8/13/2015

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Source :
AMLA Anti-Money Laundering Council Financial Intelligence Unit Website
(http:www.amlc.gov.ph)

Philam Asset Management, Inc. confidential and proprietary information. Not for
AIA confidential and proprietary information. Not for distribution.
AIA confidential and proprietary information. Not for distribution.
distribution.

3 4
Philam Life Red Philam Life Red
R193 G4 B53 R193 G4 B53
| 3 | 4

Grey
Rationale for the Law Grey
The Anti-Money Laundering Act
R209 G211 B212 R209 G211 B212

Plum Plum  RA 1960, The Anti-Money Laundering Act enacted September 29, 2001
R156 G0 B88 R156 G0 B88
 The Philippines must contribute its share and play a vital role in the fight
20% 40% 60% 80% against money laundering 20% 40% 60% 80%  Amended by RA 9194 March 7, 2003

Citrus Citrus  Lays down the policies and principles to prevent banks, insurance companies,
R248 G152 B32  To establish and strengthen an anti-money laundering regime in the countryR248 G152 B32
corporations and entities from being utilized by money launderers
20% 40% 60% 80%  To increase investor confidence 20% 40% 60% 80%
 Criminalizes Money Laundering
Lime Lime
R193 G216 B47  To ensure the Philippines is not used as a site to launder proceeds of R193 G216 B47  Creates a Financial Intelligence Unit
unlawful activities
20% 40% 60% 80% 20% 40% 60% 80%
 Imposes requirements on customer identification, record keeping and reporting of
Sea Blue Sea Blue covered and suspicious transactions
R0 G115 B174 R0 G115 B174
 Relaxes strict bank deposits secrecy laws
20% 40% 60% 80% 20% 40% 60% 80%

 Provides for bank inquiry and freeze ex parte petition/seizure/forfeiture/recovery of

dirty money/property

 Provides for international cooperation

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Philam Life Red Philam Life Red
R193 G4 B53 R193 G4 B53
| 5 | 6

Grey
What is Money Laundering? Grey
What is Money Laundering?
R209 G211 B212 R209 G211 B212

Plum Plum
R156 G0 B88 R156 G0 B88  Placement – the physical disposal of cash proceeds derived from the illicit activity;
 Crime whereby proceeds of an unlawful activity are transacted or attempted the purpose is to remove the cash from where it was acquired in order to confuse the
20% 40% 60% 80% to be transacted thereby making the money appear to have originated from 20% 40% 60% 80% tracing thereof.
Citrus
legitimate sources. Citrus  Example – opening of an account or a VUL insurance under a fictitious name
R248 G152 B32 R248 G152 B32 using proceeds of a crime as initial deposit or premium
 Not a single act but a complex process accomplished in 3 stages :
20% 40% 60% 80% 20% 40% 60% 80%
 Layering – A series of transactions intentionally designed to cover up the source of
Lime  Placement Lime the money, subvert the audit trail, and ultimately prevent detection of the source.
R193 G216 B47 R193 G216 B47
 Example – transferring funds to and from several accounts under different
20% 40% 60% 80%  Layering 20% 40% 60% 80% individuals or corporations, using various institutions such as banks, insurance
companies and pawnshops to move the funds.
Sea Blue Sea Blue
R0 G115 B174  Integration R0 G115 B174
 Integration - the final stage in which the money appears to have been lawfully earned,
20% 40% 60% 80% 20% 40% 60% 80%
thus, making it difficult to distinguish between legally acquired and illegally acquired
wealth
 Example – withdrawing from an account involved in the layering stage in the
form of a Manager’s Check making it appear to be proceeds from a legitimate
transaction

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Philam Life Red Philam Life Red
R193 G4 B53 R193 G4 B53
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Grey
The Anti-Money Laundering Council Grey
Covered and Suspicious Transactions
R209 G211 B212 R209 G211 B212

Plum Plum  Covered Transactions is a transaction with a covered institution in cash or other
R156 G0 B88  Is the Financial Intelligence Unit tasked under the law to receive the Covered R156 G0 B88 equivalent monetary instrument involving a total amount in excess of PhP500,000
Transactions reports and Suspicious Transactions reports from the covered
20% 40% 60% 80% 20% 40% 60% 80% within one banking day.
institutions required to submit such.
Citrus Citrus  Suspicious Transactions is a transaction with a covered institution regardless of
 Composed of the following :
R248 G152 B32 R248 G152 B32 amount involved, where any of the following circumstances exist:
20% 40% 60% 80% 20% 40% 60% 80%
 The Governor of the BSP  there is no underlying legal/trade obligation, purpose or economic justification;
Lime Lime  the client is not properly identified;
R193 G216 B47  The Chairman of the SEC R193 G216 B47
 the amount involved is not commensurate with the business or financial capacity of the
20% 40% 60% 80% 20% 40% 60% 80% client;
 The Commissioner of the IC  the transaction is structured to avoid being the subject of reporting requirements under the
Sea Blue Sea Blue AMLA;
R0 G115 B174  Covered institutions are (i) banks, trust entities and all other entities supervised and R0 G115 B174
 there is a deviation from the client’s profile/past transactions;
20% 40% 60% 80% regulated by the BSP; (ii) companies, institutions, dealers, brokers, agents, and all 20% 40% 60% 80%
other entities and persons supervised and regulated by the SEC; and (iii) insurance  the transaction is related to an unlawful activity/offense under the AMLA;
companies, reinsurers, agents and all other entities and persons supervised and  and transactions similar or analogous to the above.
regulated by the IC
 The Suspicious Transaction Report or STR should be filed within five (5) working days
from occurrence of the suspicious transaction unless the Supervising Authority
prescribes a longer period not exceeding ten (10) working days.
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Philam Life Red Philam Life Red
R193 G4 B53 R193 G4 B53

