EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. No. 1412
of srcrrtoi'^
20 MAR 11 PI2 53
RECEiVuS f;V:
Introduced by Senator Grace Poe
AN ACT
TO FURTHER STRENGTHEN THE ANTI-MONEY LAUNDERING LAW, AMENDING 
FOR THE PURPOSE SECTIONS 2, 3, 7, 10, 12 AND 20 OF REPUBLIC ACT NO. 
9160, OTHERWISE KNOWN AS THE ANTI-MONEY LAUNDERING ACT OF 2001, 
AS AMENDED, AND FOR OTHER PURPOSES
Explanatory Note
To better combat money laundering (ML), terrorist financing (TF) and other 
related threats to the integrity of the global financial system, an inter-governmental 
body, the "Financial Action Task Force" (FATF), was estabiished to set and promote 
standards for the effective implementation of legal, regulatory and operational 
measures to combat ML and TF. The regional arm of the FATF, the Asia Pacific 
Group on Money Laundering (APG), has 41 members including the Philippines.
A country's efforts and/or measures to combat ML and TF are being assessed 
through a "peer review" called "Mutual Evaluations" (ME). A country's criminal 
justice system, supervision of financial institutions (FIs), and international 
cooperation, among others, are being evaluated. Two areas are being assessed: 
Technical Compliance and Effective Compliance.
On 22 August 2019, the APG adopted the Philippine Mutual Evaluations Report 
(MER). The Philippine MER was pubiished on 24 October 2019.
Based on FATF's 40 Recommendations, the Philippines was evaluated or rated 
as follows: (a) for TECHNICAL COMPLIANCE - Philippines is COMPLIANT as to 
FATF's 8 recommendations; LARGELY COMPLIANT to FATF's 20 recommendations; 
PARTIALLY COMPLIANT to FATF's 11 recommendations; and NON-COMPLIANT to 
one FATF recommendation; and (b) for EFFECTIVE COMPLIANCE, Philippines was 
given the SUBSTANTIAL rating for one (1) of the Immediate Outcomes (lOs), 
MODERATE for 4 lOs, and LOW for 6 lOs.
After the "evaluations"/MER, the FATF has a mechanism to identify and 
respond to strategic deficiencies in a jurisdiction's/country's Anti-Money Laundering


(AML)/Combating the Financing of Terrorism (CFT) measures that may "pose risk to 
the international financial system and impede efforts against ML and TF". This 
mechanism of the FATF is called the International Cooperation Review Group 
(ICRG). The ICRG then maintains a "list" of jurisdictions/countries with "strategic 
AML/CFT deficiencies" - this is the "Compliance Document" known to the global 
network as the "GREY LIST".
A jurisdiction/country will be referred to the ICRG listing based on its ratings 
under the MER, particularly if under the MER, it was: (a) rated Non- 
Compliant/Partially Compliant with 20 or more of the FATF recommendations; (b) 
rated Non-Compliant/Partially Compliant with 3 or more of the key FATF 
recommendations; (c) rated Low/Moderate on 9 or more of the 11 Immediate 
Outcomes; or (d) rated Low on 6 or more of the 11 Immediate Outcomes. The 
Philippines met the ICRG referral criteria based on 10 of 11 Immediate Outcomes 
rated Moderate/Low (4 rated Moderate, 6 rated Low).
To date, the Philippines is under ICRG's 12-month "Observation Period" 
(October 2019 to October 2020) during which the Philippines is expected to remedy 
its identified shortcomings in the Philippine MER.
Based on the Philippine MER, the following amendments to Republic Act No. 
9160, otherwise known as the "Anti-Money Laundering Act" or AMLA, as previously 
amended by Republic Act Nos. 9194, 10167, 10365, and 10927, must be
incorporated to remedy the identified deficiencies in our legal framework in relation 
to combatting ML:
a. 
Inclusion of real estate developers and brokers as covered persons;
b. 
Inclusion of tax crimes and violation of the Strategic Trade
Management Act which indirectly includes proliferation of weapons of 
mass destruction as predicate offenses to ML;
c. 
Enhancement of 
the investigative powers 
of the Anti-Money
Laundering Council (AMLC);
d. 
Authorization of 
the AMLC to implement "Targeted Financial
Sanctions" on proliferation financing;
e. 
Prohibition on the issuance of injunctive relief against freeze orders 
and forfeiture proceedings; and
f. 
Authorization of the AMLC to preserve, manage or dispose assets 
subject of Asset Preservation Order and Judgement Forfeiture.
According to the AMLC, if the Philippines fails to pass the above-enumerated 
amendments and demonstrate effective implementation of the same, the Philippines 
will be under the danger of being "grey-listed". If that happens, the FATF will


