention

and Suppression Act of 01"


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#(1) riber under Articles 10, 11 and 11*A of the Re&ised /enal %ode, as amended,

and %orruption of /ublic >fficers under Article 1 of the Re&ised /enal %ode, as amended

#(16) rauds and lleal :-actions and 8ransactions under Articles 13, 1=, 1 and 16 of

the Re&ised /enal %ode, as amended

#(1?) Dal&ersation of /ublic unds and /ropert under Articles 1? and of the Re&ised

/enal %ode, as amended

#(1H) oreries and %ounterfeitin under Articles 163, 166, 16?, 16H, 169 and 1?6 of the


#(19) Liolations of Sections = to 6 of Republic Act No. 90H, other!ise no!n as the Anti*

8rafficin in /ersons Act of 003

#(0) Liolations of Sections ?H to ?9 of %hapter L, of /residential ecree No. ?0,

other!ise no!n as the Re&ised orestr %ode of the /hilippines, as amended

#(1) Liolations of Sections H6 to 106 of %hapter L, of Republic Act No. H0, other!ise

no!n as the /hilippine isheries %ode of 199H

#() Liolations of Sections 101 to 10?, and 110 of Republic Act No. ?9=, other!ise

no!n as the /hilippine Dinin Act of 199

#(3) Liolations of Section ?(c), (e), (f), () and (i), of Republic Act No. 91=?, other!ise

no!n as the Bildlife Resources %onser&ation and /rotection Act

#(=) Liolation of Section ?(b) of Republic Act No. 90?, other!ise no!n as the National

%a&es and %a&e Resources Danaement /rotection Act

#() Liolation of Republic Act No. 639, other!ise no!n as the Anti*%arnappin Act of00, as amended

#(6) Liolations of Sections 1, 3 and of /residential ecree No. 1H66, as amended,

other!ise no!n as the decree %odifin the Ea!s on lleal5Fnla!ful /ossession,


17/35

Danufacture, ealin n, Ac+uisition or isposition of irearms, Ammunition or

:-plosi&es

#(?) Liolation of /residential ecree No. 161, other!ise no!n as the Anti*encin Ea!

#(H) Liolation of Section 6 of Republic Act No. H0=, other!ise no!n as the Dirant

Borers and >&erseas ilipinos Act of 199, as amended b Republic Act No. 100

#(9) Liolation of Republic Act No. H93, other!ise no!n as the ntellectual /ropert

%ode of the /hilippines

#(30) Liolation of Section = of Republic Act No. 999, other!ise no!n as the Anti*/hoto

and Lideo Loeurism Act of 009

#(31) Liolation of Section = of Republic Act No. 9??, other!ise no!n as the Anti*%hild

/ornoraph Act of 009

#(3) Liolations of Sections , ?, H, 9, 10(c), (d) and (e), 11, 1 and 1= of Republic Act No.

?610, other!ise no!n as the Special /rotection of %hildren Aainst Abuse, :-ploitation

and iscrimination

#(33) raudulent practices and other &iolations under Republic Act No. H?99, other!ise

