ANTI-MONEY LAUNDERING ACT

(RA9160, as amended by RA 9194, 10167, 10365, 10927,

and 11521)

COMMERCIAL LAWS I
ATTY. WILLIAM CARPENTERO

ALLYN JASPHER Q. BASIT

JAVY ANN G. ARANCES
RAIJANIFA ESMAIL

MAY 2023
What is RA 9160?
An Act defining the crime of Money Laundering, providing penalties therefore and for other purposes.

What is RA 9194?
It introduced the following amendments to the covered transactions, added suspicious transactions, and
reporting of covered and suspicious transactions.

What is RA 10167?
On petition for Freeze Order, the amendment provides that a person whose account has been frozen
may file a motion to lift the freeze order and that no court shall issue a temporary restraining order or
writ of injunction against any freeze order.

On the Application for Bank inquiry, the amendment provides the Court of Appeals has jurisdiction on
applications for bank inquiry and, that the AMLC may inquire into any deposits with any banking or non-
banking institutions upon an ex parte motion.

What is RA 10365?
On Covered Institutions, the amendment provides that it includes persons - both natural and juridical.
The following were added to the enumeration of covered persons:

Jewelry Dealers in precious metals and stones, Company service providers and persons who manages
client's money and bank accounts.

It amended the definition of Money Laudering and included additional unlawful activities.

Furthermore, it amended the powers of the Anti-Money Laundering Council (AMLC) requiring it to apply
before the Court of Appeals, ex parte, for the freezing of any monetary instrument or property alleged
to be laundered, proceeds from or instrumentalities used in or intended for use in any unlawful activity.

What is RA 10927?
The amendment designates casinos as a covered person and adds more definitions into the original
AMLA.

It also amended the freezing of monetary property section of the original AMLA act.
Salient Features
RA 9160 as amended by RA 9194, 10167, 10365, 10927
1. Criminalizes Money Laundering
2. Creates a Financial Intelligence Unit
3. Imposes requirements on customer identification, record keeping and reporting of covered and
suspicious transactions
4. Relaxes strict bank deposits secrecy laws
5. Provides for Bank inquiry and Freeze ex parte petition/ seizure/ forfeiture/ recovery of dirty
money and property
6. Provides for international cooperation

SECTION 3. DEFINITION OF TERMS

(a) “Covered persons”
● natural or juridical, refer to:
"(1) banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops,
money changers, remittance and transfer companies and other similar entities and all
other persons and their subsidiaries and affiliates supervised or regulated by the Bangko
Sentral ng Pilipinas (BSP);

"(2) insurance companies, pre-need companies and all other persons supervised or
regulated by the Insurance Commission (IC);

"(3) (i) securities dealers, brokers, salesmen, investment houses and other similar
persons managing securities or rendering services as investment agent, advisor, or
consultant,
(ii) mutual funds, close-end investment companies, common trust funds, and
other similar persons, and
(iii) other entities administering or otherwise dealing in currency, commodities or
financial derivatives based thereon, valuable objects, cash substitutes and other
similar monetary instruments or property supervised or regulated by the
Securities and Exchange Commission (SEC);

"(4) jewelry dealers in precious metals, who, as a business, trade in precious metals, for
transactions in excess of One million pesos (P1,000,000.00); "

“(5) jewelry dealers in precious stones, who, as a business, trade in precious stones, for
transactions in excess of One million pesos (P1,000,000.00);

"(6) company service providers which, as a business, provide any of the following
services to third parties:
(i) acting as a formation agent of juridical persons;
(ii) acting as (or arranging for another person to act as) a director or corporate
secretary of a company, a partner of a partnership, or a similar position in
relation to other juridical persons;
(iii) providing a registered office, business address or accommodation,
correspondence or administrative address for a company, a partnership or any
other legal person or arrangement; and
 (iv) acting as (or arranging for another person to act as) a nominee shareholder
for another person; and

"(7) persons who provide any of the following services:

(i) managing of client money, securities or other assets;
(ii) management of bank, savings or securities accounts;
(iii) organization of contributions for the creation, operation or management of
companies;
(iv) 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.”

