Professional Documents
Culture Documents
Banks, offshore banking units, quasi-banks, trust entities, non-stock savings and
loan associations, pawnshops, foreign exchange dealers, money changers, money
remittance or transfer companies, electronic money issuers and all other persons and
entities supervised or regulated by the BSP, including their subsidiaries and affiliates.
(a)
a) A subsidiary means an entity more than 50% of the outstanding voting stock of
which is owned by a bank, quasi-bank, trust entity or any other institution being
supervised and regulated by the BSP.
b) An affiliate means an entity at least twenty percent (20%) but not exceeding fifty
percent (50%) of the outstanding voting stock of which is owned by a bank, quasibank, trust entity or any other institution being supervised and regulated by BSP.
3.1.2.
b) An insurance agent includes any person who for compensation solicits or obtains
insurance on behalf of any insurance company or transmits for a person other
than himself an application for a policy or contract of insurance to or from such
company or offers or assumes to act in the negotiation of such insurance.
c) An insurance broker includes any person who for any compensation, commission
or other thing of value acts or aids in any manner in soliciting, negotiating or
procuring the making of any insurance contract or in placing risk or taking out
insurance, on behalf of an insured other than himself.
d) A professional reinsurer includes any entity that transacts solely and exclusively
reinsurance business in the Philippines, whether domestic or foreign company. A
contract of reinsurance is one by which an insurer procures a third person to
insure him against loss or liability by reason of such original insurance.
e) A reinsurance broker is one who, for compensation, not being a duly authorized
agent, employee or officer of an insurer in which any reinsurance is effected, acts
or aids in any manner in negotiating contracts of reinsurance, or placing risks of
effecting reinsurance, for any insurance company authorized to do business in
the Philippines.
f) A holding company includes any person who directly or indirectly controls any
authorized insurer.
g) A holding company system includes a holding company together with its
controlled insurers and controlled persons.
h) A pre-need company refers to any corporation registered with the Commission
and authorized/licensed to sell or offer to sell pre-need plans. The term preneed company also refers to schools, memorial chapels, banks, non-bank
financial institutions and other entities which have also been authorized/licensed
to sell or offer to sell pre-need plans insofar as their pre-need activities or
business are concerned. Pre-need plans are contracts, agreements, deeds or
plans for the benefit of the plan holders which provide for the performance of
future service/s, payment of monetary considerations or delivery of other benefits
at the time of actual need or agreed maturity date, as specified therein, in
exchange for cash or installment amounts with or without interest or insurance
coverage and includes life, pension, education, interment and other plans,
instruments, contracts or deeds as may in the future be determined by the
Commission.
i) Mutual Benefit Association refers to any society, association or corporation,
without capital stock, formed or organized not for profit but mainly for the purpose
of paying sick benefits to members, or of furnishing financial support to members
while out of employment, or of paying to relatives of deceased members of fixed
or any sum of money, irrespective of whether such aim or purpose is carried out
by means of fixed dues or assessments collected regularly from the members, or
of providing, by the issuance of certificates of insurance, payment of its members
of accident or life insurance benefits out of such fixed and regular dues or
assessments, but in no case shall include any society, association, or corporation
with such mutual benefit features and which shall be carried out purely from
voluntary contributions collected not regularly and or no fixed amount from
whomsoever may contribute.
3.1.3.
The following Covered Persons under the supervision and regulation of the Securities
and Exchange Commission (SEC):
Jewelry dealers in precious metals, who, as a business, trade in precious metals; (n)
3.1.5.
Jewelry dealers in precious stones, who, as a business, trade in precious stones; (n)
3.1.6.
3.1.7.
Persons who provide any of the following services other than those supervised and
regulated by the BSP, SEC and IC:
a) Managing of client money, securities or other assets;
b) Management of bank, savings or securities accounts;
c) Organization of contributions for the creation, operation or management of
companies; and
d) Creation, operation or management of juridical persons or arrangements, and
buying and selling business entities.
Notwithstanding the foregoing, the term covered persons shall exclude lawyers and
accountants acting as independent legal professionals in relation to information
concerning their clients or where disclosure of information would compromise client
confidences or the attorney-client relationship: Provided, that these lawyers and
accountants are authorized to practice in the Philippines and shall continue to be
subject to the provisions of their respective codes of conduct and/or professional
responsibility or any of its amendments. (n)
Independent legal professional are lawyers and accountants working in a private
firm or sole practitioner who by way of business provides purely legal or notarial
services to their clients.
3.2.
Customer refers to any person or entity that keeps an account, or otherwise transacts
business, with a covered person, and any person or entity on whose behalf an account is
maintained or a transaction is conducted, as well as the beneficiary of said transactions. A
customer also includes the following: i) beneficiary of a trust, an investment fund or a
pension fund; ii) a company or person whose assets are managed by an asset manager; iii)
a grantor of a trust; and iv) any insurance policy holder, whether actual or prospective.
3.3.
Beneficial owner shall mean any natural person who ultimately owns or controls the
customer and/or any natural person on whose behalf a transaction or activity is being
conducted. It also includes those persons who exercise ultimate effective control over a
legal person or arrangement.
3.3.1.
Ultimate effective control refers to situations in which
ownership/control is exercised through actual or a chain of ownership or by means of
control other than direct control.
3.4.
3.5.
e)
f)
g)
h)
i)
3.6.
3.7.
3.8.
3.9.
Property refers to anything or item of value, tangible or intangible, or any interest therein,
any benefit, privilege, claim or other right with respect thereto, which include, but not limited
to - the following:
a)
b)
c)
3.10.
Related Accounts are those accounts, the funds and sources of which originated from
and/or are materially linked to the monetary instruments or properties subject of the
freeze order.
3.10.1. Materially linked accounts
For the purpose of this paragraph, it shall include but are not limited to the following:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
All accounts or monetary instruments under the name of the immediate family
or household members of the person whose accounts, monetary instruments
or properties are the subject of the freeze order if the amount or value
involved is not commensurate with the business or financial capacity of the
said family or household member.
Immediate family members includes the spouse/partner, parents, parentsin-law, children and their spouses. Household members shall refer to
persons other than members of the immediate family, who live in the same
house, including but not limited to, family driver/s and house helper/s; (n)
(vii) All accounts of corporate or juridical entities the beneficial owner of which is
the subject of the freeze order.
(viii) All shares or units in any investment accounts and/or pooled funds of the
person whose accounts, monetary instruments or properties are subject of
the freeze order; and
(ix) All other accounts, shares, units or monetary instruments that are similar,
analogous or identical to any of the foregoing.
3.11. Supervising Authority (SA) refers to the BSP, the SEC, the IC, and the relevant
regulatory bodies of the Designated Non-Financial Businesses and Professions (DNFBPs)
herein enumerated under Sections 3.1.4 to 3.1.7, or other government agency/ies
designated by Law. For DNFBPs without SAs, the AMLC shall act as the SA for AML/CFT
purposes.(a)
3.12. Transaction refers to any act establishing any right or obligation or giving rise to any
contractual or legal relationship between the parties thereto. It also includes any movement
of funds by any means with a covered person.
4.9.1.
4.9.2.
4.9.3.
4.9.4.
4.9.5.
4.9.6.
4.9.7.
4.9.8.
3.12.1. Covered Transaction
3.12.1.1.
e) any circumstance relating to the transaction which is observed to deviate from the
profile of the client and/or the clients past transactions with the covered person;
f) the transaction is in any way related to an unlawful activity or any money
laundering activity or offense, is being or has been committed;
g) any transaction that is similar, analogous or identical to any of the foregoing.