no!n as the Securities Reulation %ode of 000 and

(H9) Sale, offer or distribution of securities !ithin the /hilippines

!ithout a reistration statement dul filed !ith and appro&ed b the

S:%

(90) Sale or offer to the public of an pre*need plan not in

accordance !ith the rules and reulations !hich the S:% shall

prescribe

(91) Liolation of reportorial re+uirements imposed upon issuers of

securities(9) Danipulation of securit prices b creatin a false or misleadin

appearance of acti&e tradin in an listed securit traded in an

:-chane or an other tradin maret

(93) Danipulation of securit prices b effectin, alone or !ith others, a


18/35

series of transactions in securities that raises their prices to induce

the purchase of a securit, !hether of the same or different class, of

the same issuer or of a controllin, controlled or commonl controlled

compan b others

(9=) Danipulation of securit prices b effectin, alone or !ith others,

series of transactions in securities that depresses their price to induce

the sale of a securit, !hether of the same or different class, of the

same issuer or of a controllin, controlled or commonl controlled

compan b others

(9) Danipulation of securit prices b effectin, alone or !ith others, a

series of transactions in securities that creates acti&e tradin to induce

such a purchase or sale thouh manipulati&e de&ices such as marin

the close, paintin the tape, s+uee7in the float, hpe and dump,

boiler room operations and such other similar de&ices

(96) Danipulation of securit prices b circulatin or disseminatin4

information that the price of an securit listed in an :-chane !ill or

is liel to rise or fall because of manipulati&e maret operations of

anone or more persons conducted for the purpose of raisin or

depressin the price of the securit for the purpose of inducin the

purchase or sale of such securit

(9?) Danipulation of securit prices b main false or misleadin

statements !ith respect to an material fact !hich he ne! or had

reasonable round to belie&e !as so false and misleadin, for the

purpose of inducin the purchase or sale of an securit listed or

traded in an :-chane

(9H) Danipulation of securit prices b effectin, alone or !ith others, an

series of transactions for the purchase and5or sale of an securit

traded in an :-chane for the purpose of pein, fi-in or stabili7inthe price of such securit, unless other!ise allo!ed b the Securities

Reulation %ode or b the rules of the S:%


19/35

(99) Sale or purchase of an securit usin an manipulati&e

decepti&e de&ice or contri&ance

(100) :-ecution of short sales or stop*loss order in connection !ith the

purchase or sale of an securit not in accordance !ith such rules and

reulations as the S:% ma prescribe as necessar and appropriate in

the public interest or the protection of the in&estors

(101) :mploment of an de&ice, scheme or artifice to defraud in

connection !ith the purchase and sale of an securities

(10) >btainin mone or propert in connection !ith the purchase and

sale of an securit b means of an untrue statement of a material

fact or an omission to state a material fact necessar in order to

mae the statements made, in the liht of the

circumstances under !hich the !ere made, not misleadin (103)

:nain in an act, transaction, practice or course of action in

the sale and purchase of an securit !hich operates or !ould operate

as a fraud or deceit upon an person

(10=) nsider tradin

(10) :nain in the business of buin and sellin securities in the

/hilippines as a broer or dealer, or actin as a salesman, or an

associated person of an broer or dealer !ithout an

reistration from the %ommission

(106) :mploment b a broer or dealer of an salesman or

associated person or b an issuer of an salesman, not

reistered !ith the S:% ,

(10?) :ffectin an transaction in an securit, or reportin such transaction,

in an :-chane or usin the facilit of an :-chane !hich is not

reistered !ith the S:%

(10H) Dain use of the facilit of a clearin aenc !hich is not

reistered !ith the S:%

(109) Liolations of marin re+uirements

(110) Liolations on the restrictions on borro!ins b members, broers

and dealers

(111) Aidin and Abettin in an &iolations of the Securities Reulation


20/35

%ode

(11) Iinderin, obstructin or delain the filin of an document

re+uired under the Securities Reulation %ode or the rules and

reulations of the S:%

(113) Liolations of an of the pro&isions of the implementin rules and

reulations of the S:%

(11=) An other &iolations of an of the pro&isions of the Securities

Reulation %ode.

#(3=) elonies or offenses of a similar nature that are punishable under the penal la!s of

other countries.@

n determinin !hether or not a felon or offense punishable under the penal

la!s of other countries, is


21/35

#(a) transacts said monetar instrument or propert

#(b) con&erts, transfers, disposes of, mo&es, ac+uires, possesses or uses said monetar

instrument or propert

#(c) conceals or disuises the true nature, source, location, disposition, mo&ement or

o!nership of or rihts !ith respect to said monetar instrument or propert

#(d) attempts or conspires to commit mone launderin offenses referred to in pararaphs

(a), (b) or (c)

#(e) aids, abets, assists in or counsels the commission of the mone launderin offenses

referred to in pararaphs (a), (b) or (c) abo&e and

#(f) performs or fails to perform an act as a result of !hich he facilitates the offense of

mone launderin referred to in pararaphs (a), (b) or (c) abo&e.

