Anti-Money Laundering Act (R.A. No.

9160, as amended)

1. Policy of the Law

a) 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 lawful activity.
b) To pursue the State’s foreign policy to extend cooperation in transnational investigation and prosecutions
of persons involved in money laundering activities wherever committed.

2. Covered Institutions

a) Banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops, money
changers, remittance and transfer companies.
b) Insurance companies, pre-need companies (supervised/regulated by Insurance Commissioner)
c) SEC supervised/regulated
d) Jewelry Dealers
e) Company service providers
f) Persons who provide any of the following services:
 Managing of client money, securities or other assets
 Management of bank, savings or securities accounts
 Organization of contributions for the creation, operation or management of companies
 Creation, operation or management of juridical persons or arrangements, and buying and
selling business entities.

3. Obligations of Covered Institutions

 Establish and record, and maintain a system of verifying, the true identities of clients, including the legal
existence and organizational structure of a corporate client, and their representatives, based on official
documents.
 Keep records for 5 years
 Report covered transactions and suspicious transactions to AMLC, within 5 working days from occurrence,
unless the AMLC prescribes a different period not exceeding 15 working days, which thereby shall not be
violated of the SBD, FCDU Law, and the GBL.
 Prohibited: Anonymous accounts, accounts under fictitious names, and all other similar accounts.
 BSP may conduct annual testing solely limited to the determination of the existence and true identity of
account owners.

4. Covered Transactions
a. Threshold Transactions (excess of P500,000.00, within 1 banking day)
b. Suspicious Transactions

5. Suspicious Transactions

 No underlying legal or trade obligation, purpose or economic justifications.

 Client is not properly identified
 Amount involved not commensurate with client’s business or financial capacity
 Based on all known circumstances, it may be perceived that client’s transaction is structured in order to
avoid being subject of reporting requirements
 Any circumstance relating to transaction observed to deviate from client’s profile and/or client’s past
transactions with covered institution.
  Transaction is in any way related to an unlawful activity or offense under the Act that is about to be, is
being, or has been committed.
 Similar or analogous transactions

6. When is Money Laundering Committed

- It is committed by any persons, who, knowing that any monetary instrument or property represents, involves, or
relates to the proceeds of an “Unlawful Activity”:
-
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
e) Aids, abets, assists in or counsels the commission
f) Performs or fails to perform any act as a result of which he facilitates the offense of money laundering

7. Unlawful Activities or Predicate Crimes

1. Kidnapping for 11. Violations of E-

ransom Commerce Act
2. Drug Trafficking 12. Hijacking
3. Graft and 13. Terrorism and
Corrupt conspiracy
Practices 14. Financing
4. Plunder Terrorism
5. Robbery and 15. Bribery
extortion 16. Malversation
6. Jueteng and 17. Trafficking in
masiao persons
7. Piracy on the 18. Illegal Logging
high seas 19. Illegal Fishing
8. Qualified theft 20. Illegal Mining
9. Swindling
10. Smuggling

Republic of the Philippines vs. Glasgow Credit and Collection Services, Inc., G.R. No. 170281, January 18, 2008

Since the account of Glasgow in CSBI was (1) covered by several suspicious transaction reports and (2) placed under
the control of the trial court upon the issuance of the writ of preliminary injunction, the conditions provided in Section
12(a) of RA 9160, as amended, were satisfied. A criminal conviction for an unlawful activity is not a prerequisite for
the institution of a civil forfeiture proceeding. A finding of guilt for an unlawful activity is not an essential element of
civil forfeiture.
 Republic of the Philippines vs. Hon. Antonio Eugenio, G.R. No. 174629, February 14, 2008

Section 11 allows the AMLC to inquire into bank accounts without having to obtain a judicial order in cases where
there is probable cause that the deposits or investments are related to kidnapping for ransom, certain violations of
the Comprehensive Dangerous Drugs Act of 2002, hijacking and other violations under R.A. No. 6235, destructive
arson and murder. Absent any of the mentioned predicate crimes, a court order is necessary to inquire into bank
deposits.

NOTE: By virtue of R.A. No. 10168, Anti-Financing of Terrorism is now included as one of the predicate crimes where a court order
is not necessary to examine or inquire into bank deposits.

8. Anti-Money Laundering Council

a. Composition

 BSP Governor (AMLC Chairman)

 Insurance Commission Chairman
 SEC Chairman

b. Functions

The AMLC shall shall act unanimously in the

discharge of its functions as defined hereunder:

1. To require and receive covered or

suspicious transaction reports from
covered institutions;
2. To issue orders addressed to the
appropriate Supervising Authority or
the covered institutions to
determine the true identity of the
owner of any monetary instrument
or property subject of a covered
transaction or suspicious transaction
report or request for assistance from
a foreign State, or believed by the
Council, on the basis for substantial
evidence, to be, in whole or in part,
wherever 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 investigate suspicious
transactions and covered
transactions deemed suspicious
after an investigation by AMLC,
money laundering activities and
12. other violations of this Act;

6. To apply before the Court of Appeals, ex

parte, for the freezing of any monetary
instrument or property alleged to be the
proceeds of any unlawful activity as
defined in Section 3(i) hereof;
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 the
money laundering, the viable means of
preventing money laundering and the
effective ways of prosecuting and
punishing offenders;
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; and
11. To impose administrative sanctions for the
violation of laws, rules, regulations, and
orders and resolutions issued pursuant
thereto.

c. Freezing of Monetary Instrument or Property

- The CA may issue a Freeze Order only:

 Upon ex parte application of AMLC

 After the determination that probable cause exists that any monetary instrument or property is in any
way related to an “unlawful activity”

- Effective immediately and for a period not to exceed 6 months depending upon the circumstances of the case;
- Provided, if 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.

 Freeze Order

- Nature: extraordinary and interim relief issued by the CA.

- Purpose: 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.
- Requisites:
 The application ex parte by the AMLC
 The determination of probable cause by the CA
- Jurisdiction: CA – authority to issue a freeze order
Republic of the Philippines vs. Cabrini Green & Ross, Inc., G.R. No. 154522, May 5, 2006

The amendment by RA 9194 of RA 9160 erased any doubt on the jurisdiction of the Court of Appeals over the
extension of freeze orders. It is solely the CA which has the authority to issue a freeze order as well as to extend its
effectivity; it also has the exclusive jurisdiction to extend existing freeze orders previously issued by the AMLC vis-à-
vis accounts and deposits related to money-laundering activities.

Ret. Lt. Gen. Jacinto Ligot, et. al. vs. Republic of the Philippines, G.R. No. 176944, March 6, 2013

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. The effectivity of the freeze order was limited to a period not exceeding six months,
which may be extended by the CA should it become completely necessary. Nonetheless, when the Republic has not
offered any explanation why it took six years before a civil forfeiture case was filed in court, it can only be concluded
that the continued extension of the freeze order beyond the six-month period violated the party’s right to due process.

d. Authority to Inquire Into Bank Deposits

GR: Only upon order of any competent court in cases of violation of RA 9160, as amended.

XPN:
1. Kidnapping
2. Hijacking
3. Drugs
4. Arson
5. Murder