3.13. Unlawful activity refers to 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, 11, 12,13, 14, 15 and 16 of Republic Act No. 9165,
otherwise known as the Comprehensive Dangerous Drugs Act of 2002;
a) Importation of prohibited drugs;
b) Sale of prohibited drugs;
c) Trading of prohibited drugs;
d) Administration of prohibited drugs;
e) Dispensation of prohibited drugs;
f) Delivery of prohibited drugs;
g) Distribution of prohibited drugs;
h) Transportation of prohibited drugs;
i) Maintenance of a Den, Dive or Resort for prohibited drugs;
j) Illegal chemical diversion of prohibited drugs;
k) Manufacture or delivery of equipment, instrument, apparatus and other
paraphernalia for prohibited drugs;
l) Possession of prohibited drugs;
m) Possession of equipment, instrument, apparatus and other paraphernalia for
prohibited drugs;
n) Possession of prohibited drugs during parties, social gatherings or meetings;
o) Possession of equipment, instrument, apparatus and other paraphernalia for
prohibited drugs during parties, social gatherings or meetings;
p) Use of prohibited drugs;
q) Cultivation of plants classified as or which are sources of prohibited drugs;
r) Culture of plants classified as or which are sources of prohibited drugs;
3. Section 3 paragraphs b, c, e, g, h and i of Republic Act No. 3019, as amended,
otherwise known as the Anti-Graft and Corrupt Practices Act;
a) Directly or indirectly requesting or receiving any gift, present, share, percentage
or benefit for himself or for any other person in connection with any contract or
transaction between the Government and any other party, wherein the public
officer in his official capacity has to intervene under the law;
b) Directly or indirectly requesting or receiving any gift, present or other pecuniary or
material benefit, for himself or for another, from any person for whom the public
officer, in any manner or capacity, has secured or obtained, or will secure or
obtain, any government permit or license, in consideration for the help given or to
be given, without prejudice to Section 13 of R.A. No. 3019;
c) Causing any undue injury to any party, including the Government, or giving any
private party any unwarranted benefits, advantage or preference in the discharge
of his official, administrative or judicial functions through manifest partiality,
evident bad faith or gross inexcusable negligence;
d) Entering, on behalf of the Government, into any contract or transaction manifestly
and grossly disadvantageous to the same, whether or not the public officer
profited or will profit thereby;
e) Directly or indirectly having financial or pecuniary interest in any business
contract or transaction in connection with which he intervenes or takes part in his
official capacity, or in which he is prohibited by the Constitution or by any law from
having any interest;
f)
b)
c)
d)
e)
f)
g)
h)
10. Smuggling under Republic Act No. 455 and under Republic Act No. 1937, as
amended, otherwise known as the Tariff and Customs Code of the Philippines:
a) Unlawful importation - Fraudulently importing or bringing into the Philippines, or
assisting in so doing, any article, contrary to law, or receiving, concealing, buying,
selling or in any manner facilitating the transportation, concealment or sale of
such article after importation, knowing the same to have been imported contrary
to law; and
b) Various fraudulent practices against customs revenue - Making or attempting to
make any entry of imported or exported article by means of any false or
fraudulent invoice, declaration, affidavit, letter, paper, or by means of any false
statement, written or verbal, or by means of any false or fraudulent practice
whatsoever, or any willful act or omission by means whereof the Government of
the Republic of the Philippines might be deprived of the lawful duties, taxes and
other charges, or any portion thereof, accruing from the article or any portion
thereof, embraced or referred to in such invoice, declaration, affidavit, letter,
paper, or statement, or affected by such act or omission.
11. Violations under Republic Act No. 8792, otherwise known as the Electronic
Commerce Act of 2000:
a) Hacking or cracking, which refers to:
(i) unauthorized access into or interference in a computer system/server or
information and communication system;
(ii) any access in order to corrupt, alter, steal, or destroy using a computer or
other similar information and communication devices, information and
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(i)
Violations of Article 122 (Piracy in General and Mutiny in the High Seas or
in the Philippine Waters)
(ii) Violation of Article 134 (Rebellion or Insurrection)
(iii) Violation of Article 134-a (Coup dEtat), including acts committed by private
persons
(iv) Violations of Article 248 (Murder)
(v) Violation of Article 267 (Kidnapping and Serious Illegal Detention)
(vi) Violations of Article 324 (Crimes Involving Destruction)
(vii) Violations under Presidential Decree No. 1613 (The Law on Arson)
(viii) Violations under Republic Act No. 6969 (Toxic Substances and Hazardous
and Nuclear Waste Control Act of 1990)
(ix) Violations under Republic Act No. 5207 (Atomic Energy Regulatory and
Liability Act of 1968)
(x) Violations under Republic Act No. 6235 (Anti-Hijacking Law)
(xi) Violations of Presidential Decree No. 532 (Anti-Piracy and Anti-Highway
Robbery Law of 1974)
(xii) Presidential Decree No. 1866, as amended (Decree Codifying the Laws on
Illegal and Unlawful Possession, Manufacture, Dealing in, Acquisition or
Disposition of Firearms, Ammunitions or Explosives)
- thereby sowing and creating a condition of widespread and extraordinary fear and
panic among the populace, in order to coerce the government to give in to an
unlawful demand;
b) Conspiracy to commit terrorism There is conspiracy when two or more persons
come to an agreement concerning the commission of the crime of terrorism as
defined in item Section 3.14(13)(a);
14. Financing of Terrorism under Section 4 and offenses punishable under Sections 5, 6,
7 and 8 of Republic Act No. 10168, otherwise known as the Terrorism Financing
Prevention and Suppression Act of 2012:
a) Directly or indirectly, willfully and, without lawful excuse, possessing, providing,
collecting or using property or funds or making available property, funds or
financial service or other related services, by any means, with the unlawful and
willful intention that they should be used or with the knowledge that they are to be
used, in full or in part: (a) to carry out or facilitate the commission of any terrorist
act; (b) by a terrorist organization, association or group; or (c) by an individual
terrorist;
b) Organizing or directing others to commit financing of terrorism;
c) Attempt to commit the crimes of financing of terrorism and dealing with property
or funds of designated persons;
d) Conspiracy to commit the crimes of financing of terrorism and dealing with
property or funds of designated persons;
e) Cooperating, by previous or simultaneous acts, in the execution of either the
crime of financing of terrorism or conspiracy to commit the crime of financing of
terrorism;
f) Having knowledge of the commission of the crime of financing of terrorism but
without having participated therein as principal, taking part subsequent to the
commission of the crime of financing of terrorism by profiting from it or by
assisting the principal or principals in the crime of financing of terrorism to profit
by the effects of the crime, or by concealing or destroying the effects of the crime
in order to prevent its discovery, or by harboring, concealing or assisting in the
escape of the principal in the crime of financing of terrorism;
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:
a) A public officer commits bribery by -
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13
14
m)
n)
o)
p)
agencies that are mandated to provide pre-departure registration and services for
departing persons for the purpose of promoting trafficking in persons;
Facilitating, assisting or helping in the exit and entry of persons from /to the
country at international and local airports, territorial boundaries and seaports who
are in possession of unissued, tampered or fraudulent travel documents for the
purpose of promoting trafficking in persons;
Confiscating, concealing, or destroying the passport, travel documents, or
personal documents or belongings of trafficked persons in furtherance of
trafficking or to prevent them from leaving the country or seeking redress from the
government or appropriate agencies;
Knowingly benefitting from, financial or otherwise, or making use of, the labor or
services of a person held to a condition of involuntary servitude, forced labor, or
slavery; and
Qualified trafficking in persons;
22. Violations of Sections 101 to 107, and 110 of Republic Act No. 7942, otherwise known
as the Philippine Mining Act of 1995:
a) Knowingly presenting any false application, declaration or evidence to the
Government or publishing or causing to be published any prospectus or other
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b)
c)
d)
e)
f)
g)
h)
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:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
Sec. 1 and 5 has been expressly repealed by RA 10591 (May 29, 2013) and all laws inconsistent with it (Sec.
45 - repealing clause) effectively repealing also coverage by the AMLA of Sec. 1 and 5. There are similar
provisions under Sec. 32 and 34 of RA 10591 (new provisions, not amendatory to Sec. 1 and 5 of PD 1866). In
effect the following are still unlawful activities:
1.
2.
3.
4.
Unlawful acquisition or possession of firearms and ammunition (Sec. 28, R.A. No. 10591);
Unlawful manufacture, sale or disposition of the following:
a.
Firearms;
b.
Ammunition;
c.
Parts of firearms or ammunition; and/or
d.
