Anti-Money Laundering Act (AMLA) RA 9160

What specific points will be asked from this topic?

The following are of primary concern:
• Covered transactions
• Suspicious transactions
• Reportorial requirement

What is the relevant law on this topic?

Republic Act No. 9160 is known as the “Anti-Money Laundering Act of 2001.”

What is the State’s policy regarding this law?

It is 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.

What is money laundering?

Money laundering is a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear
to have originated from legitimate sources.

How is money laundering committed?

Money laundering is committed by the following:
• 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.
• 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 above.
• 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.

What is a covered transaction?

A covered transaction is a single, series, or combination of transactions of more than P4,000,000 or an equivalent
amount in foreign currency based on the prevailing exchange rate within 5 consecutive banking days.
It likewise refers to a single, series or combination or pattern of unusually large and complex transactions of more than
P4,000,000 especially cash deposits and investments having no credible purpose or origin, underlying trade obligation or
contract.

Are there changes to the definition of covered transactions?

Yes.
Republic Act No. 9194 amends the definition of a covered transaction as follows:
A covered transaction is a transaction in cash or other equivalent monetary instrument involving a total amount of more
than P500,000 within 1 banking day.
This is now the new definition of covered transaction.
What are suspicious transactions?
RA No. 9194 further amends RA No. 9160 to define what a suspicious transaction is.
Suspicious transactions are transactions with covered institutions, regardless of the amounts involved, where any of the
following circumstances exist:
• there is no underlying legal or 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
• taking into account all known circumstances, it may be perceived that the client’s transaction is structured in
order to avoid being the subject of reporting requirements under the Act
• any circumstances relating to the transaction which is observed to deviate from the profile of the client and/or
the client’s past transactions with the covered institution
• the transaction is in a way related to an unlawful activity or offense under this Act that is about to be, is being or
has been committed
• any transactions that is similar or analogous to any of the foregoing

Who shall report suspicious transactions?

Suspicious transactions shall be reported by covered persons.

Who are covered persons?

Covered persons, natural or juridical, refer to:
• 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
• insurance companies, pre-need companies and all other persons supervised or regulated by the Insurance
Commission
• 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
• jewelry dealers in precious metals, who, as a business, trade in precious metals, for transactions of more than
P1,000,000
• jewelry dealers in precious stones, who, as a business, trade in precious stones, for transactions of more than
P1,000,000
• company service providers which, as a business, provide any of the following services to third parties:
o acting as a formation agent of juridical persons
o 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
o providing a registered office, business address or accommodation, correspondence or administrative
address for a company, a partnership or any other legal person or arrangement
o acting as (or arranging for another person to act as) a nominee shareholder for another person
• persons who provide any of the following services:
o managing of client money, securities or other assets
o management of bank, savings or securities accounts
o organization of contributions for the creation, operation or management of companies
 o creation, operation or management of juridical persons or arrangements, and buying and selling
business entities.

Are there exceptions to the definitions of covered persons?

Yes.
Notwithstanding the definitions above, covered persons shall not include 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.

When should covered persons report suspicious transactions?

Per Republic Act No. 9160
Covered institutions shall report to the AMLC all covered transactions within 5 working days from occurrence thereof,
unless the Supervising Authority concerned prescribes a longer period not exceeding 10 working days.

Per Republic Act No. 10365 (amending RA No. 9160)

Covered persons shall report to the AMLC all covered transactions and suspicious transactions within 5 working days
from occurrence thereof, unless the AMLC prescribes a different period not exceeding 15 working days.

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AMLA Amendments:

Republic Act No. 10927 introduced amendments to Republic Act No. 9160 or The Anti-Money Laundering Act of 2001.

What are the essential amendments?

1. The definition of “covered persons” now includes CASINOS.

2. The scope of “covered transactions” now includes a specific threshold for CASINOS.

How did the law define CASINOS?

A casino refers to a business authorized by the appropriate government agency to engage in gaming transactions.

What is the scope of the amendment for casinos?

The inclusion pertains to the casino cash transactions related to their gaming operations.

What are “gaming operations” and casino cash transaction?

Gaming operations refer to the activities of the casino offering games of chance and any variations thereof approved by
the appropriate government authorities.
Casino cash transaction refers to transactions involving the receipt of cash by a casino paid by or on behalf of a
customer, or transactions involving the payout of cash by a casino to a customer or to any person in his/her behalf.
Are internet and ship-based casinos included?
Yes.
Internet-based casinos shall refer to casinos in which persons participate by the use of remote communication facilities
such as, but not limited to, internet, telephone, television, radio or any other kind of electronic or other technology for
facilitating communication.
Ship-based casino shall refer to casinos, the operation of which is undertaken on board a vessel, ship, boat or any other
water-based craft wholly or partly intended for gambling.

What is the amount of “covered transaction” for casinos?

A covered transaction for casinos involves a SINGLE transaction amount in excess of P5,000,000 or in any other currency.

What is a freeze order?

A freeze order is an order issued by the Court of Appeals 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 of the casinos.
The freeze order or asset preservation order prevents the owner of the money from being used, pending judgment.

When shall the freeze order take effect?

The freeze order shall be effective immediately, for a period of twenty (20) days.

-MS