Anti-Money Laundering Council (Philippines)

The Anti-Money Laundering Council is an executive council mandated to protect and preserve the integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity. It also extends cooperation in transnational investigations and prosecutions of persons involved in money laundering activities wherever committed. The council is composed of the Governor of the Bangko Sentral ng Pilipinas (BSP) as Chairman and the Commissioner of the Insurance Commission (IC) and the Chairman of the Securities and Exchange Commission (SEC) as members. It acts unanimously in the discharge of its functions.

The council may inquire into or examine any particular deposit or investment with any banking institution or non-bank financial institution upon order of any competent court in cases of violation of the AMLA when it has been established that there is probable cause that the deposits or investments involved are in any way related to a money laundering offense. The AMLC may file before Court of Appeals, before the verified application ex parte (without notice to the other party) after determination that probable cause exists that any monetary instrument or property is in any way related to an unlawful activity. The freeze order shall be effective immediately. The freeze order shall be for a period of 20 days unless extended by the court.

The AMLC is assisted by a Secretariat headed by an Executive Director and consists of five (5) units:

• Compliance and Investigation Group (CIG)
• Legal Evaluation Group (LEG)
• Information Management and Analysis Group (IMAG)
• Technical Services Staff (TSS) and the Administrative and Financial Services Division (AFSD).

Roles of AMLC

• Criminalizes money laundering
• Creates a financial intelligence unit
• Imposes requirements on customer identification, record keeping and reporting of covered and suspicious transactions
• Relaxes strict bank deposits secrecy laws
• Provides for bank inquiry and freeze ex parte petition/seizure/forfeiture/recovery of dirty money/property
• Provides for international cooperation

Predicate Crimes/Unlawful Activities

• Kidnapping for ransom
• Drug trafficking and related offenses
• Graft and corrupt practices
• Plunder
• Robbery and Extortion
• Jueteng and Masiao
• Piracy
• Qualified theft
• Swindling
• Smuggling
• Violations under the Electronic Commerce Act of 2000
• Hijacking; destructive arson; and murder, including those perpetrated by terrorists against non-combatant persons and similar targets
• Fraudulent practices and other violations under the Securities Regulation Code of 2000
• Felonies or offenses of a similar nature that are punishable under the penal laws of other countries.
• Terrorism financing and organizing or directing others to commit terrorism financing (R.A. 10168).
• Attempt/conspiracy to commit terrorism financing and organizing or directing others to commit terrorism financing (R.A. 10168).
• Attempt/conspiracy to commit dealing with property or funds of designated person.
• Accomplice to terrorism financing or conspiracy to commit terrorism financing.
• Accessory to terrorism financing.

Covered Institutions

• Banks and all other entities, including their subsidiaries and affiliates, supervised and regulated by the Bangko Sentral ng Pilipinas
• Insurance companies, pre-need companies and all other institutions supervised or regulated by the Insurance Commission
• Securities dealers and other entities supervised or regulated by the Securities and Exchange Commission

Covered & Suspicious Transactions

• Covered transactions are single transactions in cash or other equivalent monetary instrument involving a total amount in excess of Five Hundred Thousand (P500,000) Pesos within one (1) banking day
• Suspicious transactions are transactions with covered institutions, regardless of the amounts involved, where any of the following circumstances exists:

• • there is no underlying legal/trade obligation, purpose or economic justification; the client is not properly identified;
  • the amount involved is not commensurate with the business or financial capacity of the client;
  • the transaction is structured to avoid being the subject of reporting requirements under the AMLA;
  • there is a deviation from the client’s profile/past transactions;
  • the transaction is related to an unlawful activity/offense under the AMLA;
  • transactions similar or analogous to the above.

Laws covering AMLC

• Republic Act No. 9160 - Anti-Money Laundering Act (AMLA) of 2001
• Republic Act No. 9194 - Amending the AMLA
• Republic Act No. 10365 - Strengthening the AMLA

External links

• Official web site
• Anti-Money Laundering Act of 2001