"Casinos refer to a business authorized by the appropriate government agency to engage in

the gaming corporations”
** Internet-based casinos, shall refer to casinos in which persons participate by the use of
remote communication facilities such as, but not limited to, internet, telephone, television,
radio, or any other kind of electronic or other technology for facilitating communication
** Ship-based casinos, the operation of which is undertaken on board a vessel, ship, boat, or any
other water-based craft wholly or partially intended for gambling
** Casino cash transaction, involving the receipt of cash by a casino paid by or on behalf of a
customer, or transactions involving the payout cash by a casino to a customer or any person on
his behalf.
** Gaming operations, activities of the casino offering games of chance and any variations
approved by the appropriate government authorities- (RA 10927)

(b) “Covered transaction

● a transaction in cash or other equivalent monetary instrument involving a total amount in
excess of Five hundred thousand pesos (Php 500,000.00) within one (1) banking day - (RA
9194)
● For covered persons under Casino, a single casino transaction involving an amount in excess
of Five Million pesos (Php 5M) or its equivalent in any other currency. - (RA 10927)

(b-1) “Suspicious transactions”

● transactions with covered institutions, regardless of the amounts involved, where any of the
following circumstances exist:
1. there is no underlying legal or trade obligation, purpose or economic justification;
2. the client is not properly identified;
3. the amount involved is not commensurate with the business or financial capacity of
the client;
4. taking into account all known circumstances, it may be perceived that the client's
transaction is structured in order to avoid being the subject of reporting requirements
under the Act;
 5. any circumstances relating to the transaction which is observed to deviate from the
profile of the client and/or the client's past transactions with the covered institution;
6. the transactions is in a way related to an unlawful activity or offense under this Act
that is about to be, is being or has been committed; or
7. any transactions that is similar or analogous to any of the foregoing." - (RA 9194)

(c ) “Monetary instrument”
 (1) coins or currency of legal tender of the Philippines, or of any other country;
 (2) drafts, checks and notes;
 (3) securities or negotiable instruments, bonds, commercial papers, deposit certificates,
trust certificates, custodial receipts or deposit substitute instruments, trading orders,
transaction tickets and confirmations of sale or investments and money-marked
instruments; and
 (4) other similar instruments where title thereto passes to another by endorsement,
assignment or delivery.

(d) “Offender”
● any person who commits money laundering offense

(e) “Person”
● any natural or juridical person

(f) “Proceeds”
● an amount derived or realized from an unlawful activity

(g) “Supervising authority”

 refers to appropriate supervisory or regulatory agency, department or office

(h) “ Transaction”
 refers to any act establishing a right or obligation or giving rise to any contractual or legal
relationship between parties thereto

(i) “Unlawful activities”

 refers to any act or omission or series or combination thereof involving or having direct
relation to the following acts:
1. Kidnapping for ransom
2. Specified provisions of the Comprehensive Drugs Act of 2002
3. Specified provisions of the Anti-Graft and Corrupt Practices Act
4. Plunder
5. Robbery and Extortion
6. Jueteng and Masiao
7. Piracy on the high seas
8. Qualified Theft
9. Swindling
10. Smuggling
11. Violations of the E-Commerce Act of 2000
12. Hjacking and other violations under RA No, 6235
 13. Terrorism and Conspiracy to commit Terrorism under RA No. 9372
14. Financing Terrorism under RA No, 10168
15. Bribery and Corruption of Public Officers
16. Frauds and Illegal Exactions and Transactions
17. Malversation of Public Funds and Property
18. Forgeries and Counterfeiting
19. Violations of the Anti-Trafficking in Persons Act of 2003
20. Violations of Sec. 78 to 79 of Chapter IV of the Revised Forestry Code of the
Philippines
21. Violations of Sec. 86 to 106 of Chapter VI of the Philippine Fisheries Code of 1998
22. Violations of Specified Sections of the Philippine Mining Act of 1995
23. Violations of Specified Provisions of the WIldlife Resources Conservation and
Protection Act
24. Violation of Sec. 7(b) of the National Caves and Cave Resources Management
Protection Act
25. Violation of the Anti-Carnapping Act of 2002
26. Violations of Secs. 1, 3, and 5 of PD No. 1866
27. Violation of Anti-fencing Law
28. Sec. 6 of the Migrant Workers and Overseas Filipinos Act of 1995
29. Violation of the Intellectual Property Code
30. Sec. 4 of the Anti-Photo and Video Voyeurism Act of 2009
31. Sec. 4 of the Anti-Child Pornography Act of 2009
32. Specified provisions of SPCAED
33. Fraudulent practices and other violations under the Securities Regulation Code of
2000
34. Felonies or offenses of a similar nature that are punishable under penal laws of
other countries

