THE ANTI-MONEY LAUNDERING ACT Republic Act No.

9160
 3

The AMLA, as amended

Republic Act No. 9160 (Effective: 17 October 2001) as amended
by:
a)Republic Act No. 9194 (Effective: 23 March 2003)

b)Republic Act No. 10167 (Effective: 6 July 2012)

c) Republic Act No. 10365 (Effective: 8 March 2013)

d) Republic Act No. 10927 (Effective: 29 July 2017)

e.) Republic Actno. No.11521 (EffectiveJuly27,2020)

 3

The AMLA, as amended

 2

Overview
 Substantive Updates (AMLA)

 Operational Updates (Evidence Gathering)

 Bangladesh Bank Cyber Heist

5
6
 7

Why Do People Launder Money?

To use and enjoy the money with impunity
a. Without detection of the unlawful activity that
produced the money; and

b. Without compromising or putting at risk the

criminal proceeds as well as the criminal who
wishes to benefit from said proceeds
 8

Problems in Investigation?

 Becomes increasingly
harder to detect

 Sophistication
 Creativity
 Hidden in legitimate
funds
 Number of
people/institutions
involved

 Contamination effects on
 9

Stages of ML
1. Placement – involves initial
placement or introduction of
the illegal funds into the
financial system. Banks and other
financial institutions are usually used
at this point.

Examples
• smurfing or structuring
• converted into financial instruments
• commingled with legitimate funds
• purchases of insurance contract
 10

Stages of ML
2. Layering – involves a series of
financial transactions during which the
dirty money is passed through a series
of procedures, putting layer upon layer
of persons and financial activities into
the laundering process.
Examples:
 electronic transfer of funds
 disguise the transfer as a payment for
goods or services
 transfer the funds to
shell
corporation
 11

Stages of ML
3. Integration the money is once again
– made available to the criminal with the
occupational and geographic origin obscured or
concealed. The laundered funds are now integrated back
into the legitimate economy through the purchase of
properties, businesses and other investments.
 15

State Policies
1. Ensure that the Philippines shall not be
used as a money laundering site for the
proceeds of any unlawful activity.
2. Extend cooperation in transnational
investigations and prosecutions of
persons involved in money laundering
activities wherever committed.
3. Protect and preserve the integrity and
confidentiality of bank accounts.
 16
SUBIDO PAGENTE CERTEZA MENDOZA
AND BINAY LAW OFFICES v. COURT OF
APPEALS
G.R. No. 216914, December 06, 2016
Because of the Bank Secrecy Act, the confidentiality of bank deposits
remains a basic state policy in the Philippines. Subsequent laws, including
the AMLA, may have added exceptions to the Bank Secrecy Act, yet the
secrecy of bank deposits still lies as the general rule. It falls within the
zones of privacy recognized by our laws. The framers of the 1987
Constitution likewise recognized that bank accounts are not covered by
either the right to information under Section 7, Article III or under the
requirement of full public disclosure under Section 28, Article II. Unless
the Bank Secrecy Act is repealed or amended, the legal order is obliged to
conserve the absolutely confidential nature of Philippine bank deposits.
 17

Salient Features
1. Criminalized money
laundering.

2. Created a financial
intelligence unit or
implementing agency.

3. Imposed requirements re:

customer identification,
record-keeping and reporting
of covered and suspicious
transactions.
 18

Salient Features

4. Relaxed strict bank deposit

secrecy laws.

5. Provided for freezing/

seizure/forfeiture/
recovery of dirty
money/property.