Unlawful Activities or Predicate Crimes

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Money Laundering Offenses and Penalties | 10

Grey Grey
R209 G211 B212 R209 G211 B212

Plum Plum
R156 G0 B88  Kidnapping for ransom R156 G0 B88
 Drug trafficking and related offenses  Knowingly transacting or attempting to transact any monetary instrument/property
20% 40% 60% 80%  Graft and corrupt practices 20% 40% 60% 80% which represents, involves or relates to the proceeds of an unlawful activity. Penalty is
 Plunder 7 to 14 years imprisonment and a fine of not less than P3M but not more than twice
Citrus Citrus the value of the monetary instrument/property.
R248 G152 B32  Robbery and Extortion R248 G152 B32
 Jueteng and Masiao  Knowingly performing or failing to perform an act in relation to any monetary
20% 40% 60% 80%  Piracy 20% 40% 60% 80%
instrument/property involving the proceeds of any unlawful activity as a result of
 Qualified theft which he facilitated the offense of money laundering. Penalty is 4 to 7 years
Lime Lime
R193 G216 B47
 Swindling R193 G216 B47 imprisonment and a fine of not less than P1.5M but not more than P3M.
 Smuggling
20% 40% 60% 80%  Violations under the Electronic Commerce Act of 2000 20% 40% 60% 80%  Knowingly failing to disclose and file with the AMLC any monetary
 Hijacking; destructive arson; and murder, including those perpetrated by terrorists instrument/property required to be disclosed and filed. Penalty is 6 months to 4 years
Sea Blue Sea Blue
against non-combatant persons and similar targets imprisonment or a fine of not less than P100,000 but not more than P500,000, or both.
R0 G115 B174 R0 G115 B174
 Fraudulent practices and other violations under the Securities Regulation Code of
20% 40% 60% 80% 2000 20% 40% 60% 80%
 Felonies or offenses of a similar nature that are punishable under the penal laws of
other countries.

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Philam Life Red Philam Life Red
R193 G4 B53 R193 G4 B53

Other Offenses and Penalties | 11

Other Offenses and Penalties | 12

Grey Grey
R209 G211 B212 R209 G211 B212

Plum Plum
R156 G0 B88  Failure to keep records, including those of closed accounts for five years R156 G0 B88  If the offender is an alien, he shall, in addition to the penalties prescribed, be
from date of transaction/closure of accounts. Penalty 6 months to 1 year deported without further proceedings after serving the penalties prescribed.
20% 40% 60% 80% 20% 40% 60% 80%
imprisonment and/or fine not less than P100,000 but not more than P500,000
 If the offender is a public official or employee, he shall, in addition to the
Citrus Citrus
R248 G152 B32  Malicious reporting. Penalty is 6 months to 4 years imprisonment and a fine R248 G152 B32 penalties prescribed, suffer perpetual or temporary absolute disqualification
of not less than P100,000 but not more than P500,000, at the discretion of the from office, as the case may be.
20% 40% 60% 80% 20% 40% 60% 80%
court.
 Breach of confidentiality. When reporting covered or suspicious transactions
Lime Lime
R193 G216 B47  If the offender is a corporation, association, partnership or any juridical R193 G216 B47 to the AMLC, covered institutions and their officers/employees are prohibited
person, the penalty shall be imposed upon the responsible officers, as the from communicating directly or indirectly, in any manner or by any means, to
20% 40% 60% 80% 20% 40% 60% 80%
case may be, who participated in, or allowed by their gross negligence, the any person/entity/media, the fact that such report was made, the contents
Sea Blue commission of the crime. Sea Blue thereof, or any other information in relation thereto. Penalty is 3 to 8 years
R0 G115 B174 R0 G115 B174 imprisonment and a fine of not less than P500,000 but not more than P1M.
 If the offender is a juridical person, the court may suspend or revoke its
20% 40% 60% 80% 20% 40% 60% 80% This includes the media entity who publishes such information.
license.

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2
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Philam Life Red Philam Life Red
R193 G4 B53 Offenses & Penalties R193 G4 B53
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Grey Grey
R209 G211 B212 R209 G211 B212

Plum Plum
R156 G0 B88 R156 G0 B88

Thank you!
OFFENSE YEARS OF FINE
20% 40% 60% 80% IMPRISONMENT 20% 40% 60% 80%

Citrus Knowingly Transacting or Attempting to 7-14 yrs Php > 3 M Citrus

R248 G152 B32 Transact R248 G152 B32

20% 40% 60% 80% Knowingly Performing or Failing to 4-7 yrs Php 1.5 – 3M 20% 40% 60% 80%

Perform
Lime Lime
R193 G216 B47 Breach of Confidentiality 3 – 8 yrs Php 500K – 1MR193 G216 B47
20% 40% 60% 80% 20% 40% 60% 80%

Sea Blue Knowingly Failing to Disclose and File 6 mos – 4 yrs Php 100K – Sea Blue
R0 G115 B174 with AMLC 500K R0 G115 B174

20% 40% 60% 80% 20% 40% 60% 80%

Failure to Keep Records from date of 6 mos – 4 yrs Php 100K –
transaction/closure of accounts 500K
Malicious Reporting 6 mos – 4 yrs Php 100K –
500K

Philam Asset Management confidential and proprietary Philam Asset Management confidential andand
proprietary information. NotNot
forfor
distribution.
Philam Asset Management, Inc. confidential andinformation. Not for
proprietary distribution.
information. Not for distribution. Philam Asset Management confidential proprietary information. distribution.