Anti-Money Laundering Act (R.A.9160 as amended by R.A. 9194 (2003), RA 10167 (2012), R.A.

10365
(2013), R.A. 10927 (2017) and R.A 11521 (2021)

PURPOSE:
 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
 to extend cooperation in transnational investigations and prosecutions of persons involved in money
laundering activities whenever committed

MONEY LAUNDERING, DEFINED

 a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to
have originated from legitimate sources
 committed by any person who, knowing that any monetary instrument or property represents, involves,
or relates to the proceeds of any unlawful activity:
1. Transacts or attempts to 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 paragraphs (1), (2)
or (3);
5. Aids, abets, assists in or counsels the commission of the money laundering offenses referred
to in paragraphs (1), (2) or (3) above; and
6. Performs or fails to perform any act as a result of which he facilitates the offense of money
laundering referred to in paragraphs (1), (2) or (3) above.
 also committed by any covered person who, knowing that a covered or suspicious transaction is
required under this Act to be reported to the Anti-Money Laundering Council (AMLC), fails to do so.

STAGES OF MONEY LAUNDERING

1. Placement – The launderer inserts dirty money into a legitimate financial institution
2. Layering – Involves sending money through various financial transactions to change its form and make it
more difficult to follow
3. Integration – At this stage the money re-enters mainstream economy in legitimate-looking form, appearing
to have come from legitimate transactions

COVERED PERSONS
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;
3) Those who are:
i) Securities dealers, brokers, salesmen, investment houses and other similar entities managing
securities or rendering services as investment agent, advisor, or consultant,
ii) Mutual funds, close – end investment companies, common trust funds, pre – need companies and
other similar entities
iii) Foreign exchange corporations, money changers, money payment, remittance and transfer
companies and other similar entities, and
iv) 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 Php1,000,000.
5) Jewelry dealers in precious stones, who, as a business, trade in precious stones, for transactions in excess of
Php1,000,000.
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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
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 or selling
business entities.
8) Casinos, including internet and ship-based casinos, with respect to their casino cash transactions related to
their gaming operations.
9) Real estate developers and brokers;
10) Offshore gaming operation, as well as their service providers, supervised, accredited or regulated by the
Philippine Amusement and Gaming Corporation (PAGCOR) or any government agency;

The term ‘covered persons’ excludes lawyers and accountants acting as independent legal professionals,
(1) in relation to information concerning their clients; or
(2) where disclosure of information would compromise client confidences or the attorney-client
relationship.

Provided,
(1) that these lawyers and accountants are authorized to practice in the Philippines and
(2) shall continue to be subject to the provisions of their respective codes of conduct and/or professional
responsibility or any of its amendments.

OBLIGATIONS OF COVERED INSTITUTIONS

a. Customer Identification
b. Record Keeping
c. Reporting of Covered and Suspicious Transactions

Customer Identification
Covered institutions shall:
a. Establish and record a true identity of its clients, based on official documents
b. Maintain a system of verifying the true identity of their clients
c. In case of corporate clients, require a system to verify:
1. Legal existence and organizational structure; and
2. Authority and identification of persons purporting to act on their behalf

Anonymous accounts, accounts under fictitious names, and all other similar accounts shall be absolutely
prohibited.

Peso and foreign currency non- checking numbered accounts shall be allowed.

Record Keeping
 All records of all transactions of covered institutions shall be maintained and safely stored for five (5)
years from the dates of transactions.
 With respect to closed accounts, the records on customer identification, account files and business
correspondence, shall be preserved and safely stored for at least five (5) years from the dates when
they were closed.

Reporting of Covered and Suspicious Transactions

General Rule: Covered persons shall report to the AMLC all covered transactions within five (5) working
days from occurrence.
Exception: If the AMLC prescribes a different period not exceeding fifteen (15) working days.

When reporting covered transactions to the AMLC:

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a. Covered institutions and their officers, and employees are prohibited from communicating, directly or
indirectly, in any manner, to any person, entity, or the media:
1. The fact that a covered transaction report has or is about to be reported;
2. The contents thereof;
3. Any other information in relation thereto; and
b. Neither may such reporting be published or aired in any manner or form by the mass media, electronic mail,
or other similar devices.

In case of violation, criminal liability ensues as against the concerned officer and employee of the covered
person and media.

COVERED TRANSACTION

General Rule: A covered transaction is a transaction in cash or other equivalent monetary instrument involving
a total amount in excess of Php 500,000 within one banking day.

Exception:
1. Casinos - a single casino cash transaction involving an amount in excess of P5,000,000 or its equivalent
in any other currency
2. Real estate developers and brokers - a single cash transaction involving an amount in excess of
P7,500,000 or its equivalent in any other currency

SUSPICIOUS TRANSACTIONS
 transactions with covered institutions, regardless of the amounts involved, where any of the following
circumstances exist:
1. There is no underlying legal or trade obligation, purpose or economic justification;
2. The client is not properly identified;
3. The amount involved is not commensurate with the business or financial capacity of the
client;
4. Taking into account all known circumstances, it may be perceived that the client’s transaction
is structured to avoid being the subject of reporting requirements under this Act;
5. Any circumstance relating to the transaction which is observed to deviate from the profile of
the client and/or the client’s past transactions with the covered institution;
6. The transaction is in any way related to an unlawful activity or offense under this Act that is
about to be, is being or has been committed.
7. Any transaction that is similar or analogous to any of the foregoing.

