3/3/23
Banking Laws
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BANK
SECRECY
LAW (RA
1405, AS
AMENDED)
Purpose: to give encouragement to the people to deposit
their money in banking institution and to discourage
private hoarding so that the same may be properly utilized
by banks in authorized loans to assist in the development
of the country.
Prohibited Act: It shall be unlawful for any official or
employee of a bank to disclose to any person or for an
independent auditor hired by a bank to conduct its regular
audit to disclose to any person other than a bank director,
official or employee authorized by the bank, any
information concerning the said deposits.
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Deposits Covered
1.
Peso deposits: All deposits of whatever nature with banks or banking institutions in the Philippines
including investments in bonds issued by the Government of the Philippines, its political subdivisions
and its instrumentalities, are considered absolutely confidential and may not be examined, inquired or
looked into by any person, government official, bureau or office, unless:
a.
When there is a written permission of the depositor or investor
b.
Impeachment cases
c.
Upon the order of a competent court in cases of bribery or dereliction of duty of public officials
d.
Upon the order of a competent court in cases where the money deposited or invested is the subject of
litigation
e.
Upon order of the competent court or tribunal in cases involving unexplained wealth under RA
3019
f.
Upon inquiry by the Commissioner of BIR for the purpose of determining the net estate of a
deceased depositor
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Deposits Covered
g.
h.
i.
j.
k.
l.
Upon the order of a competent court or in proper cases by the AMLC where there is probably
cause of money laundering and in some instances even without court order.
Disclosure to the Treasurer of the Philippines for dormant deposits for at least 10 years
under the Unclaimed Balances Act (RA 3936)
Report of banks to AMLC of covered and/or suspicious transactions
Upon order of the CA, examination by law enforcement officers in terrorism cases under the
Human Security Act of 2007 (RA 9372)
Examination is made in the course of a special or general examination of bank and is
specifically authorized by Monetary Board after being satisfied that there is reasonable
ground to believe that a bank fraud or serious irregularity has been or is being committed and
that is necessary to look into the deposit to establish such fraud or irregularity
Examination is made by an independent auditor hired by the bank to conduct its regular audit
provided that the examination is for audit purposes only and the results thereof shall be for
the exclusive use of the bank
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Deposits Covered
2. Foreign currency deposits: except:
a. When there is written consent of depositor under Section 8 of the
Foreign Currency Deposits Act (RA 6426)
b. Under Section 11 of the Anti-Money Laundering Act (probable cause
established that it is related to an unlawful activity as defined or money
laundering)
c. Under Section 27 and 28 of the Human Security Act (existence of
probable cause in anti-terrorism cases and those involving persons
charged with or suspected of the crime of terrorism or conspiracy to
commit terrorism, judicially declared and outlawed terrorist
organization, association, or group of persons, or member of such
organization, association, or group of persons)
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Garnishment:
Bank accounts may be garnished by the creditors of the depositor.
The amount of deposits is not actually disclosed, hence, no violation.
Exceptions:
1. Foreign currency deposits, Section 8 of RA 6426 (Note: In Salvacion v. Central
Bank, GR 94723, August 21, 1997, foreign currency deposits made by a transient
or a tourist is not the kind of deposit protected by law. Hence, a dollar deposit
made by a transient or a tourist may be subject to garnishment.)
2. Exempt under Rules of Court
Penalties for violation:
Imprisonment of not more than 5 years or a fine not more than Php 20,000.00
or both.
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UNCLAIMED
BALANCES
LAW (ACT
3936, AS
AMENDED
BY PD 679)
Unclaimed Balances: include credits or deposits of
money, bullion, security, or other evidence of indebtedness
of any kind, and interest thereon with banks, buildings and
loan associations, and trust corporations, in favor of any
person known to be dead or who has not made further
deposits or withdrawals during the preceding 10 years
or more
It is obligatory of every bank to report, in sworn statement,
to the Treasurer of the Philippines (who will, in turn,
inform the Solicitor General) of deposits that have not
been touched (no deposit or withdrawal made) for a
period of 10 years or held in favor of persons known to be
dead.
