FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
'[ ;' 
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{~" 
SENATE 
,~ 
3123 
S.B. No. ____ _ 
Introduced by Sens. Sergio R. Osmena III and Teofisto "TG" Guingona III 
EXPLANATORY NOTE 
The Philippines is a member of the ASia/Pacific Group on Money Laundering 
(APG), which is a regionally focused international organisation consisting of forty one 
(41) members and a number of international and regional observers including the 
United Nations, International Monetary Fund, Financial Action Task Force (FATF), Asian 
Development Bank and World Bank. The APG is an associate member of the FATF and 
all APG members commit to effectively implement the FATF's international standards for 
anti-money laundering and combating the financing of terrorism, referred to as the 
40+9 Recommendations. 
The FATF was established in 1989 by G-7 nations. The FATF is an international 
governmental body whose purpose is the development and promotion of poliCies, both 
at national and international levels, to combat money laundering and terrorist finanCing. 
The Task Force is therefore a "policy-making body" which works to generate the 
necessary political will to bring about national legislative and regulatory reforms in 
these areas.1 
The Anti-Money Laundering Act of 2001 (R.A. 9160, as amended by R.A. 9194) was 
enacted following the FATF's blacklisting of the Philippines in June 2000. To be 
blacklisted means that the Philippines is perceived to be "non-cooperative" in the global 
fight against money laundering and terrorist financing. In 2003, an amendment was 
made to the AMLA through the passage of R.A. 9194.2 In 2004, the FATF raised its 
international standards by revising its recommendations (at present, there are 40 
1 http://www.fatf.gafi.org/document/57/0.3343.en3225037932235720344321211111.00.html. 
2 An Act Amending RA. 9160, otherwise known as the Anti-Mo-;:;ey Launde~ing Act of 2001~ -


recommendations on money laundering and 9 special recommendations on terrorist 
financing CFATF 40 plus 9"). 
This bill serves to reinforce our country's Anti-Money Laundering legislative 
measures. It ultimately addresses the noted deficiencies in the Philippines' legal 
framework with regard to anti-money laundering, by making our state fully compliant 
with the international standards set forth not only by the FATF, but also directives laid 
down under the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs 
and Psychotropic Substances (the Vienna Convention), the 2001 United Nations 
Convention Against Transnational Organized Crime (the Palermo Convention), the 2003 
United Nations Convention Against Corruption (the Merida Convention), and other 
international standards in combating money laundering. 
There is indeed an urgency to put more teeth to the country's anti-money 
laundering law, not only to make the Philippines compliant with international standards, 
but to protect the country's financial integrity and economic development. 
In view of the foregoing, the immediate enactment of this measure is earnestly 
sought. 
_ .-;:p ~ 
~/ 
TEOFI~~ ~::r~' GUINGONA III 
~enator 
/<J. ~Wll~~ 
I 
t 
-
SERGIO R. OSMENA III 
Senator 


FIFfEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
SENATE 
Senate Bill NO. 3123 
~. 
I 
\ 
,.~ ! , .. 
Introduced by Sens. Sergio R. Osmefia III and Teofisto "TG" Guingona III 
"AN ACT FURTHER STRENGTHENING 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." 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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Section 1. Section 3(a) of Republic Act No. 9160, as amended, is hereby 
2 
amended as follows: 
3 
"(a) Covered institution OR INDIVIDUAL refers to: 
4 
(1) Banks, 
quasi-banks, 
trust 
entities, 
FOREIGN 
EXCHANGE 
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CORPORATIONS, 
MONEY 
CHANGERS, 
MONEY 
PAYMENT, 
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REMITTANCE 
AND TRANSFER 
COMPANIES 
AND 
OTHER 
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SIMILAR ENTITIES and all other institutions and their subsidiaries 
8 
and affiliates supervised or regulated by the Bangko Sentral ng 
9 
Pilipinas (BSP); 
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(2) Insurance companies, PRE-NEED COMPANIES and all other 
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institutions supervised or regulated by the Insurance Commission (IC); 
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(3) (i) securities dealers, brokers, salesmen, investment houses and other 
13 
Similar entities 
managing 
securities or rendering 
services 
as 
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investment agent, advisor, or consultant, (ii) mutual funds, close-end 


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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); 
CASINOS, INCLUDING INTERNET CASINOS; 
REAL ESTATE AGENTS; 
DEALERS IN PRECIOUS METALS; 
DEALERS IN PRECIOUS STONES; 
TRUST AND COMPANY SERVICE PROVIDERS WHICH, AS A 
BUSINESS, PROVIDE ANY OF THE FOLLOWING SERVICES 
TO THIRD PARTIES: (I) ACTING AS A FORMATION AGENT 
OF JURIDICAL PERSONS; (II) 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 
JURIDICAL 
PERSONS; 
III) 
PROVIDING 
A 
REGISTERED 
OFFICE; 
ACCOMMODATION, 
BUSINESS 
ADDRESS 
CORRESPONDENCE 
OR 
OR 
ADMINISTRATIVE 
ADDRESS 
FOR 
A 
COMPANY, 
A 
PARTNERSHIP 
OR 
ANY 
OTHER 
LEGAL 
PERSON 
OR 
ARRANGEMENT; IV) ACTING AS (OR ARRANGING FOR 
ANOTHER PERSON TO ACT AS) A TRUSTEE OF AN EXPRESS 
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TRUST; 
AND 
V) 
ACTING 
AS 
(OR ARRANGING 
FOR 
ANOTHER PERSON TO ACT AS) A NOMINEE SHAREHOLDER 
FOR ANOTHER PERSON. 