Machinery, tool or instrument to be used or intended to be used in the
manufacture of firearms and ammunition (Sec. 32, R.A. No. 10591);
Unlawful manufacture, sale, acquisition, disposition or possession of explosives (Sec. 3,
P.D. No. 1866); and
Tampering, obliterating or altering the serial number of any firearm (Sec. 34, R.A. No.
10591).
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Unauthorized defacing of the serial number of any firearm. (Sec. 5, P.D. No.
1866)]
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period of the expiration of the same without the approval of the Department
of Labor and Employment;
(ix) For an officer or agent of a recruitment or placement agency to become an
officer or member of the Board of any corporation engaged in travel agency
or to be engaged directly or indirectly in the management of travel agency;
(x) Withholding or denying travel documents from applicant workers before
departure for monetary or financial considerations, or for any other
reasons, other than those authorized under the Labor Code and its
implementing rules and regulations;
(xi) Failing to actually deploy a contracted worker without valid reason as
determined by the Department of Labor and Employment;
(xii) Failing to reimburse expenses incurred by the worker in connection with his
documentation and processing for purposes of deployment, in cases where
the deployment does not actually take place without the workers fault.
Illegal recruitment when committed by a syndicate or in large scale shall be
considered an offense involving economic sabotage; and
(xiii) Allowing a non-Filipino citizen to head or manage a licensed
recruitment/manning agency;
29. Violation of Republic Act No. 8293, otherwise known as the Intellectual Property Code
of the Philippines, as amended:
a) Violation of the Law on Patents
(i) Repetition of infringement;
b) Violation of the Law on Trademarks, Service Marks and Trade Names
(i) Infringement;
(ii) Unfair competition;
(iii) False designation of origin; false description or representation;
c) Violation of the Law on Copyright
(i) Infringement;
30. Violation of Section 4 of Republic Act No. 9995, otherwise known as the Anti-Photo
and Video Voyeurism Act of 2009:
a) Taking of photo or video coverage of a person or group of persons performing
sexual act or any similar activity or to capturing an image of the private area of a
person(s) such as the naked or undergarment clad genitals, pubic area, buttocks
or female breast without the consent of the person(s) involved and under
circumstances in which the person(s) has/have a reasonable expectation of
privacy;
b) Copying or reproducing, or causing to be copied or reproduced, such photo or
video or recording of sexual act or any similar activity with or without
consideration;
c) Selling or distributing, or causing to be sold or distributed, such photo or video or
recording of sexual act, whether it be the original copy or reproduction thereof;
d) Publishing or broadcasting, or causing to be published or broadcast, whether in
print or broadcast media, or showing or exhibiting the photo or video coverage or
recordings of such sexual act or any similar activity through VCD/DVD, internet,
cellular phones and other similar means or device;
31. Violation of Section 4 of Republic Act No. 9775, otherwise known as the Anti-Child
Pornography Act of 2009:
a) Hiring, employing, using, persuading, inducing or coercing a child to perform in
the creation or production of any form of child pornography;
b) Producing, directing, manufacturing or creating any form of child pornography;
c) Publishing, offering, transmitting, selling, distributing, broadcasting, advertising,
promoting, exporting or importing any form of child pornography;
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d) Possessing any form of child pornography with the intent to sell, distribute,
publish, or broadcast;
e) Knowingly, willfully and intentionally providing a venue for the commission of
prohibited acts as, but not limited to, dens, private rooms, cubicles, cinemas,
houses or in establishments purporting to be a legitimate business;
f) For film distributors, theaters and telecommunication companies, by themselves
or in cooperation with other entities, distributing any form of child pornography;
g) For a parent, legal guardian or person having custody or control of a child to
knowingly permit the child to engage, participate or assist in any form of child
pornography;
h) Engaging in the luring or grooming of a child;
i) Engaging in pandering of any form of child pornography;
j) Willfully accessing any form of child pornography;
k) Conspiring to commit any of the prohibited acts of child pornography; and
l) Possessing any form of child pornography;
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:
a) Engaging in or promoting, facilitating or inducing child prostitution;
b) Committing the act of sexual intercourse or lascivious conduct with a child
exploited in prostitution or subject to other sexual abuse;
c) Deriving profit or advantage, whether as manager or owner of the establishment
where the prostitution takes place, or of the sauna, disco, bar, resort, place of
entertainment or establishment serving as a cover or which engages in
prostitution in addition to the activity for which the license has been issued to said
establishment;
d) Engaging in trading and dealing with children including, but not limited to the act
of buying and selling of a child for money, or for any other consideration, or
barter;
e) Attempt to commit child trafficking;
f) Hiring, employing, using, persuading, inducing or coercing a child to perform in
obscene exhibitions and indecent shows, whether live or in video, or model in
obscene publications or pornographic materials or to sell or distribute the said
materials;
g) Inducing, delivering or offering a minor to any one prohibited by Republic Act No.
7610 to keep or have in his company a minor;
h) Any person, owner, manger or one entrusted with the operation of any public or
private place of accommodation, whether for occupancy, food, drink or otherwise,
including residential places, who allows any person to take along with him to such
place or places any minor;
i) Using, coercing, forcing or intimidating a street child or any other child to:
(i) Beg or use begging as a means of living;
(ii) Act as conduit or middlemen in drug trafficking or pushing; or
(iii) Conduct any illegal activities;
j) Establishments or enterprises promoting, facilitating, or conducting activities
constituting child prostitution and other sexual abuse, child trafficking, obscene
publications and indecent shows, and other acts of abuse; and
k) Employment of children except as otherwise provided by law;
33. Fraudulent practices and other violations under Republic Act No. 8799, otherwise
known as the Securities Regulation Code of 2000:
a) Sale, offer or distribution of securities within the Philippines without a registration
statement duly filed with and approved by the SEC;
b) Violation of reportorial requirements imposed upon issuers of securities;
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RULE V- JURISDICTION
Section 5. Jurisdiction in Money Laundering Cases. The Regional Trial Courts shall have the jurisdiction to try all cases on money laundering. Those
committed by public officers and private persons who are in conspiracy with such public officers shall
be under the jurisdiction of the Sandiganbayan.
RULE VI PROSECUTION
Section 6. Prosecution of Money Laundering.
6.1.
Parties and Proceedings a) Any person may be charged with and convicted of both the offense of money
laundering and the unlawful activity as defined under Section 3.i of the AMLA, as
amended.
b) The prosecution of any offense or violation under the AMLA, as amended, shall
proceed independently of any proceeding relating to the unlawful activity. (n)
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6.2.
Complaint for money laundering -When the AMLC finds, after investigation, that there is
probable cause to charge any person with a money laundering offense under Section 4 of
the AMLA, as amended, it shall cause a complaint to be filed, pursuant to Section 7 (4) of
the AMLA, as amended, before the Department of Justice or the Office of the Ombudsman,
which shall then conduct the preliminary investigation of the case.
6.3.
Information -If after due notice and hearingin the preliminary investigation proceedings, the
Department of Justice, or the Office of the Ombudsman, as the case may be, finds probable
cause for a money laundering offense, it shall file the necessary information before the
Regional Trial Courts or the Sandiganbayan.
6.4.
Trial - Trial for the money laundering offense shall proceed in accordance with the Revised
Rules of Criminal Procedures or the Revised Internal Rules of the Sandiganbayan, as the
case may be. (a)
6.5.
Proof of Knowledge - Knowledge of the offender that any monetary instrument or property
represents, involves, or relates to the proceeds of an unlawful activity or that any monetary
instrument or property is required under the AMLA, as amended, to be disclosed and filed
with the AMLC, may be established by direct evidence or inferred from the attendant
circumstances.
6.6.
6.7.
Unlawful activity - No element of the unlawful activity, however, including the identity of the
perpetrators and the details of the actual commission of the unlawful activity need be
established by proof beyond reasonable doubt. The elements of the offense of money
laundering are separate and distinct from the elements of the felony or offense constituting
the unlawful activity.
Unanimous Decision - The AMLC shall act unanimously in discharging its functions as
defined in the AMLA, as amended, and in these Rules. However, in the case of the
incapacity, absence or disability of any member to discharge his functions, the officer duly
designated or authorized to discharge the functions of the Governor of the BSP, the
Chairperson of the SEC or the Insurance Commissioner, as the case may be, shall act in
his stead in the AMLC.
