BangkoSentralngPilipinasRegulations

AntiMoneyLaunderingActof2001(RA9160)
ANACTDEFININGTHECRIMEOFMONEYLAUNDERING,PROVIDINGPENALTIESTHEREFORANDFOR
OTHERPURPOSESBeitenactedbytheSenateandHouseofRepresentativesofthePhilippinesinCongress
assembled:
SECTION1.ShortTitle.ThisActshallbeknownasthe"AntiMoneyLaunderingActof2001."
SEC.2.DeclarationofPolicy.ItisherebydeclaredthepolicyoftheStatetoprotectandpreservethe
integrityandconfidentialityofbankaccountsandtoensurethatthePhilippinesshallnotbeusedasamoney
launderingsitefortheproceedsofanyunlawfulactivity.Consistentwithitsforeignpolicy,theStateshallextend
cooperationintransnationalinvestigationsandprosecutionsofpersonsinvolvedinmoneylaunderingactivities
wherevercommitted.
SEC.3.Definitions.ForpurposesofthisAct,thefollowingtermsareherebydefinedasfollows:
(a)"Coveredinstitution"refersto:
(1)banks,nonbanks,quasibanks,trustentities,andallotherinstitutionsandtheirsubsidiariesand
affiliatessupervisedorregulatedbytheBangkoSentralngPilipinas(BSP)
(2)insurancecompaniesandallotherinstitutionssupervisedorregulatedbytheInsuranceCommission
and
(3)(i)securitiesdealers,brokers,salesmen,investmenthousesandothersimilarentitiesmanaging
securitiesorrenderingservicesasinvestmentagent,advisor,orconsultant,(ii)mutualfunds,closeend
investmentcompanies,commontrustfunds,preneedcompaniesandothersimilarentities,(iii)foreign
exchangecorporations,moneychangers,moneypayment,remittance,andtransfercompaniesandother
similarentities,and(iv)otherentitiesadministeringorotherwisedealingincurrency,commoditiesor
financialderivativesbasedthereon,valuableobjects,cashsubstitutesandothersimilarmonetary
instrumentsorpropertysupervisedorregulatedbySecuritiesandExchangeCommissionandExchange
Commission
(b)"Coveredtransaction"isasingle,series,orcombinationoftransactionsinvolvingatotalamountinexcess
ofFourmillionPhilippinepesos(Php4,000,000.00)oranequivalentamountinforeigncurrencybasedonthe
prevailingexchangeratewithinfive(5)consecutivebankingdaysexceptthosebetweenacoveredinstitution
andapersonwho,atthetimeofthetransactionwasaproperlyidentifiedclientandtheamountis
commensuratewiththebusinessorfinancialcapacityoftheclientorthosewithanunderlyinglegalortrade
obligation,purpose,originoreconomicjustification.
Itlikewisereferstoasingle,seriesorcombinationorpatternofunusuallylargeandcomplextransactionsin
excessofFourmillionPhilippinepesos(Php4,000,000.00)especiallycashdepositsandinvestmentshaving

nocrediblepurposeororigin,underlyingtradeobligationorcontract.
(c)"Monetaryinstrument"refersto:
(1)coinsorcurrencyoflegaltenderofthePhilippines,orofanyothercountry
(2)drafts,checksandnotes
(3)securitiesornegotiableinstruments,bonds,commercialpapers,depositcertificates,trustcertificates,
custodialreceiptsordepositsubstituteinstruments,tradingorders,transactionticketsandconfirmations
ofsaleorinvestmentsandmoneymarketinstrumentsand
(4)othersimilarinstrumentswheretitletheretopassestoanotherbyendorsement,assignmentor
delivery.
(d)"Offender"referstoanypersonwhocommitsamoneylaunderingoffense.
(e)"Person"referstoanynaturalorjuridicalperson.
(f)"Proceeds"referstoanamountderivedorrealizedfromanunlawfulactivity.
(g)"SupervisingAuthority"referstotheappropriatesupervisoryorregulatoryagency,departmentoroffice
supervisingorregulatingthecoveredinstitutionsenumeratedinSection3(a).
