Anti-Money Laundering Act (AMLA) Overview

Flashcards covering key concepts of the Anti-Money Laundering Act, including its definitions, purpose, obligations of covered persons, penalties, and case law.

The Anti-Money Laundering Act approved on September 20, 2001.

When was AMLA approved?

Why have there been many amendments to the AMLA?

Criminals find ways to circumvent the law, and the crime of money laundering evolves, necessitating updates to effectively deter, prevent, and punish such activities

four main elements of money laundering

1. Unlawful activity exists. 2. The accused transacts proceeds of unlawful activity. 3. The accused knows the proceeds are related to unlawful activity. 4. The proceeds are made to appear legitimate.

the primary purpose of the AMLA

To protect and preserve the integrity and confidentiality of bank accounts and to ensure the Philippines is not used as a money laundering site.

definition of money laundering

The crime where proceeds of unlawful activities are transacted to appear as if they originated from legitimate sources.

Which activities are considered unlawful under the AMLA?

Activities such as kidnapping for ransom, drug-related offenses, graft and corrupt practices, robbery, extortion, and terrorism, among others.

'covered persons' under the AMLA

Natural and juridical persons including banks, insurers, casinos, jewelry dealers, and any entities involved in financial transactions.

Records must be maintained for at least five years from the date of each transaction.

How long must covered persons keep records of transactions?

Imprisonment ranging from seven to fourteen years and a fine between three million to twice the value of the monetary instrument involved.

What is the penalty for a person convicted of money laundering under Section 4?

Covered persons must report all covered transactions and suspicious transactions to the AMLC.

What must be done within five working days according to the AMLA?

'Safe Harbor Provision' in the context of the AMLA

No administrative, criminal, or civil proceedings shall lie against a person for making a covered or suspicious transaction report in good faith.

three main obligations of covered persons under the AMLA

1. Customer identification or due diligence. 2. Record keeping. 3. Reporting covered and suspicious transactions.

'monetary instrument' include according to the AMLA

Includes coins, currency, checks, securities, and other similar instruments.

It outlines the prosecution of money laundering as separate from the underlying unlawful activity, emphasizing the necessity of proving proceeds are from such activities.

What is the significance of the case Lingad v. People of the Philippines?

A person who maliciously reports false information can face penalties, including disqualification from office if a public official.

What are the consequences of malicious reporting under the AMLA?

Transactions that exhibit indicators of illegality or do not have a legal purpose, or that deviate from the client's profile.

What defines 'suspicious transactions' under the AMLA?

actions can the AMLC take in response to suspicious transactions

The AMLC can institute civil forfeiture proceedings and request freeze orders to prevent dissipation of suspected illicit proceeds.