HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
THIRD REGULAR SESSION

House Bitt No.S8.11

Introduced by CIBAC Party List Representatives
Sherwin N. Tugna and Cinchona Cruz-Gonzales

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 BY
REPUBLIC ACT NOS. 9194 AND 10167

EXPLANATORY NOTE

The Financial Action Task Force (“FATF”), an inter-governmental body, sets standards
and promotes effective implementation of legal, regulatory and operational measures for
combating money laundering, terrorist financing and other related threats to the integrity of the
international financial system. In early 2012, FATF threatened to include the Philippines in its
blacklist of uncooperative countries. Inclusion in the blacklist will result to stricter inspections
of financial transactions in our country. However, due to the passage of Republic Act Nos.
10167 and 10168, FATF has upgraded the Philippines to its “gray list” of countries. As much
the upgrade is beneficial to our country, it is not enough. Philippines must be included in the list
of countries that comply with FATF Standards.

This bill seeks to amend provisions of R.A. No. 9160 with respect to the following
matters: 1) broadening the scope of the covered institutions or individuals to include pawnshops,
foreign exchange corporations, money payment, remittance and transfer companies, casinos,
including internet casinos, real estate agents or brokers, dealers in precious metals and in
Precious stones, and trust and company service providers; 2) inclusion of other serious crimes
such as but not limited to bribery, malversation of public funds, human trafficking, and tax
evasion in compliance with FATF recommendation to apply the crime of money laundering to all
serious offenses, with a view to include the widest range of predicate offenses; and 3)
strengthening of confiscation and provisional measures which include the return of the previous
power of the Anti-Money Laundering Council to issue freeze orders upon determination of the
existence of probable cause to ensure that the proceeds will not be withdrawn, transferred, or
moved during the investigation and/or pending the case for the commission of money-laundering
offense or of the unlawful activities as defined in this bill. It is worthy to note that giving
AMLC the power to issue freeze order will ensure that the accounts with the covered institutions
or individuals will not be withdrawn or transferred because AMLC has the first-hand information
and evidence that the amounts in such accounts are proceeds of unlawful activities as defined


herein, The prevailing provision of the law that the Court of Appeals will issue freeze orders
upon ex parte application should be changed since more transfer of information from one office
to another will open the possibilities of leakage that will alarm the violators of the anti-money
laundering law. If leakage occurs, when AMLC applies with the courts for examination of the
accounts, the accounts have already been withdrawn or transferred. Such occurrence would
render the investigation less effective since the accounts cannot be examined anymore. It would
be more effective if AMLC is given the power to issue freeze orders since they are given
information by covered institutions or individuals. It can determine whether a probable cause
exists for the issuance of the freeze orders.

Furthermore, this bill also provides for the preservation of secrecy relating to the
accounts, money, property, documents that are being examined in accordance with the anti-
money laundering law subject to the exceptions allowed under the law. Also, this bill provides
the disposition and retention of forfeited assets which have been proven to be proceeds from
unlawful activities as defined under the law as well as the imposition of administrative sanctions
against covered institutions or individuals which fail to comply with AMLC orders and
resolutions executed in the performance of its functions and in furtherance of the purposes of the
law.

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

Rep. CINCHONA chtuz-Gonzaes

CIBAC Party-List



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

FIFTEENTH CONGRESS
THIRD REGULAR SESSION

os eet
HOUSE pittno,O811

Introduced by CIBAC Party List Representatives
Sherwin N. Tugna and Cinchona Cruz-Gonzales

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 BY
REPUBLIC ACT NOS. 9194 AND 10167

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 3 of R.A. No. 9160, as amended, is hereby amended to read as follows:
“(a) ‘Covered institution OR INDIVIDUAL!’ refers to:

“(1) banks, non-banks, quasi-banks, trust entities, PAWNSHOPS, FOREIGN
EXCHANGE CORPORATIONS, MONEY CHANGERS, MONEY PAYMENT,
REMITTANCE AND TRANSFER COMPANIES AND OTHER SIMILAR
ENTITIES and all other institutions and their subsidiaries and affiliates
supervised or regulated by the Bangko Sentral ng Pilipinas (BSP);

