ANTI-MONEY
LAUNDERING
Money Laundering
Money Laundering is a scheme whereby the proceeds of specified unlawful
activities are transacted or attempted to be transacted to make them appear to have
originated from legitimate sources.
Committed by any person who, knowing that any monetary instrument or property
represents, involves, or relates to the proceeds of any unlawful activity:
ü transacts said monetary instrument or property;
ü converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or
property;
ü conceals or disguises the true nature, source, location, disposition, movement or ownership of or
rights with respect to said monetary instrument or property;
ü attempts or conspires to commit money laundering offenses referred to in paragraphs (a), (b) or
(c) of Section 4 of the Anti-Money Laundering Act of 2001 [AMLA, Republic Act (R.A.) No.
9160], as amended;
ü aids, abets, assists in or counsels the commission of money laundering offenses referred
to in paragraphs (a), (b) or (c) of Section 4 of the AMLA, as amended; and
ü 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) of Section 4 of the AMLA, as amended.
Source: [Link]
Unlawful Activities
Refers to any act or omission or series or combination thereof involving or having relation,
to the following:
Kidnapping for ransom Jueteng and Masiao punished as illegal
Illegal drugs gambling
Graft and corruption Hijacking, destructive arson and murder,
including those perpetrated by terrorists
Plunder
against non-combatant persons and similar
Robbery and extortion targets
Piracy on the high seas Fraudulent practices
Qualified theft Terrorism financing
Swindling Felonies or offenses of a similar nature to
Smuggling the aforementioned unlawful activities that
Violations under Republic Act No. 8792, are punishable under the penal laws of other
otherwise known as the Electronic countries.
Commerce
Source: [Link]
Three Major Ways of Money Laundering
Through financial systems
q Dirty money FIs Clean money
Physical movement of dirty money
q Dirty money Cash courier Clean money
Physical movement of goods purchased with dirty money
q Dirty money Goods Clean money
Source: [Link]
Covered Persons (Institutions)
Banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops,
remittance and transfer companies and other similar entities and all other persons
and their subsidiaries and affiliates, supervised and regulated by the BSP
Insurance companies, pre-need companies and all other persons supervised or
regulated by the Insurance Commission (IC)
Securities dealers, brokers, salesmen, investment houses and other similar persons
managing securities or rendering services as investment agent, advisor, or
consultant, mutual funds, close-end investment companies, common trust funds,
and other similar persons, and 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)
Jewelry dealers in precious metals, who, as a business, trade in precious metals.
Jewelry dealers in precious stones, who, as a business, trade in precious stones.
Source: [Link]
Covered Persons (Institutions)
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; and
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;
and
o creation, operation or management of juridical persons or arrangements, and buying and
selling business entities. Source: [Link]
Prevention of Money Laundering
Customer Identification Requirements – Know-Your-Customer
Record Keeping Requirements – 5 years
Reporting of Covered and Suspicious Transactions – to AMLC in
electronic form
Authority to Inquire into Deposits or Investments
With court order
The AMLC may inquire into or examine any deposit or investment with
any banking institution or non-bank financial institution and their
subsidiaries and affiliates without a court order in cases involving certain
unlawful activities
BSP authority to check compliance with the AMLA
Source: [Link]
Reportable Transactions to AMLC
• Covered Transaction is a transaction in cash or other equivalent
monetary instrument involving a total amount in excess of five
hundred thousand pesos (Php 500,000.00) within one (1) banking
day.
• For jewelry dealers in precious metals and jewelry dealers in
precious stones as defined, covered transaction is a transaction in
cash or other equivalent monetary instrument involving a total
amount in excess of one million pesos (P1,000,000.00).
Source: [Link]
Reportable Transactions to AMLC
• Suspicious Transaction is a transaction, regardless of amount, where any of
the following circumstances exists:
ü There is no underlying legal/trade obligation, purpose or economic justification;
ü The client is not properly identified;
ü The amount involved is not commensurate with the business or financial capacity
of the client;
ü 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 ;
ü Any circumstance 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 person;
ü The transaction is in any way related to an unlawful activity or any money
laundering activity or offense under the AMLA, that is about to be, is being or has
been committed; or
ü Any transaction that is similar, analogous or identical to any of the foregoing.
Source: [Link]
Reporting to AMLC
• Covered Persons shall report to the AMLC all covered and
suspicious transactions within five (5) working days from
occurrence thereof, unless the AMLC prescribes a longer period
not exceeding fifteen (15) working days.
• Should a transaction be determined to be both a covered and a
suspicious transaction, the CP shall report the same as a suspicious
transaction. F. Before CPs can submit CTRs/STRs to AMLC, they
must first register their Compliance Officer (CO) and alternate
representatives, if available, who will be authorized to send their
reports.
• The AMLC Registration Form is available at the AMLC office or
can be downloaded from the AMLC website, [Link].
Source: [Link]