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8 
FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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Second Regular Session 
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SENATE 
Senate Bill No. 
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Introduced by Senator Lacson 
EXPLANATORY NOTE 
The world is now engulfed in a very volatile economic environment. There 
is an imperative need to make sure that financial transactions are only carried 
legally. It is therefore very urgent to strengthen further our anti-money laundering 
efforts to enable it to meet the continuing challenges not only that of the present 
financial crisis but also terrorist financing. 
Since the enactment of the Anti-Money Laundering Act (AMLA) of 2001 
much is left to be desired and much is still to be complied with. Money launderers 
have shifted strategies to evade the law. To counter these new strategies, the 
Financial Action Task Force (FATF) proposed new policies for government- 
members to adopt. 
According to FATF, money launderers are now using Designated Non- 
Financial Businesses and Professions (DNFBPs), such as casinos, real estate 
agents, dealers in precious metals and stones, lawyers, notaries, accountants 
and trust and company services providers in covering their transactions. Thus, 
the FATF recommends expanding the scope of reporting institutions/entities by 
including in the definition of covered institutions under the AMLA the Designated 
Non-Financial Businesses and Professions (DNFBPs) as mentioned. 
Money laundering is not only used to conceal illegally acquired money but 
also the means to finance the commission of different crimes, especially the 
financing of terrorism. Moreover, our country has a substantial number of migrant 
workers that need ample protection. Given these premises, it is therefore 
imperative to include in the definition of unlawful activities under the AMLA the 
crimes of terrorism and terrorist financing, trafficking in human beings and 
migrant smuggling, sexual exploitation of children, corruption and bribery, illicit 
arms trafficking, counterfeiting currency, forgery, and environmental crime, as 
recommended by the FATF. 
The issuance of a freeze order to prevent the withdrawal, transfer, 
removal, dissipation, or disposal of the deposit in bank accounts is a very urgent 
matter. The authority, therefore, to initially freeze should be returned to the AMLC 
as provided for in the original AMLA. Based on experience, issuance of freeze 
orders is faster and confidentiality is more protected if done by the AMLC. 
Further, the grant of such authority to the AMLC will not in any way violate the 
right of the owner of the subject bank account to due process since the purported 
owner of the bank account is notified of the issuance of the freeze order and 
given the opportunity to explain why the freeze order should be lifted, 
Prevention is better than cure, thus, prompt reporting of covered and 
suspicious transactions is necessary. The period for submission of covered 


transaction reports (CTRs) was fixed at ten (IO) days for uniformity. For 
suspicious transaction reports (STRs), the submission thereof is reckoned from 
the determination or receipt of material information that would give grounds for 
submissions. 
The Revised Implementing Rules and Regulations provide that the AMLC 
can only impose fines of not less than one hundred thousand pesos 
(PlOO,OOO.OO) but not to exceed five hundred thousand pesos (P500,OOO.OO) on 
covered institutions, their directors or officers or any person who violates the 
provision of the AMLA. Thus, even for minor violations of the AMLA, say delay in 
the submission of covered transaction reports, the AMLC must impose a fine of 
P I  00,000.00; and taking into consideration the nature and gravity of the violation 
and other circumstances, the said fine or penalty might be considered too harsh. 
The seeming inflexibility of the RlRRs on administrative sanctions should be 
remedied by allowing the AMLC to impose a fine of not less than ten thousand 
pesos (1 0,000.00) but not more than ten million pesos (10,000,000.00) 
depending on the nature and gravity of the violation or irregularity and other 
attendant circumstances. 
As with all battles, the fight against money laundering needs funding. The 
AMLC should be allowed therefore to retain twenty-five percent (25%) of the 
forfeited assets not only as an incentive to intensify the drive to file more civil 
forfeiture cases for the State, but also to ameliorate AMLC’s budget. 
The fight against Money laundering is not just the concern of the 
government but of the whole state, which includes its citizens. In order to 
encourage a greater degree of participation from other government agencies and 
concerned citizens in the investigation and prosecution of money laundering 
offenses and other violations of the AMLA, a system of special incentives and 
rewards should therefore be established. 
This bill therefore seeks to strengthen and update our Anti-Money 
Laundering Law to address the new strategies being employed by money 
launderers and attune the said law to the present financial developments. The 
early passage of this bill will guarantee the Philippines’ recognition to the global 
efforts against money laundering 
In view of the foregoing, early passage of this measure is earnestly 
requested. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
Second Regular Session 
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SENATE 
Senate Bill No. 
