Anti-Money Laundering Act: Definition of Terms

From its Amended Implemented Rules and Regulations (IRR)

Term Definition
A bank account, electronic money account, investment account, insurance policy, membership account, and other similar contract or
Account service agreement, business or professional relationships between a covered person and its customers where funds or any monetary
instrument of the latter are held by the former.
Anti-Money Laundering Act Refers to Republic Act No. 9160, as amended by Republic Act Nos. 9194, 10167, 10365, and 10927 [and 11521].
Refers to the Philippines’ central AML/CTF authority and financial intelligence unit, which is the government instrumentality mandated
to implement the AMLA and TFPSA.
Anti-Money Laundering Council It also refers to the official name of the Council, which is the governing body of the said government agency.
For purposes of this IRR, the government agency shall be referred hereafter as the “AMLC”, while the governing body shall be referred
hereafter as the “Council”.
The Philippine Amusement and Gaming Corporation (PAGCOR), Cagayan Economic Zone Authority (CEZA), Aurora Pacific Economic
Appropriate Government Agency Zone and Freeport Authority (APECO), or other government agency, as may be determined by law, which may authorize casinos to
engage in gaming operations.
Asset A monetary instrument, property, or both.
A provisional remedy aimed at preserving monetary instruments or properties in any way related to an unlawful activity or money
Asset Preservation Order
laundering offense defined herein, during the pendency of civil forfeiture proceedings.
The normal level of customer due diligence that is appropriate in cases where there is medium risk of money laundering or terrorism
Average Due Diligence
financing.
The central bank of the Republic of the Philippines established pursuant to the provisions of the 1987 Constitution and Republic Act No.
Bangko Sentral ng Pilipinas
7653.
A provisional remedy that allows the AMLC to examine or inquire into particular bank accounts or investment with a bank or non-bank
Bank Inquiry
financial institution.
Monetary instruments in bearer form such as, traveler’s checks; negotiable instruments, including checks, promissory notes and money
orders, that are either in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title
Bearer Negotiable Instruments
thereto passes upon delivery; and incomplete instruments, including checks, promissory notes and money orders, signed, but with the
payee’s name omitted.
Bearer Shares Negotiable instruments that accord ownership in a juridical person to the person who possesses the bearer share certificate.
Any natural person who:
(1) Ultimately owns or controls the customer and/or on whose behalf a transaction or activity is being conducted;
(2) Has ultimate effective control over a juridical person or legal arrangement; or
Beneficial Owner (3) Owns, at least, twenty percent (20%) shares, contributions or equity interest in a juridical person or legal arrangement.
Control includes whether the control is exerted by means of trusts, agreements, arrangements, understandings, or practices, and
whether or not the individual can exercise control through making decisions about financial and operating policies.
The process of taking reasonable measures to identify and verify the beneficial owner, including the determination of the true nature
Beneficial Ownership Verification
of the beneficial owner’s capacities and duties vis-à-vis his agent, nominee or trustee.
General: Any person for whose benefit an account was created or transaction was made.
For trust agreements: Any person for whose benefit the trust has been created.
Beneficiary For life insurance or investment-linked insurance policies: Any person who will be paid the policy proceeds.
For wire transfers: Refers to a person or legal arrangement who is identified by the originator as the receiver of the requested wire
transfer.
The financial institution, which receives the wire transfer from the originating/ordering financial institution, directly or through an
Beneficiary Financial Institution
intermediary financial institution, and makes the funds available to the beneficiary.
Biometric Information Front facing photograph, fingerprint, iris scan, and/or such other unique identifiable features of an individual.
Casino A business authorized by the appropriate government agency to engage in gaming operations.
Transactions involving the receipt of cash by a casino paid by or on behalf of a customer; or transactions involving the payout of cash
Casino Cash Transaction
by a casino to a customer or to any person in his behalf.
The non-conviction-based proceedings aimed at forfeiting, in favor of the government, monetary instruments or properties related to
Civil Forfeiture
an unlawful activity or money laundering offense defined herein.
Persons who are widely and publicly known, socially or professionally, to maintain a particularly close relationship with the PEP, and
Close Relationship/Associate
include persons who are in a position to conduct substantial domestic and international financial transactions on behalf of the PEP.
