REPUBLIC ACT NO.

9160       September 29, 2001

AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING

PENALTIES THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

Section 1. Short Title. – This Act shall be known as the "Anti-Money Laundering

Act of 2001."

Section 2. Declaration of Policy. – It is hereby declared the policy of the State 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. Consistent with its foreign policy, the State
shall extend cooperation in transnational investigations and prosecutions of
persons involved in money laundering activities whenever committed.

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

(a) "Covered Institution" refers to:

(1) banks, non-banks, quasi-banks, trust entities, and all other

institutions and their subsidiaries and affiliates supervised or
regulated by the Bangko Sentral ng Pilipinas (BSP);

(2) Insurance companies and all other institutions supervised or

regulated by the Insurance Commission; and

(3) (i) securities dealers, brokers, salesmen, investment houses

and other similar entities managing securities or rendering services
as investment agent, advisor, or consultant, (ii) mutual funds, close
and investment companies, common trust funds, pre-need
companies and other similar entities, (iii) foreign exchange
corporations, money changers, money payment, remittance, and
transfer companies and other similar entities, and (iv) 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 Securities and Exchange Commission.

(b) "Covered transaction" is a single, series, or combination of

transactions involving a total amount in excess of Four million Philippine
pesos (Php4,000,000.00) or an equivalent amount in foreign currency
based on the prevailing exchange rate within five (5) consecutive banking
days except those between a covered institution and a person who, at the
time of the transaction was a properly identified client and the amount is
commensurate with the business or financial capacity of the client; or
those with an underlying legal or trade obligation, purpose, origin or
economic justification.

It likewise refers to a single, series or combination or pattern of unusually

large and complex transactions in excess of Four million Philippine pesos
(Php4,000,000.00) especially cash deposits and investments having no
credible purpose or origin, underlying trade obligation or contract.
(c) "Monetary Instrument" refers to:

(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" refers to any person who commits a money laundering

offense.

(e) "Person" refers to any natural or juridical person.

(f) "Proceeds" refers to an amount derived or realized from an unlawful

activity.

(g) "Supervising Authority" refers to the appropriate supervisory or

regulatory agency, department or office supervising or regulating the
covered institutions enumerated in Section 3(a).

(h) "Transaction" refers to any act establishing any right or obligation or

giving rise to any contractual or legal relationship between the parties
thereto. It also includes any movement of funds by any means with a
covered institution.

(l) "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;

(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No.

3019, as amended; otherwise known as the Anti-Graft and Corrupt
Practices Act;

(4) Plunder under Republic Act No. 7080, as amended;

(5) Robbery and extortion under Articles 294, 295, 296, 299, 300,
301 and 302 of the Revised Penal Code, as amended;

(6) Jueteng and Masiao punished as illegal gambling under

Presidential Decree No. 1602;

(7) Piracy on the high seas under the Revised Penal Code, as
amended and Presidential Decree No. 532;
 (8) Qualified theft under, Article 310 of the Revised Penal Code, as
amended;

(9) Swindling under Article 315 of the Revised Penal Code, as

amended;

(10) Smuggling under Republic Act Nos. 455 and 1937;

(11) Violations under Republic Act No. 8792, otherwise known as

the Electronic Commerce Act of 2000;

(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;

(13) Fraudulent practices and other violations under Republic Act

No. 8799, otherwise known as the Securities Regulation Code of
2000;

(14) Felonies or offenses of a similar nature that are punishable

under the penal laws of other countries.

Section 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. It is committed by the following:

(a) Any person knowing that any monetary instrument or property

represents, involves, or relates to the proceeds of any unlawful activity,
transacts or attempts to transact said monetary instrument or property.

(b) Any person knowing that any monetary instrument or property involves
the proceeds of any unlawful activity, performs or fails to perform any act
as a result of which he facilitates the offense of money laundering referred
to in paragraph (a) above.

(c) Any person knowing that any monetary instrument or property is

required under this Act to be disclosed and filed with the Anti-Money
Laundering Council (AMLC), fails to do so.