#Done launderin is also committed b an co&ered person !ho, no!in that a co&ered

or suspicious transaction is re+uired under this Act to be reported to the Anti*Done

Eaunderin %ouncil (ADE%), fails to do so.@

Sec. . #i&/icti! M!e- L'!/e#i! C'&e&. % T"e #ei!'$ t#i'$ c#t&

&"'$$ "'4e ?#i&/icti! t t#- '$$ c'&e& ! !e- $'!/e#i!. T"&e

citte/ (- 3($ic ce#& '!/ 3#i4'te 3e#&!& *" '#e i! c!&3i#'c-

*it" &c" 3($ic ce#& &"'$$ (e !/e# t"e ?#i&/icti! t"e

S'!/i'!('-'!.

Rule 5.2. Investigation of Money Laundering Offenses. * 8he ADE% shall

in&estiate"

(a) SUSPICIOUS TRANSACTIONS;

(b) COVERED TRANSACTIONS DEEMED SUSPICIOUS AFTER AN

INVESTIGATION CONDUCTED BY THE AMLC;


22/35

(c) MONEY LAUNDERING ACTIVITIES;

AND (d) OTHER VIOLATIONS OF THIS ACT.

Rule 5..Attempts at Transactions. Section = (a) and (b) of the ADEA pro&ides that an

person !ho attempts to transact an monetar instrument or propert representin,

in&ol&in or relatin to the proceeds of an unla!ful acti&it shall be prosecuted for a

mone launderin offense. Accordinl, the reports re+uired under Rule 9.3 (a) and (b) of

these Rules shall include those pertainin to an attempt b an person to transact an

monetar instrument or propert representin, in&ol&in or relatin to the proceeds of an

unla!ful acti&it.

Section 6(a) of the same Act is hereb amended to read as follo!s"

#S:%. 6. /rosecution of Done Eaunderin. M

#(a) An person ma be chared !ith and con&icted of both the offense of mone

launderin and the unla!ful acti&it as herein defined.

#(b) 8he prosecution of an offense or &iolation under this Act shall proceed independentl

of an proceedin relatin to the unla!ful acti&it.@

8( A!- 3#cee/i! #e$'ti! t t"e !$'*$ 'cti4it- &"'$$ (e i4e!

3#ece/e!ce 4e# t"e 3#&ecti! '!- >e!&e # 4i$'ti! !/e# t"i&

Act *it"t 3#e?/ice t t"e #ee@i! '!/ t"e# #ee/ie& 3#4i/e/.

#S:%. ?. %reation of Anti*Done Eaunderin %ouncil (ADE%). M 8he Anti*Done

Eaunderin %ouncil is hereb created and shall be composed of the ;o&ernor of the ano

Sentral n /ilipinas as %hairman, the %ommissioner of the nsurance %ommission and the

%hairman of the Securities and :-chane %ommission, as members. 8he ADE% shall act

unanimousl in the dischare of its functions as defined hereunder"


23/35

institutions to determine the true identit of the o!ner of an monetar instrument or

prepert subect of a co&ered transaction or suspicious transaction report or re+uest for

assistance from a forein State, or belie&ed b the %ouncil, on the basis fo substantial

e&idence, to be, in !hole or in part, !here&er located, representin, in&ol&in, or related to

directl or indirectl, in an manner or b an means, the proceeds of an unla!ful acti&itit.

ffice of th Solicitor ;eneral

mbudsman for

the prosecution of mone launderin offenses


24/35


25/35

'!!-& 'cc!t&, 'cc!t& !/e# 5ctiti& !'e&, '!/ '$$ t"e#

&ii$'# 'cc!t& &"'$$ (e '(&$te$- 3#"i(ite/. Pe& '!/ #ei! c##e!c-

!!c"ec)i! !(e#e/ 'cc!t& &"'$$ (e '$$*e/. T"e BSP '- c!/ct

'!!'$ te&ti! &$e$- $iite/ t t"e /ete#i!'ti! t"e e7i&te!ce '!/

t#e i/e!tit- t"e *!e#& &c" 'cc!t&.