Correspondent Banking The provision of banking services by one bank, called the correspondent bank, to another bank, called the respondent bank.
A person engaged in the business of providing the following services for customers, who need to perform or offer a service or activity,
but are not capable of doing or do not want to do so directly due to financial or operational reasons, or business judgment:
(1) Acting as a formation agent of juridical persons;
(2) Acting as (or arranging for another person to act as) a director or corporate secretary of a company, a partner of a partnership, or
Company Service Provider
a similar position in relation to other juridical persons;
(3) Providing a registered office; business address or accommodation, correspondence or administrative address for a company, a
partnership or any other juridical person or legal arrangement; and
(4) Acting as (or arranging for another person to act as) a nominee shareholder for another person.
A wire transfer that combines a payment message sent directly by the originating/ordering financial institution to the beneficiary
Cover Payment financial institution with the routing of the funding instruction, called the cover, from the originating/ordering financial institution to
the beneficiary financial institution through one or more intermediary financial institutions.
(1) A transaction in cash or other equivalent monetary instrument exceeding ₱500,000.
(2) A transaction with or involving jewelry dealers, dealers in precious metals and dealers in precious stones in cash or other equivalent
Covered Transaction monetary instrument exceeding ₱1,000,000.
(3) A casino cash transaction exceeding ₱5,000,000 or its equivalent in other currency.
(4) A cash transaction with or involving real estate developers or brokers exceeding ₱7,500,000 or its equivalent in any other currency.
Covered Transaction Report A report on a covered transaction, as herein defined, filed by a covered person before the AMLC.
Any wire transfer where the originating and/or beneficiary financial institutions are located in different countries.
Cross-Border Wire Transfer It shall also refer to any chain of wire transfers in which, at least, one of the financial institutions involved is located in a different
country.
 Any person who keeps or maintains an account, or otherwise transacts business with a covered person. It includes the following:
(1) Beneficial owner, or any natural person who ultimately owns or controls a customer and/or on whose behalf an account is
maintained or a transaction is conducted;
(2) Transactors, agents and other authorized representatives of beneficial owners;
Customer/Client (3) Beneficiaries of trusts, investment and pension funds, insurance policies, and remittance transactions;
(4) Persons whose assets are managed by an asset manager;
(5) trustors/grantors/settlors of a trust;
(6) Insurance policy holders, whether actual or prospective; and
(7) Juridical person
The procedure of identifying and verifying the true identity, of customers, and their agents and beneficial owners, including
Customer Due Diligence
understanding and monitoring of their transactions and activities.
The process of determining the identity of the customer vis-à-vis the valid and acceptable identification document submitted to,
Customer Identification Process
and/or presented before, the covered person.
The process of validating the truthfulness of the information, and confirming the authenticity of the identification documents,
Customer Verification Process presented, submitted and provided by the customer; or other ways of verifying the identity and assessing the risk profile of customers,
and their agents and beneficial owners, through the use of reliable and independent sources, documents, data or information.
An individual or entity who buys and/or sells precious metals, precious stones, and/or jewelry in the course of its business activities.
Dealer in Precious Metals and The purchases or sales of precious metals, precious stones, and/or jewelry, as referred to herein, exclude those carried out for,
Stones/Jewelry Dealer connected with, or for the purpose of extracting precious metals or precious stones from a mine, or cutting or polishing precious
stones.
Designated Non-Financial Businesses and professions, which are not under the supervision or regulation of the BSP, SEC and IC, and designated as covered
Businesses and Professions persons under the AMLA.
Determination of the Purpose of
The process of dentifying the purpose and intended nature of the account, transaction, or business or professional relationship.
the Relationship
Any wire transfer where the originating and beneficiary financial institutions are located in the same country. It shall refer to any chain
Domestic Wire Transfer of wire transfers that takes place entirely within the borders of a single country, even though the system used to transfer the payment
message may be located in another country.
A person’s full name, sex, date and place of birth, address, citizenship or nationality, and such other personal information from which
Demographic Data
the identity of a person can be ascertained.
The enhanced level of scrutiny intended to provide a more comprehensive understanding of the risks associated with the client, as well
Enhanced Due Diligence
as confirmation of factual information provided by the client, to mitigate risks presented.