Introduced by Senator Lacson 
AN ACT TO FURTHER STRENGTHEN THE ANTI-MONEY LAUNDERING 
OTHERWISE KNOWN AS THE "ANTI-MONEY LAUNDERING ACT OF 2001", 
LAW, AMENDING FOR THE PURPOSE REPUBLIC ACT N0.9160, 
AS AMENDED, AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Section 3 (a) of Republic Act 9160 as amended is hereby further 
amended by adding a new subparagraph (4) to read as follows: 
Section 3 (a)."Covered institution or person" refers to: 
xxx 
(4) 
NON-FINANCIAL BUSINESSES AND PROFESSIONS, 
SUCH AS: 
A. 
CASINOS, INCLUDING INTERNET CASINOS; 
B. 
REAL ESTATE AGENTS; 
C. 
DEALERS IN PRECIOUS METALS; 
D. 
DEALERS IN PRECIOUS STONES; 
E. 
LAWYERS, NOTARIES, OTHER INDEPENDENT 
LEGAL PROFESSIONALS AND ACCOUNTANTS 
WHEN THEY PREPARE FOR OR CARRY OUT 
TRANSACTIONS 
FOR 
THEIR 
CLIENT 
CONCERNING THE FOLLOWING ACTIVITIES: 
I) BUYING AND SELLING REAL ESTATE; 
II) MANAGING OF CLIENT'S MONEY, SECURITIES 
OR OTHER ASSETS; 
111) 
MANAGEMENT OF 
BANK, SAVINGS OR 
SECURITIES ACCOUNTS; 
IV) ORGANIZATION OF CONTRIBUTIONS FOR THE 
CREATION, OPERATION, OR MANAGEMENT OF 
COMPANIES; OR 
V) CREATION, OPERATION OR MANAGEMENT OF 
LEGAL PERSONS OR ARRANGEMENTS, BUYING 
AND SELLING OF BUSINESS ENTITIES. 


PROVIDED, THAT LAWYERS, NOTARIES, OTHER 
INDEPENDENT LEGAL PROFESSIONALS AND 
ACCOUNTANTS 
ACTING 
AS 
INDEPENDENT 
LEGAL PROFESSIONALS ARE NOT REQUIRED TO 
REPORT THEIR SUSPICIONS IF THE RELEVANT 
INFORMATION 
WAS 
OBTAINED 
UNDER 
CIRCUMSTANCES WHERE THEY ARE SUBJECT 
TO 
PROFESSIONAL 
SECRECY 
OR 
LEGAL 
PROFESSIONAL PRIVILEGE. 
F. 
TRUST AND COMPANY SERVICE PROVIDERS 
WHICH AS A BUSINESS PROVIDE ANY OF THE 
FOLLOWING SERVICES TO THIRD PARTIES: 
1. ACTING AS A FORMATION AGENT OF LEGAL 
PERSONS; 
2. ACTING AS (OR ARRANGING FOR ANOTHER 
PERSON TO ACT AS) A DIRECTOR OR 
CORPORATE SECRETARY OF A COMPANY, 
A PARTNER OF A PARTNERSHIP, OR A 
SIMILAR POSITION IN RELATION TO OTHER 
LEGAL PERSONS; 
3. 
PROVIDING 
A 
REGISTERED 
OFFICE; 
BUSINESS ADDRESS OR ACCOMMODATION, 
CORRESPONDENCE OR ADMINISTRATIVE 
ADDRESS 
FOR 
A 
COMPANY, 
A 
PARTNERSHIP OR ANY 
OTHER 
LEGAL 
PERSON OR ARRANGEMENT; 
ACTING AS (OR ARRANGING FOR ANOTHER 
PERSON TO ACT AS) A TRUSTEE OF AN 
EXPRESS TRUST; 
ACTING AS (OR ARRANGING FOR ANOTHER 
PERSON 
TO 
ACT 
AS) 
A 
NOMINEE 
SHAREHOLDER FOR ANOTHER PERSON, 
4. 
5. 
SECTION 2. Section 3(i) of the same Act, as amended, is hereby further 
amended to read as follows: 
Section 3 (i). 
'Unlawful activity' refers to any act or omission or 
series or combination thereof involving or having direct relation to the 
following: 
xxx. 