7.3.
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3)
4)
5)
6)
7)
8)
9)
10)
11)
involving, or related to, directly or indirectly, in any manner or by any means, the
proceeds of any unlawful activity;
to investigate suspicious transactions and covered transactions deemed suspicious
after an investigation by the AMLC, money laundering activities and other violations
of the AMLA, as amended. In the conduct of its investigation, the AMLC may:
(i) access all necessary documents and information, except in cases where a
court order is necessary for the conduct of inquiry into or examination of
transactions, deposits or investments, including the related accounts;
(ii) take witness statements; (n)
(iii) use a wide range of investigative techniques suitable for the investigation of
money laundering and other violations of the AMLA, as amended; and(n)
(iv) request relevant documents and information from domestic government
agencies, foreign states, its financial intelligence unit, law enforcement
agency/ies, and financial regulators, or the United Nations and other
international organizations or entities.
to file with the Court of Appeals, ex-parte, through the Office of the Solicitor
General:
(i) a petition for the freezing of any monetary instrument or property that is in any
way related to an unlawful activity as defined in Section 3.13 hereof;(n)
(ii) an application for authority to inquire into or examine any particular deposit or
investment, including related accounts, with any banking institution or non-bank
financial institution;
to institute civil forfeiture proceedings and all other remedial proceedings through
the Office of the Solicitor General;
to file complaints with the Department of Justice or the Office of the Ombudsman
for the prosecution of money laundering offenses and other violations under the
AMLA, as amended;
to formulate and implement such measures as may be inherent, necessary, implied,
incidental and justified under the AMLA, as amended, to counteract money
laundering, which may include the exercise of visitorial powers, examination and
audit to ensure compliance of covered persons with the AMLA, as amended, these
Rules and pertinent resolutions and directives issued by the AMLC. Subject to such
limitations provided by law, the AMLC is authorized under Section 7 (7) of the
AMLA, as amended, to establish an information sharing system that will enable the
AMLC to store, track, analyze and investigate money laundering transactions and
to disseminate results of its analysis and investigation to competent authorities for
the resolute prevention, detection and prosecution of money laundering offenses
and other violations of the AMLA, as amended. For this purpose, the AMLC shall
install a computerized system that will be used in the creation and maintenance of
an information database.(second sentence, item 7, Old Rules)
to receive and take action in respect of any request from foreign states for
assistance in their own anti-money laundering operations as provided in the AMLA,
as amended, subject to the requirements under Section 15 hereof.
to develop educational programs including awareness campaign on the pernicious
effects, the methods and techniques used and the viable means of preventing
money laundering and the effective ways of prosecuting and punishing offenders;
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. The AMLC may require the intelligence units of the Armed
Forces of the Philippines, the Philippine National Police, the Department of
Finance, the Department of Justice, as well as their attached agencies, and other
domestic or transnational governmental or non-governmental organizations or
groups to divulge to the AMLC all information that may, in any way, facilitate the
resolute prevention, investigation and prosecution of money laundering offenses
and other violations of the AMLA, as amended, and other relevant laws and
regulations;
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
23
12)
13)
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.(n)
to issue and implement rules, regulations, orders and resolutions as may be
necessary and appropriate to effectively implement the AMLA, as amended, and
other relevant laws and regulations; (item 11, Old Rules)
to impose administrative sanctions pursuant to Section 16.5. for the violation of
laws, rules, regulations, orders and resolutions issued pursuant thereto, as may be
determined by the AMLC; and (item 12, Old Rules)
7.4. Meetings- The AMLC shall meet once a month, or as may be necessary at the call of the
Chairperson.
Customer Identification and Verification. Covered persons shall establish and record the
true identity of its clients based on official documents. They shall maintain a system of
24
verifying the true identity of their clients and, in case of corporate clients, require a system
of verifying their legal existence and organizational structure, as well as the authority and
identification of all persons purporting to act on their behalf. Covered persons shall
establish appropriate systems and methods based on internationally compliant standards
and adequate internal controls for verifying and recording the true and full identity of their
customers. (Rule 9.a.1, Old Rules)
9.1.1. Prohibition against opening of Accounts without Face-to-face Contact. No
new account shall be opened and created by any covered person without face-toface contact with their client, except under the following circumstances : (Rule
9.a.7, Old Rules)
a) Outsourcing of the Conduct of Face-to-Face Contact. Subject to the rules
promulgated for the purpose by the Supervising Authorities, a covered person
may outsource to a counter-party the conduct of the requisite face-to-face
contact. Provided that the ultimate responsibility for identifying the customer shall
lie with the covered person. (Rule 9.a.10, Old Rules)
The covered person shall ensure that the employees or representatives of the
counter-party responsible for the face-to-face contact undergo similar training
program as that of its own employees.
b) Third party reliance. Subject to the rules promulgated for the purpose by the
Supervising Authorities, where a third party has already conducted the requisite
face-to-face contact and the identification requirements on its own customer in
accordance with these Rules and its own Money Laundering and Terrorist
Financing Prevention Program, a covered person may rely on the representation
of the third party that it has already undertaken said face-to-face contact and
customer identification requirements. (Rule 9.a.11, Old Rules) (a)
Notwithstanding the above, the ultimate responsibility for identifying and
establishing the full and true identity of the customer remains with the Covered
Person relying on the third party.
Provided that, in cases where the customer is assessed as high risk by the third
party, the covered person shall conduct its separate enhanced due diligence
procedure.
Third Party shall refer to (a) covered persons as defined under the AMLA, as
amended, and these Rules, or (b) a financial institution or designated nonfinancial business and profession operating outside of the Philippines that is
covered by equivalent customer identification requirements.(n)
b.1 Where the Customer Transacts Through a Trustee, Nominee, Agent or
Intermediary which is a Third Party. A covered person may rely on the
customer identification process undertaken by a third party subject to the rules on
Third Party reliance to be promulgated by the Supervising Authorities; Provided
that, in cases where the customer is assessed as high risk by the third party, the
covered person shall conduct its separate enhanced due diligence procedure.
(Rule 9.a.14, Old Rules) (a)
c) Information and Communication Technology (ICT) assisted face-to-face
interview Subject to the rules promulgated for the purpose by the Supervising
Authority, a face-to-face interview through the use of ICT, such as, but not limited
to, Voice over Internet Protocol (VoIP), Peer to Peer (P2P), Integrated Services
Digital Network (ISDN), may be allowed to give individuals more access to
services being provided by covered persons, provided that the covered person is
in possession of and has verified the identification documents submitted by the
prospective client prior to the interview and that the entire process/procedure is
documented.(n)
25
Name;
Name/s of beneficial owner/s, if applicable;
Present address;
Permanent address;
Date and place of birth;
Contact numbers;
Nationality;
Nature of work and name of employer or nature of self-employment/business;
Specimen signature (if required);
Social Security System or Government System Insurance Service Number, and
Tax Identification Number (if any)
k) Purpose;
l) Source of funds or property; and
m) Beneficiaries in case of insurance contracts, whenever applicable.
9.1.3.1 Valid Identification Documents - Customers and the authorized
signatory/ies of a corporate or juridical entity who engage in a transaction
with a covered person for the first time shall be required to present the
original and submit a clear copy of at least one (1) valid Identification (ID)
Card/Document issued by an official authority.
For this purpose, the term official authority shall refer to any of the following:
a)
b)
c)
d)
In case the ID Card/Document does not bear any photo of the customer or
authorized signatory/iesof a corporate or juridical entity or the photo bearing
ID/Document or a copy thereof does not clearly show the face of the
customer or authorized signatory, a covered person may utilize its own
technology to take the photo of the customer or authorized signatory.
