AMLA Flashcards
(12 cards)
Money Laundering
is a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources.
Salient Features
- Criminalizes money laundering
- Creates a financial intelligence unit
- Imposes requirements on customer identification, record keeping and reporting of covered and suspicious transactions
- 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
Unlawful Activities
- Kidnapping for ransom
- Drug offenses
- Graft & courrupt practicies
- Plunder
- Robbery and extortion
- Jueteng & masiao
- Piracy on the high seas
- Qualfied Theft
- Swindling
- smuggling
- electronic commerce crimes
- hijacking
- Securities Fraud
- Felonies
Covered Institutions
Supervised/R by BSP
* Banks, non-banks, quasibanks, pawnshops, trust entities, foreign exchange delaers, money changers, remittance & transfer companies
Supervised/R by Insurance Commission
* insurance companies, preneed comp., Insurance agents/brokers.
Supervised/R by Securities & Exchange commission
* Securities dealers, brokers, salesmen, investment houses, mutual funds, trading advisers
Covered Person
Jewelry dealers in precious metals (+1m)
Jewelry dealers in precious stones (+1m)
Real Estate Dealers (+7.5m)
Art Collection/dealers (+1m)
Excludes lawyers & accountants
Covered transactions
- transaction in cash exceeding (500k)
- transaction exceeding (1m) in cases of jewelry dealers
- foreign exchange transaction in cash exceeding (500k) or more in 1 bnking day
- Casino transaction involving bets & winnngs exceeding (5m)
- Cash withdrawal of (500k) or more in one banking day.
3 stages of ML
- Placement
- Layering
- Integration
Placement
This is the movement of cash from its source. On occasion the source can be easily disguised or misrepresented. This is followed by placing it into circulation through financial institutions, casinos, shops, bureau de change and other businesses, both local and abroad.
currency smuggling
bank comlicity
currency exchange
securities brokers
blending of funds
asset purchase
Layering
The purpose of this stage is to make it more difficult to detect and uncover a laundering activity. It is meant to make the trailing of illegal proceeds difficult for the law enforcement agencies.
Cash converted into monetary instrument
material assets bought with cash then sold
integration
This is the movement of previously laundered money into the economy mainly through the banking system and thus such monies appear to be normal business earnings. This is dissimilar to layering, for in the integration process detection and identification of laundered funds is provided through informants
properties
front/shell companies
foreign bank complicity
false import/export invoices
monetary instrument examples
- cooins & currency
- credit instrument
- draafts, check and notes
- Stocks or shares
- bonds, commercial papers
- contract or policies of insurance
3 basic requirements
- customer Identification
* valid ids, comp./school id, postal id, sc/pwd id - Record keeping
* customer infor sheet, specimen signature card, application form - Reporting of transaction
* covered transactions
* Suspicious transactions