“(2) insurance companies and all other institutions supervised or regulated by
the Insurance Commission (IC); [and]

“(3)(i) securities dealers, brokers, salesmen, investment houses and other
similar entities managing securities or rendering services as investment agent,
advisor, or consultant, (ii) mutual funds, close-end investment companies,
common trust funds, [pre-need companies] and other similar entities, [(iii)
foreign exchange corporations, money changers, money payment, remittance,
and transfer companies and other similar entities, and

[(iv)] (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) CASINOS, INCLUDING INTERNET CASINOS;
“(5) REAL ESTATE AGENTS,

“(6) DEALERS IN PRECIOUS METALS,

“(7) DEALERS IN PRECIOUS STONES;

“(8) 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
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, BUSINESS ADDRESS OR
ACCOMMODATION, CORRESPONDENCE OR ADMINISTRATIVE
ADDRESS FOR A COMPANY, A PARTNERSHIP OR ANY OTHER
JURIDICAL PERSON OR ARRANGEMENT; (IV) ACTING AS (OR
ARRANGING FOR ANOTHER PERSON TO ACT AS) A TRUSTEE OF
AN EXPRESS TRUST; AND (V) ACTING AS (OR ARRANGING FOR
ANOTHER PERSON TO ACT AS) A NOMINEE SHAREHOLDER FOR
ANOTHER PERSON; AND

“(9) PERSONS WHO PROVIDE ANY OF THE FOLLOWING SERVICES:
(I) BUYING AND SELLING OF REAL ESTATE; (I) MANAGING OF
CLIENT MONEY, SECURITIES OR OTHER ASSETS; (III) MANAGEMENT
OF BANK, SAVINGS OR SECURITIES ACCOUNTS, (Iv)
ORGANIZATION OF CONTRIBUTIONS FOR THE CREATION,
OPERATION OR MANAGEMENT OF COMPANIES; AND (V) CREATION,
OPERATION OR MANAGEMENT OF JURIDICAL PERSONS OR
ARRANGEMENTS, AND BUYING AND _ SELLING BUSINESS
ENTITIES.”

SECTION 2. Section 3(i) of R.A. No. 9160, as amended, is hereby amended to read as follows:

“(i) ‘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 I, AS WELL AS SECTION 7, 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;

“() 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[,
including those perpetrated by terrorists against non-combatant persons and
similar targets];

“(13) TERRORISM AND CONSPIRACY TO COMMIT TERRORISM AS
DEFINED AND PENALIZED UNDER REPUBLIC ACT NO. 9372;

“(14) FINANCING OF TERRORISM AS DEFINED AND PENALIZED.
UNDER REPUBLIC ACT 10168;

“(15) 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,
167, 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
PRESIDENTIAL DECREE NO. 705, OTHERWISE KNOWN AS THE.
REVISED FORESTRY CODE OF THE PHILIPPINES, AS AMENDED,

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

“(22) VIOLATION OF REPUBLIC ACT NO. 6539, OTHERWISE KNOWN AS
THE ANTI-CARNAPPING ACT OF 2002, AS AMENDED;

“(23) 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;

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

“[13](25) Fraudulent practices and other violations under Republic Act No.
8799, otherwise known as the Securities Regulation Code of 2000;

(26) TAX EVASION AS PENALIZED UNDER NATIONAL INTERNAL
REVENUE CODE, AS AMENDED; AND

“[14](27) Felonies or offenses of a similar nature that are punishable under the
penal laws of other countries.”

Section 3. Section 4 of R.A. 9160, as amended, 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, thereby making them
appear to have originated from legitimate sources. [It is committed by the
following:]


“{(a) Any person knowing that any monetary instrument or property represents,
involves, or relates to, the proceeds of any unlawful activity, transacts or attempts
to transact said monetary instrument or property.

“(b) Any person knowing that any monetary instrument or property involves the
proceeds of any unlawful activity, performs or fails to perform any act as a result
of which he facilitates the offense of money laundering referred to in paragraph
(a) above.

“(c) Any person knowing that any monetary instrument or property is required
under this Act to be disclosed and filed with the Anti-Money Laundering Council
(AMLC), fails to do so”.]