(h)"Transaction"referstoanyactestablishinganyrightorobligationorgivingrisetoanycontractualorlegal
relationshipbetweenthepartiesthereto.Italsoincludesanymovementoffundsbyanymeanswitha
coveredinstitution.
(i)"Unlawfulactivity"referstoanyactoromissionorseriesorcombinationthereofinvolvingorhaving
relationtothefollowing:
(1)KidnappingforransomunderArticle267ofActNo.3815,otherwiseknownastheRevisedPenal
Code,asamended
(2)Sections3,4,5,7,8and9ofArticleTwoofRepublicActNo.6425,asamended,otherwiseknownas
theDangerousDrugsActof1972
(3)Section3paragraphsB,C,E,G,HandIofRepublicActNo.3019,asamendedotherwiseknownas
theAntiGraftandCorruptPracticesAct
(4)PlunderunderRepublicActNo.7080,asamended
(5)RobberyandextortionunderArticles294,295,296,299,300,301and302oftheRevisedPenal
Code,asamended
(6)JuetengandMasiaopunishedasillegalgamblingunderPresidentialDecreeNo.1602
(7)PiracyonthehighseasundertheRevisedPenalCode,asamendedandPresidentialDecreeNo.532

(8)QualifiedtheftunderArticle310oftheRevisedPenalCode,asamended
(9)SwindlingunderArticle315oftheRevisedPenalCode,asamended
(10)SmugglingunderRepublicActNos.455and1937
(11)ViolationsunderRepublicActNo.8792,otherwiseknownastheElectronicCommerceActof2000
(12)HijackingandotherviolationsunderRepublicActNo.6235destructivearsonandmurder,asdefined
undertheRevisedPenalCode,asamended,includingthoseperpetratedbyterroristsagainstnon
combatantpersonsandsimilartargets
(13)FraudulentpracticesandotherviolationsunderRepublicActNo.8799,otherwiseknownasthe
SecuritiesRegulationCodeof2000
(14)Feloniesoroffensesofasimilarnaturethatarepunishableunderthepenallawsofothercountries.
SEC.4.MoneyLaunderingOffense.Moneylaunderingisacrimewherebytheproceedsofanunlawful
activityaretransacted,therebymakingthemappeartohaveoriginatedfromlegitimatesources.Itiscommitted
bythefollowing:
(a)Anypersonknowingthatanymonetaryinstrumentorpropertyrepresents,involves,orrelatesto,the
proceedsofanyunlawfulactivity,transactsorattemptstotransactsaidmonetaryinstrumentorproperty.
(b)Anypersonknowingthatanymonetaryinstrumentorpropertyinvolvestheproceedsofanyunlawful
activity,performsorfailstoperformanyactasaresultofwhichhefacilitatestheoffenseofmoney
launderingreferredtoinparagraph(a)above.
(c)AnypersonknowingthatanymonetaryinstrumentorpropertyisrequiredunderthisActtobedisclosed
andfiledwiththeAntiMoneyLaunderingCouncil(AMLC),failstodoso.
SEC.5.JurisdictionofMoneyLaunderingCases.Theregionaltrialcourtsshallhavejurisdictiontotryall
casesonmoneylaundering.Thosecommittedbypublicofficersandprivatepersonswhoareinconspiracywith
suchpublicofficersshallbeunderthejurisdictionoftheSandiganbayan.
SEC.6.ProsecutionofMoneyLaundering.
(a)Anypersonmaybechargedwithandconvictedofboththeoffenseofmoneylaunderingandtheunlawful
activityashereindefined.
(b)Anyproceedingrelatingtotheunlawfulactivityshallbegivenprecedenceovertheprosecutionofany
offenseorviolationunderthisActwithoutprejudicetothefreezingandotherremediesprovided.