(j) “Precious Metals”

 gold, silver, platinum, palladium, rhodium, ruthenium, iridium and osmium. These include
alloys of precious metals, solders and plating chemicals such as rhodium and palladium
plating solutions and potassium gold cyanide and potassium silver cyanide and silver cyanide
in salt solution

(k) “Precious Stones”

 diamond, ruby, emerald, sapphire, opal, amethyst, beryl, topaz, and garnet that are used in
jewelry making, including those formerly classified as semi-precious stones.
What is Money Laundering?
 knowing that any monetary instrument or property represents, involves, or relates to the
proceeds of any unlawful activity, money laundering is committed by any person who:
o Transacts any monetary instrument or property
o Converts, transfers, disposes of, moves, acquires, possesses, or uses said monetary
instrument or property
o Conceals or disguises the true nature, source, location, disposition, movement,
ownership of, or rights with respect to said monetary instrument or property
o Attempts or conspires to commit money laundering offenses referred to in a, b, or c
o Aids, abets, assists in, or counsels the commission of the money laundering offenses
referred to in a, b, or c
o Performs or fails to perform any act as a result of which he facilitates the offense of
money laundering referred to in a, b, or c
 Money laundering is also committed by any covered person who, knowing that a covered or
suspicious transaction is required under this Act to be reported to the Anti-Money
Laundering Council (AMLC), fails to do so. (Sec. 4)

Jurisdiction and Prosecution of Money Laundering Cases

 Any person may be charged with and convicted of both the offense of money laundering
and the unlawful activity as defined in Sec. 3.
 Prosecution of any offense or violation under this Act shall proceed independently of any
proceeding relating to the unlawful activity. (Sec. 6)

1. Regional Trial Courts – to try all cases in money laundering.

2. Sandiganbayan - Those money laundering offenses committed by public officers and private
persons who are in conspiracy with such public officers (Sec. 5)

Anti-Money Laundering Council (AMLC)

SEC. 7. Creation of Anti-Money Laundering Council (AMLC). - The Anti-Money Laundering
Council is hereby created and shall be composed of the Governor of the Bangko Sentral
ng Pilipinas as chairman, the Commissioner of the Insurance Commission and the Chairman
of the Securities and Exchange Commission as members.
(1) to require and receive covered transaction reports from covered institutions;
(2) to issue orders addressed to the appropriate Supervising Authority or the covered
institution to determine the true identity of the owner of any monetary instrument or
property subject of a covered transaction report or request for assistance from a foreign
State, or believed by the Council, on the basis of substantial evidence to be in whole or
in part, whenever located, representing, involving, or related to, directly or indirectly, in
any manner or by any means, the proceeds of an unlawful activity;
(3) to institute civil forfeiture proceedings and all other remedial proceedings through
the Office of the Solicitor General;
(4) to cause the filing of complaints with the Department of Justice or the Ombudsman
for the prosecution of money laundering offenses;
 (5) to initiate investigations of covered transactions, money laundering activities and
other violations of this Act;
(6) to freeze any monetary instrument or property alleged to be proceed of any
unlawful activity; RA 9160
(6) to apply before the Court of Appeals, ex parte, for the freezing of any monetary
instrument or property alleged to be laundered, proceeds from, or instrumentalities
used in or intended for use in any unlawful activity as defined in Section 3(i) hereof; RA
10365
(7) to implement such measures as may be necessary and justified under this Act to
counteract money laundering;
(8) to receive and take action in respect of, any request from foreign states for
assistance in their own anti-money laundering operations provided in this Act;
(9) to develop educational programs on the pernicious effects of money laundering, the
methods and techniques used in money laundering, the viable means of preventing
money laundering and the effective ways of prosecuting and punishing offenders; and
(10) to enlist the assistance of any branch, department, bureau, office, agency or
instrumentality of the government, including government-owned and –controlled
corporations, in undertaking any and all anti-money laundering operations, which may
include the use of its personnel, facilities and resources for the more resolute
prevention, detection and investigation of money laundering offenses and prosecution
of offenders.
11) to impose administrative sanctions for the violation of laws, rules, regulations, and
orders and resolutions issued pursuant thereto."
(12) to require the Land Registration Authority and all its Registries of Deeds to submit
to the AMLC, reports on all real estate transactions involving an amount in excess of Five
hundred thousand pesos (P500,000.00) within fifteen (15) days from the date of
registration of the transaction, in a form to be prescribed by the AMLC. The AMLC may
also require the Land Registration Authority and all its Registries of Deeds to submit
copies of relevant documents of all real estate transactions." RA 10365
SEC. 8. Creation of a Secretariat. — The AMLC is hereby authorized to establish a secretariat to
be headed by an Executive Director who shall be appointed by the Council for a term of five (5)
years.