Under Section 1 of PD 679, all banks, building and loan
associations, and trust corporations shall forward the report
to within the month of January of every odd year
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UNCLAIMED BALANCES LAW (ACT 3936, AS AMENDED BY PD
679)
Information Required:
1. The names and last known place of residence or post office addresses of the
persons in whose favor such unclaimed balances stand;
2. The amount and the date of the outstanding unclaimed balance and whether the
same is in money or in security, and if the latter, the nature of the same;
3. The date when the person in whose favor the unclaimed balance stands died, if
known, or the date when he made his last deposit or withdrawal; and
4. The interest due on such unclaimed balance, if any, and the amount thereof.
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UNCLAIMED BALANCES LAW (ACT 3936, AS AMENDED BY PD
679)
Proper publication will then be made and if the depositors make no claim, escheat
proceedings will result in the unclaimed balances being deposited with the Treasurer of
the Philippines to the credit of the Republic to be used and appropriated by Congress.
Publication of list of unclaimed balances is intended to safeguard the right of depositors,
their heirs and successor to due process.
Any bank, building and loan association, or trust corporation which shall make any
deposit with the Treasurer of the Philippines in conformity with the Unclaimed Balances
Law shall not thereafter be liable to any person for the same and any action which may be
brought by any person against in any bank, building and loan association, or trust
corporation for unclaimed balances so deposited shall be defended by the Solicitor
General without cost to such bank, building and loan association, or trust corporation.
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Basic Policy: promote and safeguard the interest of the depositing
public by way
PDIC ACT
(RA 3591, AS
AMENDED)
Insured Deposit: amount due to any bona fide depositor for
legitimate deposits in an insured bank net of any obligation of the
depositor to the insured bank as of the date of closure, but not to
exceed P500,000.00
Note: In case of a condition that threatens the monetary and financial
stability of the banking system that may have systemic consequences
as determined by the MB, the maximum deposit insurance cover may
be adjusted in such amount, for such a period, and/or for such
deposit products, as may be determined by a unanimous vote of the
Board of Directors in a meeting called for the purpose and chaired by
the DOF Secretary, subject to the approval of the President of the
Philippines
Under Section 22 of the PDIC Charter, a systemic risk refers to the
possibility of failure of one bank to settle net transactions with other
banks will trigger a chain reaction, depriving other banks of funds
leading to a general shutdown of normal clearing and settlement
activity. It also means the likelihood of a sudden, unexpected collapse
of confidence in a significant portion of the banking or financial system
with potentially large real economic effects.
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PDIC ACT (RA 3591, AS AMENDED)
Coverage: The deposit liabilities of any bank or banking institution, which is
engaged in the business of receiving deposits as herein defined on the effective
date of the PDIC Act, or which thereafter may engage in the business of
receiving deposits, shall be insured with the PDIC.
Commencement of liability: PDIC shall commence the determination of
insured deposits due the depositors of a closed bank upon its actual takeover of
the closed bank.
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PDIC ACT (RA 3591, AS AMENDED)
Deposit accounts not entitled to payment:
1. Investment products such as bonds and securities, trust accounts and other
similar instruments
2. Deposit accounts or transactions which are unfunded and that are fictitious or
fraudulent
3. Deposit accounts or transactions constituting and/or emanating from, unsafe
and unsound banking practice/s, as determined by PDIC, in consultation
with BSP, after due notice and hearing, and publication of a cease and desist
order issued by PDIC against such deposit accounts or transactions
4. Deposits that are determined to be the proceeds of an unlawful activity as
defined under RA 9160, as amended
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PDIC ACT (RA 3591, AS AMENDED)
Per Depositor, Per Capacity Rule:
all deposits in the bank maintained in the same right and capacity for his
benefit either in his own name or in the name of others
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PDIC ACT (RA 3591, AS AMENDED)
Joint accounts: A joint account regardless of whether the conjunction “and”,
“or”, “and/or” is used shall be insured separately from any individually-owned
deposit account, provided that:
1. If the account is held jointly by two or more natural persons, or by two or
more juridical persons or entities, the maximum insured deposit shall be
divided into as many equal shares as there are individuals, juridical persons
or entities, unless a different sharing is stipulated in the document of
deposit, and
2. If the account is held by a juridical person or entity jointly with one or more
natural persons, the maximum insured deposit shall be presumed to belong
entirely to such juridical person or entity;
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PDIC ACT (RA 3591, AS AMENDED)
Provided, further, that the aggregate of the interest of each co-owner over
several joint accounts, whether owned by the same or different combinations of
individuals, juridical persons or entities, shall likewise be subject to the
maximum insured deposit of P500,000.00.