Where the customer or authorized signatory is a foreign national, covered
persons should require said foreign national to present his/her passport or
Alien Certificate of Registration issued by the Bureau of Immigration. (n)
9.1.3. Minimum Information/Documents Required for Corporate and Juridical Entities
or Single Proprietorships - The following minimum information/documents and
those that will be required by the Supervising Authorities shall be obtained from
customers that are corporate or juridical entities, single proprietorship, including shell
companies and corporations which have no business substance in their own right but
through which financial transactions may be conducted, to ensure that the customer
has not been dissolved or is not in the process of dissolution or winding up or that its
business or operations has not been terminated:
26
27
financial institutions that permit their accounts to be used by shell banks.(Rule 9.a.19,
Old Rules)
A covered person dealing withbearer share entities shall be required to conduct
enhanced due diligence on said entity and its existing stockholders and/or beneficial
owners at the time of opening of the account. These entities shall undergo on-going
monitoring at all times and the list of stockholders and/or beneficial owners shall be
updated within thirty (30) days after every transfer of ownership and the appropriate
enhanced due diligence applied to the new stockholders and/or beneficial owners. (n)
9.1.7. Ongoing monitoring of customers, accounts and transactions - A covered
person shall, on the basis of materiality and risk, update, no later than once in every
three (3) years, unless a different period is imposed by the Supervising Authority, all
identification information and documents of existing customers required to be
obtained under the AMLA, as amended, and these Rules.
A covered person shall establish a system that will enable it to understand the normal
and reasonable account or business activity of customers and to detect unusual or
suspicious patterns of account or business activity. A risk-and-materiality based
ongoing monitoring of customers accounts and transactions shall be part of a
covered persons customer due diligence procedures to ensure that the customers
accounts and transactions are consistent with the covered persons knowledge of
their customer, the latters commercial activities, risk profile, and the source of funds,
whenever required. (Rule 9.a.15, Old Rules)(a)
9.1.8. Risk-based Customer Identification and Acceptance Process All covered
person shall develop clear, written and graduated customer acceptance policies and
procedures including a set of criteria for customers that are likely to pose low, normal
or high risk to their operations as well as the standards in applying reduced, normal
and enhanced customer due diligence including a set of conditions for the denial of
account opening or services.
Covered Persons, in pursuing these Rules, shall ensure that the financially or socially
disadvantaged are not denied access to financial services while at the same time
prevent suspicious individuals or entities from opening an account. (a)
9.1.9. Standards of Customer Due Diligence Unless a different rule is promulgated by
the Supervisory Authority for the purpose, covered persons shall apply the
appropriate due diligence measure (normal, reduced, enhanced) depending on the
result of the ML/TF customer risk assessment:
28
diligence
should
be
applied
under
the
following
(ii)
(iii)
(iv)
29
9.1.11.
High-risk foreign customer -A customer from a country other than the
Philippines that is recognized as having inadequate internationally accepted antimoney laundering standards, or does not sufficiently apply regulatory supervision or
the Financial Action Task Force (FATF) recommendations, or presents greater risk for
money laundering, its associated predicate offenses including corruption and
terrorism financing, such customer shall be subject to enhanced customer due
diligence measures under Rule 9.1.10.3. Information relative to these are available
from publicly available information such as the websites of FATF, FATF Style Regional
Bodies (FSRB) like the Asia Pacific Group on Money Laundering (APG) and the
Egmont Group, the Office of Foreign Assets Control (OFAC) of the U.S. Department
of the Treasury, or other reliable third parties such as regulators or exchanges, which
shall be a component of a covered persons customer identification process. (Rule
9.a.9.b, Old Rules)
9.1.12.
Politically Exposed Persons - Covered persons shall endeavor to establish
and record the true and full identity of PEPs, as well as their immediate family
members and the entities related to them. It shall establish a policy on what standard
of due diligence will apply to them, taking into consideration their position and the risk
attendant thereto.
Covered persons should take reasonable measure, based on the assessment of the
level of risk, to determine whether the customer or beneficial owner is a domestic or
international organization PEP.
A foreign PEP is a high risk customer. Covered persons are required to have
appropriate risk management system to determine whether the customer or beneficial
owner is a foreign PEP. Proactive steps must be taken, such as assessing customers
on the basis of risk criteria, risk profiles, the business model, and verification of CDD
information.
If the customer or beneficial owner is a foreign or domestic PEP or international
organization PEPs with elevated risks, enhanced due diligence procedures should be
undertaken.
The measures mentioned above shall also apply to family members or entities where
the PEP is the beneficial owner. (Rule 9.a.16, Old Rules) (a)
9.1.13. Effect on customer due diligence in case of acquisition of business
entities or product portfolios - When a covered person acquires the
business of another covered person, either in whole or as a product
portfolio, it is not necessary to re-validate the identity of all existing
customers, provided that:
a) All customer account records are acquired with the business; and
b) Customer due diligence inquiries do not raise any doubts as to whether
the anti-money laundering procedures previously adopted by the
acquired business have satisfied the customer due diligence
requirements under the AMLA, as amended.(n)
9.2.
Record Keeping: Kinds of Records and Period of Retention - All records of all
transactions of covered persons shall be maintained and safely stored for five (5) years
from the dates of transactions. Said records and files shall contain the full and true identity
of the owners or holders of the accounts involved in the covered transactions and all other
customer identification documents. Covered persons shall undertake the necessary
adequate security measures to ensure the confidentiality of such records and files. Covered
persons shall prepare and maintain documentation, in accordance with the aforementioned
client identification requirements, on their customer accounts, relationships and transactions
such that any account, relationship or transaction can be so reconstructed as to enable the
AMLC, and/or the courts to establish an audit trail for money laundering. Covered persons
30
shall likewise keep the electronic copies of all covered and suspicious transaction reports
for at least five (5) years from the dates of submission to the AMLC. (Rule 9.b.1, Old Rules)
9.3.
9.2.1.
9.2.2.
9.2.3.
9.3.2.
9.3.3.
31
Additional Rules for Covered Persons Supervised and Regulated by the Bangko
Sentral ng Pilipinas.
10.1.1.
Definition of Terms -
10.1.2.
32
for the purpose of determining the existence and true identity of the owners of such
accounts. (Rule 9.a.8, Old Rules)
10.1.3.
10.1.4.
10.1.5.
Wire/Fund Transfers - Because of the risk associated with dealing with wire/fund
transfers, where a covered person may unknowingly transmit proceeds of unlawful
activities or funds intended to finance terrorist activities, it shall establish policies
and procedures designed to prevent it from being utilized for that purpose which
shall include, but not limited to, the following:
a)
33
b)
c)
d)
e)
customer due diligence to establish the true and full identity and existence of
said beneficiary. Should the originator and beneficiary be the same person,
the beneficiary institution may rely on the customer due diligence conducted
by the originating institution subject to the rules on Third Party reliance
promulgated by the BSP, treating the originating institution as Third Party as
herein defined;
The originating institution shall not accept instructions to wire/fund transfer
from a non-customer originator, unless it has conducted the necessary
customer due diligence to establish the true and full identity and existence of
said originator;
In cross border wire/fund transfers, if the originator is a high risk customer as
herein described, the beneficiary institution shall conduct enhanced customer
due diligence under Section 9.1.9.2 on the beneficiary and the originator.
Where additional information cannot be obtained, or any information or
document provided is false or falsified, or result of the validation process is
unsatisfactory, the beneficiary institution shall refuse to effect the wire/fund
transfers or the pay-out of funds without prejudice to the reporting of a
suspicious transaction to the AMLC when circumstances warrant;
Whenever possible, manually initiated fund transfer (MIFT) instructions
should not be the primary delivery method. Every effort shall be made to
provide client with an electronic banking solution. However, where MIFT is
utilized, the BSP may issue pertinent rules on validation procedures;
Cross border and domestic wire/fund transfers and related message not
exceeding a threshold amount to be determined by the BSP or its equivalent
in foreign currency shall include accurate and meaningful originator and
beneficiary information. The transfer message shall contain the following
information or may be obtained thereafter. The following information shall
remain with the transfer or related message through the payment chain:
(i)
(ii)
(iii)
For cross border and domestic wire/fund transfers and related message
amounting to said threshold amount to be determined by the BSP or more or
its equivalent in foreign currency, The following information accompanying all
qualifying wire transfers shall contain the following or obtained thereafter:
(i)
(ii)
(iii)
(iv)
(v)
f)
34
10.2.