The gathering and analysis of information about the transactions and financial activities of persons of interest, to understand their
Financial Intelligence nature and capabilities, and predict their future actions.
It may also refer to intelligence information, which is the result of the analysis of the information gathered.
The national center for the receipt and analysis of:
Financial Intelligence Unit (a) suspicious transaction reports; and
(b) other information relevant to ML/TF and associated unlawful activities, and for the dissemination of the results of that analysis.
An inquiry into the financial affairs of persons related to ML/TF and associated unlawful activity, with a view to:
(1) Identifying the extent of criminal networks and/or the scale of criminality;
Financial Investigation (2) Identifying and tracing the proceeds and instrumentalities of crime, terrorism funds or any other assets that are, or may become,
subject to forfeiture proceedings; and
(3) Developing and/or gathering of evidence which can be used in litigation of cases.
A provisional remedy aimed at blocking or restraining monetary instruments or properties in any way related to an unlawful activity,
Freeze Order
as herein defined, from being transacted, converted, concealed, moved or disposed without affecting the ownership thereof.
Games of chance and variations thereof offered by casinos, and approved by the AGA under their enabling laws and other applicable
issuances. It shall exclude:
(1) Traditional Bingo operations authorized by the AGA;
Gaming Operations
(2) Lotteries and sweepstakes of the Philippine Charity Sweepstakes Office; and
(3) Such other games of chance and variations as may be declared exempt by the AGA based on the result of their risk assessment, in
consultation with AMLC.
The process of establishing and recording the true and full identity and existence of an agent, nominee, trustee or other authorized
Identification and Verification
representatives who is acting as an account holder or transactor, and other person who is acting in behalf of a beneficial owner or
of Agents
principal, including verifying the validity of the authority of the agent, nominee, trustee, or authorized representative.
Identification Data Refers to both the identification information and identification document, as herein defined.
Refers to any of the following evidence of identity:
(1) For Filipino citizens:
a. PhilID;
b. Other identification documentsissued by the Government of the Republic of the Philippines, including its political subdivisions,
agencies, and
instrumentalities; and
c. Other identification documents that can be verified using reliable, independent source documents, data or information.

(2) For foreign nationals:

a. PhilID, for resident aliens;
b. Passport;
Identification Document c. Alien Certificate of Registration; and
d. Other identification documents issued by the Government of the Republic of the Philippines, including its political subdivisions,
agencies, and
instrumentalities.

(3) For Filipino students:

a. PhilID;
b. School ID signed by the school principal or head of the educational institution; and
c. Birth Certificate issued by the Philippine Statistics Authority; and

(4) For low risk customers: Any document or information reduced in writing which the covered person deems sufficient to establish the
client’s identity.
Identification The demographic data and biometric information of a natural person, or information about a juridical person or legal arrangement,
Information/Personal from which the identity of a person is apparent or can be reasonably and directly ascertained by the person holding the information,
Information or when put together with other information would directly and certainly identify a person.
Immediate Family Member Individuals related to the PEP within the second degree of consanguinity or affinity.
 Independent Legal/Accounting Lawyers/accountants working in a private firm or as a sole practitioner who, by way of business or occupation, provides purely legal
Professional or accounting services to their clients.
Information and Communication
The totality of electronic means to access, create, collect, store, process, receive, transmit, present and disseminate information.
Technology
A comprehensive exercise to identify, assess and understand a covered person’s ML/TF threats, vulnerabilities and the consequential
Institutional Risk Assessment
risks, with a view to mitigate illicit flow of funds and transactions.
Instrumentality Any monetary instrument or property used to finance, operate, and/or maintain an unlawful activity.
Insurance Commission Refers to the Philippines’ regulator of the insurance and pre-need industries.
Intermediary Financial A financial institution in a serial payment or cover payment chain that receives and transmits a wire transfer on behalf of the ordering
Institution financial institution and the beneficiary financial institution, or another intermediary financial institution.
Casinos in which persons participate by the use of remote communication facilities such as, but not limited to, internet, telephone,
Internet-Based Casino
television, radio or any other kind of electronic or other technology for facilitating communication.
Jewel Organic substances that have a market-recognized gem level of quality, beauty and rarity, such as pearl, amber and coral.