SEC.7.CreationofAntiMoneyLaunderingCouncil(AMLC).TheAntiMoneyLaunderingCouncilis
herebycreatedandshallbecomposedoftheGovernoroftheBangkoSentralngPilipinasaschairman,the
CommissioneroftheInsuranceCommissionandtheChairmanoftheSecuritiesandExchangeCommissionas
members.TheAMLCshallactunanimouslyinthedischargeofitsfunctionsasdefinedhereunder:

(1)torequireandreceivecoveredtransactionreportsfromcoveredinstitutions
(2)toissueordersaddressedtotheappropriateSupervisingAuthorityorthecoveredinstitutiontodetermine
thetrueidentityoftheownerofanymonetaryinstrumentorpropertysubjectofacoveredtransactionreport
orrequestforassistancefromaforeignState,orbelievedbytheCouncil,onthebasisofsubstantial
evidence,tobe,inwholeorinpart,whereverlocated,representing,involving,orrelatedto,directlyor
indirectly,inanymannerorbyanymeans,theproceedsofanunlawfulactivity
(3)toinstitutecivilforfeitureproceedingsandallotherremedialproceedingsthroughtheOfficeofthe
SolicitorGeneral
(4)tocausethefilingofcomplaintswiththeDepartmentofJusticeortheOmbudsmanfortheprosecutionof
moneylaunderingoffenses
(5)toinitiateinvestigationsofcoveredtransactions,moneylaunderingactivitiesandotherviolationsofthis
Act
(6)tofreezeanymonetaryinstrumentorpropertyallegedtobeproceedsofanyunlawfulactivity
(7)toimplementsuchmeasuresasmaybenecessaryandjustifiedunderthisActtocounteractmoney
laundering
(8)toreceiveandtakeactioninrespectof,anyrequestfromforeignstatesforassistanceintheirownanti
moneylaunderingoperationsprovidedinthisAct
(9)todevelopeducationalprogramsontheperniciouseffectsofmoneylaundering,themethodsand
techniquesusedinmoneylaundering,theviablemeansofpreventingmoneylaunderingandtheeffective
waysofprosecutingandpunishingoffendersand
(10)toenlisttheassistanceofanybranch,department,bureau,office,agencyorinstrumentalityofthe
government,includinggovernmentownedandcontrolledcorporations,inundertakinganyandallanti
moneylaunderingoperations,whichmayincludetheuseofitspersonnel,facilitiesandresourcesforthe
moreresoluteprevention,detectionandinvestigationofmoneylaunderingoffensesandprosecutionof
offenders.
SEC.8.CreationofaSecretariat.TheAMLCisherebyauthorizedtoestablishasecretariattobeheadedby
anExecutiveDirectorwhoshallbeappointedbytheCouncilforatermoffive(5)years.Hemustbeamember
ofthePhilippineBar,atleastthirtyfive(35)yearsofageandofgoodmoralcharacter,unquestionableintegrity
andknownprobity.AllmembersoftheSecretariatmusthaveservedforatleastfive(5)yearseitherinthe
InsuranceCommission,theSecuritiesandExchangeCommissionortheBangkoSentralngPilipinas(BSP)and
shallholdfulltimepermanentpositionswithintheBSP.
SEC.9.PreventionofMoneyLaunderingCustomerIdentificationRequirementsandRecordKeeping.
(a)CustomerIdentification.Coveredinstitutionsshallestablishandrecordthetrueidentityofitsclients
basedonofficialdocuments.Theyshallmaintainasystemofverifyingthetrueidentityoftheirclientsand,in

caseofcorporateclients,requireasystemofverifyingtheirlegalexistenceandorganizationalstructure,as
wellastheauthorityandidentificationofallpersonspurportingtoactontheirbehalf.Theprovisionsof
existinglawstothecontrarynotwithstanding,anonymousaccounts,accountsunderfictitiousnames,andall
othersimilaraccountsshallbeabsolutelyprohibited.Pesoandforeigncurrencynoncheckingnumbered
accountsshallbeallowed.TheBSPmayconductannualtestingsolelylimitedtothedeterminationofthe
existenceandtrueidentityoftheownersofsuchaccounts.