(9) 
PERSONS WHO 
PROVIDE ANY 
OF THE 
FOLLOWING 
SERVICES: 
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 
e. 
CREATION, OPERATION OR MANAGEMENT OF 
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JURIDICAL PERSONS OR ARRANGEMENTS, AND 
16 
BUYING AND SELLING BUSINESS ENTITIES. 
17 
Section 2. Section 3 (i) of the same Act is hereby amended to read as follows: 
18 
"(i) 'Unlawful activity' refers to any act or omission or series or combination 
19 
thereof involving or having direct relation to the following: 
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(1) 
Kidnapping for ransom under Article 267 of Act No. 3815 , otherwise 
21 
known as the Revised Penal Code, as amended; 
22 
(2) 
Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act 
23 
No. 9165, otherwise known as the Comprehensive Dangerous Drugs 
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Act of 2002; 
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(3) Section 3 paragraphs B, C, E, G, H and I 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 
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. 532; 
(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; 
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; 
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(14) 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; 
(15) FRAUDS AND ILLEGAL EXACTIONS AND TRANSACTIONS 
UNDER ARTICLES 213, 214, 215, AND 216 OF THE REVISED 
PENAL CODE, AS AMENDED; 
(16) MALVERSATION OF PUBLIC FUNDS AND PROPERTY UNDER 
ARTICLES 211 AND 222 OF THE REVISED PENAL CODE, AS 
AMENDED; 
(17) FORGERIES AND COUNTERFEITING UNDER ARTIClES 163, 
166, 167, 168, 169, AND 176 OF THE REVISED PENAL CODE, AS 
AMENDED; 
(18) VIOLATIONS OF SECTIONS 4 TO 6 OF REPUBLIC ACT NO. 
9208, OTHERWISE KNOWN AS THE ANTI-TRAFFICKING IN 
PERSONS ACT OF 2003; 
(19) VIOLATIONS OF SECTIONS 68 TO 79 OF CHAPTER IV, OF 
THE PRESIDENTIAL DECREE NO. 705, OTHERWISE KNOWN AS 
THE REVISED FORESTRY CODE OF THE PHILIPPINES, AS 
AMENDED; 
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(20) VIOLATIONS OF SECTIONS 86 TO 106 OF CHAPTER VI, OF 
REPUBLIC 
ACT 
NO. 
8550, OTHERWISE 
KNOWN 
AS 
THE 
PHILIPPINE FISHERIES CODE OF 1998; 
(21) VIOLATIONS OF SECTIONS 101 TO 107, AND 110 OF 
REPUBLIC 
ACT 
NO. 
7942, OTHERWISE 
KNOWN 
AS 
THE 
PHILIPPINE MINING ACT OF 1995; 
(22) 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; 
(23) VIOLATION OF SECTION 7(13) OF REPUBLIC ACT NO. 9072, 
OTHERWISE KNOWN AS THE NATIONAL CAVES AND CAVE 
RESOURCES MANAGEMENT PROTECTION ACT; 
(24) VIOLATION OF REPUBLIC ACT NO. 6539, OTHERWISE 
KNOWN AS THE ANTI-CARNAPPING ACT OF 2002, AS AMENDED; 
(25) VIOLATIONS OF SECTIONS 1, 3 AND 5 OF PRESIDENTIAL 
DECREE NO. 1866, AS AMENDED, OTHERWISE KNOWN AS THE 
DECREE 
CODIFYING 
THE 
LAWS 
ON 
ILLEGAL/UNLAWFUL 
POSSESSION, MANUFACTURE, DEALING IN, ACQUISITION OR 
DISPOSITION, OF FIREARMS, AMMUNITION OR EXPLOSIVES; 
(26) 
VIOLATION 
OF 
PRESIDENTIAL 
DECREE 
NO. 