8( Rec#/ ee3i!. A$$ #ec#/& '$$ t#'!&'cti!& c4e#e/ i!&titti!&

&"'$$ (e 'i!t'i!e/ '!/ &'e$- &t#e/ # 54e 8 -e'#& # t"e /'te&

t#'!&'cti!&. it" #e&3ect t c$&e/ 'cc!t&, t"e #ec#/& ! c&te#

i/e!ti5c'ti!, 'cc!t 5$e& '!/ (&i!e&& c##e&3!/e!ce, &"'$$ (e

3#e&e#4e/ '!/ &'e$- &t#e/ # 't $e'&t 54e 8 -e'#& # t"e /'te&

*"e! t"e- *e#e c$&e/.

#(c) Reportin of %o&ered and Suspicious 8ransactions. M %o&ered persons shall report to

the ADE% all co&ered transactions and suspicious transactions !ithin fi&e () !orin das

from occurrence thereof, unless the ADE% prescribes a different period not e-ceedin

fifteen (1) !orin das.

#Ea!ers and accountants actin as independent leal professionals are not re+uired to

report co&ered and suspicious transactions if the rele&ant information !as obtained in

circumstances !here the are subect to professional secrec or leal professional pri&ilee.


26/35

concerned officer and emploee of the co&ered institution shall be criminall liable.

Io!e&er, no administrati&e, criminal or ci&il proceedins, shall lie aainst an person for

ha&in made a co&ered or suspicious transaction report in the reular performance of his

duties in ood faith, !hether or not such reportin results in an criminal prosecution under

this Act of an other la!.

#Bhen reportin co&ered or suspicious transactions to the ADE%, co&ered persons and their

officers and emploees are prohibited from communicatin, directl or indirectl, in an

manner or b an means, to an person or entit, the media, the fact that a co&ered or

suspicious transaction has been reported or is about to be reported, the contents of the

report, or an other information in relation thereto. Neither ma such reportin be published

or aired in an manner or form b the mass media@, electronic mail, or other similar de&ices.

n case of &iolation thereof, the concerned officer and emploee of the co&ered person and

media shall be held criminall liable.@

#S:%. 10. ree7in of Donetar nstrument or /ropert. M Fpon a &erified e- parte petition

b the ADE% and after determination that probable cause e-ists that an monetar

instrument or propert is in an !a related to an unla!ful acti&it as defined in Section 3(i)

hereof, the %ourt of Appeals ma issue a free7e order !hich shall be effecti&e immediatel,

and !hich shall not e-ceed si- (6) months dependin upon the circumstances of the case"

/ro&ided, 8hat if there is no case filed aainst a person !hose account has been fro7en

!ithin the period determined b the court, the free7e order shall be deemed ipso facto lifted"

/ro&ided, further, 8hat this ne! rule shall not appl to pendin cases in the courts. n an

case, the court should act on the petition to free7e !ithin t!ent*four (=) hours from filin

of the petition. f the application is filed a da before a non!orin da, the computation of

the t!ent*four (=)*hour period shall e-clude the non!orin das.

#A person !hose account has been fro7en ma file a motion to lift the free7e order and the

court must resol&e this motion before the e-piration of the free7e order.