No owner/holder of any negotiable certificate of deposit shall be recognized as
a depositor entitled to the rights in PDIC Act unless his name is registered as
owner/holder thereof in the books of the issuing bank.
PDIC shall commence the determination of insured deposits due the depositors of a closed bank
upon its actual takeover of the closed bank. PDIC shall give notice to the depositors of the closed
bank of the insured deposits due them by whatever means deemed appropriate by the Board of
Directors. PDIC shall publish the notice once a week for at least 3 consecutive weeks in a
newspaper of general circulation or, when appropriate, in a newspaper circulated in the
community or communities where the closed bank or its branches are located.
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PDIC ACT (RA 3591, AS AMENDED)
Mode of payment: made as soon as possible either:
1. By cash
2. By making available to each depositor a transferred deposit in another
insured bank in an amount equal to insured deposit of such depositor
Note: The PDIC, in its discretion, may require proof of claims to be filed before paying the
insured deposits, and that in any case where the PDIC is not satisfied as to the validity of a
claim, it may require final determination of a court of competent jurisdiction before paying such
claim. The PDIC may likewise withhold payment of such portion of the insured deposit for the
payment of any liability of such depositor as a stockholder of the closed bank, or of any liability
of such depositor to the closed bank or its receiver, which is not offset against a claim due from
such bank, pending determination and payment of such liability by such depositor or any other
liable therefor.
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PDIC ACT (RA 3591, AS AMENDED)
Effect of payment: PDIC shall be subrogated to all rights of the depositor
against the closed bank to the extent of such payment. Such subrogation shall
include the right on the part of PDIC to receive the same dividends and
payments from the proceeds of the assets of such closed bank and recoveries
on account of stockholders’ liability as would have been payable to the
depositor on a claim for the insured deposits, but such depositor shall retain
his claim for any uninsured portion of his deposit.
Also, under Section 21 of the PDIC Charter, payment of an insured deposit to any person by PDIC
shall discharge the PDIC, and payment of transferred deposit to any person by the new bank or by
an insured bank in which a transferred deposit has been made available shall discharge PDIC and
such new bank or other insured bank, to the same extent that payment to such person by the
closed bank would have discharged it from liability for the insured deposit.
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PDIC ACT (RA 3591, AS AMENDED)
Uninsured Portion: The depositor shall retain his or her claim for any
uninsured portion of his or her deposit, which legal preference shall be the
same as that of the subrogated claim of PDIC for its payment of insured
deposits.
Preference: All payments by PDIC of insured deposits in closed banks partake
of the nature of public funds, and as such, must be considered a preferred credit
similar to taxes due to the National Government in the order of preference
under Article 2244(9) of NCC, provided further, that this preference shall be
likewise effective upon liquidation proceedings already commenced and
pending as of the approval of PDIC Act, where no distribution of assets has been
made.
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PDIC ACT (RA 3591, AS AMENDED)
Failure to settle claim of insured depositor: Failure to settle the claim within 6 months from
the date of filing of claim for insured deposit, where such failure was due to grave abuse of
discretion, gross negligence, bad faith or malice, shall upon conviction, subject the
directors, officers or employees of PDIC responsible for the delay, to imprisonment from 6
months to one year, provided, that the period shall not apply if the validity of the claim
requires the resolution of issues of facts and/or law by another office, body or agency.