(b)RecordKeeping.Allrecordsofalltransactionsofcoveredinstitutionsshallbemaintainedandsafely
storedforfive(5)yearsfromthedatesoftransactions.Withrespecttoclosedaccounts,therecordson
customeridentification,accountfilesandbusinesscorrespondence,shallbepreservedandsafelystoredfor
atleastfive(5)yearsfromthedateswhentheywereclosed.
(c)ReportingofCoveredTransactions.CoveredinstitutionsshallreporttotheAMLCallcovered
transactionswithinfive(5)workingdaysfromoccurrencethereof,unlesstheSupervisingAuthority
concernedprescribesalongerperiodnotexceedingten(10)workingdays.
WhenreportingcoveredtransactionstotheAMLC,coveredinstitutionsandtheirofficers,employees,
representatives,agents,advisors,consultantsorassociatesshallnotbedeemedtohaveviolatedRepublicAct
No.1405,asamendedRepublicActNo.6426,asamendedRepublicActNo.8791andothersimilarlaws,but
areprohibitedfromcommunicating,directlyorindirectly,inanymannerorbyanymeans,toanypersonthefact
thatacoveredtransactionreportwasmade,thecontentsthereof,oranyotherinformationinrelationthereto.In
caseofviolationthereof,theconcernedofficer,employee,representative,agent,advisor,consultantor
associateofthecoveredinstitution,shallbecriminallyliable.However,noadministrative,criminalorcivil
proceedings,shalllieagainstanypersonforhavingmadeacoveredtransactionreportintheregular
performanceofhisdutiesandingoodfaith,whetherornotsuchreportingresultsinanycriminalprosecution
underthisActoranyotherPhilippinelaw.
WhenreportingcoveredtransactionstotheAMLC,coveredinstitutionsandtheirofficers,employees,
representatives,agents,advisors,consultantsorassociatesareprohibitedfromcommunicating,directlyor
indirectly,inanymannerorbyanymeans,toanyperson,entity,themedia,thefactthatacoveredtransaction
reportwasmade,thecontentsthereof,oranyotherinformationinrelationthereto.Neithermaysuchreporting
bepublishedorairedinanymannerorformbythemassmedia,electronicmail,orothersimilardevices.In
caseofviolationthereof,theconcernedofficer,employee,representative,agent,advisor,consultantor
associateofthecoveredinstitution,ormediashallbeheldcriminallyliable.
SEC.10.AuthoritytoFreeze.Upondeterminationthatprobablecauseexiststhatanydepositorsimilar
accountisinanywayrelatedtoanunlawfulactivity,theAMLCmayissueafreezeorder,whichshallbeeffective
immediately,ontheaccountforaperiodnotexceedingfifteen(15)days.Noticetothedepositorthathis
accounthasbeenfrozenshallbeissuedsimultaneouslywiththeissuanceofthefreezeorder.Thedepositor
shallhaveseventytwo(72)hoursuponreceiptofthenoticetoexplainwhythefreezeordershouldbelifted.
TheAMLChasseventytwo(72)hourstodisposeofthedepositorsexplanation.Ifitfailstoactwithinseventy
two(72)hoursfromreceiptofthedepositorsexplanation,thefreezeordershallautomaticallybedissolved.
Thefifteen(15)dayfreezeorderoftheAMLCmaybeextendeduponorderofthecourt,providedthatthe
fifteen(15)dayperiodshallbetolledpendingthecourtsdecisiontoextendtheperiod.

Nocourtshallissueatemporaryrestrainingorderorwritofinjunctionagainstanyfreezeorderissuedbythe
AMLCexcepttheCourtofAppealsortheSupremeCourt.
