AMLA

Money Laundering

The act of disguising the origins of illegally obtained money.

Placement

The initial stage of money laundering where illicit funds are introduced into the financial system.

Layering

Involves complex financial transactions to obscure the origin of illicit funds.

Integration

The final stage where laundered money is reintroduced into the economy as legitimate funds.

Unlawful Activities

Acts or omissions related to crimes like drug trafficking, corruption, robbery, terrorism, and other offenses.

Covered Entities

Institutions like banks, insurance companies, securities dealers, casinos, and real estate developers subject to anti-money laundering regulations.

Exclusions

Lawyers and accountants acting independently and protecting client confidentiality are not covered under anti-money laundering laws.

Shell Company

An incorporated company with no significant assets or operations used to launder money by creating the appearance of legitimate transactions.

Customer Identification

The process where covered institutions establish and record the true identity of clients based on official documents, including personal and financial information.

Covered Transaction

A transaction involving a total amount exceeding P500,000 within one banking day, or specific amounts for different sectors like real estate or casinos.

Suspicious Transaction

A transaction with covered institutions where certain circumstances exist, such as lack of legal justification or mismatch with the client's financial capacity, prompting the filing of a report.

Anti-Money Laundering Council

A body composed of the BSP Governor, Commissioner of Insurance Commission, and Chairman of SEC, responsible for investigating suspicious transactions, receiving reports, and taking actions against money laundering activities.

Freeze Order

An order issued by the Court of Appeals, upon AMLC's application, to freeze monetary instruments or properties related to unlawful activities, effective immediately for a specified period.

Related Web of Accounts

Accounts linked to the monetary instruments or properties subject to freeze orders, allowing AMLC to freeze all related accounts to prevent money laundering.

Amendments under RA No

Changes including a summary hearing by the Court of Appeals within 20 days of a freeze order, limitations on the duration of freeze orders, and procedures for lifting freeze orders in specific circumstances.

Freeze Order

A directive issued by the AMLC to prevent the withdrawal of funds or disposal of assets related to unlawful activities.

Civil Forfeiture

The legal process initiated by the AMLC to seize assets or monetary instruments linked to unlawful activities without requiring a prior criminal charge or conviction.

Bank Inquiry

The authority of the AMLC to investigate bank deposits upon court order when there is probable cause of their connection to crimes, except for specific offenses listed in the AMLA.

Asset Preservation Order

A directive that prohibits the dissipation of assets related to unlawful activities, which can only be challenged in the Court of Appeals or the Supreme Court.

Terrorism Financing

The act of providing financial support or resources for terrorist activities, punishable under Republic Act No. 10168.

Ex Parte Order

An order that cannot be issued without notifying all parties involved, ensuring transparency in legal proceedings.

Money Laundering

The process of concealing the origins of illegally obtained money, typically by transferring it through a complex sequence of banking transactions.