Failure of depositor to claim insured deposits: Unless otherwise waived by the PDIC, if the
depositor in the closed bank shall fail to claim his insured deposits with PDIC within 2 years
from actual takeover of the closed bank by the receiver, or does not enforce his claim filed with
PDIC within 2 years after the 2-year period to file a claim, all rights of the depositor against the
PDIC with respect to the insured deposit shall be barred, however, all rights of the depositor
against the closed bank and its shareholders or the receivership estate to which PDIC may have
become subrogated, shall thereupon revert to the depositor. Thereafter, PDIC shall be discharged
from any liability on the insured deposit.
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PDIC ACT (RA 3591, AS AMENDED)
PDIC’s regulatory oversight:
1. Conduct of special bank examinations
2. Determination of products eligible for deposit insurance
3. Examination of deposit accounts of ailing banks: In the event that there is a
finding of unsafe and unsound banking practice, PDIC is authorized to
examine deposits, as an exemption from Bank Secrecy Law
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PDIC ACT (RA 3591, AS AMENDED)
Splitting of deposits: occurs whenever a deposit account with an outstanding balance of more
than the statutory maximum amount of insured deposit maintained under the name of natural
or juridical persons is broken down and transferred into 2 or more accounts in the name/s of
natural or juridical persons or entities who have no beneficial ownership on transferred
deposits in their names within 120 days immediately preceding or during a bank declared bank
holiday or immediately preceding a closure order issued by the MB of BSP for the purpose of
availing of the maximum deposit insurance coverage; prohibited; punishable by imprisonment
of not less than 6 years but not more than 12 years or a fine not less than P50,000 but not more
than P10,000,000, or both, at the discretion of the court.
Injunction: No court, except the CA, shall issue any TRO, preliminary injunction or preliminary
mandatory injunction against PDIC for any action under PDIC Act. The SC may issue a
restraining order or injunction when the matter is of extreme urgency involving a constitutional
issue, such that unless a TRO is issued, grave injustice and irreparable injury will arise.
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ANTI-MONEY
LAUNDERING
ACT (RA
9160, AS
AMENDED)
Policy: 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
whenever committed.
Money Laundering: a crime whereby the
proceeds of an unlawful activity are transacted,
thereby making them appear to have originated
from legitimate sources.
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
How it is committed:
1.
Any person knowing that any monetary instrument or property represents, involves or
relates to, the proceeds of any unlawful activity:
a. Transacts said money instrument or property;
b. Converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or
property;
c. Conceals or disguises the true nature, source, location, disposition, movement or ownership of
or rights with respect to said monetary instrument or property;
d. Attempts or conspires to commit money laundering offenses referred to in (a), (b) or (c);
e. Aids, abets, assists in or counsels the commission of the money laundering offenses referred to
in (a), (b) or (c); and
f. performs or fails to perform any act as a result of which he facilitates the offense of money
laundering referred to in (a), (b) or (c).
2.
Any person knowing that’s covered or suspicious is required to be reported to the AMLC,
fails to do so
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
Prosecution: Any person may be charged with and convicted of both the
offense of money laundering and the unlawful activity. The prosecution of any
offense under AMLA shall proceed independently of any proceeding relating to
the unlawful activity.