Section 5. Jurisdiction of Money Laundering Cases. – The regional trial courts

shall have jurisdiction to try all cases on money laundering. Those committed by
public officers and private persons who are in conspiracy with such public officers
shall be under the jurisdiction of the Sandiganbayan.

Section 6. Prosecution of Money Laundering. –

(a) Any person may be charged with and convicted of both the offense of
money laundering and the unlawful activity as herein defined.

(b) Any proceeding relating to the unlawful activity shall be given

precedence over the prosecution of any offense or violation under this Act
without prejudice to the freezing and other remedies provided.

Section 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. The AMLC shall act unanimously in the discharge of
its functions as defined hereunder:

(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;

(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.

Section 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.

Section 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
date of transactions. With respect to closed accounts, the records on
customer identification, account files and business correspondence, shall
be preserved and safety 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.

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.

Section 10. Authority to Freeze. – 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 falls 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.

Section 11. Authority to inquire into Bank Deposits. – Notwithstanding the

provisions of Republic Act No. 1405, as amended; Republic Act No. 6426, as
amended; Republic Act No. 8791, and other laws, the AMLC 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 this Act 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: Provided, That this provision shall not apply to deposits and investments
made prior to the effectivity of this Act.

Section 12. Forfeiture Provisions. –

(a) Civil Forfeiture. – When there is a covered transaction report made,

and the court has, in a petition filed for the purpose ordered seizure of any
monetary instrument or property, in whole or in part, directly or indirectly,
related to said report, the Revised Rules of Court on civil forfeiture shall
apply.

(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. The verified petition shall be filed with the court
which rendered the judgment of conviction and order of forfeiture, within
fifteen (15) days from the date of the order or forfeiture, in default of which
the said order shall become final and executory. This provision shall apply
in both civil and criminal forfeiture.

(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,
with due diligence, 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, 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.

Section 13. Mutual Assistance among States. –

(a) 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, the AMLC may execute the request or refuse
to execute the same and inform the foreign State of any valid reason for
not executing the request or for delaying the execution thereof. The
principles of mutuality and reciprocity shall, for this purpose, be at all times
recognized.

(b) Power of the AMLC to Act on a Request for Assistance from a

Foreign State. – The AMLC may execute a request for assistance from a
foreign State by: (1) tracking down, freezing, restraining and seizing
assets alleged to be proceeds of any unlawful activity under the
procedures laid down in this Act; (2) giving information needed by the
foreign State within the procedures laid down in this Act; and (3) applying
for an order of forfeiture of any monetary instrument or property in the
court: Provided, That the court shall not issue such an order unless the
application is accompanied by an authenticated copy of the order of a
court in the requesting State ordering the forfeiture of said monetary
instrument or properly of a person who has been convicted of a money
laundering offense in the requesting State, and a certification of an
affidavit of a competent officer of the requesting State stating that the
conviction and the order of forfeiture are final and then no further appeal
lies in respect or either.

(c) Obtaining Assistance from Foreign States. – The AMLC may make

a request to any foreign State for assistance in (1) tracking down, freezing,
restraining and seizing assets alleged to be proceeds of any unlawful
activity; (2) obtaining information that it needs relating to any covered
transaction, money laundering offense or any other matter directly or
indirectly, related thereto; (3) to the extent allowed by the law of the
Foreign State, applying with the proper court therein for an order to enter
any premises belonging to or in the possession or control of, any or all of
the persons named in said request, and/or search any or all such persons
named therein and/or remove any document, material or object named in
said request: Provided, That the documents accompanying the request in
support of the application have been duly authenticated in accordance
with the applicable law or regulation of the foreign State; and (4) applying
for an order of forfeiture of any monetary instrument or property in the
proper court in the foreign State: Provided, That the request is
accompanied by an authenticated copy of the order of the regional trial
court ordering the forfeiture of said monetary instrument or property of a
convicted offender and an affidavit of the clerk of court stating that the
conviction and the order of forfeiture are final and that no further appeal
lies in respect of either.