SEC.11.AuthoritytoInquireintoBankDeposits.NotwithstandingtheprovisionsofRepublicActNo.1405,
asamendedRepublicActNo.6426,asamendedRepublicActNo.8791,andotherlaws,theAMLCmay
inquireintoorexamineanyparticulardepositorinvestmentwithanybankinginstitutionornonbankfinancial
institutionuponorderofanycompetentcourtincasesofviolationofthisActwhenithasbeenestablishedthat
thereisprobablecausethatthedepositsorinvestmentsinvolvedareinanywayrelatedtoamoneylaundering
offense:Provided,Thatthisprovisionshallnotapplytodepositsandinvestmentsmadepriortotheeffectivityof
thisAct.
SEC.12.ForfeitureProvisions.
(a)CivilForfeiture.Whenthereisacoveredtransactionreportmade,andthecourthas,inapetitionfiled
forthepurposeorderedseizureofanymonetaryinstrumentorproperty,inwholeorinpart,directlyor
indirectly,relatedtosaidreport,theRevisedRulesofCourtoncivilforfeitureshallapply.
(b)ClaimonForfeitedAssets.Wherethecourthasissuedanorderofforfeitureofthemonetaryinstrument
orpropertyinacriminalprosecutionforanymoneylaunderingoffensedefinedunderSection4ofthisAct,
theoffenderoranyotherpersonclaiminganinterestthereinmayapply,byverifiedpetition,foradeclaration
thatthesamelegitimatelybelongstohimandforsegregationorexclusionofthemonetaryinstrumentor
propertycorrespondingthereto.Theverifiedpetitionshallbefiledwiththecourtwhichrenderedthe
judgmentofconvictionandorderofforfeiture,withinfifteen(15)daysfromthedateoftheorderofforfeiture,
indefaultofwhichthesaidordershallbecomefinalandexecutory.Thisprovisionshallapplyinbothciviland
criminalforfeiture.
(c)PaymentinLieuofForfeiture.Wherethecourthasissuedanorderofforfeitureofthemonetary
instrumentorpropertysubjectofamoneylaunderingoffensedefinedunderSection4,andsaidordercannot
beenforcedbecauseanyparticularmonetaryinstrumentorpropertycannot,withduediligence,belocated,
orithasbeensubstantiallyaltered,destroyed,diminishedinvalueorotherwiserenderedworthlessbyany
actoromission,directlyorindirectly,attributabletotheoffender,orithasbeenconcealed,removed,
convertedorotherwisetransferredtopreventthesamefrombeingfoundortoavoidforfeiturethereof,oritis
locatedoutsidethePhilippinesorhasbeenplacedorbroughtoutsidethejurisdictionofthecourt,orithas
beencommingledwithothermonetaryinstrumentsorpropertybelongingtoeithertheoffenderhimselfora
thirdpersonorentity,therebyrenderingthesamedifficulttoidentifyorbesegregatedforpurposesof
forfeiture,thecourtmay,insteadofenforcingtheorderofforfeitureofthemonetaryinstrumentorpropertyor
partthereoforinteresttherein,accordinglyordertheconvictedoffendertopayanamountequaltothevalue
ofsaidmonetaryinstrumentorproperty.Thisprovisionshallapplyinbothcivilandcriminalforfeiture.
SEC.13.MutualAssistanceamongStates.
(a)RequestforAssistancefromaForeignState.WhereaforeignStatemakesarequestforassistancein
theinvestigationorprosecutionofamoneylaunderingoffense,theAMLCmayexecutetherequestorrefuse
toexecutethesameandinformtheforeignStateofanyvalidreasonfornotexecutingtherequestorfor
delayingtheexecutionthereof.Theprinciplesofmutualityandreciprocityshall,forthispurpose,beatall
timesrecognized.

(b)PowersoftheAMLCtoActonaRequestforAssistancefromaForeignState.TheAMLCmayexecutea
requestforassistancefromaforeignStateby:(1)trackingdown,freezing,restrainingandseizingassets
allegedtobeproceedsofanyunlawfulactivityundertheprocedureslaiddowninthisAct(2)giving
informationneededbytheforeignStatewithintheprocedureslaiddowninthisActand(3)applyingforan
orderofforfeitureofanymonetaryinstrumentorpropertyinthecourt:Provided,Thatthecourtshallnot
issuesuchanorderunlesstheapplicationisaccompaniedbyanauthenticatedcopyoftheorderofacourtin
therequestingStateorderingtheforfeitureofsaidmonetaryinstrumentorpropertyofapersonwhohas
beenconvictedofamoneylaunderingoffenseintherequestingState,andacertificationoranaffidavitofa
competentofficeroftherequestingStatestatingthattheconvictionandtheorderofforfeiturearefinaland
thatnofurtherappealliesinrespectofeither.
