THE ANTI-MONEY LAUNDERING ACT
(R.A. No. 9160, as amended by R.A. No.
9194, R.A. No. 10167 and R.A. No.
10365)
Policy of the Law
1. To protect and preserve the integrity
and confidentiality of bank accounts
and to ensure that the Philippines shall
not be used as a money laundering site
for the proceeds of any unlawful
activity; and
2. The State shall extend cooperation in
transnational investigations and
prosecutions of persons involved in
money laundering activities wherever
committed.
Covered Institutions
1) Banks, non-banks, quasi-banks, trust
entities, foreign exchange dealers,
pawnshops, money changers,
remittance and transfer companies
and other similar entities and all other
persons and their subsidiaries and
affiliates supervised or regulated by
the BSP;
2) Insurance companies, pre-need
companies and all other persons
supervised or regulated by the
Insurance Commission (IC);
3) (i) Securities dealers, brokers,
salesmen, investment houses and
other similar persons managing
securities or rendering services as
investment agent, advisor, or
consultant, (ii) mutual funds, close-
end investment companies, common
trust funds, and other similar persons,
and (iii) other entities administering or
otherwise dealing in currency,
commodities or financial derivatives
based thereon, valuable objects, cash
substitutes and other similar monetary
instruments or property supervised or
regulated by the Securities and
Exchange Commission (SEC);
4) Jewelry dealers in precious metals,
who, as a business, trade in precious
metals, for transactions in excess of
One million pesos (P1,000,000.00);
5) Jewelry dealers in precious stones,
who, as a business, trade in precious
stones, for transactions in excess of
One million pesos (P1,000,000.00);
6) Company service providers which, as
a business, provide any of the
following services to third parties: (i)
acting as a formation agent of juridical
persons; (ii) acting as (or arranging for
another person to act as) a director or
corporate secretary of a company, a
partner of a partnership, or a similar
position in relation to other juridical
persons; (iii) providing a registered
office, business address or
accommodation, correspondence or
administrative address for a company,
a partnership or any other legal person
or arrangement; and (iv) acting as (or
arranging for another person to act as)
a nominee shareholder for another
person; and
7) Persons who provide any of the
following services: (i) managing of
client money, securities or other
assets; (ii) management of bank,
savings or securities accounts; (iii)
organization of contributions for the
creation, operation or management of
companies; and (iv) creation,
operation or management of juridical
persons or arrangements, and buying
and selling business entities (R.A. No.
10635, Sec. 1).
Obligations of Covered Institutions
1. To ensure that true and full identity of
all Bank customers is established and
to understand the nature of customers
business;
2. To preserve and store all records of all
business transactions for a period of at
least five (5) years; and
3. To report covered and suspicious
transactions to AMLC within ten (10)
working days from occurrence thereof
as per Circular No. 612, dated 13 June
2008, unless Supervising Authority
prescribes longer period or upon
verified/ confirm knowledge of the Bank
on basis for suspicious transaction.
Covered Transactions
1. Any transaction in cash or other
equivalent monetary instrument
involving a total amount in excess of
Five hundred thousand pesos (Php
500,000.00) within one (1) banking day
(R.A. No. 9194, Sec. 1).
2. Jewelry dealers in precious stones,
who, as a business, trade in precious
stones, for transactions in excess of
One million pesos (P1,000,000.00)
(R.A. No. 10635, Sec. 1).
3. The Land Registration Authority and all
its Registries of Deeds to submit to the
AMLC, reports on all real estate
transactions involving an amount in
excess of Five hundred thousand
pesos (P500,000.00) within fifteen (15)
days from the date of registration of the
transaction, in a form to be prescribed
by the AMLC. The AMLC may also
require the Land Registration Authority
and all its Registries of Deeds to submit
copies of relevant documents of all real
estate transactions (R.A. No. 10635,
Sec. 7).
Suspicious Transactions
Transactions with covered institutions
regardless of the amounts involved,
where any of the following circumstances
exists: (No Id D Notbf ARA)
1. There is no underlying legal or trade
obligation, purpose or economic
justification;
2. Client is not properly identified;
3. Any circumstance relating to the
transaction which is observed to devise
from the profile and/or the clients past
transactions with the covered
institution;
4. Amount involved is not commensurate
with the business or financial capacity
of the client;
5. Taking into account all known
circumstances, it may be perceived that
the clients transaction is structured in
order to avoid being the subject of
reporting requirement under the Act;
6. Transaction is in any way related to
unlawful activity or offense under this
Act that is about to be, is being, or has
been committed; or
7. Analogous or similar transactions to
any of the foregoing.
