Things you need to know about Anti-Money Laundering Act or AMLA

Increasing the the investors interest in the Philippines and protecting the country and the Filipinos from unlawful money laundering activities, AMLA or the Anti-Money Laundering Act was created.

AMLA not only covers anti-money laundering cases in the Philippines but this means that Philippines will be able to extend cooperation in transnational investigation and prosecution of persons involved it.

What is AMLA and why is it important?

The Anti-Money Laundering Act of 2001, Republic Act No. 9160, or also known as AMLA was signed into law on September 29, 2001. It protects the country from money laundering activities and also protect and preserve the integrity and confidentiality of bank accounts.

The new law was signed by Pres. Duterte which strengthens the 20-year-old Anti-Money Laundering Act (AMLA). The Republic Act 11521 expanded the list of covered persons to include real estate developers and brokers; offshore gaming operators. This new law empowers, the Anti-Money Laundering Council to “require, receive and analyze covered transactions or suspicious transaction reports from covered persons.” (source)

AMLA & Real Estate

This means that real estate brokers and developers are required to report single cash transactions involving an amount in excess of PhP 7.5 million or its equivalent in any other currency.

It can be recalled that in October of last year, Anti-Money Laundering Council Executive Director Atty. Mel Racela has confirmed during a Senate hearing that real estate transactions are used by criminals to launder dirty money in the Philippines. AMLC data showed real estate assets account for 22% of total assets and properties that are subject to AMLC civil forfeiture proceedings. [source]

Features of the AMLA

  • Criminalizes money laundering
  • Financial intelligence unit
  • Customer identification, record keeping and reporting of covered and suspicious transactions is a requirement
  • Relaxes strict bank deposits secrecy laws
  • Provides for bank inquiry and freeze ex parte petition/seizure/forfeiture/recovery of dirty money/property
  • Provides for international cooperation

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. (source)

Offenses and Penalties

AMLC, or the the Anti-Money Landering Council, which is the Philippines Financial Intelligence Unit shares the offenses and penalties for each offense.

  • Knowingly transacting or attempting to transact any monetary instrument/property which represents, involves or relates to the proceeds of an unlawful activity.
    • Penalty is 7 to 14 years imprisonment and a fine of not less than P3M but not more than twice the value of the monetary instrument/property. 
  • Knowingly performing or failing to perform an act in relation to any monetary instrument/property involving the proceeds of any unlawful activity as a result of which he facilitated the offense of money laundering.
    • Penalty is 4 to 7 years imprisonment and a fine of not less than P1.5M but not more than P3M. 
  • Knowingly failing to disclose and file with the AMLC any monetary instrument/property required to be disclosed and filed.
    • Penalty is 6 months to 4 years imprisonment or a fine of not less than P100,000 but not more than P500,000, or both.

There are some activities that fall as Unlawful Activity where dirty money or property is acquired or generated. These crimes are called predicate crime which refers to any act or omission or series or combination thereof involving or having direct relation.

READ: Duterte expands AMLA to include real estate developers and brokers

AMLA makes sure that there is economic development and poverty alleviation through corporate governance and public office transparency in the global fight against money laundering. It will not only increase investor’s confidence but also ensure that the Philippines is not used as a site to launder proceeds of such unlawful activities.

INFORMATION SOURCE:

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