Finished goods deriving fifty percent (50%) or more of their value from jewels, precious metals or precious stones
Jewelry
constituting, forming part of, or attached to said finished goods.
The Philippine National Police, National Bureau of Investigation, and other government agencies that are responsible for
Law Enforcement Agency the prevention, investigation, apprehension, and/or detention of individuals suspected of, or convicted for, violations of
criminal laws.
(1) All accounts or monetary instruments under the name of the person whose accounts, monetary instruments, or
properties are the subject of the freeze order or an order of inquiry;
(2) All accounts or monetary instruments held, owned, or controlled by the owner or holder of the accounts, monetary
instruments, or properties subject of the freeze order or order of inquiry, whether such accounts are held, owned or
controlled singly or jointly with another person;
(3) All “In Trust For” accounts where either the trustee or the trustor pertains to a person whose accounts, monetary
instruments, or properties are the subject of the freeze order or order of inquiry;
Metrially-Linked Accounts
(4) All accounts held for the benefit or in the interest of the person whose accounts, monetary instruments, or properties
are the subject of the freeze order or order of inquiry;
(5) All accounts of juridical persons or legal arrangements that are owned, controlled or ultimately effectively controlled by
the natural person whose accounts, monetary instruments or properties are subject of the freeze order or order of inquiry,
or where the latter has ultimate effective control; and
(6) All other accounts, shares, units, or monetary instruments that are similar, analogous, or identical to any of the
foregoing.
(1) Coins or currency of legal tender of the Philippines, or of any other country;
(2) Credit instruments, including bank deposits, financial interest, royalties, commissions, and other intangible property;
(3) Drafts, checks, and notes;
(4) Stocks or shares, participation or interest in a corporation or in a commercial enterprise or profit-making venture and
evidenced by a certificate, contract, instrument, whether written or electronic in character, including those enumerated in
Section 3 of the Securities Regulation Code;
Monetary Instrument (5) A participation or interest in any non-stock, non-profit corporation;
(6) 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 market instruments;
(7) Contracts or policies of insurance, life or non-life, contracts of suretyship, pre- need plans, and member certificates
issued by mutual benefit association; and
(8) Other similar instruments where title thereto passes to another by endorsement, assignment, or delivery.
(1) All proceeds of an unlawful activity;
(2) All instrumentalities of an unlawful activity, including all moneys, expenditures, payments, disbursements, costs,
outlays, charges, accounts, refunds, and other similar items for the financing, operations, and maintenance of any
Monetary Instrument or
unlawful activity;
Property Related to an
(3) All monetary instruments or property, including monetary, financial or economic means, devices, accounts, documents,
Unlawful Activity
papers, items, objects or things, used in or having any relation to any unlawful activity or money laundering, regardless of
the current owner or possessor, and circumstances of ownership or acquisition; and
(4) For purposes of freeze order and bank inquiry order: related and materially-linked accounts.
Money Laundering Refers to the crime defined under Section 4 of the AMLA.
A covered person’s comprehensive, risk-based, and written internal policies, controls and procedures to implement the
Money Laundering/Terrorism
relevant laws, rules and regulations, and best practices to prevent and combat ML/TF and associated unlawful activities in
Financing Prevention Program
the operational level.
Financial services that involve the acceptance of cash, checks, other monetary instruments or other stores of value, and
Money or Value Transfer
the payment of a corresponding sum in cash or other form to a beneficiary by means of a communication, message,
Service
transfer, or through a clearing network to which the service provider belongs.
The formal method of cooperation between two jurisdictions for purposes of seeking assistance in the production of
Mutual Legal Assistance documents, asset freezing and forfeiture, extradition, enforcement of foreign judgment, and other kinds of legal
assistance in criminal matters.
A comprehensive exercise to identify, assess and understand a country’s ML/TF threats, vulnerabilities and the
National Risk Assessment
consequential risks, with a view to mitigate illicit flow of funds and transactions.
A juridical person, legal arrangement or organization that primarily engages in raising or disbursing funds for purposes
Non-Profit Organization such as charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying of other types of “good
works”.
Offender Any person who commits a money laundering offense.