“IT IS COMMITTED BY ANY PERSON WHO, KNOWING 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 THE 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 BE DISCLOSED AND FILED WITH THE.
ANTI-MONEY LAUNDERING COUNCIL (AMLC), FAILS TO DO SO.”

Section 4. Sections 7(6) of R.A. 9160, as amended, is hereby amended to read as follows:

"© [to apply before the Court of Appeals, ex parte, for the freezing of any
monetary instrument or property alleged to be the proceeds of any unlawful
activity as defined in Section 3(i) hereof] to freeze any monetary instrument or
property alleged to be proceeds of any unlawful activity upon determination of the
existence of probable cause:


Section 5. Section 9(c) of R.A. 9160, as amended, is hereby amended to read as follows:

"(c) Reporting of Covered and Suspicious Transactions. - Covered institutions
shall report to the AMLC all covered transactions and suspicious transactions
within ten (10) working days from occurrences thereof

"Should a transaction be determined to be both a covered transaction and a
suspicious transaction, the covered institution shall be required to report the same
as a suspicious transaction.”

["When reporting covered or suspicious transactions to the AMLC, covered
institutions and their officers and employees shall not be deemed to have violated
Republic Act No. 1405, as amended, Republic Act No. 6426, as amended,
Republic Act No. 8791 and other similar laws, but are prohibited from
communicating, directly or indirectly, in any manner or by an means, to any
person, the fact that a covered or suspicious transaction report was made, the
contents thereof, or any other information in relation thereto. In case of violation
thereof, the concerned officer and employee of the covered institution shall be
criminally liable. However, no administrative, criminal or civil proceedings, shall
lie against any person for having made a covered or suspicious transaction report
in the regular performance of his duties in good faith, whether or not such
reporting results in any criminal prosecution under this Act of any other law.

"When reporting covered or suspicious transactions to the AMLC, covered
instituting and their officers and employees are prohibited from communicating
directly or indirectly, in any manner or by any means, to any person or entity, the
media, the fact that a covered or suspicious transaction report was made, the
contents thereof, or any other information in relation thereto. Neither may such
Teporting be published or aired in any manner or form by the mass media,
electronic mail, or other similar devices. In case of violation thereof, the
concerned officer and employee of the covered institution and media shall be held
criminally liable ]

Section 6, Paragraph d shall be added to Section 9 of R.A. 9160, as amended, as follows:

“(D) PRESERVATION OF SECRECY-WHEN REPORTING COVERED OR
SUSPICIOUS TRANSACTIONS TO THE AMLC, COVERED INSTITUTIONS.
OR INDIVIDUALS AND THEIR OFFICERS AND EMPLOYEES SHALL NOT.
BE DEEMED TO HAVE VIOLATED REPUBLIC ACT NO. 1405, AS
AMENDED, REPUBLIC ACT NO. 6426, AS AMENDED, REPUBLIC ACT
NO. 8791 AND OTHER SIMILAR LAWS. HOWEVER, EXCEPT IN THE
PERFORMANCE OF THEIR DUTIES OR FUNCTIONS UNDER THIS LAW,
OR FOR THE PURPOSE OF CARRYING INTO EFFECT A PROVISION OF
THIS LAW OR DOING ANYTHING REQUIRED OR AUTHORIZED UNDER
THIS LAW, COVERED INSTITUTIONS OR INDIVIDUALS AND THEIR
OFFICERS AND EMPLOYEES SHALL:


(1) PRESERVE AND AID IN PRESERVING SECRECY WITH REGARD TO
ANY MATTER COMING TO THEIR KNOWLEDGE—

(A) IN THE PERFORMANCE OF ANY DUTY OR FUNCTION UNDER THIS
LAW, OR IN CARRYING INTO EFFECT ANY PROVISION OF THIS LAW;
OR

(B) IN THE COURSE OF ASSISTING ANY OTHER PERSON IN THE
PERFORMANCE OF ANY FUNCTION UNDER THIS LAW, OR IN
CARRYING INTO EFFECT ANY PROVISION OF THIS LAW;

(2) NOT COMMUNICATE ANY MATTER REFERRED TO IN PARAGRAPH
(A) TO ANY OTHER PERSON OTHER THAN THE PERSON TO WHOM.
THE MATTER RELATES; AND