He must be a member of the Philippine Bar, at least thirty-five (35) years of age and of good
moral character, unquestionable integrity and known probity. All members of the Secretariat
must have served for at least five (5) years either in the Insurance Commission, the Securities
and Exchange Commission or the Bangko Sentral ng Pilipinas (BSP) and shall hold full-time
permanent positions within the BSP.

Prevention of Money Laundering

SEC. 9. Prevention of Money Laundering; Customer Identification Requirements and Record
Keeping. —
(a) Customer Identification. — Covered institutions shall establish and record the true
identity of its clients based on official documents They shall maintain a system of
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.
The provisions of existing laws to the contrary notwithstanding, anonymous accounts,
accounts under fictitious names, and all other similar accounts shall be absolutely
prohibited. Peso and foreign currency non-checking numbered accounts shall be
allowed. The BSP may conduct annual testing solely limited to the determination of the
existence and true identity of the owners of such accounts.
(b) Record Keeping. — All records of all transactions of covered institutions shall be
maintained and safely stored for five (5) years from the dates of transactions. With
respect to closed accounts, the records on customer identification, account files and
business correspondence, shall be preserved and safely stored for at least five (5) years
from the dates when they were closed.

(c) Reporting of Covered Transactions. — Covered institutions shall report to the AMLC
all covered transactions within five (5) working days from occurrence thereof, unless the
Supervising Authority concerned prescribes a longer period not exceeding ten (10)
working days. RA 9160

When reporting covered transactions to the AMLC, covered institutions and their
officers, employees, representatives, agents, advisors, consultants or associates shall
not be deemed to have violated Republic Act No. 1405, as amended; Republic Act No.
6426, as amended; Republic Act No. 8791 and other similar laws, but are prohibited
from communicating, directly or indirectly, in any manner or by any means, to any
person the fact that a covered transaction report was made, the contents thereof, or
any other information in relation thereto. In case of violation thereof, the concerned
officer, employee, representative, agent, advisor, consultant or associate of the covered
institution, shall be criminally liable. However, no administrative, criminal or civil
proceedings, shall lie against any person for having made a covered transaction report in
the regular performance of his duties and in good faith, whether or not such reporting
results in any criminal prosecution under this Act or any other Philippine law.

When reporting covered transactions to the AMLC, covered institutions and their
officers, employees, representatives, agents, advisors, consultants or associates are
prohibited from communicating, directly or indirectly, in any manner or by any means,
to any person, entity, the media, the fact that a covered transaction report was made,
the contents thereof, or any other information in relation thereto.

Neither may such reporting be published or aired in any manner or form by the mass
media, electronic mail, or other similar devices. In case of violation thereof, the
concerned officer, employee, representative, agent, advisor, consultant or associate of
the covered institution, or media shall be held criminally liable.

(c) Reporting of Covered and Suspicious Transactions. – Covered persons shall report to
the AMLC all covered transactions and suspicious transactions within five (5) working
days from occurrence thereof, unless the AMLC prescribes a different period not
exceeding fifteen (15) working days. RA 10365

Lawyers and accountants acting as independent legal professionals are not required to
report covered and suspicious transactions if the relevant information was obtained in
 circumstances where they are subject to professional secrecy or legal professional
privilege.

When reporting covered or suspicious transactions to the AMLC, covered persons and
their officers and employees are prohibited from communicating, directly or indirectly,
in any manner or by any means, to any person or entity, the media, the fact that a
covered or suspicious transaction has been reported or is about to be reported, the
contents of the report, or any other information in relation thereto. Neither may such
reporting be published or aired in any manner or form by the mass media", electronic
mail, or other similar devices. In case of violation thereof, the concerned officer and
employee of the covered person and media shall be held criminally liable.

Freezing of Monetary Instrument or Property

SEC. 10. Freezing of Monetary Instrument or Property. –Upon determination that probable
cause exists that any deposit or similar account is in any way related to an unlawful activity, the
AMLC may issue a freeze order, which shall be effective immediately, on the account for a
period not exceeding fifteen (15) days. Notice to the depositor that his account has been frozen
shall be issued simultaneously with the issuance of the freeze order. The depositor shall have
seventy-two (72) hours upon receipt of the notice to explain why the freeze order should be
lifted. The AMLC has seventy-two (72) hours to dispose of the depositor’s explanation. If it fails
to act within seventy-two (72) hours from receipt of the depositor’s explanation, the freeze
order shall automatically be dissolved. The fifteen (15)-day freeze order of the AMLC may be
extended upon order of the court, provided that the fifteen (15)-day period shall be tolled
pending the court’s decision to extend the period.