publicly identify the Philippines as a "high-risk jurisdiction with strategic AML/CFT 
deficiencies".
"Grey Listing" of the Philippines would mean that: (a) the European Union (EU) 
will impose "enhanced due diiigence" (EDD) on Filipino nationals and businesses; (b) 
EDD will entail additional cost and paperwork; (c) there will be higher interest 
rates/processing fees; (d) there will be higher cost of remittance for OFWs; (e) the 
Philippines will incur a "reputational risk" that would result in reduced investor and 
lender confidence; (f) there could be a decline in the GDP growth of the Philippines; 
and (g) there would be a setback in our efforts to achieve an "A" Credit Rating 
before 2022; among others.
The above-cited consequences of being "Grey Listed" by the FATF would surely 
have a negative impact not just to our OFWs, Filipino nationals and businesses 
abroad, but also, possibly, to our country's economy.
On top of the urgent concerns regarding "Grey Listing", just recently, the 
Bureau of Customs (BOC) and the Department of Finance (DOF) confirmed that "two 
suspected syndicates brought into the Philippines at least $370 million (P18.7 billion) 
in foreign dirty money..." In response, DOF Secretary Carlos G. Dominguez III had 
ordered the BOC to work with the AMLC in investigating the entry of the afore­
mentioned dirty money. In addition. Senator Richard Gordon even delivered a 
privilege speech in relation to the alleged entry of $447 million (P22.68 billion) into 
the Philippines from September 2019 to February 2020 which, according to him, 
might be linked to money laundering due to the proliferation of Philippine Offshore 
Gaming Operators (POGOs). These being said, it truly is high time to further 
strengthen our country's Anti-Money Laundering Law, as well as the powers of the 
AMLC, for us to be able to more effectively combat the menaces brought about by 
money laundering.
In view of the foregoing, the immediate enactment into law of this legislative 
measure, which is a counterpart measure of Rep. Junie E. Cua's House Bill No. 6174, 
is hereby earnestly sought.
/G^CE POE


j 
:
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BGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
s. No. 1412
20 MAR 11 PI2S4
(Jt>-
RECEiVtO h'J:
Introduced by Senatxjr Grace Poe
AN ACT
TO FURTHER STRENGTHEN THE ANTI-MONEY LAUNDERING LAW, AMENDING 
FOR THE PURPOSE SECTIONS 2,3,7,10,12 AND 20 OF 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:
1 
Section 1. Section 2 of Republic Act No. 9160, as amended, is hereby amended
2 
to read as follows:
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"SEC 2. Declaration of Policy. It is hereby declared the policy of the State to 
protect and preserve the integrity and confidentiality of bank accounts and to 
ensure that the Philippines shall not be used as a money laundering site for the 
proceeds of any unlawful activity. Consistent with its foreign policy, the State 
shall extend cooperation in transnational investigations and prosecutions of 
persons involved in money laundering activities wherever committed[.], AS 
WELL AS IN THE IMPLEMENTATION OF TARGETED FINANCIAL 
SANCTIONS RELATED TO THE FINANCING OF THE PROLIFERATION OF 
WEAPONS OF MASS DESTRUCTION, TERRORISM AND FINANCING OF 
TERRORISM, PURSUANT TO RESOLUTIONS OF THE UNITED NATIONS