(3) NOT SUFFER OR PERMIT ANY OTHER PERSON TO HAVE ACCESS
TO ANY RECORD OR DOCUMENT THAT COMES INTO THE THEIR
POSSESSION—

(A) IN THE PERFORMANCE OF ANY FUNCTION UNDER THIS LAW, OR
IN CARRYING INTO EFFECT ANY PROVISION OF THIS LAW; OR

(B) IN THE COURSE OF ASSISTING ANY OTHER PERSON IN THE
PERFORMANCE OF ANY FUNCTION UNDER THIS LAW, OR IN
CARRYING INTO EFFECT ANY PROVISION OF THIS LAW.

(2) DESPITE PARAGRAPH D(i), COVERED INSTITUTIONS OR
INDIVIDUALS AND THEIR OFFICERS AND EMPLOYEES MAY—

(A) DISCLOSE INFORMATION THAT HAS ALREADY BEEN MADE
AVAILABLE TO THE PUBLIC;

(B) DISCLOSE INFORMATION UPON ORDER OF ANY COMPETENT
COURT BASED ON ANEX PARTE APPLICATION IN CASES OF
VIOLATIONS OF THIS ACT, WHEN IT HAS BEEN ESTABLISHED THAT
THERE IS PROBABLE CAUSE THAT THE DEPOSITS OR INVESTMENTS,
INCLUDING RELATED ACCOUNTS INVOLVED, ARE RELATED TO AN
UNLAWFUL ACTIVITY AS DEFINED IN SECTION 3(1) HEREOF OR A
MONEY LAUNDERING OFFENSE UNDER SECTION 4 HEREOF; EXCEPT
THAT NO COURT ORDER SHALL BE REQUIRED IN CASES INVOLVING
ACTIVITIES DEFINED IN SECTION 3(1\(1), (2), AND (12) HEREOF, AND
FELONIES OR OFFENSES OF A NATURE SIMILAR TO THOSE
MENTIONED IN SECTION 3(I\(1), (2), AND (12), WHICH ARE
PUNISHABLE UNDER THE PENAL LAWS OF OTHER COUNTRIES, AND


TERRORISM AND CONSPIRACY TO COMMIT TERRORISM AS DEFINED.
AND PENALIZED UNDER REPUBLIC ACT NO. 9372.”

Section 7. Section 10 of R.A. 9160, as amended, is hereby amended to read as follows:

“SEC. 10. Authority to Freeze.- UPON DETERMINATION THAT
PROBABLE CAUSE EXISTS THAT A SPECIFIC DEPOSIT OR SIMILAR
ACCOUNT, MONEY, PROPERTY, OR DOCUMENT WHICH IS IN ANY
WAY RELATED TO AN UNLAWFUL ACTIVITY IN POSSESSION OF THE.
COVERED INSTITUTION OR INDIVIDUAL AS DEFINED HEREIN, THE.
AMLC SHALL ISSUE A FREEZE ORDER TO THE COVERED
INSTITUTION OR INDIVIDUAL, WHICH SHALL BE EFFECTIVE
IMMEDIATELY, FOR A PERIOD NOT EXCEEDING TWENTY (20) DAYS.
NOTICE TO THE DEPOSITOR, OR OWNER OF THE PROPERTY, OR THE
INDIVIDUAL IN WHOSE NAME THE DOCUMENT IS NAMED AFTER,
ISSUED TO, THAT HIS ACCOUNT, MONEY, PROPERTY, OR DOCUMENT
HAS BEEN FROZEN SHALL BE SENT TO HIM/HER THE NEXT DAY
AFTER THE ISSUANCE OF THE FREEZE ORDER. AMLC SHALL,
HOWEVER, ENSURE THAT THE FREEZE ORDER SHALL BE RECEIVED
BY THE COVERED INSTITUTIONS OR INDIVIDUALS ON THE DAY IT
WAS SENT. THE DEPOSITOR, OR OWNER OF THE PROPERTY, OR THE.
INDIVIDUAL IN WHOSE NAME THE DOCUMENT IS NAMED AFTER,
ISSUED TO, SHALL HAVE SEVENTY-TWO (72) HOURS UPON RECEIPT
OF THE NOTICE TO EXPLAIN WHY THE FREEZE ORDER SHOULD BE
LIFTED. THE AMLC SHALL ENSURE THAT THE DEPOSITOR, OR
OWNER OF THE PROPERTY, OR THE INDIVIDUAL IN WHOSE NAME.
THE DOCUMENT IS NAMED AFTER, ISSUED TO, WILL RECEIVE THE
NOTICE TO EXPLAIN AND WILL BE GIVEN SEVENTY-TWO (72) HOURS
TO EXPLAIN AFTER RECEIPT OF NOTICE BEFORE THE EXPIRATION
OF THE TWENTY (20)-DAY FREEZE ORDER. THE AMLC SHALL
DISPOSE OF THE EXPLANATION OF THE DEPOSITOR, OR OWNER OF
THE PROPERTY, OR THE INDIVIDUAL IN WHOSE NAME THE
DOCUMENT IS NAMED AFTER, ISSUED TO, WITHIN SEVENTY-TWO
(72) HOURS FROM RECEIPT THEREOF. THE TWENTY (20)-DAY FREEZE
ORDER OF THE AMLC MAY BE EXTENDED UPON ORDER OF THE
COURT OF APPEALS, PROVIDED THAT THE TWENTY (20)-DAY PERIOD
SHALL BE TOLLED PENDING THE COURT OF APPEALS’ DECISION TO
EXTEND THE PERIOD.