UNLAWFUL ACTIVITIES
Any act or omission or series or combination thereof involving or having direct relation to the following:
1. Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the Revised Penal Code,
as amended;
2. Sections 4, 5, 6, 8, 9, 10, 12, 13, 14, 15, and 16 of RA 9165, otherwise known as the Comprehensive
Dangerous Drugs Act of 2002;
a. Importation of prohibited drugs
b. Sale of prohibited drugs
c. Administration of prohibited drugs
d. Distribution of prohibited drugs
e. Transportation of prohibited drugs
f. Maintenance of a den, dive, or resort for prohibited users
g. Manufacture of prohibited drugs
h. Possession of prohibited drugs
i. Use of prohibited drugs
j. Cultivation of plants which are sources of prohibited drugs
k. Culture of plants which are sources of prohibited drugs
3. Section 3 paragraphs B, C, E, G, H and I of RA. 3019, as amended; otherwise known as the Anti-Graft and
Corrupt Practices Act;
4. Plunder under RA 7080, as amended;
5. Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 ofthe Revised Penal Code, as
amended;
a. Robbery with violence or intimidation of persons
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 b. Robbery with physical injuries committed in an uninhabited place and by a band, or with the use of
firearms on a street, road or alley
c. Robbery in an uninhabited house or public building or edifice devoted to worship
6. Jueteng and masiao punished as illegal gambling under Presidential Decree No. 1602;
7. Piracy on the high seas under the Revised Penal Code, as amended and Presidential Decree No. 532;
a. Piracy on the high seas
b. Piracy in inland Philippine waters
c. Aiding and abetting pirates and brigands
8. Qualified theft under Article 310 of the Revised Penal Code, as amended;
9. Swindling under Article 315 of the Revised Penal Code, as amended;
10. Smuggling under RA Nos. 455 and 1937;
11. Violations under RA 8792, otherwise known as the Electronic Commerce Act of 2000;
12. Hijacking and other violations under RA 6235; Destructive arson and murder, as defined under the
Revised Penal Code, as amended
13. Terrorism and conspiracy to commit terrorism as defined and penalized under Sections 3 and 4 of RA
No. 9372;
14. Financing of terrorism under Section 4 and offenses punishable under Sections 5, 6, 7 and 8 of RA 10168,
otherwise known as the Terrorism Financing Prevention and Suppression Act of 2012;
15. Bribery under Articles 210, 211 and 211-A of the Revised Penal Code, as amended, and Corruption of
Public Officers under Article 212 of the Revised Penal Code, as amended;
16. Frauds and Illegal Exactions and Transactions under Articles 213, 214, 215 and 216 of the Revised
Penal Code, as amended;
17. Malversation of Public Funds and Property under Articles 217 and 222 of the Revised Penal Code, as
amended;
18. Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169 and 176 of the Revised Penal Code,
as amended;
19. Violations of Sections 4 to 6 of RA 9208, otherwise known as the Anti-Trafficking in Persons Act of
2003;
20. Violations of Sections 78 to 79 of Chapter IV, of Presidential Decree No. 705, otherwise known as the
Revised Forestry Code of the Philippines, as amended;
21. Violations of Sections 86 to 106 of Chapter VI, of RA 8550, otherwise known as the Philippine Fisheries
Code of 1998;
22. Violations of Sections 101 to 107, and 110 of RA 7942, otherwise known as the Philippine Mining Act
of 1995;
23. Violations of Section 27(c), (e), (f), (g) and (i), of RA 9147, otherwise known as the Wildlife Resources
Conservation and Protection Act;
24. Violation of Section 7(b) of RA 9072, otherwise known as the National Caves and Cave Resources
Management Protection Act;
25. Violation of RA 6539, otherwise known as the Anti-Carnapping Act of 2002, as amended;
26. Violations of Sections 1, 3 and 5 of PD 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 PD 1612, otherwise known as the Anti-Fencing Law;
28. Violation of Section 6 of RA 8042, otherwise known as the Migrant Workers and Overseas Filipinos
Act of 1995, as amended by RA 10022;
29. Violation of RA 8293, otherwise known as the Intellectual Property Code of the Philippines;
30. Violation of Section 4 of RA 9995, otherwise known as the Anti-Photo and Video Voyeurism Act of
2009;
31. Violation of Section 4 of RA 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 RA 7610, otherwise known as the
Special Protection of Children Against Abuse, Exploitation and Discrimination.
33. Fraudulent practice and other violations under RA 8799, otherwise known as the Securities Regulation
Code of 2000;
34. Violation of Section 9 (a)(3) of Republic Act No. 10697, otherwise known as the Strategic Trade
Management Act, in relation to the proliferation of weapons of mass destruction and its financing
35. Violation of Section 254 of Chapter II, Title X of the National Internal Revenue Code of 1997, as
amended
• where the deficiency basic tax due in the final assessment is in excess of P25,000,000.00 per taxable
year, for each tax type covered and
• there has been a finding of probable cause by the competent authority
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 • provided
 there must be a finding of fraud, willful misrepresenting or malicious intent on the part of the
taxpayer
• provided, finally
 in no case shall the AMLC institute forfeiture proceedings to recover monetary instruments,
property or proceeds representing, involving, or relating to a tax crime, if the same has already
been recovered or collected by the Bureau of Internal Revenue (BIR) in a separate proceeding
36. Felonies or offenses of a similar nature that are punishable under the penal laws of other countries.

SAFE HARBOR PROVISION

 no administrative, criminal or civil proceedings shall lie against any person for having made a covered
transaction report
 in the regular performance of his duties and
 in good faith,
 whether or not such reporting results in any criminal prosecution under this Act or any other
Philippine law

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