1612, 
OTHERWISE KNOWN AS THE ANTI-FENCING LAW; 
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(27) VIOLATIONS OF SECTIONS 254 AND 255 OF THE NATIONAL 
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INTERNAL REVENUE CODE Of 1997, AS AMENDED; 
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(28) Fraudulent practices and other violations under Republic Act No. 
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8799, otherwise known as the Securities Regulation Code of 2000; AND 
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(29) Felonies or offenses of a similar nature that are punishable under 
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the penal laws of other countries." 
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SEC. 3. Section 4 of the same Act is hereby amended to read as follows: 
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"SEC. 4. Money Laundering Offense. -
Money laundering is a crime whereby the 
9 
proceeds of an unlawful activity as herein defined are transacted, CONVERTED, 
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TRANSFERRED, DISPOSED OF, MOVED, ACQUIRED/ POSSESSED/ USED/ 
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CONCEALED OR DISGUISED. 
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IT IS COMMITTED BY ANY PERSON WHO, KNOWING OR HAS REASON 
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TO 
BELIEVE THAT ANY MONETARY INSTRUMENT OR PROPERTY 
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REPRESENTS, INVOLVES, OR RELATES TO THE PROCEEDS OF ANY 
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UNLAWFUL ACTIVITY: 
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(a) TRANSACTS OR ATTEMPTS TO TRANSACT SAID MONETARY 
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INSTRUMENT OR PROPERTY; 
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(b) CONVERTS, TRANSFERS, DISPOSES OF, MOVES, ACQUIRES, 
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POSSESSES OR USES, OR ATTEMPTS TO CONVERT, TRANSFER/ 
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DISPOSE 
OF/ 
MOVE, 
ACQUIRE, 
POSSESS 
OR 
USE 
SAID 
21 
MONETARY INSTRUMENT OR PROPERTY; 
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(e) CONCEALS OR DISGUISES OR ATTEMPTS TO CONCEAL OR 
2 
DISGUISE 
THE 
TRUE 
NATURE, 
SOURCE, 
LOCATION, 
3 
DISPOSITION, MOVEMENT OR OWNERSHIP OF OR RIGHTS WITH 
4 
RESPECT TO SAID MONETARY INSTRUMENT OR PROPERTY; AND 
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(d) PERFORMS OF FAILS TO PERFORM ANY ACT AS A RESULT OF 
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WI:IICH HE FACILITATES THE OFFENSE OF MONEY LAUNDERING 
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REFERRED TO IN PARAGRAPHS (A), (B) OR (C) ABOVE. 
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MONEY LAUNDERING IS ALSO COMMITTED BY ANY-PERSON 
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WHO, KNOWING THAT ANY MONETARY INSTRUMENT OR 
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PROPERTY IS REQUIRED UNDER THIS ACT TO BE DISCLOSED 
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AND FILED WITH THE ANTI-MONEY LAUNDERING COUNCIL 
12 
(AMLC), FAILS TO DO SO. 
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SEC. 4. Section 6(a) of the same Act is hereby amended to read as follows: 
14 
"Section 6.Prosecution of Money Laundering.-
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(a) 
Any person may be charged with and convicted of both the offense 
of money laundering, and the unlawful activity as herein defined, 
AND FOR TAX EVASION ON INCOME DERIVED FROM ANY 
UNLAWFUL ACTIVITY HEREIN DEFINED. 
(b) 
Any proceeding relating to the unlawful activity, OR THE TAX 
EVASION ON INCOME DERIVED FROM THE UNLAWFUL 
ACTIVITY WHICH SHALL BE PROSECUTED BY THE BIR, shall 
be given precedence over the prosecution of any offense or 
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1 
violation under this Act without prejudice to the freezing and other 
2 
remedies provided. 