1 
SECURITY COUNCIL, AND IN OTHER RELATED OR ANALOGOUS CASES.
2 
IT IS LIKEWISE THE DECLARED POLICY OF THE STATE, ESPECIALLY
3 
ITS PERTINENT LAW ENFORCING AGENCIES, TO KEEP ABREAST WITH
4 
EXISTING AND FUTURE INTERNATIONAL EFFORTS AND MEASURES TO
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CURB MONEY LAUNDERING, TERRORISM FINANCING, AND
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PROLIFERATION FINANCING OF OF WEAPONS OF MASS
7 
DESTRUCTION, WITH THE END GOALS OF ADOPTING AND/OR
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INCORPORATING UPDATED MEANS OF INVESTIGATION AND
9 
PROSECUTION, AMONG OTHERS."
10 
Sec. 2. Section 3(a) of Republic Act No. 9160, as amended, is hereby further
11 
amended by inserting a new paragraph (9), as follows:
12 
"(a) "Covered persons", natural or juridical refer to:
13 
(1) XXX
14 
XXX
15 
"(9) 
REAL ESTATE DEVELOPERS AND BROKERS."
16 
XXX
17 
Sec. 3. Section 3(b) of Republic Act No. 9160, as amended, is hereby further
18 
amended to read as follows:
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24
"(b) "Covered transaction" is a transaction in cash or other equivalent monetary 
instrument involving a total amount in excess of Five Hundred Thousand Pesos 
(P500,000.00) within one (1) banking day; for covered persons under Section 
3(a)(8), a single casino cash transaction involving an amount in excess of Five 
Million Pesos (P5,000,000.00) or its equivalent in ay other currency; FOR 
COVERED PERSONS UNDER SECTION 3(A)(9), A SINGLE CASH


TRANSACTION INVOLVING AN AMOUNT IN EXCESS OF ONE MILLION
2 
PESOS (Pl,000/000.00)."
3 
Sec. 4. Section 3(i) of Republic Act No. 9160, as amended, is hereby further
4 
amended to read as follows:
5 
XXX
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"(i) 'Unlawful activity' refers to any act or omission or series or combination
7 
thereof involving or having direct relation to the following:
8 
(1) XXX
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XXX
(33) Fraudulent practices and other violations under Republic Act No. 
8799, otherwise known as the Securities Regulation Code of 2000;
[and]
(34) VIOLATION OF SECTION 19(A)(3) OF REPUBLIC ACT NO. 10697, 
OTHERWISE KNOWN AS THE STRATEGIC TRADE MANAGEMENT ACT,
ON TARGATED FINANCIAL SACTIONS IN RELATION TO THE 
FINANCING OF WEAPONS OF MASS DESTRUCTION PROLIFERATION;
(35) VIOLATIONS OF SECTION 254, 255, 260, 261, 262, 263, 264,
264-A, 264-B, 265 AND 265-A OF CHAPTER II, TITLE X OF THE 
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, IF 
THE FINAL ASSESSMENT IS IN EXCESS OF TEN MILLION PESOS 
(P10,000,000.00); AND
[(34)] (36) Felonies and offenses of a similar nature 
that are
punishable under the penal laws of other countries."
Sec. 5. Section 3 of Republic Act No. 9160, as amended, is hereby further


1 
amended by inserting new paragraphs (m), (n) and (o) as follows:
2 
"(a) 'Covered persons', natural or juridical, refer to:
3 
XXX
4 
(M) 'REAL ESTATE DEVELOPER' REFERS TO ANY NATURAL OR
5 
JURIDICAL PERSON ENGAGED IN THE BUSINESS OF DEVELOPING
6 
REAL ESTATE DEVELOPMENT PROJECT FOR HIS/HER OR ITS OWN
7 
ACCOUNT AND OFFERING THEM FOR SALE OR LEASE;
8 
(N) 'REAL ESTATE BROKER' REFERS TO A DULY REGISTERED AND
9 
LICENSED NATURAL PERSON WHO, FOR A PROFESSIONAL FEE,
10 
COMMISSION OR OTHER VALUABLE CONSIDERATION, ACTS AS AN
11 
AGENT OF A PARTY IN A REAL ESTATE TRANSACTION TO OFFER,
12 
ADVERTISE, SOLICIT, LIST, PROMOTE, MEDIATE, NEGOTIATE OR
13 
EFFECT THE MEETING OF THE MINDS ON THE SALE, PURCHASE,
14 
EXCHANGE, MORTGAGE, LEASE OR JOINT VENTURE, OR OTHER
15 
SIMILAR TRANSACTIONS ON REAL ESTATE OR ANY INTEREST
16 
THEREIN;
17 
(O) 'TARGETED FINANCIAL SANCTIONS' REFER TO BOTH ASSET
18 
FREEZING AND PROHIBITION TO PREVENT FUNDS OR OTHER ASSETS
19 
FROM BEING MADE AVAILABLE, DIRECTLY OR INDIRECTLY, FOR THE
20 
BENEFIT OF ANY INDIVIDUAL, NATURAL OR LEGAL PERSONS OR
21 
ENTITY DESIGNATED PURSUANT TO RELEVANT UNITED NATIONS
22 
SECURITY COUNCIL RESOLUTIONS AND ITS DESIGNATION
23 
PROCESSES."
24 
Sec. 6. Section 7 of Republic Act No. 9160, as amended, is hereby further