Additional Rules for Covered Persons Supervised and Regulated by the Insurance
Commission (IC).
10.2.1 Customer Identification a) Prohibition against selling of insurance products without face-to-face Contact.
Unless the Insurance Commission issues a different rule, no insurance product shall
be sold by any IC-covered institution without face-to-face contact with its client except
under the following circumstances:
(i)
life insurance policies where the premium is low (e.g. an annual premium not
exceeding Php50,000.00, or single premium not over Php125,000.00);
(ii) insurance policies for pension schemes if there is no early surrender option and
the policy cannot be used as collateral;
(iii) a pension, superannuation or similar scheme that provides retirement benefits
to employees, where contributions are made by way of deduction from wages,
and the scheme rules do not permit the assignment of a members interest
under the scheme; and
(iv) other circumstances as may be determined by the AMLC upon the
recommendation of the IC.
b) For members under group policies, salary allotment and/or worksite marketing
business, the insurer is required to conduct customer identification on the employer of
said members.
10.3.
Additional Rules for Covered Persons Supervised and Regulated by the Securities
and Exchange Commission (SEC).
Customer Accounts The true identity of the customers shall always be
established based on official and other reliable documents and records. Covered
persons are required to obtain and record such information and documents
required under the provisions of these Rules and the Securities Regulations Code
and its implementing Rules and Regulations, as amended. Covered and Suspicious
transaction reports that are submitted to the AMLC pursuant to Section 9.3 of these
Rules shall always contain beneficial owner. The SEC may conduct regular audit
and testing for the purpose of ensuring that the true identity of the customer is
properly recorded.
10.3.1.
10.4.
Additional Rules for Jewelry Dealers in Precious Metals (JDPMs) and Jewelry
Dealers in Precious Stones (JDPSs).
10.4.1.
Definition of Terms -
a) Jewelry refers to finished goods deriving fifty percent (50%) or more of their
value from jewels, precious metals or precious stones constituting, forming part of
or attached to said finished goods.
b) Precious Metal includes gold, silver, platinum, palladium, rhodium, ruthenium,
iridium and osmium at a level of purity of five hundred (500) parts per one
thousand (1,000), singly or in any combination, and alloys of precious metals,
solders, and plating chemicals such as rhodium and palladium plating solutions,
potassium gold cyanide containing at least sixty-eight and three tenths percent
35
c)
d)
e)
f)
g)
h)
10.4.2.
10.4.3.
Covered Transactions for JDPMs and JDPSs For JDPMs and JDPSs as
herein defined, covered transaction shall refer to a transaction in cash or other
equivalent monetary instrument involving an amount in excess of One Million Pesos
(Php1,000,000.00).
10.4.4.
36
In wholesale
a)
b)
c)
d)
10.5.1.
Definition of Terms -
(iv)
10.5.2.
37
10.6.
Additional Rules for Covered Persons Under Section 3(a)(7) of the AMLA
(Designated Professionals)
10.6.1. Definition of Term/s a) Designated Professional shall refer to any person who prepares for or carries
out transactions relating to the services under Section 10.6.2. Lawyers and
accountants acting as independent legal professionals are excluded in relation to
information concerning their clients or where disclosure of information would
compromise client confidences or the attorney-client relationship: Provided, That
these lawyers and accountants are authorized to practice in the Philippines and shall
continue to be subject to the provisions of their respective codes of conduct and/or
professional responsibility or any of its amendments.
10.6.2. Applicability - The provisions under this Rule shall apply to persons who provide
any of the following services:
a) Managing clients money, securities or other assets;
b) Management of bank, savings or securities accounts;
c) Organization of contributions for the creation, operation or management of
companies; and
d) Creation, operation or management of juridical persons or arrangements, and
buying and selling business entities.
10.6.3. Necessary Services - The rendition of any of the services mentioned under
Section 10.6.2 shall necessarily include the following activities performed in behalf
of a client, such as but not limited to:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
38
l)
RULE XI
Authority to File Petitions for FREEZE ORDER
Section 11.Authority to File Petition for Freeze Order.
11.1.
39
2. 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 Offense under Republic Act No. 9160, as
amended (A.M. No. 05-11-04-SC) shall govern the proceedings in all petitions for
freeze order instituted pursuant to R.A. No. 9160, as amended.
3. Considering the intricate and diverse web of related and interlocking accounts
pertaining to the monetary instruments or properties that any person may create in
the different covered persons, their branches and/or other units, the AMLC may file a
petition with the Court of Appeals for the freezing of the monetary instruments or
properties in the names of the reported owners/holders and monetary instruments or
properties named in the Petition of the AMLC including related accounts as defined
under Section 3.11 of these Rules.
4. The Court shall act on the petition to freeze within twenty-four (24) hours from filing of
the petition. If the petition is filed a day before a non-working day, the computation of
the twenty-four (24) hour period shall exclude the non-working days.
5. The freeze order shall not exceed six (6) months depending upon the circumstances
of the case: Provided, that 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.
6. 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.
7. No court shall issue a temporary restraining order or a writ of injunction against any
freeze order, except the Supreme Court.
11.2.
11.3.
Extension of the Freeze Order If the freeze order issued by the Court of Appeals
is less than six (6) months, before the period of said freeze order expires, the AMLC may
file a motion with the same court for an extension of said period: Provided, however, That
the extension sought shall not extend the period of the freeze beyond six (6) months.
Upon the timely filing of such motion and pending resolution thereof by the Court of
Appeals to extend the period, said period shall be deemed suspended and the freeze
order shall remain effective. Furthermore, the effect of the freeze order shall also remain
until the court, where a case for civil forfeiture is pending, issues a Provisional Asset
Preservation Order (PAPO).
11.4.
11.5.
40
order, specifying all the pertinent and relevant information, which shall include the
following:
a) For covered persons: The account numbers and/or description of the monetary
instrument, property, or proceeds involved;
b) For concerned government agencies:
(i)
Certificates of title numbers of registered real property and the volumes and
pages of the registration books of the Register of Deeds where the same
are registered;
(ii) Registration in the Primary Entry Book and corresponding Registration
Book in the Register of Deeds for unregistered real property;
(iii) Registration with the Register of Deeds of the enabling or master deed for
a condominium project, declaration of restrictions relating to such
condominium project, certificate of title conveying a condominium and
notice of assessment upon any condominium;
(iv) Tax declarations for improvements built on land owned by a different party,
together with the annotation of the contract of lease on the title of the owner
of the land as registered in the Register of Deeds;
(v) Certificates of registration for motor vehicles and heavy equipment
indicating the engine numbers, chassis numbers and plate numbers;
(vi) Certificates of numbers for seacraft;
(vii) Registration certificates for aircraft; or
(viii) Commercial invoices or notarial identification for personal property capable
of manual delivery;
whichever are applicable:
c) The names of the account holders, personal property owners or possessors, or
real property owners or occupants;
d) The value of the monetary instrument, property, or proceeds as of the time the
assets were ordered frozen;
e) All relevant information as to the nature of the monetary instrument, property, or
proceeds; and
f)
The date and time when the freeze order was served.
4. The covered persons shall also submit a detailed return to the AMLC, in a format to
be prescribed by the latter, in a secured electronic form either via leased line or
internet facilities. (n)
5. The covered person shall not lift the effects of the freeze order without securing
official confirmation from the AMLC.
6. Upon receipt of the freeze order issued by the Court of Appeals and upon verification
by the covered person that the related accounts originated from and/or are materially
linked to the monetary instrument or property subject of the freeze order, the covered
person shall freeze these related accounts wherever these may be found.
The written return to be filed by the covered person as required under Section 11.4(3)
hereof shall include the fact of such freezing and an explanation as to the grounds for the
identification of the related accounts.
If the related accounts cannot be determined within twenty-four (24) hours from receipt of
the freeze order due to the volume and/or complexity of the transactions or any other
justifiable factor(s), the covered person shall effect the freezing of the related accounts,
41
monetary instruments and properties within a reasonable period and shall submit a
supplemental return thereof to the Court of Appeals and the AMLC within twenty-four (24)
hours from the freezing of said related accounts, monetary instruments and properties.