No court shall issue a temporary restraining order or writ of injunction against any freeze order
issued by the AMLC except the Court of Appeals or the Supreme Court. RA 9160

SEC. 10. Freezing of Monetary Instrument or Property. – Upon a verified ex parte petition by
the AMLC and after determination 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) hereof, the Court
of Appeals may issue a freeze order which shall be effective immediately, and which shall not
exceed six (6) months depending upon the circumstances of the case: 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: Provided, further, That this new
rule shall not apply to pending cases in the courts. In any case, the court should act on the
petition to freeze within twenty-four (24) hours from filing of the petition. If the application is
filed a day before a nonworking day, the computation of the twenty-four (24)-hour period shall
exclude the nonworking days.

"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.

"No court shall issue a temporary restraining order or a writ of injunction against any freeze
order, except the Supreme Court." RA 10167

Authority to Inquire into Bank Deposits

 SEC. 11. Authority to Inquire into Bank Deposits. – AMLC may inquire into or examine any
particular deposit or investment, including related accounts, with any banking institution or non-
bank financial institution

When it has been established that there is probable cause that the deposits or investments,
including related accounts involved, are related to an unlawful activity as defined in Section 3(i)
hereof or a money laundering offense under Section 4.
Related accounts
 accounts, the funds and sources of which originated from and/or are materially linked to
the monetary instrument(s) or property(ies) subject of the freeze order(s)

Conditions
1) A court order ex parte must first be obtained before the AMLC can inquire into these
related Accounts
2) The Court of Appeals shall act on the application within twenty-four (24) hours from
filing of the application."
3) To ensure compliance with this Act, the Bangko Sentral ng Pilipinas may, in the course
of a periodic or special examination, check the compliance of a Covered institution with
the requirements of the AMLA and its implementing rules and regulations."

Forfeiture Provisions
SEC. 12. Forfeiture Provisions.
(a) 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 hereof, the
AMLC shall file with the appropriate court through the Office of the Solicitor General, a
verified ex parte petition for forfeiture, and the Rules of Court on Civil Forfeiture shall
apply.

"The forfeiture shall include those other monetary instrument or property having an
equivalent value 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 purposes of forfeiture.

(b) 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 this Act, 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.
 (c) 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, and said order cannot be enforced because any particular monetary
instrument or property cannot 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 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."

Mutual Assistance among States

SEC. 13. Request for Assistance from a Foreign State. — Where a foreign State makes a request
for assistance in the investigation or prosecution of a money laundering offense,:

Powers of the AMLC to Act on a Request/Obtain Assistance from a Foreign State

 Track down, freeze, restrain and seize assets alleged as proceeds of any unlawful activity
 Give/obtain info needed by/from foreign state related to the money laundering offense
 Apply order of forfeiture of any monetary instrument or property

Limitations of Request for Mutual Assistance

 Contravenes any constitutional provision
 Prejudice national interest
 AMLC may refuse to comply request

Penal Provisions (RA 10365)

SEC. 14. Penal Provisions. - Offenses:
(a) transacts said monetary instrument or property;
(b) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary
instrument or property;
(c) conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument or property;
(d) attempts or conspires to commit money laundering offenses referred to in
paragraphs (a), (b) or (c);
(e) The penalty of imprisonment ranging from 4 to 7 years and a fine corresponding to
not more than two hundred percent (200%) of the value of the monetary instrument or
property laundered shall be imposed upon the covered person, its directors, officers or
personnel who knowingly participated in the commission of the crime of money
laundering.
(f) Imposition of Administrative Sanctions. The imposition of the administrative
sanctions shall be without prejudice to filing of criminal charges against the persons
responsible for the violation. After due notice and hearing, the AMLC shall, at its
discretion, impose sanctions, including monetary penalties, warning or reprimand, upon
 any covered person, its directors, officers, employees or any other person for the
violation of this Act, its implementing rules and regulations, or for failure or refusal to
comply with AMLC orders, resolutions and other issuances.
(g) The provision of this law shall not be construed or implemented in a manner that will
discriminate against certain customer types such as:
 politically-exposed persons, as well as their relatives
 a certain religion, race or ethnic origin
 other attributes or profiles when used as the only basis to deny these
persons access to the services provided by the covered persons