(c)ObtainingAssistancefromForeignStates.TheAMLCmaymakearequesttoanyforeignStatefor
assistancein(1)trackingdown,freezing,restrainingandseizingassetsallegedtobeproceedsofany
unlawfulactivity(2)obtaininginformationthatitneedsrelatingtoanycoveredtransaction,moneylaundering
offenseoranyothermatterdirectlyorindirectlyrelatedthereto(3)totheextentallowedbythelawofthe
foreignState,applyingwiththepropercourtthereinforanordertoenteranypremisesbelongingtoorinthe
possessionorcontrolof,anyorallofthepersonsnamedinsaidrequest,and/orsearchanyorallsuch
personsnamedthereinand/orremoveanydocument,materialorobjectnamedinsaidrequest:Provided,
Thatthedocumentsaccompanyingtherequestinsupportoftheapplicationhavebeendulyauthenticatedin
accordancewiththeapplicablelaworregulationoftheforeignStateand(4)applyingforanorderof
forfeitureofanymonetaryinstrumentorpropertyinthepropercourtintheforeignState:Provided,Thatthe
requestisaccompaniedbyanauthenticatedcopyoftheorderoftheregionaltrialcourtorderingthe
forfeitureofsaidmonetaryinstrumentorpropertyofaconvictedoffenderandanaffidavitoftheclerkofcourt
statingthattheconvictionandtheorderofforfeiturearefinalandthatnofurtherappealliesinrespectof
either.
(d)LimitationsonRequestsforMutualAssistance.TheAMLCmayrefusetocomplywithanyrequestfor
assistancewheretheactionsoughtbytherequestcontravenesanyprovisionoftheConstitutionorthe
executionofarequestislikelytoprejudicethenationalinterestofthePhilippinesunlessthereisatreaty
betweenthePhilippinesandtherequestingStaterelatingtotheprovisionofassistanceinrelationtomoney
launderingoffenses.
(e)RequirementsforRequestsforMutualAssistancefromForeignStates.Arequestformutualassistance
fromaforeignStatemust(1)confirmthataninvestigationorprosecutionisbeingconductedinrespectofa
moneylaunderernamedthereinorthathehasbeenconvictedofanymoneylaunderingoffense(2)state
thegroundsonwhichanypersonisbeinginvestigatedorprosecutedformoneylaunderingorthedetailsof
hisconviction(3)givesufficientparticularsastotheidentityofsaidperson(4)giveparticularssufficientto
identifyanycoveredinstitutionbelievedtohaveanyinformation,document,materialorobjectwhichmaybe
ofassistancetotheinvestigationorprosecution(5)askfromthecoveredinstitutionconcernedany
information,document,materialorobjectwhichmaybeofassistancetotheinvestigationorprosecution(6)
specifythemannerinwhichandtowhomsaidinformation,document,materialorobjectobtainedpursuant
tosaidrequest,istobeproduced(7)givealltheparticularsnecessaryfortheissuancebythecourtinthe
requestedStateofthewrits,ordersorprocessesneededbytherequestingStateand(8)containsuchother

informationasmayassistintheexecutionoftherequest.
(f)AuthenticationofDocuments.ForpurposesofthisSection,adocumentisauthenticatedifthesameis
signedorcertifiedbyajudge,magistrateorequivalentofficerinorof,therequestingState,and
authenticatedbytheoathoraffirmationofawitnessorsealedwithanofficialorpublicsealofaminister,
secretaryofState,orofficerinorof,thegovernmentoftherequestingState,orofthepersonadministering
thegovernmentoradepartmentoftherequestingterritory,protectorateorcolony.Thecertificateof
authenticationmayalsobemadebyasecretaryoftheembassyorlegation,consulgeneral,consul,vice
consul,consularagentoranyofficerintheforeignserviceofthePhilippinesstationedintheforeignStatein
whichtherecordiskept,andauthenticatedbythesealofhisoffice.