6. Provide for international

cooperation.
 19

The Philippines’ Financial Intelligence Unit

 20

Composition

1. The BSP Governor – Chairman

2. The SEC Chairperson – Member

3. The IC Commissioner – Member

 SUBIDO PAGENTE CERTEZA
21
MENDOZA
AND
BINAY LAW OFFICES v. COURT OF APPEALS
(Quasi-Judicial Power)

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 procedural due process.
 22

Functions of the AMLC

 Covered Persons (Natural or
23

Juridical)

1. Banks, non-banks, quasi-banks, trust entities,

FX 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);
 Covered Persons (Natural or 24

Juridical)

2. Insurance companies, pre-need companies and all other

institutions supervised or regulated by the Insurance
Commission (IC);

3. Specific entities supervised or regulated by the

Securitie and Exchange Commission
including
s securities
(SEC),dealers, brokers, investment houses,
mutual funds, trading advisors, and other entities administering
or otherwise dealing in currency, commodities or financial
derivatives;
 Covered Persons (Natural or Juridical)
25

4.Jewelry Dealers in precious metals, for transactions in

excess of Php1,000,000.00;

5. Jewelry Dealers in precious stones, for transactions

in excess of Php1,000,000.00;

6. Company Service Providers which provide services to

3rd Parties such as acting as formation agent, director,
corporate secretary, partner or as nominee shareholder, or
providing registered office, business address or
accommodation
 26

Covered Persons (Natural or Juridical)

7. Persons who provide any of the ff. services:
a) Managing client money, securities or other assets;
b) Management bank, savings &
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.

8. Casinos including Internet and ship based casinos

 27

Covered Persons (Natural or Juridical)

EXCLUDING: Lawyers and Accountants
 acting as independent legal professionals
 or where disclosure would compromise
client
confidences or attorney-client relationship.

Provided:
(i) authorized to practice in the Philippines ; and
(ii) subject to their respective codes of conduct and/or
professional responsibility or any of its amendments
 Covered Persons (Natural or
26

Juridical)
9. Real Estate Developers and brokers
 Covered Persons (Natural or
26

Juridical)
9. Real Estate Developers and brokers
 Covered Persons (Natural or
26

Juridical)

10. Offshore gaming corporation

What are Philippine offshore gaming operators
(POGO)?

Philippine offshore gaming operators, often referred to as

POGOs, is a Philippine-based online gambling company that
offers services to customers outside of the country.

POGOs are registered and licensed by the Philippine

Amusement and Gaming Corporation (PAGCOR) in order to
operate legally. They are the only casino industry classified
under the business processing outsourcing (BPO) sector.
What are Philippine offshore gaming operators
(POGO)?
As of 2023, Philippine offshore gaming operators (POGOs)
consist of three categories.

•E-casino – often referred to as internet casino; a type of online

gambling that operates real-time casinos and usually caters to a
random number of games.  

•Sports betting – is a form of gambling that involves predicting

the results and placing a bet on a particular sporting event. 

•Sports-betting on Regulated Wagering Events (SBRWE)

– regulated by other jurisdictions; caters live event audio and
visual feeds to consumers. 
 How do POGOs work?
Offshore gaming companies fall under three licensing
categories:

Category 1 – where the ladies or dealers are in charge of

managing online games through live streaming.

Category 2 and 3 – the subsectors of business processing

outsourcing (BPO) that focus on back-office services.
As mandated by the Republic Act No. 11590, only foreigners
based outside of the Philippines are allowed to participate in
gambling and must be 21 years of age and above. 

However, Chinese nationals are mostly the main players in these

online gambling hubs since gambling is strictly prohibited in
China.
There are more than 50,000 Chinese reportedly working in Manila-
based POGOs. 

On the other hand, Filipinos residing outside the country as well as

foreign nationals based in the Philippines are not allowed to
participate in online gambling. 
 Tax treatment of POGOs
The Republic Act No. 11590 provides regulations in taxing rules for Philippine
offshore gaming operators.

The offshore gaming licenses are subject to tax at five percent of their entire
gross gaming revenues or receipts from online gambling. Non-gaming
revenues are subject to 25% income tax every taxable year.

On the other hand, sales and services provided to offshore gaming companies
are at zero percent value-added tax.