(2) Sections 4,5,6,8,9,10, 
12,13,15, and 16 of Republic Act 
No.9165, otherwise known as the Comprehensive Dangerous 
Drugs Act of 2002; 
xxx 


(12) 
Hijacking and other violations under Republic Act No. 6235; 
destructive arson and murder, as defined under the Revised 
Penal Code, as amended; 
(13) TERRORISM 
AND 
CONSPIRACY 
TO 
COMMIT 
TERRORISM 
AS 
DEFINED 
AND 
PENALIZED 
UNDER 
REPUBLIC ACT NO. 9372, INCLUDING ITS FINANCING; 
(14) 
Fraudulent practices and other violations under Republic 
Act No. 8799, otherwise known as the Securities Regulations 
Code of 2000; 
(15) 
BRIBERY UNDER ARTICLES 210, 211, 211-A AND 
CORRUPTION OF PUBLIC OFFICERS UNDER ARTICLE 212 OF 
THE REVISED PENAL CODE, AS AMENDED; 
(16) 
FRAUDS 
AND 
ILLEGAL 
EXACTIONS 
AND 
TRANSACTIONS UNDER ARTICLES 213 TO 216, INCLUSIVE, 
OF THE REVISED PENAL CODE, AS AMENDED; 
(17) 
MALVERSATION OF PUBLIC FUNDS AND PROPERTY 
UNDER ARTICLES 217 AND 222 OF THE REVISED PENAL 
CODE, AS AMENDED; 
(I 8) 
FORGERIES AND COUNTERFEITING UNDER ARTICLES 
163, 166, 167, 168, 169, 176 OF THE REVISED PENAL CODE, 
AS AMENDED; 
(19) VIOLATIONS OF SECTIONS 4 TO 6, INCLUSIVE OF 
REPUBLIC ACT NO. 9208, OTHERWISE KNOWN AS THE ANTI- 
TRAFFICKING IN PERSONS ACT OF 2003: 
(20) VIOLATIONS OF SECTIONS 68 TO 79, INCLUSIVE, 
CHAPTER IV OF THE PRESIDENTIAL DECREE NO. 705, 
OTHERWISE KNOWN AS THE REVISED FORESTRY CODE OF 
THE PHILIPPINE, AS AMENDED; 
(21) VIOLATIONS OF SECTIONS 86 TO 106, INCLUSIVE, 
CHAPTER VI OF REPUBLIC ACT NO. 8550, OTHERWISE 
KNOWN AS THE PHILIPPINE FISHERIES CODE OF 1998; 


(22) 
VIOLATIONS OF SECTIONS 101 TO 107, INCLUSIVE, 
AND I10 OF REPUBLIC ACT NO, 7942, OTHERWISE KNOWN 
AS THE PHILIPPINE MINING ACT OF 1995; 
(23) 
VIOLATIONS OF SECTION 27 (C), (E), (F), (G) AND (I) OF 
REPUBLIC ACT NO. 9147, OTHERWISE KNOWN AS THE 
WILDLIFE RESOURCES CONSERVATION AND PROTECTION 
ACT; 
(24) 
VIOLATION OF SECTION 7 (B) OF REPUBLIC ACT NO. 
9072, OTHERWISE KNOWN AS THE NATIONAL CAVES AND 
CAVE RESOURCES MANAGEMENT AND PROTECTION ACT: 
(25) 
VIOLATION OF REPUBLIC ACT NO. 6539 OTHERWISE 
KNOWN THE ANTI-CARNAPPING ACT OF 2002, AS AMENDED; 
(26) 
under the penal laws of other countries. 
Felonies or offenses of a similar nature that are punishable 
SECTION 3. Section 7 of the same Act, as amended, is hereby further amended 
to read as follows: 
SEC. 7. Creation of Anti-Money Laundering Council (AMLC). 
- The Anti-Money Laundering Council is hereby created and shall 
be composed of the Governor of the Bangko Sentral ng Pilipinas as 
Chairman, the Commissioner of the Insurance Commission and the 
Chairman of the Securities and Exchange Commission as 
Members. The AMLC shall act unanimously in the discharge of its 
functions as defined hereunder: 
x x x  
(6) TO FREEZE ANY MONETARY INSTRUMENT OR 
PROPERTY ALLEGED TO BE RELATED IN ANY WAY TO ANY 
UNLAWFUL ACTIVITY: 
SECTION 4. Section 9 of the same Act, as amended, is hereby further amended 
to read as follows: 
SEC. 9. 