11.6.
42
b) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act No. 9165,
otherwise known as the Comprehensive Dangerous Drugs Act of 2002;
c) Hijacking and other violations under Republic Act No. 6235; destructive arson and
murder, as defined under the Revised Penal Code, as amended; and
d) Felonies or offenses of a nature similar to those mentioned in Section 3(i) (1), (2)
and (12) of the AMLA, as amended, which are punishable under the penal laws of
other countries;
e) Terrorism and conspiracy to commit terrorism as defined and penalized under
Republic Act No. 9372; and
f) Financing of terrorism as defined and penalized under Republic Act No. 10168.
12.4. Procedure for inquiry or examination without a court order - Where any of the
unlawful activities enumerated under Section 12.2 is involved, and there is probable
cause that the deposits or investments with any banking institution or non-bank financial
institution and their subsidiaries and affiliates are in any way related to any of these
unlawful activities, the AMLC shall issue a resolution authorizing the inquiry into or
examination of any deposit or investment with such banking institution or non-bank
financial institution and their subsidiaries and affiliates concerned.
12.5. Duty of the banking institution or non-bank financial institution upon receipt of the
AMLC resolution- The banking institution or the non-bank financial institution and their
subsidiaries and affiliates shall immediately, upon receipt of the AMLC resolution, allow
the AMLC and/or its Secretariats duly authorized personnel full access to all records
pertaining to the deposit or investment account and to submit to the AMLC Secretariat,
within ten (10) days from receipt of the letter request, certified true copies of the
documents subject of the request.
Any officer, employee, stockholder, owner, representative, agent, manager, director or
officer-in-charge of any banking institution or non-bank financial institution and their
subsidiaries and affiliates who purposely fails or willfully refuses to permit the AMLC
and/or its Secretariats duly authorized personnel to conduct an inquiry into or
examination of any deposit or investment shall be imposed a fine of not more than Five
Hundred Thousand Philippine Pesos (PHP500,000.00).
12.6. No prior charge, pendency or conviction necessary. No prior criminal charge,
pendency of or conviction for an unlawful activity or money laundering offense is
necessary for the commencement or the resolution of an application for bank inquiry. (n)
12.7. Authority of the BSP to check compliance with the AMLA, as amended, and these
Rules - To ensure compliance with the requirements of the AMLA, as amended, and
these Rules, the BSP may, in the course of a periodic or special examination, check the
compliance of a covered person through generally accepted examination techniques
which may include account transaction sampling and use of electronic audit software in
accordance with BSP Examination Procedures for AML/CFT Activities. For this purpose,
it may undertake the following activities:
1. Review any customer identification and account opening documents and records
of existing accounts, including but not limited to deposits, investments, loans,
treasury, custodianship, trust and fiduciary accounts, to determine compliance
with the requisite:
a) conduct of face-to-face contact except as provided for under items (a) to
(d) of Section 9.1.1. of these Rules;
b) completeness and accuracy of the minimum information and documents
required to be obtained under these Rules; and
c) records-retention period, as well as compliance with all other regulations
issued by the AMLC and the BSP to assess that the covered person has
properly established and verified the true and full identity of its
customers.
2. Require a covered person to provide BSP examiners copies of all covered and
suspicious transaction reports filed by the covered person with the AMLC in order
43
Duty of the covered persons upon receipt of the AMLC Resolution- The covered
person and their subsidiaries and affiliates shall, immediately upon receipt of the
AMLC resolution, allow the AMLC and/or its Secretariats duly authorized personnel
full access to all records pertaining to the account or transaction.
Any officer, employee, stockholder, owner, representative, agent, manager, director or
officer-in-charge of any covered person who purposely fails or willfully refuses to
permit the AMLC or its Secretariats duly authorized personnel to conduct an inquiry
into or examination of any account or transaction shall be imposed a fine of not more
than Five Hundred Thousand Philippine Pesos (PHP500,000.00). (n)
44
14.2. Civil Forfeiture Upon determination by the AMLC that probable cause exists that any
monetary instrument or property is in any way related to an unlawful activity as defined in
Section 3(i) or a money laundering offense under Section 4 of the AMLA, as amended,
the AMLC shall file with the appropriate court through the Office of the Solicitor General, a
verified petition for civil forfeiture. (n)
14.2.1. Forfeiture of assets of equal value - The forfeiture shall include those other
monetary instrument or property having a value equivalent to that of the monetary
instrument or property found to be related in any way to an unlawful activity or a
money laundering offense, when with due diligence, the former cannot be located,
or it has been substantially altered, destroyed, diminished in value or otherwise
rendered worthless by any act or omission, or it has been concealed, removed,
converted, or otherwise transferred, or it is located outside the Philippines or has
been placed or brought outside the jurisdiction of the court, or it has been
commingled with other monetary instrument or property belonging to either the
offender himself or a third person or entity, thereby rendering the same difficult to
identify or be segregated for purpose of forfeiture.(n)
14.3. No prior charge, pendency or conviction necessary. No prior criminal charge,
pendency of or conviction for an unlawful activity or money laundering offense is
necessary for the commencement or the resolution of a petition for civil forfeiture. (n)
14.4. Claim on Forfeited Assets. Where the court has issued an order of forfeiture of the
monetary instrument or property in a criminal prosecution for any money laundering
offense defined under Section 4 of the AMLA, as amended, the offender or any other
person claiming an interest therein may apply, by verified petition, for a declaration that
the same legitimately belongs to him and for segregation or exclusion of the monetary
instrument or property corresponding thereto. The verified petition shall be filed with the
court which rendered the judgment of forfeiture, within fifteen (15) days from the date of
the finality of theorder of forfeiture, in default of which the said order shall become final
and executory. This provision shall apply in both civil and criminal forfeiture.(n)
14.5. Payment in lieu of Forfeiture -Where the court has issued an order of forfeiture of the
monetary instrument or property subject of a money laundering offense defined under
Section 4 of the AMLA, as amended, and said order cannot be enforced because any
particular monetary instrument or property cannot, with due diligence, be located, or it has
been substantially altered, destroyed, diminished in value or otherwise rendered
worthless by any act or omission, directly or indirectly, attributable to the offender, or it
has been concealed, removed, converted, or otherwise transferred to prevent the same
from being found or to avoid forfeiture thereof, or it is located outside the Philippines or
has been placed or brought outside the jurisdiction of the court, or it has been
commingled with other monetary instruments or property belonging to either the offender
himself or a third person or entity, thereby rendering the same difficult to identify or be
segregated for purposes of forfeiture, the court may, instead of enforcing the order of
forfeiture of the monetary instrument or property or part thereof or interest therein,
accordingly order the convicted offender to pay an amount equal to the value of said
monetary instrument or property. This provision shall apply in both civil and criminal
forfeiture. (n)
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15.2. Powers of the AMLC to Act on a Request for Assistance from a Foreign State - The
AMLC may execute a request for assistance from a foreign State by: (1) tracking down,
freezing, restraining and seizing assets alleged to be proceeds of any unlawful activity
under the procedures laid down in the AMLA, as amended, and in these Rules; (2) giving
information needed by the foreign State within the procedures laid down in the AMLA, as
amended, and in these Rules; and (3) applying for an order of forfeiture of any monetary
instrument or property with the court: Provided, That the court shall not issue such an
order unless the application is accompanied by an authenticated copy of the order of a
court in the requesting State ordering the forfeiture of said monetary instrument or
property of a person who has been convicted of a money laundering offense or an
unlawful activity in the requesting State, and a certification or an affidavit of a competent
officer of the requesting State stating that the conviction and the order of forfeiture are
final and that no further appeal lies in respect of either.
