MONEY LAUNDERING

is a process by which the proceeds

of the crime, and the true ownership
of those proceeds, are concealed so
that the proceeds appear to come
from a legitimate source.
 Placement
The goal in this stage is to deposit criminal
proceeds, generally cash, into a bank
account at home or abroad. For this
purpose, cash could be switched into other
valuables like trade goods, diamonds, gold
bars or cheques
 Layering
The goal in this stage is the concealment
of the criminal origin of the proceeds.
Therefore, money can be transferred and
split frequently between bank accounts,
countries, individuals and/or corporations.
 Integration: Justification
The goal in this stage is to create an apparent
legal origin for the criminal proceeds.
This can be done by:
•Using criminal proceeds in transactions with third
parties.
•Doing business with yourself (falsifying sources
of income, capital gains and/or loans);
•Disguising the ownership of assets
 Integration: Investment
The goal in this final stage is to use criminal
proceeds for personal benefit. Cash or electronic
money can be used for:
• Investing: bank accounts, real estate, stocks,
funding of legal and illegal business activities.
• Safekeeping: cash on hand;
• Consumption: day to day expenditures, lifestyle,
jewelries, vehicles, yachts, art
EXAMPLE OF A MONEY LAUNDERING ACTIVITY
 Law that defines and penalizes
Money Laundering
Republic Act No. 9160, otherwise known as
the Anti-Money Laundering Act of 2001, as
amended by Republic Act No. 9194, 10167,
and 10365 (AMLA)
The AMLA created the Anti-Money
Laundering Council (AMLC).
 The AMLC is mandated to act unanimously in the
dis charge of its functions, which include:

 the implementation of necessary measures to

counteract money laundering;
 investigation of suspicious transactions and covered
transactions deemed suspicious after an investigation
by the AMLC;
  filing of complaints with the Department of
Justice or the Ombudsman for the prosecution of
money laundering offences;
 institution of civil forfeiture proceedings and all other
remedial proceedings through the Office of the
Solicitor General, among others (AMLA, section 7);
and
 Investigation of financing of terrorism and any property
or funds that relates to said offence (Republic Act No.
10168, section 10).
 The BSP also issued Circular
No. 706, series of 2011, the
Updated Anti-Money Laundering
Rules and Regulations for banks,
trust entities and other institutions
under its supervisory authority.
 The Supreme Court also promulgated AM
No, 05-11-04, or the Rule of Procedure in
Cases of Civil Forfeiture, Asset Preservation,
and Freezing of Monetary Instrument,
Property or Proceeds Representing, Involving,
or Relating to an Unlawful Activity or Money
Laundering Offence under Republic Act No.
9160, as amended.
.
 Criminal enforcement

Which government entities enforce your jurisdiction’s

money laundering laws?

The AMLC is the government agency tasked

with implementing the AMLA, including the
investigation of suspicious transactions and
covered transactions deemed suspicious after its
investigation (AMLA, section 7(5))..
 The offence of money laundering

What constitutes money laundering?

Section 4 of the AMLA defines money laundering as

a crime whereby the proceeds of an unlawful activity as
defined in the AMLA are transacted and such
proceeds are made to appear to have originated from
legitimate sources.
 It is committed by any person who, knowing that any
monetary instrument or property represents, involves or
relates to the proceeds of any unlawful activity carries
out any of the following acts:

 transacts the said monetary instrument or property;

 converts, transfers, disposes of, moves, acquires,
possesses or uses the said monetary instrument or
property; or
.
 conceals or disguises the true nature, source, location,
disposition, movement or ownership of or rights with
respect to the said monetary instrument or property

The following acts committed by any person also

constitute money laundering:
 an attempt or conspiracy to commit the money
laundering offences referred to above;
.
  aiding, abetting, assisting in or counselling the
commission of the offences referred to above; and
 Performing or failure to perform any act that facilitates
the commission of the offences referred to above.

Also, money laundering is committed by any covered

person who, knowing that a covered or suspicious
transaction is required under the AMLA to be reported
to the AMLC, fails to do so.
.
 Qualifying assets and transactions

Is there any limitation on the types of assets or

transactions that can form the basis of a money laundering
offence?

Any asset or transaction may form the basis of a money

laundering offence. Assets may include cash, monetary
instruments, or other property, both personal and real
property.
.
 Qualifying assets and transactions

Is there any limitation on the types of assets or

transactions that can form the basis of a money laundering
offence?

Any asset or transaction may form the basis of a money

laundering offence. Assets may include cash, monetary
instruments, or other property, both personal and real
property.
.