Moreover, all alien individuals, regardless of residency, are employed and

designated in the Philippines by a certain offshore gaming licensee, or its
service provider shall be subject to pay 25 percent of their gross income or tax
equivalent to P12,500.
Thus, offshore gaming licensees must file and submit applicable tax returns
before their due date, including internal revenue taxed and other compliance
reports such as Certificate of Registration or BIR Form No. 2303.
 State of the POGO industry
NCR hosts a large number of POGOs in cities such as Makati,
Pasay, Manila, Las Piñas, Mandaluyong, Parañaque, and Quezon
City. There are also regions outside Metro Manila that cater
POGOs, including Region III, IV-A and Region VII.

POGOs began their operations in November 2016.

The Bureau of Internal Revenue collected a total of PHP 5.28
billion (US$101 million) in 2020 and PHP 3.47 billion (US$67
million) in 2021.

In the year 2022, the POGO industry faces a major decline with an
accumulated revenue total of PHP 1.67 billion or US$32 million.

As of May 2022, there are 34 licensed POGOs in the Philippines.

 28

1. Covered Transaction - Cash

“Covered transaction” - a transaction in cash or
other equivalent monetary instrument involving a total
amount in excess of Five Hundred Thousand Pesos
(Php500,000.00)
within one (1) banking day.
2. Covered Transaction – Jewelry
28

Shop
“Covered transaction” - a transaction with involving
jewelry dealers, dealers in precious metals and dealers in
precious stones in cash or other equivalent monetary
instrument exceeding P1,000,000.
 28

3. Covered Transaction - Casino

“Covered transaction” - a casino cash transaction
exceeding P5,000,000 or its equivalent in other currency.
 28

4. Covered Transaction – Real estate

“Covered transaction” - under section 3 cash
transaction involving an amount in excess 7.5M or its
equivalent in any other currency
 29

Suspicious Transaction

Suspicious transaction - a
transaction with a covered
institution, regardless of the
amount involved, where any
of the following circumstances
exist(s):
 30

Suspicious Transaction

1. No underlying legal or
trade obligation,
purpose or economic
justification;
 31

Suspicious Transaction

2. Client is not properly

identified
 32

Suspicious Transaction

3. Not commensurate
with the business or
financial capacity of
the client
 33

Suspicious Transaction

4. Structuring
 34

Suspicious Transaction

5.Deviation from the

profile

6. Related to an
unlawful activity
 35

Suspicious Transaction
7. Similar, analogous or identical to any of the
foregoing
Examples:
Questions on how to avoid
reporting/recordkeeping;
Customer attempt to influence an employee not to file
a report;
 Circumvention of internal control procedures;
 Short-term/no vacations, etc.
 Reporting of Covered and Suspicious
37 Transactions to the
AMLC
(w/o Court Order)

Covered persons shall report to the AMLC all covered

transactions and suspicious transactions .

When reporting covered or suspicious transactions to the

AMLC, covered persons and their officers and employees shall
not be deemed to have violated R.A. No. 1405, as
amended, R.A. No. 6426, as amended, R.A. No. 8791 and
other similar laws, x x x.”
 38

Unlawful activity (a.k.a. predicate offense)

 Unlawful Activity (a.k.a. Predicate
39

Offense)
“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 the

Revised Penal Code (RPC)

2. Drug Trafficking and other violations of

the Comprehensive Dangerous Drugs
Act of 2002
 40

Unlawful Activity (a.k.a. Predicate

Offense)
3. Graft and Corruption (R.A.
No. 3019, as amended)
4. Plunder (R.A. No. 7080, as
amended)
5. Robbery and extortion
(RPC)
6. Jueteng and Masiao
(PD 1602)
7. Piracy (RPC & PD 532)
 41

Unlawful Activity (a.k.a. predicate

offense)
8. Qualified Theft (RPC)
9. Swindling/Estafa (RPC)
10. Smuggling (R.A. Nos. 455 &
1937)
11. Violations of Electronic
Commerce Act of 2000 (R.A. No.
8792)
12. Hijacking (R.A. No. 6235),
Destructive Arson and
Murder (RPC)
 42

Unlawful Activity (a.k.a.

