AMLA Compliance and Reporting Procedures in Real Estate

These flashcards cover key terms and concepts related to the Anti-Money Laundering Act compliance and reporting processes specifically targeted towards the real estate industry.

Anti-Money Laundering Act (AMLA)

A law that regulates entities to prevent money laundering activities, expanded to cover real estate developers and brokers.

Covered Persons

Individuals or entities required to comply with AMLA regulations, such as real estate brokers and developers.

Customer Due Diligence (CDD)

The process of verifying the identity of clients and assessing their risk profile before engaging in transactions.

Suspicious Transaction

Any transaction that appears unusual, lacks legal purpose, or is inconsistent with a client's profile.

Cash Transaction Threshold

The AMLA defines a cash transaction of P7,500,000 or more as a covered transaction that must be reported.

Record Keeping Requirement

Real estate brokers must maintain transaction records and client identification for five years.

Red Flags for Suspicious Transactions

Indicators of potentially illicit activities, including large cash payments or early resales without legitimacy.

Penalties for Non-Compliance

Legal consequences such as imprisonment or fines for failing to adhere to AMLA regulations.

Reporting Obligation

Real estate brokers must report covered and suspicious transactions to the AMLC within five working days.

Due Diligence

The legal and ethical duty of brokers to verify a property's authenticity, ownership, and legal status before transactions.