#No court shall issue a temporar restrainin order or a !rit of inunction aainst an free7e

order, e-cept the Supreme %ourt.@

Section 11 of the same Act is hereb amended to read as follo!s"


27/35

in&estment !ith an banin institution or non*ban financial institution upon order of an

competent court in cases of &iolation of this Act, !hen it has been established that there is

probable cause that the deposits or in&estments are related to an unla!ful acti&ities as

defined in Section 3() hereof or a mone launderin offense under Section = hereof, e-cept

that no court order shall be re+uired in cases in&ol&in unla!ful acti&ities defined in

Sections 3()1, () and (1).


28/35

to him and for sereation or e-clusion of the monetar instrument or propert

correspondin thereto. 8he &erified petition shall be filed !ith the court !hich rendered the

udment of forfeiture, !ithin fifteen (1) das from the date of the finalit of the order of

forfeiture, in default of !hich the said order shall become final and e-ecutor. 8his pro&ision

shall appl in both ci&il and criminal forfeiture.

#(c) /ament in Eieu of orfeiture. M Bhere the court has issued an order of forfeiture of the

monetar instrument or propert subect of a mone launderin offense defined under

Section =, and said order cannot be enforced because an particular monetar instrument or

propert cannot, !ith due dilience, be located, or it has been substantiall altered,

destroed, diminished in &alue or other!ise rendered !orthless b an act or omission,

directl or indirectl, attributable to the offender, or it has been concealed, remo&ed,

con&erted, or other!ise transferred to pre&ent the same from bein found or to a&oid

forfeiture thereof, or it is located outside the /hilippines or has been placed or brouht

outside the urisdiction of the court, or it has been comminled !ith other monetar

instruments or propert belonin to either the offender himself or a third person or entit,

thereb renderin the same difficult to identif or be sereated for purposes of forfeiture,

the court ma, instead of enforcin the order of forfeiture of the monetar instrument or

propert or part thereof or interest therein, accordinl order the con&icted offender to pa

an amount e+ual to the &alue of said monetar instrument or propert. 8his pro&ision shall

appl in both ci&il and criminal forfeiture.@

Sec. 1


29/35

*it"i! t"e 3#ce/#e& $'i/ /*! i! t"i& Act; '!/ 8e!&e # '!- t"e# 'tte# /i#ect$- #

i!/i#ect$- #e$'te/ t"e#et; 8


30/35

>e!&e&.

8e Rei#ee!t& # Ree&t& # Mt'$ A&&i&t'!ce # F#ei! St'te&.

A #ee&t # t'$ '&&i&t'!ce # ' #ei! St'te &t 81 c!5#

t"'t '! i!4e&ti'ti! # 3#&ecti! i& (ei! c!/cte/ i! #e&3ect '

!e- $'!/e#e# !'e/ t"e#ei! # t"'t "e "'& (ee! c!4icte/ '!-

!e- $'!/e#i! >e!&e; 82 &t'te t"e #!/& ! *"ic" '!- 3e#&! i&

(ei! i!4e&ti'te/ # 3#&ecte/ # !e- $'!/e#i! # t"e /et'i$&

"i& c!4icti!; 8


31/35

't"e!tic'te/ (- t"e &e'$ "i& ce.

8 E7t#'/iti!. T"e P"i$i33i!e& &"'$$ !eti'te # t"e i!c$&i!

!e- $'!/e#i! >e!&e& '& "e#ei! /e5!e/ '! e7t#'/it'($e

>e!&e& i! '$$ t#e t#e'tie&.

Section 1= of the same Act, as amended, is hereb further amended to read as follo!s"

#S:%. 1=. /enal /ro&isions. M (a) /enalties for the %rime of Done Eaunderin. 8he penalt

of imprisonment ranin from se&en (?) to fourteen (1=) ears and a fine of not less than

8hree million /hilippine pesos (/hp3,000,000.00) but not more than t!ice the &alue of the

monetar instrument or propert in&ol&ed in the offense, shall be imposed upon a person

con&icted under Section =(a), (b), (c) and (d) of this Act.

