Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bil No. 3323

Introduced by the Honorable ROILO GOLEZ

Section 2 of Republic Act No. 9160 otherwise known as the “Anti-Money Laundering Act of
2001” (AMLA) declares it as the policy of the State the protection and preservation of the integrity
and confidentiality of bank accounts and ensuring that the Philippines is not used as a money .
laundering site for the proceeds of any unlawful activity and that consistent with its foreign policy,
the State shall extend cooperation in transnational investigations and prosecutions of persons
involved in money laundering activities wherever committed. This legislative measure is the
country’s contribution in the global campaign against money laundering and terrorism consistent
with the country's commitments under the 1988 Vienna Convention and the United Nations
Convention against Transnational Organized Crime of 2000 or the Palermo Convention and other
Intemational agreements

However, while the AMLA criminalizes money laundering, whereby the proceeds of an
unlawful activity are transacted to make them agpear to have originated from legitimate sources,
there stil exists a need to expand the coverage of individuals and institutions falling under the
ambit of its provisions as well as the covered transactions and unlawful activities or predicate
crimes contemplated therein. Moreover, to strengthen the teeth of the Anti-Money Laundering
Council (AMLC) in implementing the law, it must be provided with the authority to impose
compulsory processes and administrative sanctions for non-compliance with its orders, without
prejudice to criminal liabilties incurred thereby, and more importantly, to issue administrative
freezing orders in order to avoid funds being withdrawn before a court order is issued, among other
amendments aimed towards the purpose of strengthening the AMLC in the enforcement of the law

In view of the foregoing, the immediate passage of ths bill is earnestly sought.

OILQJGOLEZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 83823.

Introduced by the Honorable ROILO GOLEZ

AN ACT TO FURTHER STRENGTHEN THE ANTI-MONEY LAUNDERING LAW, AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE “ANTI-MONEY
LAUNDERING ACT OF 2001", AS AMENDED, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
SECTION 1. Section 3 (2) of Republic Act No. 9160, as amendeg, is hereby amended as follows:
“(a) "Covered institution OR INDIVIDUAL refers to:
(1) banks, quasi-banks, trust entities, foreign exchange corporations, money changers, money
payments, remittance and transfer companies and other similar entities and all other
institutions and their subsidiaries and afiliates supervised or regulated by the Bangko

Sentral ng Pilipinas (BSP);
2

insurance companies, pre-need companies and all other institutions supervised or
regulated by the Insurance Commission (\C), and

(3) () securities dealers, brokers, salesmen, investment houses and other similar entities
managing securities or rendering services as investment agent, advisor, or consultant,
{i) mutual funds, close-end investment companies, common trust funds, and other similar
entities, and
(iii) other entities administering or otherwise dealing in currency, commodities or financial
derivatives based thereon, valuable objects, cash substitutes and other similar monetary
instruments or property supervised or regulated by the Securities and Exchange
Commission (SEC)

(4) NON-FINANCIAL BUSINESSES AND PROFESSIONS, SUCH AS:
(i) CASINOS, INCLUDING INTERNET CASINOS;


(i) REAL ESTATE AGENTS:
(il) OEALERS IN PRECIOUS METALS;
(iv) DEALERS IN PRECIOUS STONES; AND

Wy) LAWYERS, NOTARIES, OTHER INDEPENDENT LEGAL PROFESSIONALS
AND ACCOUNTANTS WHEN THEY PREPARE FOR OR CARRY OUT
TRANSACTIONS FOR THEIR CLIENTS CONCERNING THE FOLLOWING
ACTIVITIES:
a. BUYING AND SELLING OF REAL ESTATE;
b. MANAGING OF CLIENT MONEY, SECURITIES OR OTHER ASSETS;
c. MANAGEMENT OF BANK, SAVINGS OR SECURITIES ACCOUNTS;
d. ORGANIZATION OF CONTRIBUTIONS FOR THE CREATION, OPERATION
OR MANAGEMENT OF COMPANIES; AND i
@. CREATION, OPERATION OR MANAGEMENT OF LEGAL PERSONS OR
ARRANGEMENTS, AND BUYING AND SELLING BUSINESS ENTITIES.
PROVIDED, THAT LAWYERS, NOTARIES, OTHER INDEPENDENT LEGAL PROFESSIONALS
ANO ACCOUNTANTS ACTING AS INDEPENDENT LEGAL PROFESSIONALS ARE NOT
REQUIRED TO REPORT THEIR SUSPICIONS IF THE RELEVANT INFORMATION WAS
OBTAINED IN CIRCUMSTANCES WHERE THEY ARE SUBJECT TO PROFESSIONAL
SECRECY OR LEGAL PROFESSIONAL PRIVILEGE;