An entity engaged in offering online games of chance or sporting events via the internet using a network and software
Offshore Gaming Operator
program, by themselves or through local service providers.
Offshore Gaming Operator A duly constituted business corporation who provides components of offshore gaming operations to offshore gaming
Service Provider operators.
 The process of conducting continuing due diligence, including continually assessing the risks, understanding the
Ongoing Monitoring Process transactions and activities, and updating, based on risk and materiality, the identification information and/or
identification documents, of customers, their agents and beneficial owners.
Originating/Ordering The financial institution, which initiates the wire transfer and transfers the funds upon receiving the request for a wire
Financial Institution transfer on behalf of the originator.
The account holder who allows the wire transfer from that account or where there is no account, the person that places an
Originator
order with the originating/ordering financial institution to perform a wire transfer.
Other Government Agency Government agency that is not an SA, AGA, or LEA
Parallel Financial Conducting a financial investigation or investigation into the ML/TF aspect of a case alongside, or in the context of, the
Investigation investigation into the associated unlawful activity.
Payable-Through Accounts Correspondent accounts that are used directly by third parties to transact business on their own behalf.
Person/Entity Any natural or juridical person
The non-transferrable identification card issued by the Philippine Statistics Authority (PSA) to all citizens and resident
aliens registered under the Philippine Identification System. It shall serve as the official government-issued identification
Philippine Identification Card
document of cardholders in dealing with all government agencies, local government units, government and controlled
corporations, government financial institutions, and all private sector entities.
Philippine Identification The Philippine Government’s central identification platform, established under Republic Act No. 11055, otherwise known as
System the “Philippine Identification System Act” (PhilSys Act), for all citizens and resident aliens of the Philippines.
The randomly generated, unique and permanent identification number assigned to every citizen or resident alien, upon
PhilSys Number
birth or registration, by the PSA.
An individual who is or has been entrusted with prominent public position in (a) the Philippines with substantial authority
Politically-Exposed Person over policy, operations or the use or allocation of government-owned resources; (b) a foreign State; or (c) an international
organization.
Gold, silver, platinum, palladium, rhodium, ruthenium, iridium, and osmium at a level of purity of 500 parts per 1,000, singly
or in any combination, and alloys of precious metals, solders, and plating chemicals, such as rhodium and palladium
Precious Metals
plating solutions, potassium gold cyanide containing at least 68.3% gold, potassium silver cyanide containing at least 68%
silver and silver cyanide in salt solution containing at least 54% silver.
All gems and stones used in jewelry making, such as gemstones, jewels, and those substances that have market-
recognized gem level of quality, beauty, and rarity, such as diamond, corundum (including rubies and sapphires), beryl
Precious Stones (including emeralds and aquamarines), chrysoberyl, spinel, topaz, zircon, tourmaline, garnet, crystalline and
cryptocrystalline quartz, olivine peridot, tanzanite, jadeite jade, nephrite jade, spodumene, feldspar, turquoise, lapis, lazuli,
opal and pearl.
Refers to such facts and circumstances which would lead a reasonably discreet, prudent, or cautious man to believe that:
(1) Any monetary instrument or property sought to be frozen, inquired into or preserved is in any way related to any
Probable Cause
unlawful activity and/or money laundering offense; or
(2) ML/TF has been committed and that the respondent is probably guilty thereof.
Proceeds An amount derived or realized from any unlawful activity, as herein defined.
Proliferation of Weapons of The manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling
Mass Destruction or use of weapons of mass destruction, in contravention of national laws or, where applicable, international obligations.
Refers when a person:
Proliferation of Weapons of (1) Makes available an asset; or
Mass Destruction (2) Provides a financial service; or
Financing/Proliferation (3) Conducts a financial transaction; and the person knows that, or is reckless as to whether, the asset, financial service or
Financing financial transaction is intended to, in whole or in part, facilitate proliferation of WMD in relation to UNSC Resolution Nos.
1718 of 2006 and 2231 of 2015.9
Any thing or item of value, real or personal, tangible or intangible, or any interest therein, or any benefit, privilege, claim,
or right with respect thereto, including:
(1) Personal property, including proceeds derived therefrom, or traceable to any unlawful activity, as herein defined, such
as, but not limited to:
a. Cash;
b. Jewelry, precious metals and stones, and other similar items;
c. Works of art, such as paintings, sculptures, antiques, treasures, and other similar precious objects;
d. Perishable goods; and
e. Vehicles, vessels, aircraft, or any other similar conveyance.