PENAL PROVISIONS COMPARED

SEC. 4. Money Laundering Offense. -
(a) knowingly transacting or attempting to
transact any monetary instrument or property
which represents, involves or relates to the
proceeds of any unlawful activity; RA 9160
SEC. 14. Penal Provisions. –
(a) 7 to 14 years imprisonment and a fine of not
less than P 3 Million but not more than twice the
value of the monetary instrument or property; RA
9160

(b) knowingly performing or failing to perform an
act in relation to any monetary instrument or
property involving the proceeds of any unlawful
activity as a result of which he facilitated the
offense of money laundering; RA 9160
4 to 7 years imprisonment and a fine of not less
than P1.5 Million but not more than P3 Million;
RA 9160

SEC. 9. Prevention of Money Laundering; SEC. 14. Penal Provisions. –

Customer Identification Requirements and (b) 6 months to 1 year imprisonment or a fine of
Record Keeping. - not less than P100,000 but not more than
(b) failure to keep all records of all transactions of P500,000 or both; RA 9160
covered institutions, and failure to maintain and
safely store them for five (5) years from the dates
of transactions/when they were closed; RA 9160

SEC. 14. Penal Provisions. –
(c) reporting or filing with malice, or in bad faith,
a completely unwarranted or false information
relative to money laundering transaction against
any person; RA 9194
(c) 6 months to 4 years imprisonment and a fine
of not less than P100,000 but not more than
P500,000; provided that the offender is not
entitled to the benefits of the Probation Law; RA
9194

Sec. 14(c) – R.A. 9160 Sec. 14(c) – R.A. 9194

If the offender is a corporation, association,
partnership or any juridical person, the penalty
shall be imposed upon the responsible officers, as
the case may be, who participated in the
commission of the crime or who shall have
knowingly permitted or failed to prevent its
commission. If the offender is a juridical person,
the court may suspend or revoke its license. If the
If the offender is a corporation, association,
partnership or any juridical person, the penalty
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. If the offender is a juridical person, the
court may suspend or revoke its license. If the
offender is an alien, he shall, in addition to 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.
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.

Sec. 14(d) – R.A. 9160 Sec. 14(d) – R.A. 9194

(d) Breach of Confidentiality. The punishment of
imprisonment ranging from three (3) to eight (8)
years and a fine of not less than Five hundred
thousand Philippine pesos (Php500,000.00) but
not more than One million Philippine pesos
(Php1,000,000.00), shall be imposed on a person
convicted for a violation under Section 9(c) -
Reporting of Covered and Suspicious
Transactions.
(d) Breach of Confidentiality. The punishment of
imprisonment ranging from three (3) to eight (8)
years and a fine of not less than Five hundred
thousand Philippine pesos (Php 500,000.00) but
not more than One million Philippine pesos (Php
1,000,000.00) shall be imposed on a person
convicted for a violation under Section 9(c) -
Reporting of Covered and Suspicious
Transactions.
In the case of a breach of confidentiality that is
published or reported by media, the responsible
reporter, writer, president, publisher, manager
and editor-in-chief shall be liable under this Act.

Political Harassment
SEC. 16 - Prohibitions Against Political Harassment
 This Act shall not be used for political prosecution or harassment or as an instrument to
hamper competition in trade and commerce.
 No case for money laundering may be filed against and no assets shall be frozen,
attached or forfeited to the prejudice of a candidate for an electoral office during an
election period.

Politically-Exposed Persons (under the IRR)

• (PEP) refers to an individual who is or has been entrusted with prominent public position in (a)
the Philippines with substantial authority over policy, operations or the use or allocation of
government-owned resources; (b) a foreign State; or (c) an international organization. (Rule 2,
Sec. 1 Par. XXX)
• Covered persons shall establish and record the true and full identity of PEPs, as well as their
immediate family members and close relationships /associates. (Rule 19, Sec. 1)

Restitution
SEC. 17 – Restitution – Restitution for any aggrieved party shall be governed by the
provisions of the New Civil Code.

Implementing Rules and Regulations

SEC. 18. Implementing Rules and Regulations
 • Within thirty (30) days from the effectivity of this Act, the Bangko Sentral ng
Pilipinas, the Insurance Commission and the Securities and Exchange Commission
shall promulgate the rules and regulations to implement effectivity the provisions of
this Act. Said rules and regulations shall be submitted to the Congressional Oversight
Committee for approval
• Covered institutions shall formulate their respective money laundering prevention
programs in accordance with this Act including, but not limited to, information
dissemination on money laundering activities and its prevention, detection and
reporting, and the training of responsible officers and personnel of covered
institutions.

