ANTI-MONEY
LAUNDERING ACT
OF 2001 (R.A 9160)
AMLA
0
1ACT 9160
REPUBLIC
An act defining the crime of money laundering,
providing penalties therefor and for other purposes.
WHAT IS MONEY LAUNDERING?
SECTION 4. MONEY LAUNDERING OFFENSE
 A crime whereby the proceeds of unlawful activity are
transacted, making them appear to have come from lawful
transaction
SECTION 1
 This act shall be known as anti-money laundering act of 2001
POLICIES
SECTION 2. DECLARATION OF POLICY
 It is hereby declared the policy of the state to protect
and preserve the integrity and confidentiality of bank
accounts and to ensure that the Philippines shall not be
used as a money laundering site for the proceeds of any
unlawful activity. Consistent with its foreign policy, the
state shall extend cooperation in transnational
investigations and prosecutions of persons involved in
money laundering activities wherever committed.
REPUBLIC ACT 11521
(JANUARY 29, 2021) –
LATEST AMENDMENT
 An act further strengthening the
Anti-Money Laundering Law,
amending for the purpose of
R.A 9160. Otherwise known as
the “Anti-Money Laundering Act
of 2001”, as amended.
SECTION
Section
2 of R.A 9160,
1
as amended, is hereby
amended
SECTION to
2.read as
follows:
It is hereby declared the policyOF
of the state
to protect
DECLARATION
POLICY
and preserve the integrity and confidentiality of bank
accounts and to ensure that the Philippines shall not
be used as a money laundering site for the proceeds of
any unlawful activity. Consistent with its foreign policy,
the state shall extend cooperation in transnational
investigations and prosecutions of persons involved in
money laundering activities wherever committed, as
well as in the implementation of targeted financial
sanctions related to the financing of the proliferation
of weapons of mass destruction, terrorism, and
financing of terrorism pursuant to the resolution of
the United Nations Security Council.
HOW IS MONEY LAUNDERING COMMITTED?
IT IS COMMITTED BY THE FOLLOWING PERSONS:
1. Any person knowing that the monetary instrument or property
represents, involves, or relates to, the proceeds of any unlawful activity,
transacts or attempts to transact said monetary instrument or property.
2. Any person knowing that any monetary instrument or property involves
the proceeds of any unlawful activity performs or fails to perform any act
as a result of which how facilitates the offense referred to in No. 1
3. Any person knowing that any monetary instrument or property is required
under this act to be disclosed and files with the anti-Money Laundering
Council (AMLC), fails to do so. (Sec. 4, R>A 9160, as amended.)
Section 7. Creation of Anti-Money Laundering
Council (AMLC)
The Anti-Money Laundering Council is hereby created
and shall be composed of the Governor of the Bangko
Sentral ng Pilipinas as chairman, the Commissioner of
the Insurance Commission and the Chairman of the
Securities and Exchange Commission as members.
PURPOSE
1. To protect and preserve the integrity and confidentiality
of bank accounts.
2. The ensure that the Philippines shall not be used as a
money laundering site for proceeds of any unlawful activity;
and
3. To extend cooperation in transnational investigation and
prosecution of person involved in money laundering
activities wherever committed.
PRINCIPLES
The AMLA is guided by several principles, including:
The principle of proportionality, which means that the measures taken by
covered persons to prevent and detect money laundering and terrorist
financing activities should be appropriate and proportional to the risks
involved.
The principle of effectiveness, which means that the measures take by
covered persons should be effective in preventing and detecting money
laundering and terrorist financing activities.
The principle of transparency, which means that the AMLA and its
implementing rules and regulations should be clear and transparent to
promote compliance and understanding by all stakeholders.
(A) “COVERED
INSTITUTION”
REFERS
any natural or juridical person that engages in certain
financial activities or provides certain financial
TO:
services as specified under the law.
DEFINITION OF
TERMS
1. Banks and quasi-banks
2. Money service
businesses
3. Insurance companies
4. Securities dealers and
brokers
(B) “COVERED TRANSACTION”
 A transaction in cash or other equivalent monetary
instrument exceeding Five Hundred Thousand
pesos (Php500,000.00) within 1 banking day.
