Anti-Money Laundering

ANTI-MONEY LAUNDERING ACT OF 2001 : 

ANTI-MONEY LAUNDERING ACT OF 2001 Republic Act No. 9160 as amended by Republic Act No. 9194

Covered Institutions : 

Covered Institutions Banks, non-banks, quasi-banks, trust entities and all other institutions and their subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas (BSP); Insurance companies and all other institutions supervised or regulated by the Insurance Commission; and All those supervised or regulated by the Securities and Exchange Commission

Covered Transaction : 

Covered Transaction Transaction in cash or other equivalent monetary instrument involving a total amount in excess of Five Hundred Thousand Pesos (Php500,000) within one baking day

Suspicious Transaction : 

Suspicious Transaction There is no underlying legal or trade obligation, purpose or economic justification; The client is not properly identified; The amount involved is not commensurate with the business or financial capacity of the client;

Suspicious Transaction : 

Suspicious Transaction Taking into account all known circumstances, it may be perceived that the client’s transactions are structured in order to avoid being the subject of reporting requirements under the Act; Any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client’s past transactions with the covered institutions;

Suspicious Transaction : 

Suspicious Transaction The transaction is in any way related to an unlawful activity or offense under this Act that is about to be, is being or has been committed; or Any transaction that is similar, analogous or identical to any of the foregoing

Unlawful Activity : 

Unlawful Activity Kidnapping for ransom Drug trafficking and other violations of the Comprehensive Dangerous Drugs Act of 2002 Graft and Corruption Plunder Robbery and extortion Jueteng and Masiao

Unlawful Activity : 

Unlawful Activity Piracy Qualified Theft Swindling Smuggling Violations of Electronic Commerce Act of 2000 Hijacking, destructive arson and murder Fraudulent practices Felonies

Money Laundering Offenses/Penalties : 

Money Laundering Offenses/Penalties Knowingly transacting or attempting to transact any monetary instrument/property which represents, involves or relates to the proceeds of an unlawful activity.  Penalty is 7 to 14 years imprisonment and a fine of not less than P3M but not more than twice the value of the monetary instrument/property.

Money Laundering Offenses/Penalties : 

Money Laundering Offenses/Penalties Knowingly performing or failing to perform an act in relation to any monetary instrument/ property involving the proceeds of any unlawful activity as a result of which he facilitated the offense of money laundering.  Penalty is 4 to 7 years imprisonment and a fine of not less than P1.5M but not more than P3M.

Money Laundering Offenses/Penalties : 

Money Laundering Offenses/Penalties Knowingly failing to disclose and file with the AMLC any monetary instrument/property required to be disclosed and filed. Penalty is 6 months to 4 years imprisonment or a fine of not less than P100,000 but not more than P500,000, or both.

Other Offenses under RA 9160, as amended : 

Other Offenses under RA 9160, as amended For Failure to keep records  Penalty - 6 months to 1 year imprisonment or a fine of not less than P100,000 but not more than P500,000, or both

Other Offenses under RA 9160, as amended : 

Other Offenses under RA 9160, as amended Malicious reporting  Penalty - 6 months to 4 years imprisonment and a fine of not less than P100,000 but not more than P500,000, at the discretion of the court. The offender is not entitled to avail the benefits of the Probation Law.

Other Offenses under RA 9160, as amended : 

Other Offenses under RA 9160, as amended Breach of confidentiality Penalty - 3 to 8 years imprisonment and a fine of not less than P500,000 but not more than P1M.

Jurisdiction of Money Laundering : 

Jurisdiction of Money Laundering Regional Trial Courts shall have jurisdiction to all try cases on money laundering. Sandiganbayan shall try and decide violations committed by public officers and private persons who are in conspiracy with such public officers

Prosecution of Money Laundering Cases : 

Prosecution of Money Laundering Cases Any person may be charged with and convicted of both the offense of money laundering and the unlawful activity Any proceeding relating to the unlawful activity shall be given precedence over the prosecution of any offense or violation under RA 9160 without prejudice to the freezing and other legal remedies

Anti-Money Laundering Council : 

Anti-Money Laundering Council Composition Governor of the BSP – Chairman Commissioner of the Insurance Commission – member Chairman of the Securities and Exchange Commission – member AMLC is assisted by a Secretariat which is headed by an Executive Director

Functions of the AMLC : 

Functions of the AMLC Requires and receives covered or suspicious transaction reports from covered institutions; Issues orders addressed to the appropriate Supervising Authority or the covered institution to determine the true identity of the owner of any monetary instrument/property Institutes civil forfeiture proceedings and all other remedial proceedings through the Office of the Solicitor General;

Functions of the AMLC : 

Functions of the AMLC Cause the filing of complaints with the DOJ or the Ombudsman for the prosecution of money laundering offenses; Investigate suspicious transactions and covered transactions deemed suspicious after an investigation by AMLC, money laundering activities, and other violations of the AMLA; and Applies before the Court of Appeals, ex parte, for the freezing of any monetary instrument/property alleged to be proceeds of any unlawful activity

Functions of the AMLC : 

Functions of the AMLC Implements such measures as may be necessary and justified to counteract money laundering; Receives and takes action in respect of any request for assistance from foreign states in their own anti-money laundering operations; Develops educational programs on the pernicious effects of money laundering, the methods and techniques used in money laundering, the viable means of preventing money laundering and the effective ways of prosecuting and punishing offenders;

Functions of the AMLC : 

Functions of the AMLC Enlists the assistance of any branch, department, bureau, office, agency or instrumentality of the government, including GOCCs 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; Imposes administrative sanctions for the violation of laws, rules, regulations and orders and resolutions issued pursuant theretod

AMLC Special Powers : 

AMLC Special Powers To inquire into bank/non-bank financial institution deposit/investments with or without court order. To cause a freeze/restraint on suspected dirty money/property To cause forfeiture of dirty money/property To implement necessary/justified measures to counteract money laundering

Prevention of Money Laundering : 

Prevention of Money Laundering Customer Identification Record Keeping Reporting of Covered and Suspicious Transactions

Freezing of Monetary Instrument or Property : 

Freezing of Monetary Instrument 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, may issue a freeze order which shall be effective immediately.

Slide 25: 

Thank You and Good Day .