(g)Extradition.ThePhilippinesshallnegotiatefortheinclusionofmoneylaunderingoffensesasherein
definedamongextraditableoffensesinallfuturetreaties.
SEC.14.PenalProvisions.
(a)PenaltiesfortheCrimeofMoneyLaundering.Thepenaltyofimprisonmentrangingfromseven(7)to
fourteen(14)yearsandafineofnotlessthanThreemillionPhilippinepesos(Php3,000,000.00)butnot
morethantwicethevalueofthemonetaryinstrumentorpropertyinvolvedintheoffense,shallbeimposed
uponapersonconvictedunderSection4(a)ofthisAct.
Thepenaltyofimprisonmentfromfour(4)toseven(7)yearsandafineofnotlessthanOnemillionfive
hundredthousandPhilippinepesos(Php1,500,000.00)butnotmorethanThreemillionPhilippinepesos
(Php3,000,000.00),shallbeimposeduponapersonconvictedunderSection4(b)ofthisAct.
Thepenaltyofimprisonmentfromsix(6)monthstofour(4)yearsorafineofnotlessthanOnehundred
thousandPhilippinepesos(Php100,000.00)butnotmorethanFivehundredthousandPhilippinepesos
(Php500,000.00),orboth,shallbeimposedonapersonconvictedunderSection4(c)ofthisAct.
(b)PenaltiesforFailuretoKeepRecords.Thepenaltyofimprisonmentfromsix(6)monthstoone(1)year
orafineofnotlessthanOnehundredthousandPhilippinepesos(Php100,000.00)butnotmorethanFive
hundredthousandPhilippinepesos(Php500,000.00),orboth,shallbeimposedonapersonconvictedunder
Section9(b)ofthisAct.
(c)MaliciousReporting.Anypersonwho,withmalice,orinbadfaith,reportsorfilesacompletely
unwarrantedorfalseinformationrelativetomoneylaunderingtransactionagainstanypersonshallbe
subjecttoapenaltyofsix(6)monthstofour(4)yearsimprisonmentandafineofnotlessthanOnehundred
thousandPhilippinepesos(Php100,000.00)butnotmorethanFivehundredthousandPhilippinepesos
(Php500,000.00),atthediscretionofthecourt:Provided,Thattheoffenderisnotentitledtoavailthe
benefitsoftheProbationLaw.
Iftheoffenderisacorporation,association,partnershiporanyjuridicalperson,thepenaltyshallbeimposed
upontheresponsibleofficers,asthecasemaybe,whoparticipatedinthecommissionofthecrimeorwho
shallhaveknowinglypermittedorfailedtopreventitscommission.Iftheoffenderisajuridicalperson,the
courtmaysuspendorrevokeitslicense.Iftheoffenderisanalien,heshall,inadditiontothepenalties

hereinprescribed,bedeportedwithoutfurtherproceedingsafterservingthepenaltieshereinprescribed.If
theoffenderisapublicofficialoremployee,heshall,inadditiontothepenaltiesprescribedherein,suffer
perpetualortemporaryabsolutedisqualificationfromoffice,asthecasemaybe.
Anypublicofficialoremployeewhoiscalledupontotestifyandrefusestodothesameorpurposelyfailsto
testifyshallsufferthesamepenaltiesprescribedherein.
(d)BreachofConfidentiality.Thepunishmentofimprisonmentrangingfromthree(3)toeight(8)yearsanda
fineofnotlessthanFivehundredthousandPhilippinepesos(Php500,000.00)butnotmorethanOnemillion
Philippinepesos(Php1,000,000.00),shallbeimposedonapersonconvictedforaviolationunderSection
9(c).