NO COURT SHALL ISSUE A TEMPORARY RESTRAINING ORDER OR
WRIT OF INJUNCTION AGAINST ANY FREEZE ORDER ISSUED BY THE
AMLC EXCEPT THE SUPREME COURT.

THE AMLC SHALL ENSURE THAT IF IT HAS ISSUED AN ORDER TO
FREEZE UPON DETERMINATION OF PROBABLE CAUSE, AND THAT
UPON CONSIDERATION OF THE EXPLANATION OF DEPOSITOR, OR


OWNER OF THE PROPERTY, OR THE INDIVIDUAL IN WHOSE NAME
THE DOCUMENT IS NAMED AFTER OR ISSUED TO, WHOSE
ACCOUNT/S, PROPERTY/IES OR DOCUMENT/S IS/ARE FROZEN, THAT
THE ISSUANCE OF THE FREEZE ORDER IS PROPER OR THAT THE
DEPOSITOR, OR OWNER OF THE PROPERTY, OR THE INDIVIDUAL IN
WHOSE NAME THE DOCUMENT IS NAMED AFTER OR ISSUED TO,
FAILS TO EXPLAIN THE NEED FOR THE LIFTING OF THE FREEZE
ORDER, IT SHALL APPLY WITH THE COURT OF APPEALS A VERIFIED
PETITION FOR THE EXTENSION OF THE FREEZE ORDER BEFORE THE
EXPIRATION OF THE TWENTY (20)-DAY PERIOD. THE COURT OF
APPEALS SHALL ACT ON THE PETITION TO EXTEND THE FREEZE
ORDER WITHIN TWENTY-FOUR (24) HOURS FROM FILING OF THE
PETITION. IF THE APPLICATION IS FILED A DAY BEFORE A NON-
WORKING DAY, THE COMPUTATION OF THE TWENTY-FOUR (24)-
HOUR PERIOD SHALL EXCLUDE THE NON-WORKING DAYS. THE
COURT OF APPEALS SHALL ENSURE THAT IT WILL DECIDE ON THE
EXTENSION BEFORE THE EXPIRATION OF THE TWENTY (20)-DAY
PERIOD. THE COURT OF APPEALS MAY EXTEND THE FREEZE ORDER
ONLY ONCE IF IT DEEMS NECESSARY AND NOT EXCEEDING FIFTEEN
(15) DAYS.