(vi) | TRUST AND COMPANY SERVICE PROVIDERS WHICH, AS A BUSINESS,

PROVIDE ANY OF THE FOLLOWING SERVICES TO THIRD PARTIES:

a. ACTING AS A FORMATION AGENT OF LEGAL PERSONS;

b. 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;

c. PROVIDING A REGISTERED OFFICE, BUSINESS ADDRESS OR
ACCOMMODATION, CORRESPONDENCE OR ADMINISTRATIVE
ADDRESS FOR A COMPANY, A PARTNERSHIP OR ANY OTHER LEGAL
PERSON OR ARRANGEMENT;

d. ACTING AS (OR ARRANGING FOR ANOTHER PERSON TO ACT AS) A -
TRUSTEE OF AN EXPRESS TRUST; AND

e. ACTING AS (OR ARRANGING FOR ANOTHER PERSON TO ACT AS) A
NOMINEE SHAREHOLDER FOR ANOTHER PERSON.

SEC. 2. Section 3 (i) of the same Act is hereby amended to read as follows

“(j) Unlawful activity refers to any act or omission or series or combination thereof involving or
having direct relation to the following:

(1) Kidnapping for ransom under Article 267 of Act No. 3815 , otherwise known as the
Revised Penal Code, as amended:


(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act No. 9165, otherwise
known as the Comprehensive Dangerous Drugs Act of 2002

(3} Section 3 paragraphs B, C, E, G, H and | of Republic Act No. 3019, as amended
otherwise known as the Anti-Graft and Corrupt Practices Act;

{4} Plunder under Republic Act No. 7080, as amended;

(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 29 and 302 of the
Revised Penal Code, as amended:

{6} Jueteng and Masiao punished as illegal gambling under Presidential Decree No. 1602;

{7} Piracy on the high seas under the Revised Penal Code, as amended, and Presidential
Decree No. $32;

(8) Qualified theft under Article 310 of the Revised Penal Code, as amended:

(9) Swindling under Article 315 of the Revised Penal Code, as amended:

(10) Smuggling under Republic Act Nos. 455 and 1937;

(11) Violations under Republic Act No, 8792, otherwise known as the Electronic
Commerce Act of 2000;

(12) Hijacking and other violations under Republic Act No. 6235; desiructive arson anc
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;

(14) FINANCING OF TERRORISM AS DEFINED AND PENALIZED BY LAW:

(18) BRIBERY UNDER ARTICLES 210, 211, 211-A OF THE REVISED PENAL CODE, AS
AMENDED 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, 214, 215, AND 216 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:

(18) FORGERIES AND COUNTERFEITING UNDER ARTICLES 163, 166, 187, 168, 169,
AND 176 OF THE REVISED PENAL CODE, AS AMENDED;

(19} VIOLATIONS OF SECTIONS 4 TO 6 OF REPUBLIC ACT NO. 9208, OTHERWISE
KNOWN AS THE ANTI-TRAFFICKING IN PERSONS ACT OF 2003;

(20) VIOLATIONS OF SECTIONS 68 TO 79 OF CHAPTER IV, OF THE PRESIDENTIAL
OECREE NO. 705, OTHERWISE KNOWN AS THE REVISED FORESTRY CODE OF THE
PHILIPPINES, AS AMENDED;

(21) VIOLATIONS OF SECTIONS 86 TO 105 OF CHAPTER VI, OF REPUBLIC ACT NO.
8550, OTHERWISE KNOWN AS THE PHILIPPINE FISHERIES CODE OF 1998;

(22) VIOLATIONS OF SECTIONS 101 TO 107, AND 110 OF REPUBLIC ACT NO. 7942,
OTHERWISE KNOWN AS THE PHILIPPINE MINING ACT OF 1995;

(23) VIOLATIONS OF SECTION 27 (c}, (e) (), (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 AC
CARNAPPING ACT OF 2002, AS AMENDED;

0. 6539, OTHERWISE KNOWN AS THE ANTI-


(26) VIOLATIONS OF SECTIONS 1, 3 AND 5 OF PRESIDENTIAL DECREE NO. 1866.
MENDED, OTHERWISE KNOWN AS THE DECREE CODIFYING THE LAWS ON
ILLEGALIUNLAWFUL POSSESSION, MANUFACTURE, DEALING IN, ACQUISITION OR
DISPOSITION, OF FIREARMS, AMMUNITION OR EXPLOSIVES;

(27) VIOLATION OF PRESIDENTIAL DECREE NO. 1612, OTHERWISE KNOWN AS THE
ANTI-FENCING LAW,

(28) Fraudulent practices and other violations under Republic Act No. 8799, otherwise
known as the Securities Regulation Code of 2000; AND

{29} Felonies or offenses of a similar nature that are punishable under the penal laws of
other countries.”