Property (2) Personal property, used as instrumentalities in the commission of any unlawful activity, as herein defined, such as:
a. Computers, servers, and other electronic information and communication systems; and
b. Any conveyance, including any vehicle, vessel, and aircraft.

(3) Real estate, improvements constructed or crops growing thereon, or any interest therein, standing upon the record of
the registry of deeds or local government unit in the name of the party against whom the freeze order or asset
preservation order is issued, or not appearing at all upon such records, or not belonging to the party against whom the
freeze order or asset preservation order is issued and held by any other person, or standing on the records of the registry
of deeds or local government unit in the name of any other person, but are:
a. derived from, or traceable to, any unlawful activity; or
b. used as an instrumentality in the commission of any unlawful activity, as herein defined.
(1) Rendition of purely litigation, notarial, legal counseling, and/or other services that can only be undertaken by a lawyer,
Purely Legal/Accounting as a professional; or
Service (2) Rendition of purely accounting, auditing and/or other services that can only be undertaken by a certified public
accountant, as a professional.
Relationship Business or professional relationship between the covered person and its customer.
A request for information by FIUs, LEAs and OGAs, whether domestic or foreign, for intelligence or investigative purposes
Request for Information
only.
 The land and all those items which are attached to the land. It is the physical, tangible entity, together with all the
Real Estate
additions or improvements on, above or below the ground.
A duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts
as an agent of a party in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the
Real Estate Broker
meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on
real estate or any interest therein.
Any natural or juridical person engaged in the business of developing real estate development project for his/her or its
Real Estate Developer
own account and offering them for sale or lease.
Realty Transaction A real estate transaction involving an amount in excess of ₱500,000
A report, including copies of the relevant documents, on a realty transaction, as herein defined, filed by the Land
Realty Transaction Report
Registration Authority and all its Registry of Deeds, before the AMLC.
The lowest level of customer due diligence that is appropriate in cases where there is low risk of money laundering or
Reduced Due Diligence
terrorism financing.
An account, the funds and sources of which directly originated from and/or are materially-linked to the monetary
Related Account
instruments or properties subject of the freeze order or an order of inquiry.
Risk Risk of loss arising from ML/TF activities
The process by which countries, competent authorities, and covered persons identify, assess, and understand the ML/TF
risks to which they are exposed, and take the appropriate mitigation measures in accordance with the level of risk. This
Risk-Based Approach
includes prioritization and efficient allocation of resources by the relevant key players and stakeholders in applying
AML/CTF measures in their operations in a way that ensures that they are commensurate with the risks involved.
Strategic Trade Management
Refers to Republic Act No. 10697.
Act
The bureau under the administrative supervision of the Department of Trade and Industry (DTI) which serves as the
Strategic Trade Management
executive and technical agency of the national government for the establishment of the management systems for the
Office
trade in strategic goods.
A comprehensive exercise to identify, assess and understand an industry’s, or business or professional sector’s, threats,
Sectoral Risk Assessment
vulnerabilities and the consequential risks, with a view to mitigate illicit flow of funds and transactions.
Securities and Exchange
The Philippines’ company register and regulator of the securities industry.
Commission
A direct sequential chain of payment where the wire transfer and accompanying payment message travel together from
Serial Payment the originating/ordering financial institution to the beneficiary financial institution, directly or through one or more
intermediary financial institutions.
A bank that has no physical presence in the country in which it is incorporated and licensed, and which is unaffiliated with
Shell Bank
a regulated financial group that is subject to effective consolidated supervision.
Casinos, the operation of which is undertaken on board a vessel, ship, boat or any other water-based craft wholly or partly
Ship-Based Casino
intended for gambling.
The origin of the funds or other monetary instrument that is the subject of the transaction, or business or professional
Source of Fund relationship between a covered person and its customer, such as cash on hand, safety deposit box with a covered person,
and a particular bank or investment account.