A DEPOSITOR, OR OWNER OF THE PROPERTY, OR THE INDIVIDUAL IN
WHOSE NAME THE DOCUMENT IS NAMED AFTER OR ISSUED TO,
WHOSE ACCOUNT/S, PROPERTY/IES OR DOCUMENT/S IS/ARE FROZEN
MAY PARTICIPATE IN THE PROCEEDINGS BEFORE THE COURT OF
APPEALS IF HE/SHE WAS ABLE TO EXPLAIN BEFORE THE AMLC.
HOWEVER, A PERSON WHO FAILS TO EXPLAIN BEFORE THE AMLC
UPON RECEIPT OF THE NOTICE TO EXPLAIN FORFEITS HIS/HER
RIGHT TO PARTICIPATE IN THE PROCEEDINGS BEFORE THE COURT
OF APPEALS.

THE FREEZE ORDER SHALL STATE SPECIFIC ACCOUNT, MONEY,
PROPERTY, DOCUMENT, IN THE POSSESSION OF THE COVERED
INSTITUTIONS AND/OR INDIVIDUALS AS DEFINED HEREIN AND THE
BASIS WHY IT IS CONSIDERED RELATED TO ANY UNLAWFUL.
ACTIVITY DEFINED IN SECTION 3(1) HEREOF. AMLC SHALL FURNISH
THE OFFICE OF THE OMBUDSMAN OF THE FREEZE ORDER IT ISSUED.
TO THE COVERED INSTITUTIONS AND/OR INDIVIDUAL WITHIN
THREE (3) DAYS FROM ISSUANCE IF THE UNLAWFUL ACTIVITY IS
COVERED UNDER SECTION 3(1(3),(15), (16), AND (17) AS AMENDED BY
THIS ACT. THE OFFICE OF THE OMBUDSMAN SHALL KEEP THE COPY
OF THE FREEZE ORDER CONFIDENTIAL.

IF AMLC IS FOUND TO HAVE ISSUED THE FREEZE ORDER
WHIMSICALLY AND FOR THE PURPOSE OF HARRASSMENT OR ANY
OTHER UNLAWFUL ACT AGAINST THE DEPOSITOR, OR OWNER OF


THE PROPERTY, OR THE INDIVIDUAL IN WHOSE NAME THE
DOCUMENT IS NAMED AFTER OR ISSUED TO, WHOSE ACCOUNTIS,
PROPERTY/IES OR DOCUMENT/S IS/ARE FROZEN, THE PENALTY OF
IMPRISONMENT FROM SIX MONTHS AND ONE DAY TO SIX YEARS
AND A FINE OF NOT LESS THAN ONE HUNDRED THOUSAND PESOS
NOR MORE THAN THREE HUNDRED THOUSAND PESOS SHALL BE
IMPOSED UPON THE PERSONS INVOLVED IN THE ISSUANCE OF THE
FREEZE ORDER AND THE DETERMINATION OF THE EXISTENCE OF
PROBABLE CAUSE WHO ARE FOUND TO HAVE ACTED WHIMSICALLY
AND FOR THE PURPOSE OF HARRASSMENT OR ANY OTHER
UNLAWFUL ACT AGAINST THE DEPOSITOR, OR OWNER OF THE
PROPERTY, OR THE INDIVIDUAL IN WHOSE NAME THE DOCUMENT IS
NAMED AFTER OR ISSUED TO, WHOSE ACCOUNT/S, PROPERTY/IES
OR DOCUMENT/S IS/ARE FROZEN.

Section 8. Section 11 of R.A. 9160, as amended, is hereby amended to read as follows

“SEC. 11. Authority to Inquire into Bank Deposits, MONEY, PROPERTY, OR
DOCUMENT. ~ Notwithstanding the provisions of Republic Act No. 1405, as
amended; Republic Act No. 6426, as amended; Republic Act No. 8791; and other
laws, the AMLC may inquire into or examine any particular deposit or
investment, including related accounts, MONEY, PROPERTY, OR
DOCUMENT, WITH ANY COVERED INSTITUTION OR INDIVIDUAL AS
DEFINED HEREIN, upon order of any competent court based on anex
parte application in cases of violations of this Act, when it has been established
that there is probable cause that the deposits or investments, including related
accounts involved, MONEY, PROPERTY, OR DOCUMENT, WITH ANY
COVERED INSTITUTION OR INDIVIDUAL AS DEFINED HEREIN, are
related to an unlawful activity as defined in Section 3(i) hereof or a money
laundering offense under Section 4 hereof; except that no court order shall be
required in cases involving activities defined in Section 3(i(1), (2), and (12)
hereof, and felonies or offenses of a nature similar to those mentioned in Section
3((1), (2), and (12), which are Punishable under the penal laws of other
countries, and terrorism and conspiracy to commit terrorism as defined and
penalized under Republic Act No. 9372.”

