AMLA

Special Laws

Money Laundering

Money Laundering

A crime committed by any person knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity

acts included in AMLA

1. Transacts or attempt to transact, transfers, uses, conceals or disguises the true nature of rights with respect to a monetary instrument or property

2. Attempts or conspires to commit money laundering offenses

3. Aids, abets, assists in or counsels the commission thereof

4. Performs or fails to perform an act, as a result of which he facilitates the offense

5. Failure to report to the AMLC

Stages of Money Laundering

1. Placement

2. Layering

3. Integration

Placement

The launderer inserts dirty money into a legitimate financial institution

Layering

It involves the sending of money through various financial transactions to change its form and make it more difficult to follow.

Integration

the money re-enters the mainstream economy in legitimate-looking form, appearing to have come from a legitimate transaction.

Unlawful Activities

1. Kidnapping for ransom

2. Punishable acts under Comprehensive Dangerous Drugs Act

3. Punishable acts under Anti-Graft and Corrupt Practices Act

4. Plunder

5. Robbery and extortion

6. Qualified theft

7. Swindling

8. Smuggling

9. Hijacking

10. Piracy

11. Bribery

12. Malversation of Public funds and property

Covered Entities

1. Banks, quasi-banks, trust entities, pawnshops, and all other financial institutions supervised and/or regulated by BSP

2. Other entities administering or dealing in currency, financial derivatives as supervised and/or regulated by BSP

3. Insurance companies, agents, brokers, as supervised and/or regulated by the Insurance Commission

4. Securities dealers, brokers, salesmen, etc.

5. Jewelry dealers, for transactions in excess of 1M

6. Foreign exchange corporations, money changers, remittance, and transfer companies

7. Casinos

8. Real Estate Developers and Brokers

9. Offshore Gaming Operators and their Service Providers

Obligation of Covered Entities

1. Customer Identification

2. Record Keeping

Safe Harbor Provision

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.

How long should banks maintain and store records of all transactions?

5 years from date of transaction

Reportorial Requirement for Covered Transactions

covered institutions shall report to the AMLC all covered transactions within 5 working days from occurrence thereof,

unless the AMLC prescribed a longer period not exceeding 15 working days. Conviction of the unlawful activity is not necessary before a report is made.

Covered Transaction

1. Normal Accounts: total amount in excess of 500,000 within one banking day

2. Casinos: in excess of 5 million per day

3. Real Estate Developers/Brokers: single transaction in excess of 7,500,000

Reportorial Requirement for Suspicious Transactions

promptly file suspicious transaction reports within the next working day from occurrence thereof

Suspicious Transactions

regardless of the amount

1. no underlying legal or trade obligation, purpose, or economic justification

2. client is not properly identified

3. amount involved is not commensurate with the business or financial capacity of the client

4. client’s transaction is structured in order to avoid being the subject of reporting requirements

5. transaction which is observed to deviate from the profile of the client and/or the client’s past transactions with covered institution

6. transaction is in any way related to an unlawful activity or offense under the law that is about to be, is being or has been committed

7. transaction that is similar or analogous to any of the foregoing.

If transaction is determined to be both a covered and a suspicious transaction, what should it be reported as?

Suspicious Transactions; The person reporting 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.

AMLC Council Composition

1. Chairman - BSP Governor

2. Members - (a) Commissioner of Insurance Commission

   (b) Chairperson of SEC

Important Functions of AMLC

1. Investigate suspicious transactions and covered transactions deemed suspicious after determination by AMLC, money laundering activities and other violations of the law

2. apply for the issuance of search and seizure order with any competent court, or the issuance of subpoena as testificandum and/or duces tecum

3. preserve, manage or dispose assets pursuant to a freeze order, asset preservation order, or judgment of forfeiture, provided however that pending their turnover to the national government, all expenses incurred in relation to the duties herein mentioned shall be deducted from the account to be turned over to the national government.

4. 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 accounts.

5. inquire into bank deposits, upon order of the court, when there is probable cause that the deposits are related to the commission of unlawful activities.