The resource from which the customer’s wealth, including all monetary instruments and properties, came, comes, or will
Source of Wealth
come from, such as employment, business, investment, foreign remittance, inheritance, donation, and winnings.
Straight-Through Processing Payment transactions that are conducted electronically without the need for manual intervention.
The high-level macro analysis of data to decipher the underlying patterns and trends that would enable the AMLC to draw
Strategic Analysis
conclusions and develop long-term strategies for the prevention of ML/TF, and to provide input for policy formulation.
Such level of evidence which a reasonable mind might accept as adequate to justify or support a conclusion that a specific
Substantial Evidence
violation was committed.
The BSP, the SEC, the IC, or other government agencies designated by law to supervise or regulate a particular financial
Supervising Authority
institution or DNFBP.
Any of the following circumstances, the existence of which makes a transaction suspicious:
(1) There is no underlying legal or trade obligation, purpose or economic justification;
(2) The client is not properly identified;
(3) The amount involved is not commensurate with the business or financial capacity of the client;
(4) 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 AMLA;
(5) Any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the
Suspicious Circumstance client’s past transactions with the covered person;
(6) The transaction is in any way related to ML/TF or related unlawful activity that is about to be committed, is being or
has been committed; or
(7) Any transaction that is similar, analogous or identical to any of the foregoing, such as the relevant transactions in
related and materially-linked accounts, as herein defined.
Any unsuccessful attempt to transact with a covered person, the denial of which is based on any of the foregoing
circumstances, shall likewise be considered as suspicious transaction.
A person’s state of mind—based on his skills, experience, and/or understanding of the customer profile—which considers
Suspicion
that there is a possibility that any of the suspicious circumstances exists.
A transaction, regardless of amount, where any of the suspicious circumstances, as herein defined, is determined, based
Suspicious Transaction
on suspicion or, if available, reasonable grounds, to be existing.
Suspicious Transaction Report A report on a suspicious transaction, as herein defined, filed by a covered person before the AMLC.
The analysis of data directed towards the short-term development of investigative priorities and deployment of resources,
Tactical Analysis which include the analysis of time, space, offender, victim, and modus operandi for individual high-profile crimes, repeat
incidents, and crime patterns, with a specific focus on crime series.
 Both asset freezing and prohibition to prevent funds or other assets from being made available, directly or indirectly, for
Targeted Financial Sanctions the benefit of any individual, natural or legal persons or entity designated pursuant to UNSC resolutions and its
designation process.
Terrorism Financing The crime defined under Sections 4 of the TFPSA
Terrorism Financing
Prevention and Suppression Refers to Republic Act No. 10168
Act
Any act establishing any right or obligation, or giving rise to any contractual or legal relationship between the covered
Transaction person and its customer. It also includes any movement of funds, by any means, in the ordinary course of business of a
covered person.
A person in whom confidence is reposed as regards property for the benefit of another person called the
Trustee
trustor/grantor/settlor.
A person who establishes a trust, or who transfers ownership of his assets to a trustee by means of a trust deed or similar
Trustor/Grantor/Settlor
arrangement.
Unique Transaction Reference A combination of letters, numbers or symbols, determined by the payment service provider, in accordance with the
Number protocols of the payment and settlement system or messaging system used for the wire transfer.
United Nations Security The principal organ of the United Nations that has primary responsibility for the maintenance of international peace and
Council security.
A digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment
Virtual Asset
purposes.
Any person who, as a business, conducts one or more of the following activities or operations for or on behalf of another
person:
(a) Exchange between virtual assets and fiat currencies;
(b) Exchange between one or more forms of virtual assets;
Virtual Asset Provider
(c) Transfer (the conduct of a transaction on behalf of another person that moves a virtual asset from one one virtual
asset address or account to another) of virtual assets;
(d) Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and
(e) Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.
Chemical, biological, radiological, or nuclear weapons which are capable of high order of destruction or causing mass
Weapons of Mass Destruction casualties. It excludes the means of transporting or propelling the weapon where such means is a separable and divisible
part from the weapon.
Any transaction carried out on behalf of an originator, through an originating/ordering financial institution, by electronic
Wire Transfer means, with a view to making an amount of funds available to a beneficiary at a beneficiary financial institution,
irrespective of whether the originator and the beneficiary are the same person.
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