(d) Limitations on Request for Mutual Assistance. – The AMLC may

refuse to comply with any request for assistance where the action sought
by the request contravenes any provision of the Constitution or the
execution of a request is likely to prejudice the national interest of the
Philippines unless there is a treaty between the Philippines and the
 requesting State relating to the provision of assistance in relation to
money laundering offenses.

(e) Requirements for Requests for Mutual Assistance from Foreign

State. – A request for mutual assistance from a foreign State must (1)
confirm that an investigation or prosecution is being conducted in respect
of a money launderer named therein or that he has been convicted of any
money laundering offense; (2) state the grounds on which any person is
being investigated or prosecuted for money laundering or the details of his
conviction; (3) gives sufficient particulars as to the identity of said person;
(4) give particulars sufficient to identity any covered institution believed to
have any information, document, material or object which may be of
assistance to the investigation or prosecution; (5) ask from the covered
institution concerned any information, document, material or object which
may be of assistance to the investigation or prosecution; (6) specify the
manner in which and to whom said information, document, material or
object detained pursuant to said request, is to be produced; (7) give all the
particulars necessary for the issuance by the court in the requested State
of the writs, orders or processes needed by the requesting State; and (8)
contain such other information as may assist in the execution of the
request.

(f) Authentication of Documents. – For purposes of this Section, a

document is authenticated if the same is signed or certified by a judge,
magistrate or equivalent officer in or of, the requesting State, and
authenticated by the oath or affirmation of a witness or sealed with an
official or public seal of a minister, secretary of State, or officer in or of, the
government of the requesting State, or of the person administering the
government or a department of the requesting territory, protectorate or
colony. The certificate of authentication may also be made by a secretary
of the embassy or legation, consul general, consul, vice consul, consular
agent or any officer in the foreign service of the Philippines stationed in
the foreign State in which the record is kept, and authenticated by the seal
of his office.

(g) Extradition. – The Philippines shall negotiate for the inclusion of

money laundering offenses as herein defined among extraditable offenses
in all future treaties.

Section 14. Penal Provisions. –

(a) Penalties for the Crime of Money Laundering. The penalty of

imprisonment ranging from seven (7) to fourteen (14) years and a fine of
not less than Three million Philippine pesos (Php 3,000,000.00) but not
more than twice the value of the monetary instrument or property involved
in the offense, shall be imposed upon a person convicted under Section
4(a) of this Act.

The penalty of imprisonment from four (4) to seven (7) years and a fine of
not less than One million five hundred thousand Philippine pesos (Php
1,500,000.00) but not more than Three million Philippine pesos (Php
3,000,000.00), shall be imposed upon a person convicted under Section
4(b) of this Act.

The penalty of imprisonment from six (6) months to four (4) years or a fine
of not less than One hundred thousand Philippine pesos (Php 100,000.00)
but not more than Five hundred thousand Philippine pesos (Php
 500,000.00), or both, shall be imposed on a person convicted under
Section 4(c) of this Act.

(b) Penalties for Failure to Keep Records. The penalty of imprisonment

from six (6) months to one (1) year or a fine of not less than One hundred
thousand Philippine pesos (Php 100,000.00) but not more than Five
hundred thousand Philippine pesos (Php 500,000.00), or both, shall be
imposed on a person convicted under Section 9(b) of this Act.

(c) Malicious Reporting. Any person who, with malice, or in bad faith,

report or files a completely unwarranted or false information relative to
money laundering transaction against any person shall be subject to a
penalty of six (6) months to four (4) years imprisonment and a fine of not
less than One hundred thousand Philippine pesos (Php 100,000.00) but
not more than Five hundred thousand Philippine pesos (Php 500,000.00),
at the discretion of the court: Provided, That the offender is not entitled to
avail the benefits of the Probation Law.