#8he penalt of imprisonment from four (=) to se&en (?) ears and a fine of not less than

>ne million fi&e hundred thousand /hilippine pesos (/hp1,00,000.00) but not more than

8hree million /hilippine pesos (/hp3,000,000.00), shall be imposed upon a person

con&icted under Section =(e) and (f) of this Act.

#8he penalt of imprisonment from si- (6) months to four (=) ears or a fine of not less than

>ne hundred thousand /hilippine pesos (/hp100,000.00) but not more than i&e hundred

thousand /hilippine pesos (/hp00,000.00), or both, shall be imposed on a person con&icted

under the last pararaph of Section = of this Act.

8( Pe!'$tie& # F'i$#e t ee3 Rec#/&. T"e 3e!'$t- i3#i&!e!t

# &i7 86 !t"& t !e 81 -e'# # ' 5!e !t $e&& t"'! O!e "!/#e/

t"&'!/ P"i$i33i!e 3e&& 8P"P100,000.00 (t !t #e t"'! Fi4e

"!/#e/ t"&'!/ P"i$i33i!e 3e&& 8P"P00,000.00, # (t", &"'$$ (e

i3&e/ ! ' 3e#&! c!4icte/ !/e# Secti! 98( t"i& Act.

ne hundred thousand /hilippine pesos

(/hp100,000.00) but not more than i&e hundred thousand /hilippine pesos

(/hp00,000.00), at the discretion of the court" /ro&ided, 8hat the offender is not entitled to


32/35

a&ail the benefits of the /robation Ea!.


33/35

to be appropriate, !hich shall not be more than i&e hundred thousand /hilippine pesos

(/00,000.00) per &iolation.

#8he ADE% ma promulate rules on fines and penalties tain into consideration the

attendant circumstances, such as the nature and ra&it of the &iolation or irreularit.

#() 8he pro&ision of this la! shall not be construed or implemented in a manner that !ill

discriminate aainst certain customer tpes, such as politicall*e-posed persons, as !ell as

their relati&es, or aainst a certain reliion, race or ethnic oriin, or such other attributes or

profiles !hen used as the onl basis to den these persons access to the ser&ices pro&ided b

the co&ered persons. Bhene&er a ban, or +uasi*ban, financial institution or !hene&er an

person or entit commits said discriminator act, the person or persons responsible for such

&iolation shall be subect to sanctions as ma be deemed appropriate b their respecti&e

reulators.@

Section 1 of Republic Act No. 9160 is hereb deleted.

Sec. 16. P#"i(iti!& A'i!&t P$itic'$ H'#'&&e!t. % T"i& Act &"'$$ !t (e

&e/ # 3$itic'$ 3e#&ecti! # "'#'&&e!t # '& '! i!&t#e!t t

"'3e# c3etiti! i! t#'/e '!/ ce#ce.

N c'&e # !e- $'!/e#i! '- (e 5$e/ ''i!&t '!/ ! '&&et& &"'$$

(e #@e!, 'tt'c"e/ # #eite/ t t"e 3#e?/ice ' c'!/i/'te # '!

e$ect#'$ ce /#i! '! e$ecti! 3e#i/.

Sec. 1. Re&titti!. % Re&titti! # '!- '#ie4e/ 3'#t- &"'$$ (e

4e#!e/ (- t"e 3#4i&i!& t"e Ne* Ci4i$ C/e.

Sec. 1. I3$ee!ti! R$e& '!/ Re$'ti!&. % it"i! t"i#t- 8ecti4e$- t"e3#4i&i!& t"i& Act. S'i/ #$e& '!/ #e$'ti!& &"'$$ (e &(itte/ t t"e

C!#e&&i!'$ O4e#&i"t Cittee # '33#4'$.

C4e#e/ i!&titti!& &"'$$ #$'te t"ei# #e&3ecti4e !e- $'!/e#i!