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Section 5. Section 7 of the same Act is hereby amended to read as follows: 
4 
'SEC. 7. Creation of Anti-Money Laundering Council (AMLC) - The Anti-Money 
5 
Laundering Council is hereby created and shall be composed of the Governor of 
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the Bangko Sentral ng Pilipinas as Chairman, the Commissioner of the Insurance 
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Commission and the Chairman of the Securities and Exchange Commission, as 
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members. The AMLC shall act unanimously in the discharge of its functions as 
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defined hereunder: 
10 
xxx 
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(6) to apply before the Court of Appeals, ex parte, for the freezing of any 
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monetary instrument or properly alleged to be RELATED IN ANY WAY 
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TO any unlawful activity as defined in Section 3(i) hereof; 
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xxx 
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SEC. 6 Section 9 (c) paragraphs 1 and 4 of the same Act are hereby amended to 
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read as follows: 
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"SEC. 9. Prevention of Money Laundering; Customer Identification Requirements 
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and Record Keeping __ If 
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(a) xxx 
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(b) xxx 
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(c) Reporting of Covered and Suspicious Transactions- Covered institutions 
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shall report to the AMLC all covered transactions and suspicious 
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transactions within five (5) working days from occurrence thereof, unless 
2 
the AMLC prescribes a DIfFERENT period not exceeding FIfTEEN (15) 
3 
working days. 
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xxx 
5 
xxx 
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When reporting covered or suspicious transactions to the AMLC, covered 
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institutions and their officers and employees xxx are prohibited from 
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communicating, directly or indirectly, in any manner or by any means, to any 
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person or entity, the media, the fact that a covered or suspicious transaction 
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HAS BEEN REPORTED OR IS ABOUT TO BE REPORTED, the contents Of 
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THE REPORT, or any other information in relation thereto. X xx" 
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SEC 7. Section 12 of the same Act is hereby amended to read as follows: 
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"(a) QW Forfeiture- UPON DETERMINATION THAT PROBABLE CAUSE 
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EXISTS THAT ANY MONETARY INSTRUMENT OR PROPERTY IS FOUND 
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TO BE RELATED IN ANY WAY TO AN UNLAWFUL ACTIVITY AS DEFINED 
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UNDER SECTION 3 HEREOF OR A MONEY LAUNDERING OfFENSE 
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UNDER SECTION 4 HEREOF, THE AMLC SHALL FILE WITH THE 
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APPROPRIATE COURT THROUGH THE OFFICE OF THE SOLICITOR 
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GENERAL, A PETITION FOR FORFEITURE AND THE RULES OF COURT 
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ON CIVIL FORFEITURE SHALL APPLY. 
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(b) Claim on Forfeited Assets. - Where the court has issued an order of 
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forfeiture of the monetary instrument or property in a criminal prosecution for 
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any money laundering offense defined under Section 4 of this Act, the offender 
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or any other person claiming an interest therein may apply, by verified petition, 
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for a declaration that the same legitimately belongs to him and for segregation 
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or exclusion of the monetary instrument or property corresponding thereto. The 
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verified petition shall be filed with the court which rendered the judgment of 
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conviction and order of forfeiture, within fifteen (15) days from the date of the 
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order of forfeiture, in default of which the said order shall become final and 
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executory. This provision shall apply in both civil and criminal forfeiture. 
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(c) Payment in Lieu of Forfeiture- Where the court has issued an order of 
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forfeiture of the monetary instrument or property subject of a money laundering 
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offense defined under Section 4, and said order cannot be enforced because any 
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particular monetary instrument or property cannot, with due diligence, be 
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located, or it has been substantially altered, destroyed, diminished in value or 
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otherwise rendered worthless by any act or omission, directly or indirectly, 
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attributable to the offender, or it has been concealed, removed, converted, or 
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otherwise transferred to prevent the same from being found or to avoid 
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forfeiture thereof, or it is located outside the Philippines or has been placed or 
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brought outside the jurisdiction of the court, or it has been commingled with 
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other monetary instruments or property belonging to either the offender himself 
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or a third person or entity, thereby rendering the same difficult to identify or be 
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segregated for purposes of forfeiture, the court may, instead of enforcing the 
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order of forfeiture of the monetary instrument or property or part thereof or 
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interest therein, accordingly order the convicted offender to pay an amount 
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equal to the value of said monetary instrument or property. This provision shall 
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apply in both civil and criminal forfeiture. 