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 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;

Any public official or employee who is called upon to testify and refuses to
do the same or purposely fails to testify shall suffer the same penalties
prescribed herein.

(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).

Section 15. System of Incentives and Rewards. – A system of special incentives

and rewards is hereby established to be given to the appropriate government
agency and its personnel that led and initiated an investigation, prosecution and
conviction of persons involved in the offense penalized in Section 4 of this Act.

Section 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.

Section 17. Restitution. – Restitution for any aggrieved party shall be governed

by the provisions of the New Civil Code.

Section 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.

Section 19. Congressional Oversight Committee. – There is hereby created a

Congressional Oversight Committee composed of seven (7) members from the
Senate and seven (7) members from the House of Representatives. The
members from the Senate shall be appointed by the Senate President based on
the proportional representation of the parties or coalitions therein with at least
two (2) Senators representing the minority. The members from the House of
Representatives shall be appointed by the Speaker also based on proportional
representation of the parties or coalitions therein with at least two (2) members
representing the minority.

The Oversight Committee shall have the power to promulgate its own rules, to
oversee the implementation of this Act, and to review or revise the implementing
rules issued by the Anti-Money Laundering Council within thirty (30) days from
the promulgation of the said rules.

Section 20. Appropriations Clause. – The AMLC shall be provided with an initial

appropriation of Twenty-five million Philippine pesos (Php 25,000,000.00) to be
drawn from the national government. Appropriations for the succeeding years
shall be included in the General Appropriations Act.

Section 21. Separability Clause. – If any provision or section of this Act or the

application thereof to any person or circumstance is held to be invalid, the other
provisions or sections of this Act, and the application of such provision or section
to other persons or circumstances, shall not be affected thereby.

Section 22. Repealing Clause. – All laws, decrees, executive orders, rules and
regulations or parts thereof, including the relevant provisions of Republic Act No.
1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791,
as amended and other similar laws, as are inconsistent with this Act, are hereby
repealed, amended or modified accordingly.

Section 23. Effectivity. – This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.

The provisions of this Act shall not apply to deposits and investments made prior
to its effectivity.
REPUBLIC ACT NO. 10365

AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING

LAW, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9160,
OTHERWISE KNOWN AS THE "ANTI-MONEY LAUNDERING ACT OF 2001″,
AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

Section 1. Section 3(a) of Republic Act No. 9160, as amended, is hereby

amended to read as follows:

"(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; and

(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."

Section 2. Section 3(i) of the same Act is hereby amended to read as follows:

"(i) ‘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 Article 267 of Act No. 3815,
otherwise known as the Revised Penal Code, as amended;

"(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic

Act No. 9165, otherwise known as the Comprehensive Dangerous
Drugs Act of 2002;

"(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No.

3019, as amended, otherwise known as the Anti-Graft and Corrupt
Practices Act;

"(4) Plunder under Republic Act No. 7080, as amended;

"(5) Robbery and extortion under Articles 294, 295, 296, 299, 300,
301 and 302 of the Revised Penal Code, as amended;

"(6) Jueteng and Masiao punished as illegal gambling under

Presidential Decree No. 1602;

"(7) Piracy on the high seas under the Revised Penal Code, as
amended and Presidential Decree No. 532;

"(8) Qualified theft under Article 310 of the Revised Penal Code, as
amended;

"(9) Swindling under Article 315 and Other Forms of Swindling

under Article 316 of the Revised Penal Code, as amended;

"(10) Smuggling under Republic Act Nos. 455 and 1937;

"(11) Violations of Republic Act No. 8792, otherwise known as the

Electronic Commerce Act of 2000;
"(12) Hijacking and other violations under Republic Act No. 6235;
destructive arson and murder, as defined under the Revised Penal
Code, as amended;

"(13) Terrorism and conspiracy to commit terrorism as defined and

penalized under Sections 3 and 4 of Republic Act No. 9372;