SEC.15.SystemofIncentivesandRewards.Asystemofspecialincentivesandrewardsishereby
establishedtobegiventotheappropriategovernmentagencyanditspersonnelthatledandinitiatedan
investigation,prosecutionandconvictionofpersonsinvolvedintheoffensepenalizedinSection4ofthisAct.
SEC.16.ProhibitionsAgainstPoliticalHarassment.ThisActshallnotbeusedforpoliticalpersecutionor
harassmentorasaninstrumenttohampercompetitionintradeandcommerce.
Nocaseformoneylaunderingmaybefiledagainstandnoassetsshallbefrozen,attachedorforfeitedtothe
prejudiceofacandidateforanelectoralofficeduringanelectionperiod.
SEC.17.Restitution.RestitutionforanyaggrievedpartyshallbegovernedbytheprovisionsoftheNewCivil
Code.
SEC.18.ImplementingRulesandRegulations.Withinthirty(30)daysfromtheeffectivityofthisAct,the
BangkoSentralngPilipinas,theInsuranceCommissionandtheSecuritiesandExchangeCommissionshall
promulgatetherulesandregulationstoimplementeffectivelytheprovisionsofthisAct.Saidrulesand
regulationsshallbesubmittedtotheCongressionalOversightCommitteeforapproval.
Coveredinstitutionsshallformulatetheirrespectivemoneylaunderingpreventionprogramsinaccordancewith
thisActincluding,butnotlimitedto,informationdisseminationonmoneylaunderingactivitiesanditsprevention,
detectionandreporting,andthetrainingofresponsibleofficersandpersonnelofcoveredinstitutions.
SEC.19.CongressionalOversightCommittee.ThereisherebycreatedaCongressionalOversight
Committeecomposedofseven(7)membersfromtheSenateandseven(7)membersfromtheHouseof
Representatives.ThemembersfromtheSenateshallbeappointedbytheSenatePresidentbasedonthe
proportionalrepresentationofthepartiesorcoalitionsthereinwithatleasttwo(2)Senatorsrepresentingthe
minority.ThemembersfromtheHouseofRepresentativesshallbeappointedbytheSpeakeralsobasedon
proportionalrepresentationofthepartiesorcoalitionsthereinwithatleasttwo(2)membersrepresentingthe
minority.
TheOversightCommitteeshallhavethepowertopromulgateitsownrules,tooverseetheimplementationof
thisAct,andtorevieworrevisetheimplementingrulesissuedbytheAntiMoneyLaunderingCouncilwithin
thirty(30)daysfromthepromulgationofthesaidrules.

SEC.20.AppropriationsClause.TheAMLCshallbeprovidedwithaninitialappropriationofTwentyfive
millionPhilippinepesos(Php25,000,000.00)tobedrawnfromthenationalgovernment.Appropriationsforthe
succeedingyearsshallbeincludedintheGeneralAppropriationsAct.
SEC.21.SeparabilityClause.IfanyprovisionorsectionofthisActortheapplicationthereoftoanyperson
orcircumstanceisheldtobeinvalid,theotherprovisionsorsectionsofthisAct,andtheapplicationofsuch
provisionorsectiontootherpersonsorcircumstances,shallnotbeaffectedthereby.
SEC.22.RepealingClause.Alllaws,decrees,executiveorders,rulesandregulationsorpartsthereof,
includingtherelevantprovisionsofRepublicActNo.1405,asamendedRepublicActNo.6426,asamended
RepublicActNo.8791,asamendedandothersimilarlaws,asareinconsistentwiththisAct,arehereby
repealed,amendedormodifiedaccordingly.
SEC.23.Effectivity.ThisActshalltakeeffectfifteen(15)daysafteritscompletepublicationintheOfficial
Gazetteorinatleasttwo(2)nationalnewspapersofgeneralcirculation.
TheprovisionsofthisActshallnotapplytodepositsandinvestmentsmadepriortoitseffectivity.
Approved,

Approved:
GLORIAMACAPAGALARROYO
PresidentofthePhilippines