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(d) DISPOSITION OF FORFEITED ASSETS AND RETENTION. AFTER 
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DEDUCTING COST OF LITIGATION AND THE PAYMENT OF PROPER 
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TAXES DUE TO THE STATE, SEVENTY-FIVE PERCENT (75%) OF THE NET 
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PROCEEDS OF THE FORFEITED ASSETS OR PROCEEDS THEREFROM 
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SHALL BE TURNED OVER TO THE NATIONAL TREASURY AND THE 
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REMAINING TWENTY-FIVE PERCENT (25%) SHALL BE RETAINED BY 
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THE AMLC TO AUGMENT THE APPROPRIATION FOR ITS OPERATIONS 
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AND MAINTENANCE IN THE GENERAL APPROPRIATIONS ACT. FOR 
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THIS PURPOSE, THE AMLC MAY PROMULGATE RULES ON THE SALE OF 
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FORFEITED ASSETS." 
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SEC. 8. Section 14 of the same Act, as amended, is hereby further amended to 
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read as follows: 
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"SEC. 14. Penal Provisions. 
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(a) 
Penalties for the Crime of Money 
14 
Laundering. The penalty of imprisonment ranging from seven (7) to fourteen 
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(14) years and a fine of not less than Three million Philippine pesos 
16 
(Php3,OOO,OOO.OO) but not more than twice the value of the monetary 
17 
instrument or property involved in the offense, shall be imposed upon a person 
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convicted under Section 4(a), (B), AND (C) of this Act. 
19 
"The penalty of imprisonment from four (4) to seven (7) years and a fine 
20 
of not less than One million five hundred thousand Philippine pesos 
21 
(Phpl,500,OOO.OO) but not more than Three million Philippine pesos 
22 
(Php3,OOO,OOO.OO), shall be imposed upon a person convicted under Section 
23 
4(D) of this Act. 
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"The penalty of imprisonment from six (6) months to four (4) years or a 
2 
fine of not less than One hundred thousand Philippine pesos (PhplOO,OOO.OO) 
3 
but not more than Five hundred thousand Philippine pesos (PhpSOO,OOO.OO), 
4 
or both, shall be imposed on a person convicted under THE LAST 
5 
PARAGRAPH OF Section 4 of this Act. 
6 
"(b)x x x 
7 
"(c) X X X 
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"(d)x x x 
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"(e) IMPOSITION OF ADMINISTRATIVE SANCTIONS. AFTER DUE 
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NOTICE AND HEARING, THE AMLC SHALL, AT ITS DISCRETION, 
11 
IMPOSE SANCTIONS, INCLUDING MONETARY PENALTIES, WARNING 
12 
OR REPRIMAND, UPON ANY COVERED INSTITUTION, ITS DIRECTORS, 
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OFFICERS, EMPLOYEES OR ANY OTHER PERSON FOR VIOLATIONS OF 
14 
THIS ACT, ITS IMPLEMENTING RULES AND REGULATIONS, OR FOR 
15 
FAILURE 
OR 
REFUSAL 
TO 
COMPLY 
WITH 
AMLC 
ORDERS, 
16 
RESOLUTIONS AND OTHER ISSUANCES. SUCH MONETARY PENALTIES 
17 
SHALL BE IN AMOUNTS AS MAY BE DETERMINED BY THE COUNCIL TO 
18 
BE APPROPRIATE, WHICH SHALL NOT BE MORE THAN FIVE HUNDRED 
19 
THOUSAND PESOS (PHP 500,000.00) PER VIOLATION. THE AMLC MAY 
20 
PROMULGATE RULES ON FINES AND PENALTIES TAKING INTO 
21 
CONSIDERATION THE ATTENDANT CIRCUMSTANCES, SUCH AS THE 
22 
NATURE AND GRAVITY OF THE VIOLATION OF IRREGULARITY, THE 
23 
SIZE, FUNCTIONS AND RESOURCES OF THE COVERED INSTITUTION. 
24 
THE IMPOSITION OF THE ADMINISTRATIVE SANCTIONS SHALL BE 
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WITHOUT PREJUDICE TO THE 
FILING OF CRIMINAL CHARGES 
2 
AGAINST THE PERSONS RESPONSIBLE FOR THE VIOLATION." 
3 
Section 9. Separability Clause.- If any provision of this Act is declared 
4 
unconstitutional, the same shall not affect the validity and effectivity of the other 
5 
provisions thereof. 
6 
Section 10. Repealing Clause- All laws, decrees, orders, and issuances or portion 
7 
thereof, which are inconsistent with provision of this Act, are hereby repealed, 
8 
amended or modified accordingly. 
9 
Section 11. Effectivity- This Act shall take effect fifteen (15) days following its 
10 
publication in at least two (2) national newspapers of general circulation. 
11 
Approved, 
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