"(14) Financing of terrorism under Section 4 and offenses

punishable under Sections 5, 6, 7 and 8 of Republic Act No. 10168,
otherwise known as the Terrorism Financing Prevention and
Suppression Act of 2012:

"(15) Bribery under Articles 210, 211 and 211-A of the Revised
Penal Code, as amended, and Corruption of Public Officers under
Article 212 of the Revised Penal Code, as amended;

"(16) Frauds and Illegal Exactions and Transactions under Articles

213, 214, 215 and 216 of the Revised Penal Code, as amended;

"(17) Malversation of Public Funds and Property under Articles 217

and 222 of the Revised Penal Code, as amended;

"(18) Forgeries and Counterfeiting under Articles 163, 166, 167,

168, 169 and 176 of the Revised Penal Code, as amended;

"(19) Violations of Sections 4 to 6 of Republic Act No. 9208,

otherwise known as the Anti-Trafficking in Persons Act of 2003;

"(20) Violations of Sections 78 to 79 of Chapter IV, of Presidential

Decree No. 705, otherwise known as the Revised Forestry Code of
the Philippines, as amended;

"(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act

No. 8550, otherwise known as the Philippine Fisheries Code of
1998;

"(22) Violations of Sections 101 to 107, and 110 of Republic Act No.
7942, otherwise known as the Philippine Mining Act of 1995;

"(23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic Act
No. 9147, otherwise known as the Wildlife Resources Conservation
and Protection Act;

"(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise

known as the National Caves and Cave Resources Management
Protection Act;

"(25) Violation of Republic Act No. 6539, otherwise known as the

Anti-Carnapping Act of 2002, as amended;

"(26) Violations of Sections 1, 3 and 5 of Presidential Decree No.

1866, as amended, otherwise known as the decree Codifying the
Laws on Illegal/Unlawful Possession, Manufacture, Dealing In,
Acquisition or Disposition of Firearms, Ammunition or Explosives;

"(27) Violation of Presidential Decree No. 1612, otherwise known

as the Anti-Fencing Law;
 "(28) Violation of Section 6 of Republic Act No. 8042, otherwise
known as the Migrant Workers and Overseas Filipinos Act of 1995,
as amended by Republic Act No. 10022;

"(29) Violation of Republic Act No. 8293, otherwise known as the

Intellectual Property Code of the Philippines;

"(30) Violation of Section 4 of Republic Act No. 9995, otherwise

known as the Anti-Photo and Video Voyeurism Act of 2009;

"(31) Violation of Section 4 of Republic Act No. 9775, otherwise

known as the Anti-Child Pornography Act of 2009;

"(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and

14 of Republic Act No. 7610, otherwise known as the Special
Protection of Children Against Abuse, Exploitation and
Discrimination;

"(33) Fraudulent practices and other violations under Republic Act

No. 8799, otherwise known as the Securities Regulation Code of
2000; and

"(34) Felonies or offenses of a similar nature that are punishable

under the penal laws of other countries."

Section 3. Section 3 of the same Act shall have new paragraphs (j) and (k).

"(j) Precious metals’ shall mean 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’ shall mean diamond, ruby, emerald, sapphire, opal,
amethyst, beryl, topaz, and garnet that are used in jewelry making,
including those formerly classified as semi-precious stones."

Section 4. Section 4 of the same Act is hereby amended to read as follows:

"SEC. 4. Money Laundering Offense. – 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:

"(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) aids, abets, assists in or counsels the commission of the
money laundering offenses referred to in paragraphs (a), (b) or (c)
above; and

"(f) performs or fails to perform any act as a result of which he

facilitates the offense of money laundering referred to in
paragraphs (a), (b) or (c) above.

"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."

Section 5. Section 6(a) of the same Act is hereby amended to read as follows:

"SEC. 6. Prosecution of Money Laundering. –

"(a) Any person may be charged with and convicted of both the
offense of money laundering and the unlawful activity as herein
defined.

"(b) The prosecution of any offense or violation under this Act shall
proceed independently of any proceeding relating to the unlawful
activity."

