AMLA Flashcards
(47 cards)
What is the Purpose of AMLA?
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.
Committed by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity
Money Laundering
Unlawful Activity of AMLA:
(a) Transacts said monetary instrument or property;
(b) Converts, transfers, disposes of, moves, acquires, possesses or Uses(UP-MD-CAT) said monetary instrument or property;
(c) Conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said monetary instrument or property;
(d) Attempts or conspires to commit money laundering offenses referred to in paragraphs (a), (b) or (c);
(e) Aids, abets, assists in or counsels the commission of the money laundering offenses referred to in paragraphs (a), (b) or (c) above; and
(f) 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) above.
Money laundering is also committed by any covered person who, knowing that a covered or suspicious transaction is required under this Act to be reported to the Anti-Money Laundering Council (AMLC), fails to do so.
WAYS TO COMMIT MONEY LAUNDERING
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It applies to someone who knows that the money is from illegal activity and then:
> Spends it
Deposits it in a bank
Transfers it to someone else
Tries to do any kind of financial transaction with it
Direct Involvement
It applies to someone who knows that the
money is from illegal activity and then:
> Helps someone else move the money around (even if they didn’t directly handle the money themselves)
Does something (or doesn’t do something) that makes it easier to hide the source of the money.
Facilitating Money Laundering
It applies to someone who:
> Knows the law requires them to report certain financial transactions to the AMLC (Anti-Money Laundering Council)
Fails to do that reporting
Failing to Report
COVERAGE OF THE LAW
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- Bangko Sentral ng Pilipinas (BSP)-Supervised:
Banks (traditional and online)
Non-banks (financial institutions not classified as banks)
Quasi-banks (institutions that provide some banking services but not all)
Trust entities (companies that manage trusts for clients)
Foreign exchange dealers (businesses that exchange currencies)
Pawnshops
Money changers
Remittance and transfer companies
- Insurance Commission-Supervised:
Insurance companies
Pre-need companies (companies that sell funeral plans or other prepaid services)
- Securities and Exchange Commission (SEC)-Supervised
Securities dealers, brokers, and salespeople
Investment houses
Mutual funds, investment companies, and common trust funds
Entities dealing in currency, commodities, or financial derivatives
Jewelry dealers (for transactions exceeding P1 million in precious metals or stones)
- Company Service Providers:
Businesses that help form companies (formation agents)
Businesses that provide directors, corporate secretaries, or similar positions for companies (nominee directors)
Businesses that offer registered office addresses for companies
- Other Covered Persons
Businesses managing client money, securities, or assets
Businesses managing bank or investment accounts
Businesses organizing investment groups
Businesses creating, operating, or managing companies or other legal structures
Casinos (including online and ship-based) for their cash transactions
COVERED TRANSACTIONS (should be reported)
- A total amount in excess of P500,000 within one (1) banking day;
2.A transaction with or involving jewelry dealers, dealers in precious metals and dealers in precious stones in cash or other equivalent monetary instrument exceeding P1,000,000.
3.A casino cash transaction exceeding P5,000,000 or its equivalent in other currency.
4.A cash transaction with or involving real estate developers or brokers exceeding P7,500,000 or its equivalent in any other currency.
SUSPICIOUS TRANSACTIONS
- 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.
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.
5.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.
- The transaction is in any way related to an unlawful activity or offense that is about to be, is being or has been committed.
7.Any transaction similar or analogous to any of the foregoing (Sec. 3[b-1], RA 9160, as amended by R.A. No. 11521)
REPORTING OF COVERED TRANSACTIONS
Covered persons shall report to the AMLC all covered transactions and suspicious transactions within five (5) WORKING DAYS from occurrence thereto
> unless the AMLC prescribes a different period not exceeding 15 working days
Should a transaction be determined to be both a covered transaction and a suspicious transaction, the covered institution shall be required to report the same as a suspicious transaction.
Set of legal protection that shields a person or organization from certain legal liabilities or consequences when they have taken specific actions to comply with AML regulations and report suspicious activities to appropriate authorities.
Safe Harbor Provision
Restricts individuals or entities suspected of money laundering from accessing or disposing their assets. It allows authorities to investigate the source of funds and potentially recover them if they are found to be illegally obtained.
Freeze Order
General Rule on Freeze Order
a. A freeze order can be issued without a prior criminal charge, ongoing case, or conviction for unlawful activity or money laundering.
b. Assets belonging to candidates running for office cannot be frozen during the election period.
c. Lower courts cannot issue orders to block or challenge a freeze order, except the Supreme Court
The Anti-Money Laundering Council (AMLC) initiates the freeze order process. The AMLC Secretariat, through the Office of the Solicitor General, files an ex parte petition with the Court of Appeals.
Proceedings for the issuance of freeze order shall be governed by the “Rule of Procedure in Cases of Civil Forfeiture, Asset Preservation, and Freezing of Monetary Instrument, Property, or Proceeds Representing, Involving, or Relating to an Unlawful Activity or Money Laundering Offense under Republic Act No. 9160, as amended (A.M. No. 05-11-04-SC)” and other applicable rules that may be promulgated by the Supreme Court.
After a verified ex parte petition by the AMLC and after determination that a probable cause exist, the Court of Appeals then issue a freeze order which effects immediately and lasts for?
20 days