Predicate Offense)
13. Terrorism and Conspiracy to Commit Terrorism
(R.A. No. 9372);

14. Financing of Terrorism (R.A. No. 10168)

 43

Unlawful Activity (a.k.a. Predicate Offense)

15. Bribery and Corruption of Public
Officers (RPC);

16. Frauds and Illegal Exactions and

Transactions (RPC);

17. Malversation of Public Funds (RPC);

18. Forgeries and Counterfeiting (RPC);

19. Trafficking in Persons

(R.A. No. 9208)
 44

Unlawful Activity (a.k.a. Predicate Offense)

20. Violations of the Revised Forestry Code (PD 705);

21.Violations of the Philippine Fisheries Code of 1998 (R.A.

No. 8550);

22.Violations of the Philippine Mining Act of

1995 (R.A. No. 7942);

23.Violations of the Wildlife Resources Conservation and

Protection Act
(R.A. No. 9147);

24.Violations of the National Caves and Cave Resources

Management Protection Act (R.A. No. 9072);
 45

Unlawful Activity (a.k.a. Predicate

Offense)
25. Carnapping (R.A. No. 6539);

26. Illegal/Unlawful Possession, Manufacture, Dealing In,

Acquisition or Disposition of Firearms, Ammunitions and
Explosives (PD 1866);

27. Fencing (PD 1612);

28. Illegal Recruitment (R.A. No. 8042);

29. Violations of the Intellectual Property Code;

30. Voyeurism (R.A. No. 9995);

 46

Unlawful Activity (a.k.a. Predicate

Offense)
31. Child Pornography (R.A. No. 9775);

32. Child Prostitution, Trafficking,

and other forms of Abuse (R.A.
No. 7610);

33. Fraudulent practices and other

violations of the Securities
Regulation Code (R.A. No.
8799); and

34. Felonies or offenses of a similar

nature that are
punishable under the penal laws
 The Crime of Money Laundering

Money Laundering (ML) is committed by any person

who, knowing that any monetary instrument or property
represents, involves, or relates to the proceeds of any
unlawful activity:

a) Transacts said monetary instrument or property

(MI/P);

b) Converts, transfers, disposes of,

moves, acquires, possesses or uses
said MI/P;
 The Crime of Money
Laundering
c. Conceals or disguises the true nature, source, location,
disposition, movement or ownership of or rights with respect to
said MI/P;

d. Attempts or conspires to commit ML referred to in par. a), b) & c);

e. Aids, abets, assists in or counsels the commission of the ML

offenses referred to in par. a), b) & c) above; and

f. Performs or fails to perform any act as a result of which he

facilitates the offense of ML referred to in par. a), b) & c) above.
 49

The Crime of ML

Money Laundering is also

committed byany covered person
who, knowing that covered
a
suspicious or
is required
under the AMLA, as amended, to be
transaction
reported to the Anti-Money Laundering
Council (AMLC), fails to do so.
 50

PEOPLE v. BACLADO a.k.a. JAMES YAP

Criminal Case No. 017210-L, RTC,Lapu-Lapu City July
28, 2016 (Transact)

Being the sole account holder, the logical conclusion, and there can
be no other, as, he was the one who tried to withdraw the money from the
account. The timing from which withdrawals of nearly uniform amounts per
day coinciding with the day the amount of Php2,646,818.50 was credited to
the account, is an indication of the awareness of the accused of the fact of the
arrival of said amount, and an attempt to withdraw everything, but which was
limited by the cap established by the bank for daily withdrawals. Worth
pointing out as well is that per the history of transaction under the bank
account, only very minimal amounts were deposited, and it was very unusual
for the account to suddenly be credited with millions.
 53