Section 6. Section 7 of the same Act is hereby amended to read as follows:

"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. The AMLC shall act
unanimously in the discharge of its functions as defined hereunder:

"x x x

"(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;

"x x x

"(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."

Section 7. Section 9(c), paragraphs 1 and 4 of the same Act are hereby
amended to read as follows:

"SEC. 9. Prevention of Money Laundering; Customer Identification

Requirements and Record Keeping. –
 "(a) x x x

"(b) x x x

"(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.

"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.

"x x x

"x x x

"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."

Section 8. Section 10 of the same Act, as amended by Republic Act No. 10167,
is hereby amended to read as follows:

"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."

Section 9. Section 12 of the same Act is hereby amended to read as follows:

 "(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. 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 executor. This provision shall apply in both
civil and criminal forfeiture.

"(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,
with due diligence, 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, 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."

Section 10. Section 14 of the same Act, as amended, is hereby further amended

to read as follows:

"SEC. 14. Penal Provisions. – (a) Penalties for the Crime of Money

Laundering. The penalty of imprisonment ranging from seven (7) to
fourteen (14) years and a fine of not less than Three million Philippine
pesos (Php3,000,000.00) but not more than twice the value of the
monetary instrument or property involved in the offense, shall be imposed
upon a person convicted under Section 4(a), (b), (c) and (d) of this Act.

"The penalty of imprisonment from four (4) to seven (7) years and a fine of
not less than One million five hundred thousand Philippine pesos
(Php1,500,000.00) but not more than Three million Philippine pesos
(Php3,000,000.00), shall be imposed upon a person convicted under
Section 4(e) and (f) of this Act.

"The penalty of imprisonment from six (6) months to four (4) years or a
fine of not less than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred thousand Philippine
pesos (Php500,000.00), or both, shall be imposed on a person convicted
under the last paragraph of Section 4 of this Act.

"(b) x x x

"(c) x x x

"(d) x x x

"(e) The penalty of imprisonment ranging from four (4) to seven (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 pesonnel 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 the 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. Such monetary penalties shall be in amounts as may be
determined by the AMLC to be appropriate, which shall not be more than
Five hundred thousand Philippine pesos (P500,000.00) per
violation.1âwphi1

"The AMLC may promulgate rules on fines and penalties taking into
consideration the attendant circumstances, such as the nature and gravity
of the violation or irregularity.

"(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, or against a certain
religion, race or ethnic origin, or such other attributes or profiles when
used as the only basis to deny these persons access to the services
provided by the covered persons. Whenever a bank, or quasi-bank,
financial institution or whenever any person or entity commits said
discriminatory act, the person or persons responsible for such violation
 shall be subject to sanctions as may be deemed appropriate by their
respective regulators."

Section 11. New sections are hereby inserted after Section 19 of the same Act,
as amended, to read as follows:

"SEC. 20. Non-intervention in the Bureau of Internal Revenue (BIR)

Operations. – Nothing contained in this Act nor in related antecedent laws
or existing agreements shall be construed to allow the AMLC to participate
in any manner in the operations of the BIR."

"SEC. 21. The authority to inquire into or examine the main account and
the related accounts shall comply with the requirements of Article III,
Sections 2 and 3 of the 1987 Constitution, which are hereby incorporated
by reference. Likewise, the constitutional injunction against ex post
facto laws and bills of attainder shall be respected in the implementation
of this Act."

Section 12. The succeeding sections are hereby renumbered accordingly.

Section 13. Separability Clause. – If any provision of this Act is declared

unconstitutional, the same shall not affect the validity and effectivity of the other
provisions hereof.

Section 14. Repealing Clause. – All laws, decrees, orders, and issuances or

portions thereof, which are inconsistent with the provisions of this Act, are hereby
repealed, amended or modified accordingly.

Section 15. Effectivity. – This Act shall take effect fifteen (15) days following its
publication in at least two (2) national newspapers of general circulation.

Approved,