1 amended to read as follows:
2
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"SEC.7. Creation of Anti-Money Laundering Council (AMLC). - The Anti- 
Money Launding 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 AND ANALYZE covered or suspicious 
transactions reports from covered persons;
XXX
"(5) to investigate suspicious transactions and covered 
transactions deemed suspicious after [an investigation by] 
DETERMINATION by AMLC, money laundering activities, and 
other violations of this Act.
IN THE CONDUCT OF ITS INVESTIGATIONS, THE AMLC 
MAY USE INVESTIGATION TECHNIQUES AVAILABLE TO 
OTHER LAW ENFORCEMENT AGENCIES, SUCH AS, BUT 
NOT LIMITED TO, THE CONDUCT OF WITNESS 
INTERVIEWS, SURVEILLANCE, UNDERCOVER 
INVESTIGATION, AND COURT-APPROVED SEARCHES 
AND SEIZURES.
AMLC INVESTIGATIONS SHALL BE KEPT STRICTLY 
CONFIDENTIAL FROM THE PUBLIC.
24
xxx;


1
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(12) XXX [.]; AND
(13) 
TO SUBPOENA ANY PERSON AND COMPEL HIS 
ATTENDANCE, TO PRODUCE INFORMATION, BOOKS, 
PAPERS, DOCUMENTS, DATA, AND OTHER RELEVANT 
INFORMATION OR OBJECTS; OR TO GIVE 
STATEMENT, UNDER OATH, IN RELATION TO ITS 
INVESTIGATIVE POWERS. THOSE WHO REFUSE THE 
SUBPOENA WITHOUT JUSTIFIABLE CAUSE, OR WHO 
REFUSE TO SUPPLY THE AMLC WITH DATA REQUESTED 
OR REQUIRED, SHALL BE SUBJECT TO PUNISHMENT FOR 
CONTEMPT IN ACCORDANCE WITH THE PROVISIONS OF 
THE RULES OF COURT; AND TO ADMINISTER OATH OR 
AFFIRMATION TO ANY PERSON APPEARING IN THE 
COURSE OF INVESTIGATION OR ADMINISTRATIVE 
PROCEEDINGS;
"(14) TO IMPLEMENT TARGETED FINANCIAL SANCTIONS, 
INCLUDING EX PARTE FREEZE, WITHOUT DELAY, AGAINST 
ALL FUNDS AND OTHER ASSETS THAT ARE OWNED AND 
CONTROLLED, DIRECTLY OR INDIRECTLY, INCLUDING 
FUNDS AND ASSETS DERIVED OR GENERATED 
THEREFROM, BY INDIVIDUALS OR ENTITIES DESIGNATED 
AND LISTED UNDER UNITED NATIONS SECURITY COUNCIL 
RESOLUTIONS AS WELL AS ANY BINDING RESOLUTION OF 
THE SECURITY COUNCIL RELATING TO THE PREVENTION,