“The Court of Appeals shall act on the application to inquire into or examine any
deposit or investment with any banking institution or non-bank financial
institution within twenty-four (24) hours from filing of the application.”

“To ensure compliance with this Act, the Bangko Sentral ng Pilipinas may, in the
course of a periodic or special examination, check the compliance of a Covered
institution with the requirements of the AMLA and its implementing rules and
regulations.”


“For purposes of this section, ‘related accounts’ shall refer to accounts, the funds
and sources of which originated from and/or are materially linked to the monetary
instrument(s) or property(ies) subject of the freeze order(s).”

“A court order ex parte must first be obtained before the AMLC can inquire into
these related Accounts: Provided, That the procedure for the ex parte application
of the ex parte court order for the principal account shall be the same with that of
the related accounts.”

“The authority to inquire into or examine the main account and the related
accounts shall comply with the requirements of Article III, Sections 2 and 3 of the
1987 Constitution, which are hereby incorporated by reference.”

Section 9, Section 12 of R.A. 9160, as amended, is hereby amended to read as follows:

“SEC. 12. Forfeiture Provisions. —

“(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
SWORN STATEMENT OF AN AUTHORIZED OFFICIAL OR
REPRESENTATIVE OF THE AMLC THAT ANY MONETARY
INSTRUMENT OR PROPERTY IS FOUND TO BE RELATED IN ANY
WAY TO AN UNLAWFUL ACTIVITY AS DEFINED UNDER SECTION 3(1I)
HEREOF OR A MONEY LAUNDERING OFFENSE UNDER SECTION 4
HEREOF, THE AMLC SHALL FILE WITH THE COURT OF APPEALS,
THROUGH THE OFFICE OF THE SOLICITOR GENERAL, A PETITION
FOR FORFEITURE AND THE RULES OF COURT ON CIVIL
FORFEITURE SHALL APPLY.”

“(b) Claim on Forfeited Assets. - Where the [court] COURT OF APPEALS has
issued an order of forfeiture of the monetary instrument or property in a criminal
prosecution for any money laundering offense defined under Section 4 of this Act,
the offender or any other person claiming an interest therein may apply, by
verified petition, for a declaration that the same legitimately belongs to him
and for segregation or exclusion of the monetary instrument or property
corresponding thereto. The verified petition shall be filed with the [court] COURT
OF APPEALS which rendered the judgment of conviction and order of forfeiture,
within fifteen (15) days from the date of the order of forfeiture, in default of
which the said order shall become final and executory. This provision shall apply
in both civil and criminal forfeiture.

“(c) Payment in Lieu of Forfeiture. - Where the [court|COURT OF APPEALS
has issued an order of forfeiture of the monetary instrument or property
subject of a money laundering offense defined under Section 4, and said order
cannot be enforced because any particular monetary instrument or property
cannot, with due diligence, be located, or it has been substantially altered,
destroyed, diminished in value or otherwise rendered worthless by any act or


omission, directly or indirectly, attributable to the offender, or it has been
concealed, removed, converted or otherwise transferred to prevent the same
from being found or to avoid forfeiture thereof, or it is located outside the
Philippines or has been placed or brought outside the jurisdiction of the [court]
COURT OF APPEALS, or it has been commingled with other monetary
instruments or property belonging to either the offender himself or a third person
or entity, thereby rendering the same difficult to identify or be segregated for
purposes of forfeiture, the [court] COURT OF APPEALS may, instead of
enforcing the order of forfeiture of the monetary instrument or property or part
thereof or interest therein, accordingly order the convicted offender to pay an
amount equal to the value of said monetary instrument or property. This provision
shall apply in both civil and criminal forfeiture.

“(D) DISPOSITION OF FORFEITED ASSETS AND RETENTION.