15.3. Obtaining Assistance from Foreign States - The AMLC may make a request to any
foreign State for assistance in (1) tracking down, freezing, restraining and seizing assets
alleged to be proceeds of any unlawful activity; (2) obtaining pertinent information and
documents that it needs relating to any money laundering offense or any other matter
directly or indirectly related thereto; (3) to the extent allowed by the law of the foreign
State, applying with the proper court therein for an order to enter any premises belonging
to or in the possession or control of, any or all of the persons named in said request,
and/or search any or all such persons named therein and/or remove any document,
material or object named in said request: Provided, That the documents accompanying
the request in support of the application have been duly authenticated in accordance with
the applicable law or regulation of the foreign State; and (4) applying for an order of
forfeiture of any monetary instrument or property in the proper court in the foreign State:
Provided, That the request is accompanied by an authenticated copy of the order of the
Regional Trial Court ordering the forfeiture of said monetary instrument or property and an
affidavit of the clerk of court stating that the order of forfeiture is final and that no further
appeal lies in respect of it.
15.4. Limitations on Requests for Mutual Assistance - The AMLC may refuse to comply with
any request for assistance where the action sought by the request contravenes any
provision of the Constitution or the execution of a request is likely to prejudice the national
interest of the Philippines, unless there is a treaty between the Philippines and the
requesting State relating to the provision of assistance in relation to money laundering
offenses.
15.5. Requirements for Requests for Mutual Assistance from Foreign States - A request
for mutual assistance from a foreign State must (1) confirm that an investigation or
prosecution is being conducted in respect of a money launderer named therein or that he
has been convicted of any money laundering offense; (2) state the grounds on which any
person is being investigated or prosecuted for money laundering or the details of his
conviction; (3) give sufficient particulars as to the identity of said person; (4) give
particulars sufficient to identify any covered person believed to have any information,
document, material or object which may be of assistance to the investigation or
prosecution; (5) ask from the covered person concerned any information, document,
material or object which may be of assistance to the investigation or prosecution; (6)
specify the manner in which and to whom said information, document, material or object
obtained pursuant to said request, is to be produced; (7) give all the particulars necessary
for the issuance by the court in the requested State of the writs, orders or processes
needed by the requesting State; and (8) contain such other information as may assist in
the execution of the request.
15.6. Authentication of Documents - For purposes of Sections 7 and 13 (f) of the AMLA, as
amended, a document is authenticated if the same is signed or certified by a judge,
magistrate or equivalent officer in or of, the requesting State, and authenticated by the
oath or affirmation of a witness or sealed with an official or public seal of a minister,
secretary of state, or officer in or of, the government of the requesting State, or of the
person administering the government or a department of the requesting territory,
protectorate or colony. The certificate of authentication may also be made by a secretary
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of the embassy or legation, consul general, consul, vice consul, consular agent or any
officer in the foreign service of the Philippines stationed in the foreign State in which the
record is kept, and authenticated by the seal of his office.
15.7. Suppletory Application of the Revised Rules of Court - For attachment of Philippine
properties in the name of persons convicted of any unlawful activity as defined in Section
3 (i) of the AMLA, as amended, execution and satisfaction of final judgments of forfeiture,
application for examination of witnesses, procuring search warrants, production of bank
documents and other materials and all other actions not specified in the AMLA, as
amended, and these Rules, and assistance for any of the aforementioned actions, which
is subject of a request by a foreign State, resort may be had to the proceedings pertinent
thereto under the Revised Rules of Court.
15.8. Authority to Assist the United Nations and other International Organizations and
Foreign States The AMLC is authorized under Sections 7 (8) and 13 (b) and (d) of the
AMLA, as amended, to receive and take action in respect of any request of foreign States
for assistance in their own anti-money laundering operations. It is also authorized under
Section 7 (7) of the AMLA, as amended, to cooperate with the National Government
and/or take appropriate action in respect of conventions, resolutions and other directives
of the United Nations (UN), the UN Security Council, and other international organizations
of which the Philippines is a member. However, the AMLC may refuse to comply with any
such request, convention, resolution or directive where the action sought therein
contravenes the provision of the Constitution or the execution thereof is likely to prejudice
the national interest of the Philippines.
15.9. Extradition The Philippines shall negotiate for the inclusion of money laundering
offenses as defined under Section 4 of the AMLA, as amended, among the extraditable
offenses in all future treaties. With respect, however, to the state parties that are
signatories to the United Nations Convention Against Transnational Organized Crime that
was ratified by the Philippine Senate on October 22, 2001, money laundering is deemed
to be included as an extraditable offense in any extradition treaty existing between said
state parties, and the Philippines shall include money laundering as an extraditable
offense in every extradition treaty that may be concluded between the Philippines and any
of said state parties in the future.
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fails to testify shall suffer the same penalties prescribed under Section 16.8
hereof.
16.11.Where Offender is a Juridical Person, Alien or Public Officer - If the offender
is a corporation, association, partnership or any other juridical person, the penalty
of imprisonment and/or fine shall be imposed upon the responsible officers, as
the case may be, who participated in, or allowed by their gross negligence the
commission of the crime and the court may suspend or revoke its license. If the
offender is an alien, he shall, in addition to the penalties herein prescribed, be
deported without further proceedings after serving the penalties herein
prescribed. If the offender is a public official or employee, he shall, in addition to
the penalties prescribed herein, suffer perpetual or temporary absolute
disqualification from office, as the case may be.
Prohibition against Political Persecution The AMLA, as amended, and these Rules
shall not be used for political persecution or harassment or as an instrument to hamper
competition in trade and commerce. No case for money laundering may be filed to the
prejudice of a candidate for an electoral office during an election period.
17.2.
Section 18. Restitution. - Restitution for any aggrieved party shall be governed by the provisions of the
New Civil Code.
RULE XIX - OTHER PROVISIONS
Section 19. Other Provisions.
19.1.
Implementing Rules and Regulations. These Rules or any portion thereof may be
revised or amended by unanimous vote of the members of the AMLC.
19.2.
AML/CFT Guidelines and Circulars of Supervising Authorities - The BSP, the SEC,
the IC, and the relevant regulatory bodies of the DNFBPs shall issue their respective
AML/CFT Guidelines and Circulars, not later than 180 days from the effectivity of this
Rules, to assist the AMLC in effectively implementing the provisions of the AMLA, as
amended, these Rules, as well as other pertinent laws and rules.
19.3.
Anti-Money Laundering/Combating
Programs)
1.
the
Financing
of
Terrorism
(AML/CFT)
All covered persons shall formulate and implement their AML/CFT Programs in
accordance with Section 9 and other pertinent provisions of the AMLA, as
49
amended, these Rules, and AML/CFT Guidelines and Circulars issued by the
Supervising Authorities including, but not limited to, information dissemination on
money laundering and terrorism financing activities and their prevention,
detection and reporting, and the training of their responsible personnel. Every
covered person shall make available, upon request by the AMLC or the
Supervising Authorities, its AML/CFT Program.
Every covered person shall regularly update its AML/CFT Program, in no case
longer than, two (2) years, to incorporate changes in AML/CFT laws, rules and
regulations, policies and procedures, latest trends in money laundering and
terrorism financing typologies, and latest issuances by the Supervising
Authorities. Any revision or update in the AML/CFT Program shall likewise be
approved by the Board of Directors or the country/regional head or its equivalent
for local branches of foreign banks/entities/companies.
Covered persons which have not yet formulated their AML/CFT program are
hereby given ninety (90) days from the effectivity of these Rules to prepare the
same. Failure to comply with this requirement shall be subject to the imposition
of administrative sanctions under Section 16.5. (n)
2.
3.
19.4.
Training of Personnel - Covered persons shall provide all their responsible officers and
personnel with efficient and effective training and continuing education programs to
enable them to fully comply with all their obligations under the AMLA, as amended, and
these Rules.
19.5.
Enrollment with the AMLCs Reporting System All Covered Persons not registered
with the AMLCs electronic reporting system are hereby required to enroll within ninety
(90) days from the effectivity of these Rules. Covered Persons which fail to register within
the aforesaid period shall be subject to the administrative sanctions provided under
Section 16.5., without prejudice to the criminal sanctions provided under the AMLA, as
amended.
19.6.
RULE XX - NON-INTERVENTION
Section 20. Non-intervention. - Nothing contained in the AMLA, as amended, or these Rules nor in
related antecedent laws or existing agreements shall be construed to allow the AMLC to participate in
any manner in the operations of the BIR.
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TERESITA J. HERBOSA
Member
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EMMANUEL F. DOOC
Member
(Commissioner, Insurance Commission)
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