Prosecution of ML

Jurisdiction
 Regional Trial Courts
Sandiganbayan
- committed by public officers or private
persons who are in conspiracy with such
public officers.
 54

PEOPLE v. PINEDA, CA-G.R. CR No. 33592

Court of Appeals, 17th Division, April 26, 2013

Section 5 of RA No. 9160, as amended, places the jurisdiction of money

laundering cases in two courts – generally, in the regional trial courts
and, exceptionally, in the Sandiganbayan. On the other hand, PD No.
1606, as amended, circumscribes the jurisdiction of the Sandiganbayan
to offenses or felonies committed by public officials and employees
occupying positions with salary grade “27” or higher. Indeed, these two
provisions may stand side by side and operate and function
simultaneously without contradicting each other. Accordingly, those
public officials charged with violation of RA No. 9160 who occupy
positions corresponding to salary grade “27” or higher fall within the
jurisdiction of the Sandiganbayan, while the rest are within the
jurisdiction of the regional trial court.
 55

Prosecution of ML
 Any person may be charged with
and convicted of both the offense
of money laundering (subject offense)
and the unlawful activity (predicate
offense)

 The of money
laundering
prosecution and the unlawful
activity shall proceed
independently.
 56

REPUBLIC v. GLASGOW CREDIT AND

COLLECTION SERVICES, INC., G.R. No. 170281
First Division, January 18, 2008

Regardless of the absence, pendency or outcome of a criminal

prosecution for the unlawful activity or for money laundering, an action
for civil forfeiture may be separately and independently prosecuted and
resolved.
 57

SEC 11 –AUTHORITY of AMLC to inquire

Notwithstanding the provisions of R.A. 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, with any bank or non-bank financial
institution, including related accounts upon order of the Court of
Appeals based on an ex parte application when there is probable
cause that they are related to an unlawful activity.
 58

Nature of Bank Inquiry

A bank inquiry is an extraordinary provisional relief to
effectively combat and prosecute money laundering and
terrorist financing. It is an investigative tool used to determine
the established facts and making findings in respect thereto. The
inquiry conducted by AMLC into deposit or investment,
including related accounts, with any banking institution or non-
bank financial institution is only for the purpose of evaluating
the evidence submitted or gathered and it is not authorized to
make a final pronouncement affecting the parties. (Subido
Pagente Certeza Mendoza and Binay Law Offices v. Court of
Appeals)
SUBIDO PAGENTE CERTEZA MENDOZA
59 AND BINAY LAW
OFFICES v. COURT OF APPEALS G.R. No. 216914,
December 06, 2016

An ex parte application for bank inquiry by the AMLC into

certain bank deposits and investments does not violate
substantive due process, there being no physical seizure of
property involved. It is the preliminary and actual seizure of the
bank deposits or investments in question which brings these
within reach of the judicial process, specifically a
determination that the seizure violated due process.
 60

Sec 11. AMLCAuthority to inquire

 No Court Order needed in cases where the
unlawful activity involves Kidnapping for
Ransom (KFR), drug-related cases and
terrorist-financing cases under R.A. 10168

AMLC Resolution Court Order

KFR Other Unlawful
Drug-related Activities under
Terrorist Financing Sec 3(i) of the
AMLA
under
R.A. 10168
 61

AMLC Authority to Inquire WithorWithoutCourtOrder

Court of Appeals shall act on the
application to inquire within 24 hours
from filing

To ensure compliance with AMLA, the

Bangko Sentral ng Pilipinas (BSP) may,
in the course of a periodic or special
examination, check the compliance
of a covered person with the requirements of
the AMLA and its implementing rules and
regulations.
 62

