" 
· . 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILlPPINES 
) 
First Regular Session 
) 
SENATE 
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SFI) , I r 6 :32 
__________ 
S_. B_._N_O._1_6_5_0 _________ -r 
Introduced by Senator Maria Lourdes Nancy S. Binay 
EXPLANATORY NOTE 
Based on the recent Commission on Audit (COA) Report on its audit of the Priority 
Development Assistance Fund (PDAF), more than 80 foundations or non-stock, non-profit 
organizations were used as vehicles to divert PDAF from their intended use. 
Unfortunately, this misuse of foundations has caused a negative effect even on legitimate 
foundations. As it stands, donors, both public and private, would hesitate to support activities 
of foundations who are doing legitimate social and development work at the grassroots. 
Some ofthese foundations doing legitimate work may just be prompted to close down due to 
this hesitation on the part of their donors. 
It is therefore imperative that we ensure that this misuse of foundations for money laundering 
activities is never repeated. 
The passage of this bill is therefore earnestly requested. 
CYS.BINAY 
Senator 
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{~lfl;r {If t~J ~,'"(rrt~t'll 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
SEP 11 ?6 :32 
SENATlL 
S. B. No. 16bO 
"'r-' 
-----------------------------------------------------
Introduced by Senator Maria Lourdes Nancy S. Binay 
AN ACT FURTHER STRENGTHENING REPUBLIC ACT 9160 OR 
THE ANTI-MONEY LAUNDERING ACT AS AMENDED 
BY REPUBLIC ACT 9194, REPUBLIC ACT 10167 AND REPUBLIC ACT 10365 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 3 (a) of Republic Act No. 9160, as amended, otherwise known as the 
"Anti-Money Laundering Law of2001" is hereby amended to read as follows: 
"(a) 'Covered persons', natural or juridical, refer to: 
"(1) 
banks, non-banks, quasi-banks, trust entltles, foreign exchange dealers, 
pawnshops, money changers, remittance and transfer companies and other 
similar entities and all other persons and their subsidiaries and affiliates 
supervised or regulated by the Bangko Sentral ng Pilipinas (BSP); 
"(2) 
insurance companies, pre-need companies and all other persons supervised or 
regulated by the Insurance Commission (rC); 
"(3) 
(i) securities dealers, brokers, salesmen, investment houses and other similar 
persons managing securities or rendering services as investment agent, 
advisor, or consultant, (ii) mutual funds, close-end investment companies, 
common trust funds, and other similar persons, 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) 
jewelry dealers in precious metals, who, as a business, trade in precious 
metals, for transactions in excess of One million pesos (Pl,OOO,OOO.OO); 
"(5) 
jewelry dealers in precious stones, who, as a business, trade in precious stones, 
for transactions in excess of One million pesos (Pl,OOO,OOO.OO); 
"(6) 
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 


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secretary of a company, a partner of a partnership, or a similar position in 
relation to other juridical persons; (iii) providing a registered office, business 
address or accommodation, correspondence or administrative address for a 
company, a partnership or any other legal person or arrangement; and (iv) 
acting as (or arranging for another person to act as) a nominee shareholder for 
another person; and 
"(7) 
persons who provide any of the following services: 
(i) 
managing of client money, securities or other assets; 
(ii) 
management of bank, savings or securities accounts; 
(iii) 
organization of contributions for the creation, 
operation or 
management of companies; and 
(iv) 
creation, 
operation 
or management of juridical 
persons 
or 
arrangements, and buying and selling business entities. 
"(8) 
FOUNDATIONS/NON-GOVERNMENT 
ORGANIZATIONS/NON-
STOCK 
NON-PROFIT 
ORGANIZATIONS 
AUTHORIZED 
TO 
RECEIVE 
DONATIONS 
OR 
FUNDS 
FROM 
GOVERNMENT 
AGENCIES/LOCAL GOVERNMENT UNITS. 
"Notwithstanding the foregoing, the term 'covered persons' shall exclude lawyers and 
accountants acting as independent legal professionals in relation to information concerning 
their clients or where disclosure of information would compromise client confidences or 
the attorney-client relationship: Provided. That these lawyers and accountants are 
authorized to practice in the Philippines and shall continue to be subject to the provisions 
of their respective codes of conduct and/or professional responsibility or any of its 
amendments. " 
SECTION 2. Section 7 of Republic Act No. 9160, as amended, otherwise known as the 
"Anti-Money Laundering Act of 2001" is hereby amended as follows: 
"SEC. 
7. 
Creation of Anti-Money Laundering Council (AMLC). 
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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: 
"( 1 ) 
to require and receive covered or suspicious transaction reports from covered 
institutions; 
"(2) 
to issue orders addressed to the appropriate Supervising Authority or the 
covered institution to detennine the true identity of the owner of any monetary 
instrument or property subject of a covered transaction or suspicious transaction report 
or request for assistance from a foreign State, or believed by the Council, on the basis 
of substantial evidence, to be, in whole or in part, wherever located, representing, 
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involving, or related to, directly or indirectly, in any manner or by any means, the 
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proceeds of an unlawful activity; 
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"(3) 
to institute civil forfeiture proceedings and all other remedial proceedings 
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through the Office of the Solicitor General; 
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"(4) 
to cause the filing of complaints with the Department of Justice or the 
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Ombudsman for the prosecution of money laundering offenses; 
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"(5) 
to investigate suspicious transactions and covered transactions deemed 
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suspicious after an investigation by AMLC, money laundering activities, and other 
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violations of this Act; 
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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 propertY alleged to be the proceeds of any unlawful activity as 
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defined in Section 3(i) hereof; 
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"(7) 
to implement such measures as may be necessary and justified under 
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this Act to counteract money laundering; 
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"(8) 
to receive and take action in respect of, any request from foreign states for 
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assistance in their own anti-money laundering operations provided in this Act; 
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"(9) 
to 
develop 
educational 
programs 
on 
the 
permclOus 
effects 
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of money laundering, the methods and techniques used in money laundering, the viable 
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means of preventing money laundering and the effective ways of prosecuting and 
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. punishing offenders; 
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"(10) 
to enlist the assistance of any branch, department, bureau, office, agency or 
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instrumentality of the govermnent, including goverument-owned and -controlled 
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corporations, in undertaking any and all anti-money laundering operations, which may 
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include the use of its personnel, facilities and resources for the more resolute 
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prevention, detection and investigation of money laundering offenses and prosecution 
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of offenders; [and] 
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"(11) 
to impose administrative sanctions for the violation of laws, rules, regulations 
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and orders and resolutions issued pursuant thereto[.]; AND 
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(12) 
TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION 
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(SEC) AN EX PARTE PETITION FOR DISSOLUTION OF NON-STOCK, NON-
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PROFIT 
ORGANIZATIONS/FOUNDATIONS 
DULY 
REGISTERED 
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INVOLVED IN MONEY-LAUNDERING ACTIVITIES OR ANY OF TIlE 
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PREDICATE CRIMES FOR MONEY LAUNDERING. UPON RECEIPT OF 
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THE PETITION, THE SEC SHALL IMMEDIATELY ISSUE A CEASE AND 
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DESIST ORDER EFFECTIVE UNTIL FINAL DETERMINATION OF THE 
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CASE. 
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SECTION 3. Separability Clause. Should any part or provision of this Act be declared 
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unconstitutional or invalid, other parts or provisions hereof not otherwise affected thereby 
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shall remain in full force and effect. 


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SECTION 4. Effectivity. This Act shall take effect fifteen (15) days after its publication in at 
2' least two (2) newspapers of general circulation. 
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Approved,