(C) “MONETARY INSTRUMENT” REFERS TO
 any type of financial instrument or asset that can be used
to transfer value, including but not limited to cash,
checks, money orders, securities, bonds, and other
negotiable instruments.
(d) “Offender” refers to any person who commits a money laundering offense.
(e) “Person” refers to any natural or juridical person.
(f) “Proceeds” refers to an amount derived or realized from an unlawful activity.
(g) “Supervising Authority” refers to the appropriate supervisory or regulatory
agency, department or office supervising or regulating the covered institutions
enumerated in Section 3(a).
(h) “Transaction” 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.
(I) "UNLAWFUL ACTIVITIES" REFERS TO
 omission punishable by Philippine laws that
involve or may involve money laundering.
UNLAWFUL ACTIVITIES UNDER THE ANTIMONEY LAUNDERING ACT (AMLA) OF 2001.
These refers to any act or omission or series or combination thereof
involving or having relation to the following:
(1) Kidnapping for ransom
(2) Drug trafficking and related offenses
(3) Anti-Graft and Corrupt Practices Act
(4) Plunder
(5) Robbery and extortion
(6) Illegal gambling
(7) Piracy
UNLAWFUL ACTIVITIES UNDER THE ANTIMONEY LAUNDERING ACT (AMLA) OF 2001.
(8) Qualified theft
(9) Swindling
(10) Smuggling
(11) Violations under the Electronic Commerce Act of 2000
(12) Hijacking, destructive arson, and murder, including those
perpetrated by terrorists against non-combatant persons and similar
targets
(13) Fraudulent practices and other violations under Securities
Regulation Code of 2000
(14) Felonies or offenses of a similar nature that are punishable
under the penal laws of other countries.
COVERED PERSONS, natural or
juridical, refer to:
a)
b)
c)
d)
Banks
Quasi-banks
Pawnshops
Non-stock savings and
loan associations;
e) Foreign exchange
dealers, money
changers, money
remittance or transfer
companies
a) Insurance companies;
b) Insurance agents;
c) Insurance brokers;
and
d) Other persons and
entities supervised
and regulated by the
Insurance
Commission (IC).
a) Securities dealers, brokers, salesmen,
and other similar persons managing
securities or rendering services as
investment agent, advisor, or
consultant;
b) Mutual funds, common trust funds,
and other similar persons; and
c) Other entities administering or
otherwise dealing in currency,
commodities or financial derivatives
based thereon, valuable objects, cash
substitutes and other similar
monetary instruments or property
supervised or regulated by the SEC.
COVERED PERSONS- (DNFBPs)
•Jewelry Dealers in Precious Metals and
Precious Stones
•Company Service Providers
 The term “covered persons” shall exclude lawyers and
accountants acting as independent legal professionals
in relation to information concerning their clients or
where disclosure of information would compromise
client confidences or the attorney-client relationship.
Requisites for exclusion:
1.They must be acting as professionals;
2.Authorized to practice in the Philippines;
3.Continue to be subject to the provisions of their respective
codes of conduct and/or professional responsibility or any of
its amendments.
RULE 9
SECTION 1. MONEY LAUNDERING
Money laundering is committed by:
(a) Any person who, knowing that any monetary instrument or property represents,
involves,
or relates to the proceeds of any unlawful activity:
(1) transacts said monetary instrument or property;
(2) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary
instrument or property;
(3) conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument or property;
RULE 9
SECTION 1. MONEY LAUNDERING
(4) attempts or conspires to commit ML offenses referred to in (1), (2), or (3) above;
(5) aids, abets, assists in, or counsels the commission of the ML offenses referred to in
(1), (2), or (3) above; and
(6) performs or fails to perform any act as a result of which he facilitates the offense of
ML referred to in items (1), (2), or (3) above.
(b) Any covered person who, knowing that a covered or suspicious transaction is required
under the AMLA to be reported to the AMLC, fails to do so.
SECTION 5. TERRORISM FINANCING
The provisions of the TFPSA and its IRR
shall govern matters relating to TF,
including the implementation of the
relevant targeted financial sanctions.
RULE 12
SECTION 1. GENERAL RULES ON
ASSET
FORFEITURE.