34/35

3#e4e!ti! 3##'& i! 'cc#/'!ce *it" t"i& Act i!c$/i!, (t !t

$iite/ t, i!#'ti! /i&&ei!'ti! ! !e- $'!/e#i! 'cti4itie& '!/

it& 3#e4e!ti!, /etecti! '!/ #e3#ti!, '!/ t"e t#'i!i! #e&3!&i($e

ce#& '!/ 3e#&!!e$ c4e#e/ i!&titti!&.

Sec. 19. C!#e&&i!'$ O4e#&i"t Cittee. % T"e#e i& "e#e(- c#e'te/ '

C!#e&&i!'$ O4e#&i"t Cittee c3&e/ &e4e! 8 e(e#&

# t"e Se!'te '!/ &e4e! 8 e(e#& # t"e H&e

Re3#e&e!t'ti4e&. T"e e(e#& # t"e Se!'te &"'$$ (e '33i!te/ (-

t"e Se!'te P#e&i/e!t ('&e/ ! t"e 3#3#ti!'$ #e3#e&e!t'ti! t"e

3'#tie& # c'$iti!& t"e#ei! *it" 't $e'&t t* 82 Se!'t#& #e3#e&e!ti!

t"e i!#it-. T"e e(e#& # t"e H&e Re3#e&e!t'ti4e& &"'$$ (e

'33i!te/ (- t"e S3e')e# '$& ('&e/ ! 3#3#ti!'$ #e3#e&e!t'ti!

t"e 3'#tie& # c'$iti!& t"e#ei! *it" 't $e'&t t* 82 e(e#&

#e3#e&e!ti! t"e i!#it-.

T"e O4e#&i"t Cittee &"'$$ "'4e t"e 3*e# t 3#$'te it& *!

#$e&, t 4e#&ee t"e i3$ee!t'ti! t"i& Act, '!/ t #e4ie* # #e4i&e

t"e i3$ee!ti! #$e& i&&e/ (- t"e A!tiM!e- L'!/e#i! C!ci$

*it"i! t"i#t- 8


35/35

Sec. 21. Se3'#'(i$it- C$'&e. % I '!- 3#4i&i! # &ecti! t"i& Act # t"e

'33$ic'ti! t"e#e t '!- 3e#&! # ci#c&t'!ce i& "e$/ t (e i!4'$i/,

t"e t"e# 3#4i&i!& # &ecti!& t"i& Act, '!/ t"e '33$ic'ti! &c"

3#4i&i! # &ecti! t t"e# 3e#&!& # ci#c&t'!ce&, &"'$$ !t (e

'>ecte/ t"e#e(-.

Sec. 22. Re3e'$i! C$'&e. % A$$ $'*&, /ec#ee&, e7ecti4e #/e#&, #$e& '!/

#e$'ti!& # 3'#t& t"e#e, i!c$/i! t"e #e$e4'!t 3#4i&i!& Re3($ic

Act N. 1=0, '& 'e!/e/; Re3($ic Act N. 6=26, '& 'e!/e/; Re3($ic

Act N. 91, '& 'e!/e/ '!/ t"e# &ii$'# $'*&, '& '#e i!c!&i&te!t

*it" t"i& Act, '#e "e#e(- #e3e'$e/, 'e!/e/ # /i5e/ 'cc#/i!$-.

Sec. 2ecti4it-. % T"i& Act &"'$$ t')e e>ect 5tee! 81 /'-& 'te# it&

c3$ete 3($ic'ti! i! t"e Oci'$ G'@ette # i! 't $e'&t t* 82 !'ti!'$

!e*&3'3e#& e!e#'$ ci#c$'ti!.

T"e 3#4i&i!& t"i& Act &"'$$ !t '33$- t /e3&it& '!/ i!4e&te!t&

'/e 3#i# t it& e>ecti4it-.

amla with amendments and irr

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