Covered Transaction: a transaction in cash or other equivalent monetary
instrument involving a total amount in excess of P500,000.00 within one
banking day; for covered persons like casinos, a single casino cash transaction
(involving the receipt of cash by a casino paid by or behalf of a customer or
payout of cash by a casino to a customer or to any person in his/her behalf)
involving an amount in excess of P5,000,000 or its equivalent in any other
currency
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
Covered Persons: (natural or juridical)
1. Banks, non-banks, quasi-banks, trust entities, foreign exchange dealers,
pawnshops, money changers, remittance and transfer companies and other similar
entities and other similar entities and all other persons and their subsidiaries and
affiliates supervised or regulated by the BSP;
2. Insurance companies, pre-need companies and other persons supervised or
regulated by the Insurance Commission;
3. (i) Securities dealers, brokers, salesmen, investment houses and other similar
persons managing securities or rendering services as investment agent, advisor, or
consultant, (ii) mutual funds, close-end investment companies, common trust
funds, and other similar persons, and (iii) 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 and regulated by SEC;
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
4. Jewelry dealers in precious stones, who, as a business, trade in precious stones, for
transactions in excess of P1,000,000;
5. Jewelry dealers in precious metals, who, as a business, trade in precious metals, for
transactions in excess of P1,000,000;
6. Company service provides which, as a business, provide any of the following
services to third parties: (i) acting as a formation agent of juridical persons; (ii)
acting as (or arranging for another person to act as ) a director or corporate
secretary of a company, a partner of a partnership, or a similar position in relation
to other juridical persons; (iii) providing a registered office, business address or
accommodation, correspondence or administrative address for a company, a
partnership or any other legal person or arrangement; and (iv) acting as (or
arranging for another person to act as) a nominee shareholder for another person;
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
7. Persons who provide any of the following services:
a. Managing of client money, securities or other assets;
b. Management of bank, savings or security accounts;
c. Organization of contributions for the creation, operation or management of
companies; and
d. Creation, operation or management of juridical persons or arrangements, and
buying and selling business entities.
8. Casinos, including internet and ship-based casinos, with respect to their casino
cash transactions related to their gaming operations
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
Excluded Persons: 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
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
Obligations of covered institutions:
1. Customer identification: Covered persons shall establish and record the true
identity of its clients based on official documents.
2. Record keeping: All records of all transactions of covered institutions shall be
maintained and safely stored for 5 years from the date of transactions.
3. Reporting of covered and suspicious transactions: Covered persons shall
report to the AMLC all covered transactions and suspicious transactions
within 5 working days from occurrence thereof, unless the AMLC concerned
prescribes a different period not exceeding 15 working days.
4. Should a transaction be determined to be both a covered and a suspicious
transaction, it shall be reported as a suspicious transaction.
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
5. When reporting, it shall not be considered a violation of bank secrecy laws and
similar laws. It shall be prohibited from communicating, directly or indirectly,
in any manner or by any means, to any person the fact that a covered or
suspicious transaction report was made, the content thereof, or any other
information in relation thereto.
6. Safe Harbor: No administrative, criminal, or civil proceedings, shall lie against
any person for having made a transaction report in the regular performance of
his duties and in good faith, whether or not such results in any criminal
prosecution under Philippine laws.
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
Suspicious Transaction: transactions with covered institutions, regardless of
the amount involved, where any of the following circumstances exist:
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
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 requirements under the Act
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
5. Any circumstances 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 offense under
this Act that is about to be, is being or has been committed
7. Any transaction that is similar or analogous to any of the foregoing
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
UNLAWFUL ACTIVITIES: Any act or omission or series or combination thereof involving or
having relation to the following:
1. Kidnapping for ransom under Article 267 of RPC
2. Sections 4, 5, 7, 8, 9, 10, 12, 13, 14, 15 and 16 of Comprehensive Dangerous Drugs Act
(RA 9165)
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Importation of prohibited drugs
Sale of prohibited drugs
Administration of prohibited drugs
Distribution of prohibited drugs
Transportation of prohibited drugs
Maintenance of a den, dive, or resort for prohibited users
Manufacture of prohibited drugs
Possession of prohibited drugs
Use of prohibited drugs
Cultivation of plants which are sources of prohibited drugs
Culture of plants which are sources of prohibited drugs
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
3.
Section 3, paragraphs B, C, E, G, H, and I of RA 3019 (ANTI GRAFT and CORRUPT
PRACTICES ACT)
a.