REPUBLIC v. BOLANTE G.R. Nos. 190357, April 17,

2017
For the court to issue a bank inquiry order, it is necessary for the
AMLC to be able to show specific facts and circumstances that
provide a link between an unlawful activity or a money
laundering offense, on the one hand, and the account or
monetary instrument or property sought to be examined on the
other hand.
As it stands, the evidence relied upon by the AMLC in 2006 was
still the same evidence it used to apply for a bank inquiry order
in 2008. Regrettably, this evidence proved to be insufficient
when weighed against that presented by the respondents, who
were given notice and the opportunity to contest the issuance of
the bank inquiry order pursuant to Eugenio. In fine, the RTC did
not commit grave abuse of discretion in denying the
application.
 63

AMLC Authority to Inquire WithorWithoutCourtOrder

 Related Accounts – accounts, the funds and sources of
which originated from and/or materially linked to the
monetary instrument(s) or property(ies) subject of the freeze
order
 Court order ex parte needed – same
procedure as in the principal account

 Authority to inquire into or examine principal

account and its related accounts shall comply with
Art. III, Sections 2 (Unreasonable search &
seizure) and 3 (Inadmissible evidence) of the 1987
Constitution
 64

REPUBLIC v. HON. EUGENIO, JR., ASPRESIDING JUDGE OF RTC

G.R. No. 174629, February 14, 2008

Ex-post facto law

The proscription against ex post facto laws apply to the

interpretation of Section 11, a provision which does not provide
for a penal sanction but authorizes the inspection of suspect
accounts and deposits.
 Freeze Order
A freeze order is an extraordinary and interim relief
issued by the CA to prevent the dissipation, removal, or
disposal of properties that are suspected to be the proceeds
of, or related to, unlawful activities as defined in Section 3 (i)
of RA No. 9160, as amended. The primary objective of a
freeze order is to temporarily preserve monetary
instruments or property that are in any way related to an
unlawful activity or money laundering, by preventing the
owner from utilizing them during the duration of the freeze
order. RET. LT. GEN. LIGOT v. REPUBLIC, G.R. No. 176944,
March 6, 2013
Petition for Freeze Order
Sec. 44.
- Verified petition; RP, rep. by AMLC;
thru OSG

- Filed before the Court of Appeals

- Ex parte
 Direct Filing; Confidentiality
 with the Presiding Justice in Manila, or the
Executive Justices in Cebu City or
Cagayan de Oro City

 Docketed in a separate logbook

 Strictly confidential

 Raffled on the same day; among members

of first three (3) Div. only (10 Div.)
 Action by the CA
- Within 24 hours after filing;
- Issue freeze upon
order
determination of probable cause,
based on allegations of the petition,
that M/I, property or proceeds are in
any way related to an unlawful activity.
 Probable Cause

 This probable cause is therefore different from the

probable cause required for the institution of a criminal
action.
 The focal point of probable cause is the sufficiency of
the relation between the unlawful activity and the
property or monetary instrument. SUBIDO PAGENTE
CERTEZA MENDOZA AND BINAY LAW OFFICES v.
COURT OF APPEALS, G.R. No. 216914, December 06,
2016
 Freeze order

 Effective immediately
 Not to exceed six (6) months depending
upon the circumstances of the case
 If no case is filed against a person
whose acct. has been frozen -
deemed ipso facto lifted.
 Extension of Six Months
As a rule, the effectivity of a freeze order may be extended by the CA for a
period not exceeding six months. Before or upon the lapse of this period,
ideally, the Republic should have already filed a case for civil forfeiture
against the property owner with the proper courts and accordingly secure
an asset preservation order or it should have filed the necessary
information. Otherwise, the property owner should already be able to fully
enjoy his property without any legal process affecting it. However, should
it become completely necessary for the Republic to further extend the
duration of the freeze order, it should file the necessary motion before the
expiration of the six-month period and explain the reason or reasons for
its failure to file an appropriate case and justify the period of extension
sought. (RET. LT. GEN. LIGOT v. REPUBLIC, G.R. No. 176944, March 6,
2013)
 SC Ruling
M/Gen. Carlos Garcia vs. CA, G.R. No. 165800; 27
Nov. 2007
“Nothing in RA 9160 requires that a case for
violation of anti-money laundering laws must be filed
before the issuance of a freeze order. X x x. There are
only two requisites under the law for the issuance of the
freeze order: (1) the application ex parte by the AMLC;
and (2) the determination of probable cause by the
CA.”
 Appeal
 Any party aggrieved by the decision or ruling of the court
may appeal to the Supreme Court by petition for review
on certiorari under Rule 45 of the Rules of Court. (Rule
on Civil Forfeiture, Title VIII, § 57)
 When there is an issue of due process involving an apparent
conflict between Section 10 of the AMLA and the Rule in
Civil Forfeiture Cases, the rule is relax and case is resolved
on the merits in the interest of justice. RET. LT. GEN. LIGOT
v. REPUBLIC, G.R. No. 176944, March 6, 2013
 OBJECTIVES OF FORFEITURE

