Your Logo
Here
ANTI-MONEY LAUNDERING
101
1
Definitions of
Money Laundering



processing of criminal
proceeds in order to
disguise their illegal origin
legitimization of proceeds
of
specified
unlawful
activity
crime
whereby
the
proceeds of an unlawful
activity are transacted
thereby
making
them
appear to have originated
from legitimate sources
(AMLA definition)
2
Elements of the Crime of
Money Laundering



Monetary instrument
or property (MI/P)
from an unlawful
activity
Transaction/
Attempted
transaction of MI/P
Knowledge that the
MI/P represents,
involves, or relates
to the proceeds of
the unlawful activity
3
Why is money laundering
a problem




Undermines
financial
institutions,
social, economic and political structure
of a society
Stifles competition
Increases the tax burden
Finances terrorist activities
4
THE “ANTI-MONEY
LAUNDERING ACT OF 2001”
REPUBLIC ACT NO. 9160
as amended by
REPUBLIC ACT NO. 9194
5
Covered Institutions
1.
Banks, non-banks, quasi-banks,
trust entities, other institutions
and their subsidiaries and affiliates
supervised or regulated by the
Bangko Sentral ng Pilipinas (BSP);
6
Covered Institutions
2. Insurance companies and all other institutions
supervised or regulated by the Insurance
Commission (IC); and
3. All those supervised or regulated by the
Securities and Exchange Commission (SEC),
including
securities
dealers,
brokers,
investment houses, trading advisors, and other
entities administering or otherwise dealing in
currency, commodities or financial derivatives
based thereon.
7
Covered Transaction
‘Covered transaction’ - a transaction in
cash or other equivalent monetary
instrument involving a total amount in
excess of Five Hundred Thousand
Pesos (Php500,000.00) within
one (1) banking day.
8
Suspicious Transaction
Suspicious transaction
- a transaction with a covered
institution, regardless of the
amount involved, where any
of the following circumstances
exist(s):
1. No underlying legal or
trade obligation, purpose or
economic justification;
9
Suspicious Transaction
2. Client is not properly identified;
3. Not commensurate with the business or
financial capacity of the client;
10
Suspicious Transaction
4. Deviation from the profile;
5.
Similar, analogous or
identical to any of the
foregoing.
11
Unlawful activity (a.k.a.
predicate offense)
‘Unlawful activity’ refers to
any act or omission or series
or
combination
thereof
involving or having direct
relation to the following:
Kidnapping for ransom
2. Drug Trafficking and other
violations
of
the
Comprehensive
Dangerous
Drugs Act of 2002
1.
12
Unlawful activity (a.k.a.
predicate offense)
3.
4.
5.
6.
7.
Graft and Corruption under
R.A. No. 3019, as amended
Plunder (R.A. No. 7080, as
amended)
Robbery and extortion
Jueteng and Masiao (PD
1602)
Piracy (RPC & PD 532)
13
THE ANTI-MONEY
LAUNDERING COUNCIL
OF THE PHILIPPINES
(AMLC)
The Philippines’ Financial Intelligence Unit
14
Composition
1. The BSP Governor
Chairman
– as
2. The SEC Chairperson
Member
– as
3. The IC Commissioner
Member
– as
15
AMLC Secretariat
Executive Director
Technical Staff
Compliance and
Investigation Group
Legal Evaluation
Group
Information
Management and
Analysis Group
Administrative and
Finance Group
16
Functions of the AMLC
(1) to require
submission of and
receive covered or
suspicious
transaction reports
from covered
institutions (Secs
7[1] & 9[c].
17
Functions of the AMLC
(2)
to issue orders addressed to the
appropriate Supervising Authority or the
covered institution to determine the true
identity of the owner of any monetary
instrument or property (Sec. 7[2]
18
Functions of the AMLC
(3)
(4)
to institute civil forfeiture
proceedings and all other
remedial
proceedings
through the Office of the
Solicitor General.
to cause the filing of
complaints
with
the
Department of Justice or
the Ombudsman for the
prosecution of money
laundering offenses.
19
What can be frozen?

Monetary Instruments
Coins, currency of legal tender, drafts,
checks, notes, securities, negotiable
instruments, bonds, commercial papers,
deposit certificates, trust certificates,
transaction tickets, confirmation of sale or
investments, money market instruments,
other similar instruments where title
thereto
passes
to
another
by
endorsement, assignment or delivery.
20
3 Major Requirements for
Compliance by CIs
1. Customer
identification and
due diligence
2. Record-keeping
3. Reporting of
suspicious and
covered transactions
21
.
Atty. Arnold T. Kabanlit
Acting Council Secretary
Anti-Money Laundering
Council Secretariat
22