Current IRR of the AMLC

• 2018 IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9160, OTHERWISE
KNOWN AS THE ANTI-MONEY LAUNDERING ACT OF 2001, AS AMENDED
• Casino Implementing Rules and Regulations of Republic Act No. 10927
• IMPLEMENTING RULES AND REGULATIONS

Programs
• Banks usually have an Anti-Money Laundering Unit, which serves as watch dogs to determine
the identity of their customers
• Customer Due Diligence or CDD
• Know Your Customer or KYC
• BSP’s Money Laundering and Terrorist Financing Prevention Program 

Congressional Oversight Committee

SEC. 19. Congressional Oversight Committee. —
a. seven (7) members from the Senate; and
b. seven (7) members from the House of Representatives.
Functions:
a. promulgate its own rules;
b. oversee the implementation; and
c. review and revise the implementing rules.

Appropriations Clause (RA No. 9160)

SEC. 20. Appropriations Clause. — The AMLC shall be provided with an initial appropriation
of Twenty-five million Philippine pesos (Php25,000,000.00) to be drawn from the national
government. Appropriations for the succeeding years shall be included in the General
Appropriations Act.

Non-intervention (RA 10365)

SEC. 20. Non-intervention in Bureau of Internal Revenue Operations. - It shall not be
construed to allow AMLC to participate in the operations of BIR.
SUBIDO, PAGENTE, CERTEZA, MENDOZA, AND BINAY LAW OFFICES VS COURT OF
APPEALS GR No. 216914 (2016)

Facts
Challenged in this petition for certiorari and prohibition under Rule 65 of the Rules of Court is the
constitutionality of Section 11 of R.A No. 9160, the Anti-Money Laundering Act, as amended, specifically
the Anti-Money Laundering Council's authority to file with the Court of Appeals (CA) in this case, an ex-
parte application for inquiry into certain bank deposits and investments, including related accounts based
on probable cause.

In 2015, a year before the 2016 presidential elections, reports abounded on the supposed
disproportionate wealth of then Vice President Jejomar Binay and the rest of his family, some of whom
were likewise elected public officers. The Office of the Ombudsman and the Senate conducted
investigations and inquiries thereon.

From various news reports announcing the inquiry into then Vice President Binay's bank accounts,
including accounts of members of his family, petitioner Subido Pagente Certeza Mendoza & Binay Law
Firm (SPCMB) was most concerned with the article published in the Manila Times on 25 February 2015
entitled "Inspect Binay Bank Accounts" which read, in pertinent part:

xxx The Anti-Money Laundering Council (AMLC) asked the Court of Appeals (CA) to allow the [C]ouncil to
peek into the bank accounts of the Binays, their corporations, and a law office where a family member
was once a partner.

xx xx
Also the bank accounts of the law office linked to the family, the Subido Pagente Certeza Mendoza &
Binay Law Firm, where the Vice President's daughter Abigail was a former partner.

By 8 March 2015, the Manila Times published another article entitled, "CA orders probe of Binay 's
assets" reporting that the appellate court had issued a Resolution granting the ex-parte application of the
AMLC to examine the bank accounts of SPCMB. Forestalled in the CA thus alleging that it had no
ordinary, plain, speedy, and adequate remedy to protect its rights and interests in the purported ongoing
unconstitutional examination of its bank accounts by public respondent Anti-Money Laundering Council
(AMLC), SPCMB undertook direct resort to this Court via this petition for certiorari and prohibition on the
following grounds that the he Anti-Money Laundering Act is unconstitutional insofar as it allows the
examination of a bank account without any notice to the affected party: (1) It violates the person's right to
due process; and (2) It violates the person's right to privacy.