SEC. 3. Section 4 of the same Act is hereby amended to read as follows:

"SEC, 4, Money Laundering Offense.- MONEY LAUNDERING IS A CRIME WHEREBY
THE PROCEEDS OF AN UNLAWFUL ACTIVITY AS HEREIN DEFINED ARE TRANSACTED,
CONVERTED, TRANSFERRED, DISPOSED OF, MOVED, ACQUIRED, POSSESSED, USED,
CONCEALED OR DISGUISED.

IT IS COMMITTED BY ANY PERSON WHO, KNOWING OR HAS REASON TO BELIEVE
THAT ANY MONETARY INSTRUMENT OR PROPERTY REPRESENTS, INVOLVES, OR
RELATES TO THE PROCEEDS OF ANY UNLAWFUL ACTIVITY:

(a) TRANSACTS OR ATTEMPTS TO TRANSACT SAID MONETARY INSTRUMENT OR
PROPERTY;

(b) CONVERTS, TRANSFERS, DISPOSES OF, MOVES, ACQUIRES, POSSESSES OR
USES, OR ATTEMPTS TO CONVERT, TRANSFER, DISPOSE OF, MOVE,
ACQUIRE, POSSESS OR USE SAID MONETARY INSTRUMENT OR PROPERTY;

{c] CONCEALS OR DISGUISES OR ATTEMPTS TO CONCEAL OR DISGUISE Tt
TRUE NATURE, SOURCE, LOCATION, DISPOSITION, MOVEMENT OR~
OWNERSHIP OF OR RIGHTS WITH RESPECT TO SAID MONETARY
INSTRUMENT OR PROPERTY; AND

(d) 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 PERSON WHO, KNOWING THAT ANY
MONETARY INSTRUMENT OR PROPERTY IS REQUIRED UNDER THIS ACT TO 3&
DISCLOSED AND FILED WITH THE ANTI-MONEY LAUNDERING COUNCIL (AMLC), FAILS TO
BO SO.

SEC. 4. Section 7 of the same Act is hereby 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 2s Members. The AMLC shall 2
raaimously in the discharge of its functions as defined hereunder.

KEX

(6) to apply before the Court of Appeals, ex parte, for the freezing of any monetary
ment or property alleged to be RELATED IN ANY WAY TO any unlawful activity as defined in

Section 3{) hereof;

SEC. 5. Section 9 (c) paragraphs 1 and 4 of the same Act are hereby amended to read as follows

"SEC. 9. Prevention of Money Laundering; Customer Identification Requirements end
Record Keeping. -

(a) xxx

(o} xxx

“{c) Reporting of Covered and Suspicious Transactions. - Covered institutions shall report
to ‘he AMLC all covered transactions and suspicious transactions within five (6) working days from
occurrence thereof, unless the AMLC prescribes a DIFFERENT period not exceeding FIFTEEN

(15} working days."
xuK

Wen reporting covered or suspicious trensactions to the AMLC, covered institutions and their
oficers and employees x x x are prohibited from communicating, directly or indirectly, in any
manner or by any means, to any person or entity, the media, the fact thal a covered or suspicious

transaction HAS BEEN REPORTED OR IS ABOUT TO BE REPORTED, the contents OF THE
REPORT, or any other information in relation thereto. x x x.”

SEC. 6. Section 10 of the same Act is hereby amended to read as follows:

“Sec. 10. Freezing of Monetary Instrument or Property. The Court of Appeals, upon
aoplication ex parte by the AMLC and after determination that probable cause exists that any
monetary instrument or property is in any way related to an unlawful activity as defined in Section
3) hereof, 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.

CEDING PARAGRAPH, THE AMLC MAY
TIVE IMMEDIATELY, TO IMPLEMENT
ITS

NOTWITHSTANDING THE PROVISION OF THE PF
WHICH SHALL BE EF

‘URITY COUN!
RORISM OR TERROR!