The following rules shall be observed in asset forfeiture
proceedings:
(a) No prior criminal charge, pendency of a case, or
conviction for an unlawful activity or Money Laundering
offense is necessary for the commencement or the
resolution of a petition for civil forfeiture.
(b) No asset shall be attached or forfeited to the prejudice of
a candidate for an electoral office during an election period.
PREVENTIVE
MEASURE AND
OBLIGATIONS OF
COVERED PERSONS
The Anti-Money Laundering Act (AMLA) in the
Philippines imposes preventive measures and obligations on
covered persons, which include financial institutions,
designated non-financial businesses and professions, and
other entities identified by the Anti-Money Laundering
Council (AMLC). Here are some of the key preventive
measures and obligations under the AMLA:
A. CUSTOMER DUE
DILIGENCE
 Covered persons are required to conduct CDD
measures to identify and verify the identity of
their customers, as well as the beneficial owners of
their customers.
Prohibition against
Certain
Accounts
 Covered institutions shall maintain accounts only in the true and full name of
the account owner or holder. The provisions of existing laws to the contrary
notwithstanding, anonymous accounts, accounts under fictitious names, and all
other similar accounts shall be absolutely prohibited.
B. RECORD KEEPING
All records of all transactions of
covered institutions shall be maintained
and safely stored for five (5) years from
the dates of transactions.
C. Transaction Reporting.
COVERED TRANSACTION refers to:
 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.
FOR CASINOS: A SINGLE CASINO TRANSACTION INVOLVING AN
AMOUNT IN EXCESS OF FIVE MILLION PESOS (P5,000,000.00) OR ITS
EQUIVALENT IN ANY OTHER CURRENCY.
C. Transaction Reporting.
SUSPICIOUS TRANSACTIONS
ARE TRANSACTIONS, REGARDLESS OF AMOUNT, WHERE ANY OF THE FOLLOWING CIRCUMSTANCES
EXISTS:
1. THERE IS NO UNDERLYING LEGAL OR TRADE OBLIGATION,
PURPOSE OR ECONOMIC JUSTIFICATION;
2. THE CLIENT IS NOT PROPERLY IDENTIFIED;
3. THE AMOUNT INVOLVED IS NOT COMMENSURATE WITH THE
BUSINESS OR FINANCIAL CAPACITY OF THE CLIENT;
C. SUSPICIOUS TRANSACTIONS
4. TAKING INTO ACCOUNT ALL KNOWN CIRCUMSTANCES, IT MAY BE PERCEIVED THAT THE
CLIENT'S TRANSACTION IS STRUCTURED IN ORDER TO AVOID BEING THE SUBJECT OF
REPORTING
5. 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
INSTITUTION;
6. THE TRANSACTION IS IN ANY WAY RELATED TO AN UNLAWFUL ACTIVITY OR ANY MONEY
LAUNDERING ACTIVITY OR OFFENSE UNDER THIS ACT THAT IS ABOUT TO BE, IS BEING OR HAS
BEEN COMMITTED; OR
7. SIMILAR OR ANALOGOUS TRANSACTIONS
The term “
beneficial owner “
Beneficial
Ownerships
pertains to natural
person who
ultimately owns or
controls legal
Rule 23. BENEFICIAL OWNERSHIP
OF JURIDICAL PERSON
Section 1. Mechanism for Identification of
Juridical Person
Section 2. Basic Information
Section 3. Beneficial Ownership Information
Section 4. Other Requirements
Rule 24. BENEFICIAL OWNERSHIP
OF LEGAL ARRANGEMENTS
Section 1. Trustees and other Legal Arrangement.
Covered persons, as the case may be, shall require clients that
are:
(a) trustees of any express trust are required to obtain and
hold adequate, accurate, and current information on the identity
of the trustors/grantors/settlors, the trustee, the beneficiaries or
class of beneficiaries, and any other natural person exercising
ultimate effective control over the trust.
Rule 24. BENEFICIAL OWNERSHIP
OF LEGAL ARRANGEMENTS
(b) trustees of any trust are required to hold basic
information on other regulated agents of, and service providers to,
the trust, including investment advisors or managers, accountants,
and tax advisors; and
(c) professional trustees are required to maintain this
information for, at least five (5) years after their involvement with
the trust ceases.
