Republic Act 9194 Republic of the Philippines Congress of the Philippines Metro Manila Twelfth Congress Second Regular

Session Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two. R!P"B#$C %CT &'. ()(* + %& %CT %M!&,$&- R!P"B#$C %CT &'. ()./, 'T0!R1$S! 2&'1& %S T0! 3%&T$-M'&!4 #%"&,!R$&- %CT '5 6//)3 Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: S!CT$'& ). Section 7, paragraph 8b9, of Republic %ct &o. ()./ is hereby a:ended as follows; 38b9 <Co=ered transaction< is a transaction in cash or other e>ui=alent :onetary instru:ent in=ol=ing a total a:ount in e?cess of 5i=e hundred thousand pesos 8P@//,///.//9 within one 8)9 banAing day.3 S!C. 6. Section 7 of the sa:e %ct is further a:ended by inserting between paragraphs 8b9 and 8c9 a new paragraph designated as 8b-)9 to read as follows; 38b-)9 <Suspicious transaction< are transactions with co=ered institutions, regardless of the a:ounts in=ol=ed, where any of the following circu:stances e?ist; 3). there is no underlying legal or trade obligation, purpose or econo:ic BustificationC 36. the client is not properly identifiedC 37. the a:ount in=ol=ed is not co::ensurate with the business or financial capacity of the clientC 3*. taAing into account all Anown circu:stances, it :ay be percei=ed that the clientDs transaction is structured in order to a=oid being the subBect of reporting re>uire:ents under the %ctC 3@. any circu:stance relating to the transaction which is obser=ed to de=iate fro: the profile of the client andEor the clientDs past transactions with the co=ered institutionC 3.. the transaction is in any way related to an unlawful acti=ity or offense under this %ct that is about to be, is being or has been co::ittedC or 3F. any transaction that is si:ilar or analogous to any of the foregoing.3

S!C. 7. Section 78i9 of the sa:e %ct is further a:ended to read as follows; 38i9 <"nlawful acti=ity< refers to any act or o:ission or series or co:bination thereof in=ol=ing or ha=ing direct relation to the following; 38)9 2idnapping for ranso: under %rticle 6.F of %ct &o. 7G)@, otherwise Anown as the Re=ised Penal Code, as a:endedC 3869 Sections *, @, ., G, (, )/, )6, )7, )*, )@, and ). of Republic %ct &o. ().@, otherwise Anown as the Co:prehensi=e ,angerous ,rugs %ct of 6//6C 3879 Section 7 paragraphs B, C, !, -, 0 and $ of Republic %ct &o. 7/)(, as a:ended, otherwise Anown as the %nti--raft and Corrupt Practices %ctC 38*9 Plunder under Republic %ct &o. F/G/, as a:endedC 38@9 Robbery and e?tortion under %rticles 6(*, 6(@, 6(., 6((, 7//, 7/) and 7/6 of the Re=ised Penal Code, as a:endedC 38.9 Jueteng and Masiao punished as illegal ga:bling under Presidential ,ecree &o. )./6C 38F9 Piracy on the high seas under the Re=ised Penal Code, as a:ended and Presidential ,ecree &o. @76C 38G9 Hualified theft under %rticle 7)/ of the Re=ised Penal Code, as a:endedC 38(9 Swindling under %rticle 7)@ of the Re=ised Penal Code, as a:endedC 38)/9 S:uggling under Republic %ct &os. *@@ and )(7FC 38))9 Iiolations under Republic %ct &o. GF(6, otherwise Anown as the !lectronic Co::erce %ct of 6///C 38)69 0iBacAing and other =iolations under Republic %ct &o. .67@C destructi=e arson and :urder, as defined under the Re=ised Penal Code, as a:ended, including those perpetrated by terrorists against non-co:batant persons and si:ilar targetsC 38)79 5raudulent practices and other =iolations under Republic %ct &o. GF((, otherwise Anown as the Securities Regulation Code of 6///C 38)*9 5elonies or offenses of a si:ilar nature that are punishable under the penal laws of other countries.3 S!C. *. Section * of the sa:e %ct is hereby a:ended to read as follows; 3S!C. *. Money #aundering 'ffense. J Money laundering is a cri:e whereby the proceeds of an unlawful acti=ity as herein defined are transacted, thereby :aAing the: appear to ha=e originated fro: legiti:ate sources. $t is co::itted by the following;