- To take the facilitating property that makes

the crimes possible
- To take the criminal’s profits

- To break the criminal organizations (criminals

commit crime to gain profit)

- To prevent reinvestment of proceeds

of crime in other criminal activities
 Kinds of Forfeiture
a) Criminal forfeiture
- Dependent on criminal conviction
- Jurisdiction over the person of the accused
is necessary (in personam)
- Defendant typically must be present

b) Civil forfeiture
- Jurisdiction over the person not required
(court must exercise some control over the
property
- Criminal conviction not necessary, can
forfeit property from dead criminals or fugitives
 SC Ruling
Republic vs. Glasgow Credit &
Services, Inc., et al. Collection
G.R. No. 170281; 18 Jan. 2008

“Forfeiture proceedings are actions in rem. x x x.

As an action in rem, it is a proceeding against the
thing itself instead of against the person. In
actions in rem or quasi in rem, jurisdiction over the
person of the defendant is not a prerequisite to
conferring jurisdiction on the court, provided that the
court acquires jurisdiction over the res. x x x.”
 Civil Forfeiture

Republic Act No. 1379 – Forfeiture of

Unexplained Wealth

Republic Act No. – Anti-Money

9160
Laundering Act of 2001, as amended
 Section 12 of the AMLA, as
amended
Sec. 12. Forfeiture Provisions. –
(a) 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 OSG, a verified ex-parte petition for
forfeiture, and the rules of court on civil forfeiture shall
apply
 Definition

Civil forfeiture may be defined as the seizure and

confiscation of any monetary instrument or
property, in whole or in part, directly or indirectly,
involved in or related to an unlawful activity under
Section 3(i) or a money laundering offense under
Section 4, Republic Act No. 9160, as amended.
Assets that may be forfeited

Any monetary instrument, property, or

proceeds representing, involving, or
relating to an unlawful activity or a money
laundering offense under
R.A. 9160, as amended.
 Provisional Asset Preservation Order (PAPO)

-Order forbidding any transaction,

withdrawal, deposit, transfer, removal,
conversion, concealment or other
disposition of the subject M/I, property
or proceeds
Asset Preservation Order (APO)

- within the 20-day period of PAPO, summary

hearing shall be conducted;
- Respondent may show good cause why PAPO
should be lifted;
- Court may modify or lift PAPO; otherwise,
shall issue APO.
 Operational
Updates

 The Philippines’ financial intelligence unit (FIU)

 serves as the national center for the receipt and analysis
of:
a) Suspicious transaction reports; &
b) Other information relevant to money laundering,
associated predicate offenses and terrorist
financing.
 Tasked to implement the AMLA
 Terrorist Financing and Suppression Law (RA 10168)
The AMLC Secretariat
 operating arm of the AMLC, headed by an Executive Director

Executive Director

Technical
Services Staff

Compliance and Legal Services Information Management

Investigation Group Group and Analysis Group

Administrative and
Financial Services Division
Internal Procedure
Investigation (CIG)

Evaluation (LSG)

Review (E.D.)

