Anti-Money Laundering Act

money laundering

involves disguising the source of funds derived from unlawful activity with the aim of integrating illicit funds into the finacial system as clean money

money laundering

allows criminals to utilize the funds without drawing unwanted attention from authorities

money laundering

is committed by any person who, knowing that any onetary instrument or property represents, inolves, or related to the proceeds of any unlawful activity

money laundering

also committed by any covered person who, knowing that a covered or suspicious transaction is required to be reported to AMLC fails to do so

anti-money laundering council

amlc meaning

unlawful activity

• is the offense which generates dirty money or property

• commonly called the predicate crime

• refers to any act or omission or series or combination thereof involving or having direct relation to crimes

suspicious transaction

a transaction that has no clear econommic or lawful purpose, it not commensurate with the customer’s profile or business activity, involves large amount of cash, frequent transfers to and from high-risk jurisdictions, inconsitency with historical account activities, or is structured to avoid reporting thresholds

• unlawful activity

• dirty money

• knowledge

• circumstances related

elements of money laundering (4)

civil liability

if there is no knowledge that money is being laundered, there is only ________

• placement

• layering

• integration

stages of money laundering (3)

placement

the physical disposal of cash or other assets derived from ciminal activity

placement

during this phase, the money launderer introduces the illicit proceeds into the financial system

placement

this phase is accomplished by placing the funds into circulation through formal financial institutions

layering

this is the phase wherein there is a separation of illicit proceeds from their source by layers of financial transaction intended to conceal the origin of the proceeds

layering

the second stage of money laundering involves converting the proceeds of the crime into another form and creating complex layers of financial transactions to obfuscate the source and ownership of funds

integration

phase that includes supplying apparent legitimacy to illicit wealth through the reentry of the funds into the economy

integration

this stage entails using laundered proceeds in seemingly normal transactions to create the perception of legitimacy

RA 9160; October 17, 2001

[RA; DATE]

• only threshold reporting

• amlc’s executive freeze

RA 9194; March 23, 2003

• freezing power given to courts

• STR now required

RA 10167; July 6, 2012

• ex-parte petitions

RA 11521; January 29, 2021

• inclusion of oGOs, Real Estate Developer and Brokers

• Inclusion of tax crimes as a predicate offense

RA 10365; May 7, 2013

• expanded covered persons (CPs)

• additional predicate crimes

RA 10927; July 29, 2017

• inclusion of casinos (internet and ship-based)

• single casino cash transaction in excess of PHP5M

• criminalizes money laundering

• creates a financial intelligence unit

• imposes requirements on cust ID, recordkeeping and reporting of covered and suspicious transactions

• relaxes strict bank deposits secrecy laws

• provides for bank inquiry and freeze ex parte petition/forfeiture/recovery of dirty money

• provides for international cooperation

salient features of AMLA Law (6)

• jewelry dealers

• dealers in precious metals and stones

• trust and company service providers

• lawyers, accountants, and other professionals

• casinos

• real estate brokers and developers

• offshore gaming operators

covered persons (7)