38a9 %ny person Anowing that any :onetary instru:ent or property represents, in=ol=es, or relates to, the proceeds of any unlawful acti=ity, transacts or atte:pts to transact said :onetary instru:ent or property. 38b9 %ny person Anowing that any :onetary instru:ent or property in=ol=es the proceeds of any unlawful acti=ity, perfor:s or fails to perfor: any act as a result of which he facilitates the offense of :oney laundering referred to in paragraph 8a9 abo=e. 38c9 %ny person Anowing that any :onetary instru:ent or property is re>uired under this %ct to be disclosed and filed with the %nti-Money #aundering Council 8%M#C9, fails to do so.3 S!C. @. Section F of the sa:e %ct is hereby a:ended as follows; 3S!C. F. Creation of %nti-Money #aundering Council 8%M#C9. J The %nti-Money #aundering Council is hereby created and shall be co:posed of the -o=ernor of the BangAo Sentral ng Pilipinas as chair:an, the Co::issioner of the $nsurance Co::ission and the Chair:an of the Securities and !?change Co::ission as :e:bers. The %M#C shall act unani:ously in the discharge of its functions as defined hereunder; 38)9 to re>uire and recei=e co=ered or suspicious transaction reports fro: co=ered institutionsC 3869 to issue orders addressed to the appropriate Super=ising %uthority or the co=ered institution to deter:ine the true identity of the owner of any :onetary instru:ent or property subBect of a co=ered transaction or suspicious transaction report or re>uest for assistance fro: a foreign State, or belie=ed by the Council, on the basis of substantial e=idence, to be, in whole or in part, where=er located, representing, in=ol=ing, or related to, directly or indirectly, in any :anner or by any :eans, the proceeds of an unlawful acti=ity. 3879 to institute ci=il forfeiture proceedings and all other re:edial proceedings through the 'ffice of the Solicitor -eneralC 38*9 to cause the filing of co:plaints with the ,epart:ent of Justice or the ':buds:an for the prosecution of :oney laundering offensesC 38@9 to in=estigate suspicious transactions and co=ered transactions dee:ed suspicious after an in=estigation by %M#C, :oney laundering acti=ities, and other =iolations of this %ctC 38.9 to apply before the Court of %ppeals, e? parte, for the freeKing of any :onetary instru:ent or property alleged to be the proceeds of any unlawful acti=ity as defined in Section 78i9 hereofC 38F9 to i:ple:ent such :easures as :ay be necessary and Bustified under this %ct to counteract :oney launderingC

38G9 to recei=e and taAe action in respect of, any re>uest fro: foreign states for assistance in their own anti-:oney laundering operations pro=ided in this %ctC 38(9 to de=elop educational progra:s on the pernicious effects of :oney laundering, the :ethods and techni>ues used in :oney laundering, the =iable :eans of pre=enting :oney laundering and the effecti=e ways of prosecuting and punishing offendersC 38)/9 to enlist the assistance of any branch, depart:ent, bureau, office, agency or instru:entality of the go=ern:ent, including go=ern:ent-owned and -controlled corporations, in undertaAing any and all anti-:oney laundering operations, which :ay include the use of its personnel, facilities and resources for the :ore resolute pre=ention, detection and in=estigation of :oney laundering offenses and prosecution of offendersC and 38))9 to i:pose ad:inistrati=e sanctions for the =iolation of laws, rules, regulations and orders and resolutions issued pursuant thereto.3 S!C. .. Section (8c9 of the sa:e %ct is hereby a:ended to read as follows; 38c9 Reporting of Co=ered and Suspicious Transactions. J Co=ered institutions shall report to the %M#C all co=ered transactions and suspicious transactions within fi=e 8@9 worAing days fro: occurrence thereof, unless the Super=ising %uthority prescribes a longer period not e?ceeding ten 8)/9 worAing days. 3Should a transaction be deter:ined to be both a co=ered transaction and a suspicious transaction, the co=ered institution shall be re>uired to report the sa:e as a suspicious transaction. 31hen reporting co=ered or suspicious transactions to the %M#C, co=ered institutions and their officers and e:ployees shall not be dee:ed to ha=e =iolated Republic %ct &o. )*/@, as a:ended, Republic %ct &o. .*6., as a:ended, Republic %ct &o. GF() and other si:ilar laws, but are prohibited fro: co::unicating, directly or indirectly, in any :anner or by any :eans, to any person, the fact that a co=ered or suspicious transaction report was :ade, the contents thereof, or any other infor:ation in relation thereto. $n case of =iolation thereof, the concerned officer and e:ployee of the co=ered institution shall be cri:inally liable. 0owe=er, no ad:inistrati=e, cri:inal or ci=il proceedings, shall lie against any person for ha=ing :ade a co=ered or suspicious transaction report in the regular perfor:ance of his duties in good faith, whether or not such reporting results in any cri:inal prosecution under this %ct or any other law. 31hen reporting co=ered or suspicious transactions to the %M#C, co=ered institutions and their officers and e:ployees are prohibited fro: co::unicating directly or indirectly, in any :anner or by any :eans, to any person or entity, the :edia, the fact that a co=ered or suspicious transaction report was :ade, the contents thereof, or any other infor:ation in relation thereto. &either :ay such reporting be published or aired in any :anner or for: by the :ass :edia, electronic :ail, or other si:ilar de=ices. $n case of =iolation thereof, the concerned officer and e:ployee of the co=ered institution and :edia shall be held cri:inally liable.3