When is Money Laundering Committed
Money laundering is committed by any
person who, knowing that any monetary
instrument or property represents,
involves, or relates to the proceeds of any
unlawful activity: (TCC-AAP-F)
1. Transacts said monetary instrument or
property
2. Converts, transfers, disposes of,
moves, acquires, possesses or uses
said monetary instrument or property
3. Conceals or disguises the true nature,
source, location, disposition,
movement or ownership of or rights
with respect to said monetary
instrument or property
4. Attempts or conspires to commit
money laundering offenses referred to
in 1, 2, or 3
5. Aids, abets, assists in or counsels the
commission of the money laundering
offenses referred to in 1, 2, or 3
6. Performs or fails to perform any act as
a result of which he facilitates the
offense of money laundering referred to
in 1, 2, or 3

7. Money laundering is also committed by
any covered person who, knowing that
a covered or suspicious transaction is
required under this Act to be reported
to the AMLC, fails to do so (R.A. No.
10365, Sec. 4).
3 Phases of Money Laundering
1. Placement the launderer inserts the
dirty money into a legitimate financial
institution usually in the form of cash
bank deposits (DIZON, supra at pp.
431);
2. Layering it involves sending money
through various financial transactions
to change its form and make it more
difficult to follow. This is the most
complex phase (Id.);
3. Integration the money enters
mainstream economy in legitimate-
looking form, appearing to have come
from some legitimate transaction. It
may involve a final bank transfer into
the account of a local business in which
the launderer is investing in exchange
for a cut of the profits or the sale of high
value items bought during the layering
stage (DIZON, supra at pp. 431-4320.
Unlawful Activities or Predicate Crimes
1. Kidnapping for ransom
2. Unlawful acts under the
Comprehensive Dangerous Drug Act of
2002
3. Corrupt Practices of public officers
under Anti-Graft and Corrupt Practices
Act
4. Plunder
5. Robbery and extortion
6. Jueteng and Masiao punished as illegal
gambling
7. Piracy on the high seas
8. Qualified theft
9. Swindling and other forms of swindling
10. Smuggling
11. Violations of the Electric Commerce Act
of 2000
12. Hijacking
13. Terrorism and conspiracy to commit
terrorism
14. Financing of terrorism and offenses
punishable under Terrorism Financing
Prevention and Suppression Act of
2012
15. Bribery and Corruption of Public
Officers
16. Frauds and Illegal Exactions and
Transactions
17. Forgeries and Counterfeiting
18. Violations of the Anti-Trafficking in
Persons Act of 2003
19. Violations of Revised Forestry Code of
the Philippines
20. Violations of Philippine Mining Act of
1995
21. Violations of Philippine Mining Act of
1995
22. Felonies or offenses of a similar nature
that are punishable under the penal
laws of other countries
23. Violations of Section 27(c), (e), (f), (g)
and (i), of Republic Act No. 9147,
otherwise known as the Wildlife
Resources Conservation and
Protection Act
24. Violation of Section 7(b) of Republic Act
No. 9072, otherwise known as the
National Caves and Cave Resources
Management Protection Act
25. Violation of Republic Act No. 6539,
otherwise known as the Anti-
Carnapping Act of 2002, as amended
26. Violations of Sections 1, 3 and 5 of
Presidential Decree No. 1866, as
amended, otherwise known as the
decree Codifying the Laws on
Illegal/Unlawful Possession,
Manufacture, Dealing In, Acquisition or
Disposition of Firearms, Ammunition or
Explosives
27. Violation of Presidential Decree No.
1612, otherwise known as the Anti-
Fencing Law
28. Violation of Section 6 of Republic Act
No. 8042, otherwise known as the
Migrant Workers and Overseas
Filipinos Act of 1995, as amended by
Republic Act No. 10022
29. Violation of Republic Act No. 8293,
otherwise known as the Intellectual
 Property Code of the Philippines
30. Violation of Section 4 of Republic Act
No. 9995, otherwise known as the Anti-
Photo and Video Voyeurism Act of
2009
31. Violation of Section 4 of Republic Act
No. 9775, otherwise known as the Anti-
Child Pornography Act of 2009
32. Violations of Sections 5, 7, 8, 9, 10(c),
(d) and (e), 11, 12 and 14 of Republic
Act No. 7610, otherwise known as the
Special Protection of Children Against
Abuse, Exploitation and Discrimination
33. Fraudulent practices and other
violations under Republic Act No. 8799,
otherwise known as the Securities
Regulation Code of 2000 (R.A. No.
10635, Sec. 2).
The Anti-Money Laundering Council
(AMLC)
Composition
1. Chairman: Governor of the BSP;
2. Commissioner of the Insurance
Commission; and
3. Chairman of the Securities and
Exchange Commission (R.A. No.