Directly or indirectly requesting or receiving any gift, present, share, percentage, or benefit
for himself or for any other person in connection with contract or transaction between the
Government and any party, wherein the public officer in his official capacity has to intervene
under the law
b. Directly or indirectly requesting or receiving any gift, present, or other pecuniary or material
benefit, for himself or for another, from any person for whom the public officer, in any
manner or capacity, has secured or obtained, or will secure or obtain, any government permit
or license, in consideration for the help given or to be given
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
c. Causing any undue injury to any party, including the government, or giving any private party
any unwarranted benefits, advantage, or preference in the discharge of his official,
administrative, or judicial functions through manifest partiality, evident bad faith, or gross
inexcusable negligence
d. Entering, on behalf of the government, into any contract or transaction manifestly and
grossly disadvantageous to the same, whether or not the public officer profited or will profit
thereby
e. Directly or indirectly having financial or pecuniary interest in any business contract or
transaction in connection with which he intervenes or takes part in his official capacity, or in
which he is prohibited by the Constitution or by any law from having any interest
f. Directly or indirectly becoming interested, for personal gain, or having material interest in
any transaction or act requiring the approval of a board, panel, or group of which he is a
member, and which exercise of discretion in such approval, even if he votes against the same
or he does not participate in the action of the board, committee, panel, group
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
4.
5.
Plunder under RA 7080
Robbery and extortion under Articles 294, 295, 296,299, 300, 301, and 302 of RPC
a.
Robbery with violence or intimidation of persons
b.
Robbery with Physical injuries, committed in an uninhabited place and by a band or with use of
firearms on a street, road or alley
Robbery in an uninhabited house or public building or edifice devoted to worship.
c.
6.
7.
Jueteng and Masiao under PD 1602
Privacy on the high seas under RPC and PD 532
a.
b.
c.
8.
9.
10.
11.
Piracy on the high seas
Piracy in inland Philippine waters
Aiding and abetting pirates and brigands
Qualified theft under Article 310 of RPC
Swindling under Article 315 of RPC
Smuggling under RA 455 and RA 1937
Violations of Electronic Commerce Act (RA 8792)
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Hijacking and other violations under RA 6235
Destructive arson and murder as defined under RPC
Terrorism and conspiracy to commit terrorism under Sections 3 and 4 of RA 9372
Financing terrorism under Section 4 and offenses punishable under Sections 5, 6, 7,
and 8 of RA 10168
Bribery under Articles 210, 211 and 211-A of RPC and corruption of public officers
under Article 212 of RPC
Frauds and illegal exactions and transactions under Articles 213, 214, 215 and 216 of
RPC
Malversation of public funds and property under Articles 217 and 222 of RPC
Forgeries and counterfeiting under Articles 163, 166, 167, 168, 169 and 176 of RPC
Violations of Sections 4, 5 and 6 of RA 9208 (Anti-Trafficking in Persons Act)
Violations of Sections 86 to 106 of Chapter VI of RA 8550 (Philippine Fisheries Code)
Violations of Sections 101 to 107 of RA 7942 (Philippine Mining Act)
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
23. Violations of Section 27(c), (e), (f), (g) and (i) of RA 9147 (Wildlife Resources
Conservation and Protection Act)
24. Violation of Section 7(b) of RA 9072 (National Caves and Cave Resources Management
Protection Act)
25. Violation of RA 6539 (Anti-Carnapping Act)
26. Violations of Section 1, 3 and 5 of PD 1866 (Illegal/Unlawful Possession of Firearms
and Explosives)
27. Violation of PD 1612 (Anti-Fencing Law)
28. Violation of Section 6 of RA 8042 (Migrant Workers Act)
29. Violation of RA 8293 (Intellectual Property Code)
30. Violation of Section 4 of RA 9995 (Anti-Photo and Video Voyeurism Act)
31. Violation of Section 4 of RA 9775 (Anti-Child Pornography Act)
32. Violations of Sections 5, 6, 7, 8, 9, 10(c), (d) and €, 11, 12 and 14 of RA 7610 (Special
Protection of Children)
33. Fraudulent practices and other violations under RA 8799 (Securities Regulation Code)
34. Felonies or offenses of a similar nature that are punishable under the penal laws of
other countries
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
Jurisdiction:
1.