S!C. F. Section )/ of the sa:e %ct is hereby a:ended to read as follows; 3S!C. )/. 5reeKing of Monetary $nstru:ent or Property. J The Court of %ppeals, upon application e? parte by the %M#C and after deter:ination that probable cause e?ists that any :onetary instru:ent or property is in any way related to an unlawful acti=ity as defined in Section 78i9 hereof, :ay issue a freeKe order which shall be effecti=e i::ediately. The freeKe order shall be for a period of twenty 86/9 days unless e?tended by the court.3 S!C. G. Section )) of the sa:e %ct is hereby a:ended to read as follows; 3S!C. )). %uthority to $n>uire into BanA ,eposits. J &otwithstanding the pro=isions of Republic %ct &o. )*/@, as a:ended, Republic %ct &o. .*6., as a:ended, Republic %ct &o. GF(), and other laws, the %M#C :ay in>uire into or e?a:ine any particular deposit or in=est:ent with any banAing institution or non-banA financial institution upon order of any co:petent court in cases of =iolation of this %ct, when it has been established that there is probable cause that the deposits or in=est:ents are related to an unlawful acti=ity as defined in Section 78i9 hereof or a :oney laundering offense under Section * hereofC e?cept that no court order shall be re>uired in cases in=ol=ing unlawful acti=ities defined in Sections 78i98)9, 869 and 8)69. 3To ensure co:pliance with this %ct, the BangAo Sentral ng Pilipinas 8BSP9 :ay in>uire into or e?a:ine any deposit or in=est:ent with any banAing institution or nonbanA financial institution when the e?a:ination is :ade in the course of a periodic or special e?a:ination, in accordance with the rules of e?a:ination of the BSP.3 S!C. (. Section )*, paragraphs 8c9 and 8d9 of the sa:e %ct is hereby a:ended to read as follows; 38c9 Malicious Reporting. %ny person who, with :alice, or in bad faith, reports or files a co:pletely unwarranted or false infor:ation relati=e to :oney laundering transaction against any person shall be subBect to a penalty of si? 8.9 :onths to four 8*9 years i:prison:ent and a fine of not less than 'ne hundred thousand Philippine pesos 8Php )//,///.//9 but not :ore than 5i=e hundred thousand Philippine pesos 8Php @//,///.//9, at the discretion of the court; Pro=ided, That the offender is not entitled to a=ail the benefits of the Probation #aw. 3$f the offender is a corporation, association, partnership or any Buridical person, the penalty shall be i:posed upon the responsible officers, as the case :ay be, who participated in, or allowed by their gross negligence, the co::ission of the cri:e. $f the offender is a Buridical person, the court :ay suspend or re=oAe its license. $f the offender is an alien, he shall, in addition to the penalties herein prescribed, be deported without further proceedings after ser=ing the penalties herein prescribed. $f the offender is a public official or e:ployee, he shall, in addition to the penalties prescribed herein, suffer perpetual or te:porary absolute dis>ualification fro: office, as the case :ay be. 3%ny public official or e:ployee who is called upon to testify and refuses to do the sa:e or purposely fails to testify shall suffer the sa:e penalties prescribed herein.

38d9 Breach of Confidentiality. The punish:ent of i:prison:ent ranging fro: three 879 to eight 8G9 years and a fine of not less than 5i=e hundred thousand Philippine pesos 8Php @//,///.//9 but not :ore than 'ne :illion Philippine pesos 8Php ),///,///.//9 shall be i:posed on a person con=icted for a =iolation under Section (8c9. $n the case of a breach of confidentiality that is published or reported by :edia, the responsible reporter, writer, president, publisher, :anager and editor-in-chief shall be liable under this %ct.3 S!C. )/. Section )@ of Republic %ct &o. ()./ is hereby deleted. S!C. )). Section 67 of the sa:e %ct is hereby a:ended to read as follows; 3S!C. 67. !ffecti=ity. J This %ct shall taAe effect fifteen 8)@9 days after its co:plete publication in the 'fficial -aKette or in at least two 869 national newspapers of general circulation.3 S!C. )6. Transitory Pro=ision. J !?isting freeKe orders issued by the %M#C shall re:ain in force for a period of thirty 87/9 days after the effecti=ity of this %ct, unless e?tended by the Court of %ppeals. S!C. )7. !ffecti=ity. J This %ct shall taAe effect fifteen 8)@9 days after its co:plete publication in the 'fficial -aKette or in at least two 869 national newspapers of general circulation. This %ct which is a consolidation of 0ouse Bill &o. @.@@ and Senate Bill &o. 6*)( was finally passed by the 0ouse of Representati=es and the Senate on March @, 6//7.