Rule 24. BENEFICIAL OWNERSHIP
OF LEGAL ARRANGEMENTS
Section 2. Accuracy of Beneficial Ownership Information.
Covered persons shall ensure that any information held pursuant to Rule 24
hereof is kept accurate and as up to date as possible, and is updated on a timely basis.
Section 3. Disclosure of Status of Trustees. Covered persons shall require trustees to
disclose their status when forming a business or professional relationship, or carrying
out an occasional transaction above the threshold.
Section 4. Submission of Beneficial Ownership Information to Covered Persons.
Covered persons shall, depending on its risk assessment, require clients that are
trustees to submit information on the beneficial ownership and the assets of the trust
to be held or managed under the terms of the business or professional relationship.
Section 5. Other Requirements.
The AMLC, SAs, LEAs and OGAs shall, in accordance with their respective
powers and functions, be able to obtain timely access to information
held by trustees and covered persons, on the beneficial ownership and
control of the trust, including:
(a) the beneficial ownership;
(b) the residence of the trustee; and
(c) any assets held or managed by the financial institution or
DNFBP, in relation to any trustees with which they have a
business relationship, or for which they undertake an occasional
transaction.
All covered institutions shall:
RECORD-KEEPING
 maintain and safely store all records of all
their transactions for 5 years from the
transaction dates.
 anent closed accounts, preserve and
safely store the records on customer
identification, account files and business
correspondence for at least 5 years from
closure dates.
 if a money laundering case based on any
record kept by the covered institution
has been filed in court, retain said file
until it is confirmed that the case has
been finally resolved or terminated by
the court.
SAFE HARBOR PROVISION
No administrative, criminal or civil proceedings, shall lie
against any person for having made a covered or suspicious
transaction report in the regular performance of his duties
in good faith, whether or not such reporting results in any
criminal prosecution under this Act or any other law.
MONEY LAUNDERING OFFENSES/PENALTIES
1. Knowingly transacting or attempting to transact any monetary instrument or
property which represents, involves or relates to the proceeds of any unlawful activity
(The money launderer himself)
 PENALTY
7 to 14 years imprisonment and a fine of not less than P 3 Million but not more
than twice the value of the monetary instrument or property.
MONEY LAUNDERING OFFENSES/PENALTIES
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)
 PENALTY
4 to 7 years imprisonment and a fine of not less thanP1.5 Million but not more
than P3 Million.
MONEY LAUNDERING OFFENSES/PENALTIES
3. Knowingly failing to disclose and file with the AMLC any monetary instrument or
property required to be disclosed and filed
 PENALTY
6 months to 4 years imprisonment or a fine of not less than P100,000.00 but not
more thanP500,000.00, or both.
OTHER OFFENSES UNDER R.A.9160, AS
AMENDED
1. FOR FAILURE TO KEEP RECORDS
 All records of all transactions of covered institutions shall be maintained and safely
stored for five (5) years from the dates of transactions/when they were closed.
 PENALTY
6 months to 1 year imprisonment or a fine of not less than P100,000.00 but not
more thanP500,000.00, or both.
OTHER OFFENSES UNDER R.A.9160, AS
AMENDED
2. FOR MALICIOUS REPORTING
Any person who reports or files a completely unwarranted or false information
relative to money laundering transaction against any person shall be held
criminally liable.
• PENALTY
6 months to 4 years imprisonment and a fine of not less than P100,000.00
but not more thanP500,000.00; provided that the offender is not entitled to the
benefits of the Probation.
OTHER OFFENSES UNDER R.A.9160, AS
AMENDED
3.FOR BREACH OF CONFIDENTIALITY
When reporting covered or suspicious transactions to the AMLC, covered institutions
and their officers and employees are prohibited from communicating directly or
indirectly, in any manner or by any means, to any person or entity, the media, the fact
that a covered or suspicious transaction report was made, the contents thereof, or any
other information in relation thereto.
•
PENALTY
3 to 8 years imprisonment and a fine of not less than P500,000.00 but not more
thanP1.0 million.