Prevention of Money Laundering; Customer 
Identification, Record Keeping and Reporting of Covered and 
Suspicious Transactions. - 
(C) 
Reporting Of Covered And Suspicious Transactions. - 
Covered institutions shall report to the AMLC all covered 


transactions within TEN ( I O )  WORKING DAYS from occurrence 
thereof AND SUSPICIOUS TRANSACTIONS WITHIN FIVE (5) 
WORKING 
DAYS 
FROM 
THE 
TIME 
THE 
COVERED 
INSTITUTION 
OR 
ANY 
OF 
ITS 
PERSONNEL 
HAS 
DETERMINED BASED ON ANY OF THE CIRCUMSTANCES 
THE AMLC, 
ANOTHER COVERED INSTITUTION, LAW 
ENFORCEMENT AGENCY, OR AN AGGRIEVED PARTY THAT 
THE TRANSACTION IS RELATED TO ANY UNLAWFUL 
ACTIVITY, unless the supervising authority prescribes a different 
period. 
UNDER SECTION 3(B)-1 OF THIS ACT OR WAS INFORMED BY 
SECTION 5. Section 10 of the same Act, as amended, is hereby further 
amended to read as follows: 
SEC. 10. Freezing of Monetary Instrument or Property.- 
[The Court of Appeals, upon application ex parte by the AMLC and 
after determination that probable case exists that any monetary 
instrument or property is in any way related to an unlawful activity 
as defined in Section 3(i) herof, may issue a freeze order which 
shall be effective immediately. The freeze order shall be for a 
period of twenty (20) days unless extended by the court.] UPON 
DETERMINATION THAT PROBABLE CAUSE EXISTS THAT ANY 
MONETARY INSTRUMENT OR PROPERTY IS IN ANY WAY 
RELATED TO AN UNLAWFUL ACTIVITY, THE AMLC MAY ISSUE 
A 
FREEZE 
ORDER, 
WHICH 
SHALL 
BE 
EFFECTIVE 
IMMEDIATELY, ON THE SAID MONETARY INSTRUMENT OR 
PROPERTY, INCLUDING RELATED WEB OF ACCOUNTS, FOR 
A PERIOD NOT EXCEEDING THIRTY (30) DAYS. NOTICE TO 
THE 
PURPORTED 
OWNER 
THAT 
HIS 
MONETARY 
INSTRUMENT OR PROPERTY HAS BEEN FROZEN SHALL BE 
ISSUED SIMULTANEOUSLY WITH THE ISSUANCE OF THE 
FREEZE ORDER. THE 
PURPORTED OWNER 
OF THE 
MONETARY [NSTRUMENT OR PROPERTY SHALL HAVE FIVE 
(5) WORKING DAYS UPON RECEIPT OF THE NOTICE TO 
EXPLAIN WHY THE FREEZE ORDER SHOULD BE LIFTED. THE 
AMLC HAS FIVE (5) WORKING DAYS TO RESOLVE THE 
FREEZE ORDER CASE FROM RECEIPT OF THE PURPORTED 
OWNERS EXPLANATION. IF THE AMLC FAILS TO ACT WITHIN 
FIVE 
(5) 
WORKING 
DAYS 
FROM 
RECEIPT 
OF 
THE 
PURPORTED OWNER'S EXPLANATION, THE FREEZE ORDER 
SHALL AUTOMATICALLY BE DISSOLVED. 
UPON PETITION BY AMLC FILED BEFORE THE EXPIRATION 
OF THIRTY (30) DAYS FROM THE ISSUANCE OF THE FREEZE 
ORDER, THE COURT OF APPEALS MAY EXTEND ITS 
EFFECTIVITY FOR A PERIOD NOT EXCEEDING SIX (6) 
MONTHS, PROVIDED THAT THE RUNNING OF THE THIRTY 
(30) DAY PERIOD SHALL BE TOLLED PENDING THE COURT'S 
DECISION TO EXTEND THE PERIOD. 
NO COURT SHALL ISSUE A TEMPORARY RESTRAINING 
ORDER OR A WRIT OF INJUNCTION AGAINST ANY FREEZE 
ORDER, EXCEPT THE SUPREME COURT. 