Issues:

1. Whether Section 11 of R.A No. 9160 violates substantial due process.

2. Whether Section 11 of R.A No. 9160 violates procedural due process.
3. Whether Section 11 of R.A No. 9160 is violative of the constitutional right to privacy enshrined in
Section 2, Article III of the Constitution.
Rulings
1. No. We do not subscribe to SPCMB' s position. Succinctly, Section 11 of the AMLA providing for ex-
parte application and inquiry by the AMLC into certain bank deposits and investments does not violate
substantive due process, there being no physical seizure of property involved at that stage.
In fact, .Eugenio delineates a bank inquiry order under Section 11 from a freeze order under Section 10
on both remedies' effect on the direct objects, i.e. the bank deposits and investments:

On the other hand, a bank inquiry order under Section 11 does not necessitate any form of physical
seizure of property of the account holder. What the bank inquiry order authorizes is the examination of the
particular deposits or investments in banking institutions or non-bank financial institutions. The monetary
instruments or property deposited with such banks or financial institutions are not seized in a physical
sense, but are examined on particular details such as the account holder's record of deposits and
transactions. Unlike the assets subject of the freeze order, the records to be inspected under a bank
inquiry order cannot be physically seized or hidden by the account holder. Said records are in the
possession of the bank and therefore cannot be destroyed at the instance of the account holder alone as
that would require the extraordinary cooperation and devotion of the bank.

At the stage in which the petition was filed before us, the inquiry into certain bank deposits and
investments by the AMLC still does not contemplate any form of physical seizure of the targeted corporeal
property.

2. No. The AMLC functions solely as an investigative body in the instances mentioned in Rule 5.b.26
Thereafter, the next step is for the AMLC to file a Complaint with either the DOJ or the Ombudsman
pursuant to Rule 6b. Even in the case of Estrada v. Office of the Ombudsman, where the conflict arose at
the preliminary investigation stage by the Ombudsman, we ruled that the Ombudsman's denial of Senator
Estrada's Request to be furnished copies of the counter-affidavits of his co-respondents did not violate
Estrada's constitutional right to due process where the sole issue is the existence of probable cause for
the purpose of determining whether an information should be filed and does not prevent Estrada from
requesting a copy of the counter-affidavits of his co-respondents during the pre-trial or even during trial.

Plainly, the AMLC's investigation of money laundering offenses and its determination of possible money
laundering offenses, specifically its inquiry into certain bank accounts allowed by court order, does not
transform it into an investigative body exercising quasi-judicial powers. Hence, Section 11 of the AMLA,
authorizing a bank inquiry court order, cannot be said to violate SPCMB's constitutional right to due
process.

3. No. We now come to a determination of whether Section 11 is violative of the constitutional right to
privacy enshrined in Section 2, Article III of the Constitution. SPCMB is adamant that the CA's denial of its
request to be furnished copies of AMLC's ex-parte application for a bank inquiry order and all subsequent
pleadings, documents and orders filed and issued in relation thereto, constitutes grave abuse of discretion
where the purported blanket authority under Section 11: ( 1) partakes of a general warrant intended to aid
a mere fishing expedition; (2) violates the attorney-client privilege; (3) is not preceded by predicate crime
charging SPCMB of a money laundering offense; and ( 4) is a form of political harassment [of SPCMB' s]
clientele.

We thus subjected Section 11 of the AMLA to heightened scrutiny and found nothing arbitrary in the
allowance and authorization to AMLC to undertake an inquiry into certain bank accounts or deposits.
Instead, we found that it provides safeguards before a bank inquiry order is issued, ensuring adherence to
the general state policy of preserving the absolutely confidential nature of Philippine bank accounts:

1. The AMLC is required to establish probable cause as basis for its ex-parte application for bank
inquiry order;
 2. The CA, independent of the AMLC's demonstration of probable cause, itself makes a finding of
probable cause that the deposits or investments are related to an unlawful activity under Section
3(i) or a money laundering offense under Section 4 of the AMLA;
3. A bank inquiry court order ex-parte for related accounts is preceded by a bank inquiry court order
ex-parte for the principal account which court order ex-parte for related accounts is separately
based on probable cause that such related account is materially linked to the principal account
inquired into; and
4. The authority to inquire into or examine the main or principal account and the related accounts
shall comply with the requirements of Article III, Sections 2 and 3 of the Constitution. The
foregoing demonstrates that the inquiry and examination into the bank account are not
undertaken whimsically and solely based on the investigative discretion of the AMLC. In
particular, the requirement of demonstration by the AMLC, and determination by the CA, of
probable cause emphasizes the limits of such governmental action. We will revert to these
safeguards under Section 11 as we specifically discuss the CA' s denial of SPCMB' s letter
request for information concerning the purported issuance of a bank inquiry order involving its
accounts.

All told, we affirm the constitutionality of Section 11 of the AMLA allowing the ex-parte application by the
AMLC for authority to inquire into, and examine, certain bank deposits and investments.

WHEREFORE, the petition is DENIED. Section 11 of Republic Act No. 9160, as amended, is

declared VALID and CONSTITUTIONAL.