Regional Trial Court: all cases on money laundering
2.
Sandiganbayan: if committed by public officers and private persons who are in conspiracy
with such public officers
Anti-Money Laundering Council:
composed of:
1.
Chairman: BSP Governor
2.
Members:
a. Commissioner of Insurance Commission
b. Chairman of SEC
• Note: It shall act unanimously in discharging its functions
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
Functions of AMLC:
1. To require and receive covered transaction reports from covered institutions
2. To issue orders addressed to the appropriate Supervising Authority or the covered
institution to determine the true identity of any monetary instrument or property subject
of a covered transaction report or request for assistance from a foreign State, or believed by
the Council, on the basis of substantial evidence to be in whole or in part, whenever located,
representing, involving or related to, directly or indirectly, in any manner or by any means,
the proceeds of an unlawful activity
3. To institute civil forfeiture proceedings and all other remedial proceedings through the OSG
4. To cause the filing of complaints with the DOJ or Ombudsman for the prosecution of money
laundering offenses
5. To initiate investigations of covered transactions, money laundering activities and other
violations of RA 9160
6. To freeze any monetary instrument or property alleged to be proceeds of any unlawful
activity
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7.
To implement such measures as may be necessary and justified under RA 9160 to
counteract money laundering
8.
To receive and take action in respect of, any request from foreign states for assistance in their
own anti-money laundering operations provided in RA 9160
9.
To develop 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
10. To enlist 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.
11. To impose administrative sanctions for the violation of laws, rules, regulations, orders, and
resolutions issued pursuant to law
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ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED)
Freezing:
The CA, upon application ex parte by 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 (for a period of 20 days unless
extended by the court upon application by the AMLC; total period shall not exceed 6 months).
Note: Considering the intricate and diverse web of related and interlocking accounts pertaining to
the monetary instruments or properties that any person may create in the different covered
institutions, their branches and/or other units, AMLC may apply to freeze monetary instruments
or properties in the names of the reported owners/holders, and monetary instruments or
properties named in the application of the AMLC, including all other related web of accounts
pertaining to other monetary instruments and properties, the funds and sources of which
originated from or are related to the monetary instruments or properties subject of the freeze
orders.
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Related Web of Accounts:
those accounts, the funds and sources of which originated from and/or are
materially linked to the monetary instruments or properties subject of the
freeze orders.
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Authority to inquire into bank deposits:
The AMLC may inquire into deposits upon order of the court when there is probable cause that
the deposits are related to the crime or unlawful activities. However, a court order is not even
necessary when the offense or unlawful activity involved is any of the following:
1.
Kidnapping for ransom under Article 267 of RPC
2.
Sections 4, 5, 7, 8, 9, 10, 12, 13, 14, 15 and 16 of Comprehensive Dangerous Drugs Act (RA
9165)
3.
Hijacking and other violations under RA 6235
4.
Destructive arson and murder as defined under RPC
5.
Felonies or offenses of a nature similar to (1), (2), (3) and (4) which are punishable under
the penal laws of other countries
Terrorism and conspiracy to commit terrorism under RA 9372
6.
7.
Financing terrorism under Section 4 and offenses punishable under Sections 5, 6, 7, and 8
of RA 10168
Inquiry into deposits may be availed of even in the absence of a pre-existing criminal case
under the same law. However, the order authorizing bank inquiry cannot be issued ex-parte.
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Authority to institute civil forfeiture proceedings:
The AMLC is authorized to institute civil forfeiture proceedings and all other
remedial proceedings through the Office of the Solicitor General, upon
determination that probable cause exists that any monetary instrument or
property is in any way related to an unlawful activity or a money laundering
offense. `
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