SECTION 6. Section 12 (a) of the Act, as amended, is further amended to read 
as follows: 
(a) Civil Forfeiture. - when there is a covered transaction report 
made, and the court has, in a petition filed for the purpose ordered 
seizure of any monetary instrument or property, in whole or in part, 
directly or indirectly, related to said report, the Revised Rules of Court 
on civil forfeiture shall apply.] 
UPON DETERMINATION THAT 
PROBABLE CAUSE EXISTS THAT ANY MONETARY INSTRUMENT 
OR PROPERTY IS FOUND TO BE RELATED IN ANY WAY TO AN 
UNLAWFUL ACTIVITY AS DEFINED UNDER SECTION 3(1) HEREOF 
OR A MONEY LAUNDERING OFFENSE UNDER SECTION 4 
HEREOF, THE AMLC SHALL FILE, THROUGH THE OFFICE OF THE 
SOLICITOR GENERAL, A PETITION FOR FORFEITURE AND THE 
RULES OF COURT ON CIVIL FORFEITURE SHALL APPLY. 
SECTION 7. To further strengthen the AMLC's administrative and operational 
capabilities, the Act, as amended, is further amended with the inclusion of the 
following provisions: 
SECTION 15. 
ADMINISTRATIVE FINES. - AFTER DUE NOTICE 
AND HEARING, THE AMLC SHALL, AT ITS DISCRETION, IMPOSE 
FINES UPON ANY COVERED INSTITUTION, ITS DIRECTORS OR 
OFFICERS OR ANY OTHER PERSON FOR VIOLATIONS OF THIS 
ACT, ITS IMPLEMENTING RULES AND REGULATIONS, OR FOR 
DELIBERATE FAILURE OR REFUSAL TO COMPLY WITH AMLC 
ORDERS, RESOLUTIONS AND OTHER ISSUANCES. 
SUCH FINES SHALL BE IN AMOUNTS AS MAY BE DETERMINED 
BY THE COUNCIL TO BE APPROPRIATE, WHICH SHALL BE NOT 
LESS THAN TEN THOUSAND PESOS (PHP10,OOO.OO) BUT NOT 
MORE THAN TEN MILLION PESOS (PlO,OOO,OOO.OO) PLUS NOT 
MORE THAN FIVE THOUSAND PESOS (P5,OOO.OO) FOR EACH DAY 
OF CONTINUING VIOLATION. 
THE AMLC SHALL PROMULGATE RULES ON FINES AND 
PENALTIES TAKING INTO CONSIDERATION THE ATTENDANT 
CIRCUMSTANCES, SUCH AS THE NATURE AND GRAVITY OF THE 
VIOLATION OR IRREGULARITY, THE SIZE, FUNCTIONS AND 
RESOURCES OF THE INSTITUTION. THE IMPOSITION OF THE 
ADMINISTRATIVE SANCTIONS SHALL BE WITHOUT PREJUDICE 
TO THE FILING OF CRIMINAL CHARGES AGAINST THE PERSONS 
RESPONSIBLE FOR THE VIOLATION. 
SECTION 16. DISPOSITION OF FORFEITED ASSETS AND RETENTION. 
TOTAL ASSETS FORFEITED LESS THE COST OF LITIGATION. THE 
REMAINING PORTION SHALL BE TURNED OVER TO THE NATIONAL 
TREASURY. THE RETAINED AMOUNT SHALL BE UTILIZED BY THE 
AMLC FOR OPERATIONS AND MAINTENANCE. 
THE AMLC SHALL RETAIN TWENTY-FIVE PERCENT (25%) OF THE 


SECTION 17. SYSTEM OF INCENTIVES AND REWARDS. -A SYSTEM OF 
SPECIAL INCENTIVES AND REWARDS IS HEREBY ESTABLISHED TO BE 
GIVEN 
TO 
THE APPROPRIATE GOVERNMENT AGENCY, 
ITS 
PERSONNEL AND OTHER PERSONS WHO HELPED OR ASSISTED IN 
THE SUCCESSFUL INVESTIGATION, PROSECUTION AND CONVICTION 
OF PERSONS INVOLVED IN THE OFFENSEE PENALIZED IN THIS ACT. 
Section 8. Separability Clause. - If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions thereof. 
Section 9. Repealing Clause. - All laws, decrees, orders and issuances or 
portion thereof which are inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
Section I O .  Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved,