Money Laundering and Republic Act No.

Topics: Money laundering, Bank Secrecy Act, Bank secrecy Pages: 18 (4294 words) Published: November 16, 2011
Anti-Money Laundering Act

R.A. 9160AMLA, As Amended by R.A. 9194

Subject: Business Laws and Corporate Practices
Colegio de San Juan de Letran- Graduate School

Submitted by: Michelle Ann G. Espisua
Submitted to: Atty. Kriden Balgomera

AMLA- Anti-Money Laundering Act

R.A. 9160Anti-Money Laundering Act, As Amended by R.A. 9194

These Rules shall be known and cited as the "Revised Rules and Regulations Implementing Republic Act No. 9160” (the Anti-Money Laundering Act of 2001 [AMLA], AS AMENDED BY REPUBLIC ACT NO. 9194.


These Rules are promulgated to prescribe the procedures and guidelines for the implementation of the AMLA, AS AMENDED BY REPUBLIC ACT NO. 9194.

Republic Act 9160

It is an act defining the crime of money laundering, providing penalties therefor and for other purposes. This Act shall be known as the “Anti-Money Laundering Act of 2001”

R.A. 9160 Declaration of Policy

-To protect and preserve the integrity & confidentiality of bank accounts. -To ensure that the Philippines shall not be used as money laundering site for the proceeds of any unlawful activity. -To extend cooperation in transnational investigations and prosecutions of persons involved in money laundering activities whenever committed. Republic Act 9160, as amended (or AMLA 2001, as amended)

Financial Action Task Force (FATF)
-FATF on money laundering is the premiere body tasked with safeguarding the global financial system. -created in 1989 by the heads of state of the G-7 countries, to combat money laundering and terrorist financing.

FATF Report on the Philippines

On June 22, 2000 the Financial Action Task Force reported that the Philippines: -lacks the basic set of Anti-money laundering regulations such as customer identifications, record keeping and suspicious transactions reporting; -has strict bank provision; and

-does not have any specific legislation to criminalize money laundering

Republic Act 9160, as amended by R.A. 9194
* The Anti-Money Laundering Act of 2001 (RA 9160) took effect on October 17, 2001 * However, R.A did not pass the standards of FATF.
Thus, RA 9194 was enacted to amend RA 9160. It took effect on March 23, 2003. * Revised IRRs - took effect on September 7, 2003 as THE ANTI-MONEY LAUNDERING ACT OF 2001, AS AMENDED (R.A. NO. 9160) Salient Features of R.A. 9160, as amended.

-Criminalizes money laundering.
-Creates a financial intelligence unit (FIU-AMLC).
-Imposes requirements on customer identification, record-keeping and reporting of covered and suspicious transactions. -Relaxes strict bank deposit secrecy laws.
-Provides for freezing/seizure/forfeiture recovery of dirty money/property.

Money Laundering
- is a crime whereby the proceeds of an unlawful activity as defined in the AMLA are transacted or attempted to be transacted to make them appear to have originated from legitimate sources.

Unlawful activities
- Activities that is seen as unlawful source of proceeds, such as: Kidnapping for ransom Prohibited acts under the Dangerous Drug Act of 1972 Prohibited acts under the Anti-Graft & Corrupt Practices Act Plunder Robbery and extortion Jueteng and Masiao -Piracy on the high seas

- Qualified Theft Swindling Smuggling Prohibited acts under the Electronic Commerce Act of 2000 -Hijacking; destructive arson and murder, including those perpetrated by terrorists against non- combatant person and similar targets -Fraudulent practices under the Securities Regulation Code of 2000 Felonies or offenses punishable under the penal laws of other countries

Stages of Money Laundering : 
1. Placement – involves initial placement or introduction of the illegal funds into the financial system. Banks and other financial institutions are usually used at this point. Examples: deposit of cash in bank convert cash into financial instruments, such as money orders or checks purchase of an insurance policy or shares of stock 2. Layering –...
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