9160, Sec. 7).
Functions
1. To require and receive covered or
suspicious transaction reports from
covered institutions;
2. To issue orders addressed to the
appropriate Supervising Authority or
the covered institutions to determine
the true identity of the owner of any
monetary instrument or property
subject of a covered transaction or
suspicious transaction report or request
for assistance from a foreign State, or
believed by the Council, on the basis of
substantial evidence, to be, in whole or
in part, wherever located, representing,
involving, or related to directly or
indirectly, in any manner or by any
means, the proceeds of an unlawful
activity;
3. To institute civil forfeiture proceedings
and all other remedial proceedings
through the Office of the Solicitor
General;
4. To cause the filing of complaints with
the Department of Justice or the
Ombudsman for the prosecution of
money laundering offenses;
5. To investigate suspicious transactions
and covered transactions deemed
suspicious after an investigation by
AMLC, money laundering activities and
other violations of this Act;
6. To apply before the Court of Appeals,
ex parte, for the freezing of any
monetary instrument or property
alleged to be laundered, proceeds
from, or instrumentalities used in or
intended for use in any unlawful activity
as defined in Section 3(i) hereof;
7. To implement such measures as may
be necessary and justified under this
Act to counteract money laundering;
8. To receive and take action in respect of,
any request from foreign states for
assistance in their own anti-money
laundering operations provided in this
Act;
9. To develop educational programs on
the pernicious effects of money
laundering, the methods and
techniques used in the money
laundering, the viable means of
preventing money laundering and the
effective ways of prosecuting and
punishing offenders;
10. To enlist the assistance of any branch,
department, bureau, office, agency, or
instrumentality of the government,
including government-owned and -
controlled corporations, in undertaking
any and all anti-money laundering
operations, which may include the use
of its personnel, facilities and resources
for the more resolute prevention,
detection, and investigation of money
laundering offenses and prosecution of
offenders;
11. To impose administrative sanctions for
the violation of laws, rules, regulations,
and orders and resolutions issued
pursuant thereto;(R.A. No. 9194, Sec.
5) and
12. To require the Land Registration
Authority and all its Registries of Deeds
to submit to the AMLC, reports on all
real estate transactions involving an
amount in excess of Five hundred
thousand pesos (P500,000.00) within
fifteen (15) days from the date of
registration of the transaction, in a form
to be prescribed by the AMLC. The
AMLC may also require the Land
Registration Authority and all its
Registries of Deeds to submit copies of
relevant documents of all real estate
transactions (R.A. No. 10365, Sec. 7).
Freezing of Monetary Instrument or
Property
The power of the AMLC to freeze accounts
has been deleted under R.A. No. 9194
(Sec. 7).
The Court of Appeals (CA) may issue a
freeze order which shall be effective
immediately, and which shall not exceed
six (6) months depending upon the
circumstances of the case upon:
1. A verified ex parte petition by the
AMLC; and
2. After determination that probable
cause exists that any monetary
instrument or property is in any way
related to an unlawful activity as
defined in Sec. 3(i) of R.A. No.
10365.
The court should act on the petition to
freeze within twenty-four (24) hours from
filing of the petition (R.A. No. 10365, Sec.
8).
If there is no case filed against a person
whose account has been frozen within the
period determined by the court, the freeze
order shall be deemed ipso facto lifted
(R.A. No. 10365, Sec. 8).
Remedy Against Freeze Order
A person whose account has been frozen
may file a motion to lift the freeze order and
the court must resolve this motion before
the expiration of the freeze order (R.A. No.
10365, Sec. 8).
No court shall issue a TRO or Writ of
Injunction against any freeze order, except
the Supreme Court (R.A. No. 10365, Sec.
8).
Authority to Inquire in Bank Deposits
The AMLC may inquire into any deposit or
investment, including related accounts,
upon order of any competent court there is
probable cause that the deposits or
investments, including related accounts
involved, are related to an unlawful activity.
Exceptions: No court order shall be
required in the following: (KD-HD-FT)
1. Kidnapping for ransom under Art.
267, RPC;
2. Violations of the Comprehensive
Dangerous Drug Act of 2002
(R.A.No. 4, 5, 6, 7, 8, 9, 10, 12, 13,
14, 15 &16);
3. Hijacking and other violations of
R.A. No. 6235;
4. Destructive arson and murder
under the RPC, including those
perpetrated by terrorists against
non-combatant persons and similar
targets;
5. Felonies or offenses of a nature
similar to those mentioned above,
which are punishable under the
penal laws of other countries; and
6. Terrorism and conspiracy to commit
terrorism as defined and penalized
under R.A. No. 9372 (R.A. No.
10167, Sec. 2).