COMMERCIAL

A. COVERED INSTITUTIONS AND THEIROBLIGATIONS1. COVERED

INSTITUTIONS
Notwithstanding the foregoing, the term 'covered persons' shall exclude lawyers and
accountants acting as independent legal professional
B. COVERED AND SUSPICIOUSTRANSACTIONS1. COVERED TRANSACTIONSa.
Transaction in cash or other equivalent monetary instrumentinvolving a total amount in
excess of Five hundred thousand pesos (P500,000.00) within one (1) banking day; b.
For casinos, including internet and ship-based casinos, a single casino cash transaction
involving an amount in excess of Five million pesos (P5,000,000.00) or its equivalent in
any other currency;c. For real estate developers and brokers, a single cash
transactioninvolving an amount in excess of Seven Million Five Hundred Thousand
Pesos (P7,500,000.00) or its equivalent in any other currency.(Sec. 3)
2. SUSPICIOUS TRANSACTIONS'Suspicious transactions' are transactions with
covered persons, regardless of the amounts involved, where any of the following
circumstances exist:
C. SAFE HARBOR PROVISION No administrative, criminal or civil proceedings, shall
lie against any person for having made a covered or suspicious transaction report in the
regular performance of his duties in good faith, whether or not such reporting results in
any criminal prosecution under this Act or any other law. (Sec. 9)
D. WHEN IS MONEY LAUNDERING COMMITTED (INCLUDING PREDICATE
CRIMES) 1. WHEN MONEY LAUNDERING IS COMMITTED Money laundering is
committed by any person who, knowing that any monetary instrument or property
represents, involves, or relates to the proceeds of any unlawful activity
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
E. AUTHORITY TO INQUIRE INTO BANKDEPOSITS 1. AUTHORITY OF THE AMLC
TOINQUIRE INTO A DEPOSIT ORINVESTMENT; EX PARTEAPPLICATION
Notwithstanding the provisions of Republic Act No.1405, as amended, R.A. No. 6426,
as amended, R.A. No. 8791, and other laws, the AMLC may inquire into or examine
any particular deposit or investment, including related accounts, with any banking
institution or non-bank financial institution upon order of any competent court based
on an ex parte application in cases of violations of this Act, 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 hereof; except that
no court order shall be required in cases involving activities defined in Section 3(i)
(1), (2), and (12)hereof, and felonies or offenses of a nature defined in Section 3(i)(1),
(2), and (12) hereof, and felonies or offenses of a nature similar to those mentioned in
Section 3(i)(1), (2), and (12), which are Punishable under the penal laws of other
countries, and terrorism and conspiracy to commit terrorism as defined and penalized
under Republic Act No. 9372.

SEC. 3. Definitions. — For purposes of this Act, the following terms are hereby defined
as follows:

(i) “Unlawful activity” refers to any act or omission or series or combination thereof
involving or having 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 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. 6425, as
amended, otherwise known as the Dangerous Drugs Act of 1972;
(12) Hijacking and other violations under Republic Act No. 6235; destructive
arson and murder, as defined under the Revised Penal Code, as amended,
including those perpetrated by terrorists against non-combatant persons and
similar targets;

SEC. 4. Money Laundering Offense. — Money laundering is a crime whereby the

proceeds of an unlawful activity are transacted, thereby making them appear to have
originated from legitimate sources.

1. FREEZINGa. Period of effectivity of the Freeze Order;

Issuing Court Upon a verified ex parte petition by the AMLC and after determination that
probable cause exists the Court of Appeals may issue a freeze order which shall be
effective immediately, for a period of twenty (20) days. The twenty (20)-day period may
be extended after the conduct of a summary hearing. However, the total period of the
freeze order issued by the Court of Appeals shall not exceed six (6) months.
NOTE: If there is no case filed against a person whose account has been frozen within
the period determined by the Court of Appeals, not exceeding six (6) months, the freeze
order shall be deemed ipso facto lifted
In any case, the court should act on the petition to freeze within twenty-four (24) hours
from filing of the petition. …………shall exclude the nonworking days
Scope of Freeze Order
 shall be limited only to the amount of cash or monetary instrument or value of
property that court finds there is probable cause to be considered as proceeds of
a predicate offense
 shall not apply to amounts in the same account in excess of the amount or value
of the proceeds of the predicate offense.

Motion to Lift Freee Order – resolve before the expiration of the freeze order
Prohibition Against injunction, except by Supreme Court
Sec. 3 (15) AMLC shall have the power to issue, ex parte, an order to freeze without
delay. For purposes of implementing targeted financial sanctions in relation to
proliferation of weapons of mass destruction and its financing.
aggrieved party may, within twenty (20) days from issuance, file with the Court of
Appeals a petition to determine the basis of the freeze order according to the principle
of effective judicial protection:
The AMLC, may initiate civil forfeiture proceedings to preserve the assets and to protect
it from dissipation. No court shall issue a temporary restraining order or a writ of
injunction against the freeze order, except the Court of Appeals or the Supreme Court.
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
b. Scope of forfeiture 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
Claim on Forfeited assets 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 the order of forfeiture, in
default of which the said order shall become final and executory. This provision shall
apply in both civil and criminal forfeiture
d. 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, with due diligence, be located, 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.
e. Prohibition on courts against injunction of preservations orders; exception No court
shall issue a temporary restraining order (TRO) or a writ of injunction against any
provisional asset preservation order or asset preservation order, except the Court of
Appeals or the Supreme Court.