Resolution(Council)

Filing of appropriate
case
 Investigative Triggers
 Suspicious Transaction Reports
 Referrals by Supervising Authorities
 Referrals by Law-Enforcement Agencies

 Referrals by foreign jurisdictions, agencies or FIUs

 Newspaper or media reports of unlawful/ML activities

 Citizens’ sworn complaints relating to unlawful/ML

activities
Investigative Process
 Identification of Unlawful Activity
 Tracking down assets
 Analysis of financial transactions
 Freezing and Forfeiture of Assets
 Filing of money laundering case
Investigative Tools
 AMLC Database
 Bank Inquiry
 Domestic Cooperation
- Information Exchange with LEAs
- Enlist Assistance of other Gov’t Agencies
 International Cooperation
- Foreign FIUs; Egmont Group (Secured Web)
- Mutual Legal Assistance Treaty (MLAT)
Request
- MLA from/to foreign States
 Freeze Order
 Mutual Legal Assistance
The AMLC may obtain assistance from foreign States in:
o Tracking down, freezing, restraining and
seizing assets
o Obtaining information relating to covered/suspicious
transaction, money laundering
o Applying for an order to enter any premises, search persons,
or remove documents or objects named in the request
o Applying for an order of forfeiture
Mutual Legal Assistance

Similarly, the AMLC may execute such requests for

mutual legal assistance from foreign States.
Financial Records to Look For

o Deposit slips
o Withdrawal slips
o Credit / debit memos
o Cancelled checks
o Investment records
o Travel records
o Legal Contracts
Financial Records to Look For
o Telephone bills / business cards
o Computers / electronic printouts
o Account ledgers
o Incorporation / partnership papers
o Financial statements
o Income statement
Financial Records to Look For
o ATM receipts
o Certificates of stock
o Trust accounts
o Minutes of meetings
o Audited financial statements
o Cash/Currency clips
 Financial Records to Look For
o Address books / diaries
o Hotel receipts
o Vehicle registration records
o Insurance policy/receipts
o Real property documents
o Loan records
 Interview
o Ask informants who, where, how money is used and
given
o Check the ownership of house where they live or conduct
business
o The ownership of vehicles being used
o How bills are paid
o The bank or remittance company they often go to
Interview
o Names and address of family members and
possible dummies
o Aliases that they use and copies
of identification cards
o Citizenship of their accomplices
o Possible business dummies/fronts
of their accomplices
 Interview
o How do their accomplices pay for bills (hotel, credit
card, cellphone, electricity, plane ticket, etc.)

o Possible businesses of accomplices (e.g. recruitment

company, remittance agency, import-export company,
mining company, DVDs, imported goods, travel
agency, money changer, etc.)
Other Sources of Evidence

1) SEC/DTI – Corporate/business Records

2) RDs/LRA – Real Property Records
3) LTO/MARINA – Vehicle / vessel Records
4) Bureau of Immigration – Travel Records
5) Office of the Ombudsman - SALN
6) NBI/PNP/PDEA/other LEAs- Investigation
Reports
7) Courts – Case Records
 Common Methods/Analysis Employed

o Financial investigator performs either one or

combination of the following:
 Deposit/Withdrawal Analysis
 Cross-Match Analysis
 Check Analysis
 Memo/Contra Analysis
 Multiple Accounts Analysis
Graft and Corruption Typology

 Methods Used
 Use of Non-Profit Organization
 Use of Gatekeepers
 Use of Domestic Financial Institutions
 Use of Nominees – Trusted
Associates/Family
 Use of Cash
 Drug Trafficking Typology
o Use of Remittance Companies
o Use of Third Parties: Third Party Laundering
o Use of Registered Businesses
o Use of Cash
o Use of the Casinos
o Use of Virtual Currency: Bit Coin
o Trade Based Money Laundering
Bangladesh Bank Cyber Heist
Bangladesh Bank Cyber Heist
Thank You