~ AFTER DEDUCTING THE COST OF LITIGATION, NINETY PERCENT
(90%) OF THE NET PROCEEDS OF THE FORFEITED ASSETS OR
PROCEEDS THEREFROM SHALL BE TURNED OVER TO THE
NATIONAL TREASURY AND THE REMAINING TEN PERCENT (10%)
BUT IN NO CASE MORE THAN TWO MILLION PESOS
(Php2,000,000.00) SHALL BE RETAINED BY THE AMLC TO AUGMENT
THE APPROPRIATION FOR ITS OPERATIONS AND MAINTENANCE
IN THE GENERAL APPROPRIATIONS ACT. FOR THIS PURPOSE, THE
AMLC MAY PROMULGATE RULES ON THE SALE OF FORFEITED
ASSETS.”

Section 10, Section 14 of R.A. 9160, as amended, is hereby amended to read as follows:

“SEC. 14. Penal Provisions. — (a) Penalties for the Crime of Money Laundering.
The penalty of imprisonment ranging from seven (7) to fourteen (14) years and a
fine of not less than Three Million Philippine Pesos (Php3,000,000.00) but not
more than twice the value of the monetary instrument or property involved in the
offense, shall be imposed upon a person convicted under Section 4(a), (B),
AND (C) of this Act.

“The penalty of imprisonment from four (4) to seven (7) years and a fine of not
less than One Million Five Hundred Thousand Philippine Pesos
(Php1,500,000.00) but not more than Three Million Philippine Pesos
(Php3,000,000.00), shall be imposed upon a person convicted under Section
4[(b)](D) of this Act.

“The penalty of imprisonment from six (6) months to four (4) years or a fine of
not less than One Hundred Thousand Philippine Pesos (Php100,000.00) but not
more than Five Hundred Thousand Philippine Pesos (Php500,000.00), or both,
shall be imposed on a person convicted under THE LAST PARAGRAPH OF
Section 4{(c)] of this Act.

“(b)x x x

“()x x x

“@)x x x

“(E) IMPOSITION OF ADMINISTRATIVE SANCTIONS.


AFTER DUE NOTICE AND HEARING, THE AMLC SHALL, AT ITS
DISCRETION, IMPOSE MONETARY PENALTIES, WARNING OR
REPRIMAND, UPON ANY COVERED INSTITUTION OR INDIVIDUAL, ITS.
DIRECTORS, OFFICERS, EMPLOYEES OR ANY OTHER PERSON FOR
VIOLATIONS OF THIS ACT, ITS IMPLEMENTING RULES AND
REGULATIONS, OR FOR FAILURE OR REFUSAL TO COMPLY WITH
AMLC ORDERS, RESOLUTIONS AND OTHER ISSUANCES. SUCH
MONETARY PENALTIES SHALL BE IN AMOUNTS AS MAY BE
DETERMINED BY THE COUNCIL TO BE APPROPRIATE, WHICH SHALL
BE NOT MORE THAN ONE HUNDRED THOUSAND PESOS
(PHP100,000.00) PER VIOLATION, WHICH AMOUNT SHALL BE
REMITTED TO THE NATIONAL TREASURY. THE AMLC MAY
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 COVERED
INSTITUTION OR INDIVIDUAL. THE IMPOSITION OF THE
ADMINISTRATIVE SANCTIONS SHALL BE WITHOUT PREJUDICE TO
THE FILING OF CRIMINAL CHARGES AGAINST THE PERSONS
RESPONSIBLE FOR THE VIOLATION.”

Section 11. Sections 3(b-1), 3(b-1)(5), 3(g), 3(h), 7(1), 7(2), 9(a), 9(b), 9(c) and 18 of R.A. 9160,
which referred to covered institution/s should now refer to “covered institution/s or
INDIVIDUALS”, in order to reflect the broader scope of the term.

Section 12. Separability Clause. - If any provision of this Act is declared invalid, the other
provisions not affected thereby shall remain valid

Section 13. Repealing Clause. - All laws, proclamations, executive orders, rules and regulations
or parts thereof inconsistent with this Act are hereby repealed, modified or amended
accordingly: Provided, That no person shall be deemed to be vested with any property or other
right by virtue of the enactment or operation of this Act.

Section 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation whichever comes earlier.

Approved,