TE
HAVE BEEN LIFTED. DURING THE

T OF THE FREEZE ORDER, Ai VED PARTY MAY, WITHIN THIRTY (30}
AYS FROM ISSUANCE, FILE WITH THE COURT OF APPEALS A PETITION TO DETERMINE
THE BASIS OF THE FREEZE ORDER.”



SEC. 7. Section 11 of the same Act is hereby amended to read as follows:

“SEC. 11 Authority to Inquire into Bank Deposits. Notwithstanding the provisions of
Reoublic Act No. 1405, as amended, Republic Act No. 6428, as amended, Republic Act No. 8791,
an? other laws, the AMLC may inguire into or examine any particular deposit or investment,
nncuding related web of accounts, with any banking institution or non-bank financial institution upon
corer of any competent court SASED ON AN EX PARTE APPLICATION in cases of violations of
th’s Act when it has been established that there is probable cause that the deposits or invesiments
INCLUDING RELATED WEB OF ACCOUNTS involved are related to an unlawful activity as
de‘ned in Sections 3(i) hereof or a money laundering offense under Section 4 hereof; except that
no court order shall be required in cases involving unlawful activities defined in Section 3 (i)(1),(2).
(12), (13) ANO (14) HEREOF.

> ensure compliance with this Aci, the Sangko Sentral ng Pilipinas (BSP) may inquire into or
evamine any deposit or investment INCLUDING RELATED WEB OF ACCOUNTS with any
benking institution or non-bank financial institution when the examination is made in the course of a
eviodic or special examination, in accordance with the rules of examination of the BSP.”

SEC. 8. Section 12 (2} of the same Act is hereby amended to read as follows’

*(a) Civil Forfeiture. - 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 {) HEREOF OR A MONEY
LAUNDERING OFFENSE UNDER SECTION 4 HEREOF, THE AMLC SHALL FILE WITH THE
#PROPRIATE COURT, THROUGH THE OFFICE OF THE SOLICITOR GENERAL, A PETITION
FOR FORFEITURE AND THE RULES OF COURT ON CIVIL FORFEITURE SHALL APPLY.”

SEC. 9, A new subsection (@) is hereby added to Seclion 12 of the same Act to read as follows

“{e) DISPOSITION OF FORFEITED ASSETS AND RETENTION. AFTER DEDUCTING

“OST OF LITIGATION, SEVENTY-FIVE PERCENT (75%) OF THE NET PROCEEDS OF THE

FORFEITED ASSETS OR PROCEEDS THEREFROM SHALL BE TURNED OVER TO THE

ATIONAL TREASURY AND THE REMAINING TWENTY-FIVE PERCENT (25%) SHALL BE

RETAINED BY THE AMLC TO AUGMENT THE APPROPRIATION FOR ITS OPERATIONS AND

| AINTENANCE IN THE GENERAL APPROPRIATIONS ACT. FOR THIS PURPOSE, THE AMLC
s4Y PROMULGATE RULES ON THE SALE OF FORFEITED ASSETS.”

SEC. 10. A new subsection (e) is hereby added to Section 14 of the same Act to read as follows:

“(@) IMPOSITION OF ADMINISTRATIVE SANCTIONS. AFTER DUE NOTICE AND
EARING, THE AMLC SHALL, AT ITS DISCRETION. iMPOSE SANCTIONS, INCLUDING


WARNING OR RE}

feral UPON ae COVERED INSTITUTION.
AOLATIONS OF
ORF FOR Fi LURE CR REFUSAL
HER ISSUANCES.

S AND

SUCH MONETARY PENALTIES SEALL BE | IN AMOUNTS AS MAY BE DETERMINED
NCIL TO BE BE NOT MORE THAN FIVE
ON

GReVITY OF THE VIOU
OF “HE COVERED INSTITUTION.

THE IMPOSITION OF THE ADMINISTRATI
PREJUDICE TO THE FILING OF CRIMINAL CHA!
RESPONSIBLE FOR THE VIOLATION.”

SANCTIONS SHALL BE WITHOUT
SES AGAINST THE PERSONS

SEC. 11. Separability Clause.
shal not affect the validity and effect

any provision ofthis Acts declared unconstitutional, the same
ity ofthe olher provisions thereof.

SEC. 12. Repealing Clause. -- Al! laws, decrees, orders and issuances or portion thereof which
are ‘consistent with the provisions ofthis Act are hereby regeated or modified accordingly,

leen (15) days following its publicaton in at least

Ape-aved,