1 
SUPPRESSION AND DISRUPTION OF PROLIFERATION OF
2 
WEAPONS OF MASS DESTRUCTION AND ITS FINANCING;
3 
AND
4 
"(15) TO PRESERVE, MANAGE OR DISPOSE ASSETS SUBJECT OF
5 
ASSET PRESERVATION 
ORDER, AND JUDGMENT OF
6 
FORFEITURE."
7 
Sec. 7. Section 10 of Republic Act No. 9160, as amended, is hereby further
8 
amended to read as follows:
9 
"Section 10. Freezing of Monetary Instrument or Property. -
10 
Upon a verified ex parte petition by the AMLC and after determination that
11 
probable cause exists that any monetary instrument or property is in any way
12 
related to an unlawful activity as defined in Section 3(i) hereof, the Court of
13 
Appeals may issue a freeze order which shall be effective immediately, for a
14 
period of twenty (20) days. Within the twenty (20)-day period, the Court of
15 
Appeals shall conduct a summary hearing, with notice to the parties, to determine
16 
whether or not to modify or lift the freeze order, or extend its effectivity. The
17 
total period of the freeze order issued by the Court of Appeals under this provision
18 
shall not exceed six (6) months. This is without prejudice to an asset
19 
preservation order that the Regional Trial Court having jurisdiction over the
20 
appropriate anti-money laundering case or civil forfeiture case may issue on the
21 
same account depending on the circumstances of the case, where the Court of
22 
Appeals will remand the case and its records; Provided/ That if there is no case
23 
filed against a person whose account has been frozen within the period
24 
determined by the Court of Appeals, not exceeding six (6) months, the freeze


1 
order shall be deemed ipso facto lifted; Provided, further. That this new rule shall
2 
not apply to pending cases in the courts. In any case, the court should act on
3 
the petition to freeze within twenty-four (24) hours from filing of the petition. If
4 
the application is filed a day before a nonworking day, the computation of the
5 
twenty-four (24)-hour period shall exclude the nonworking days.
6 
The freeze order or asset preservation order issued under this Act shall be limited
7 
only to the amount of cash or monetary instrument or value of property that
8 
court finds there is probable cause to be considered as proceeds of a predicate
9 
offense, and the freeze order or asset preservation order shall not apply to
10 
amounts in the same account in excess of the amount or value of the proceeds
11 
of the predicate offense.
12 
A person whose account has been frozen may file a motion to lift the freeze order
13 
and the court must resolve this motion before the expiration of the freeze order.
14 
No court shall issue a temporary restraining order or a writ of injunction against
15 
any freeze order, except the Supreme Court.
16 
FOR PURPOSES OF IMPLEMENTING TARGETED FINANCIAL
17 
SANCTIONS, AS PROVIDED UNDER SECTION 7(14), THE AMLC
18 
SHALL HAVE THE POWER TO ISSUE, EX PARTE, AN ORDER TO
19 
FREEZE WITHOUT DELAY. THE FREEZE ORDER SHALL BE EFFECTIVE
20 
UNTIL THE BASIS FOR ITS ISSUANCE SHALL HAVE BEEN LIFTED.
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DURING THE EFFECTIVITY OF THE FREEZE ORDER, THE AGGRIEVED
22 
PARTY MAY, WITHIN TWENTY (20) DAYS FROM ISSUANCE, FILE WITH
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THE COURT OF APPEALS A PETITION TO DETERMINE THE BASIS OF
24 
THE FREEZE ORDER ACCORDING TO THE PRINCIPLE OF EFFECTIVE


1 
JUDICIAL PROTECTION. THE AMLC, IF CIRCUMSTANCES WARRANTS,
2 
MAY INITIATE A CIVIL FORFEITURE PROCEEDINGS TO PRESERVE THE
3 
ASSETS AND TO PROTECT IT FROM DISSIPATION. NO COURT SHALL
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ISSUE A TEMPORARY RESTRAINING ORDER OR A WRIT OF
5 
INJUNCTION AGAINST THE FREEZE ORDER, EXCEPT THE COURT OF
6 
APPEALS OR THE SUPREME COURT."
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Sec. 8. Section 12 of Republic Act No. 9160, as amended, is hereby further
8 
amended to read as follows:
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(a) Civil Forfeiture. - xxx
(b) Claim on Forfeited Assets. - xxx
(c) Payment in Lieu of Forfeiture. - xxx
(D) NO COURT SHALL ISSUE A TEMPORARY RESTRAINING ORDER 
(TRO) OR A WRIT OF INJUNCTION AGAINST ANY PROVISIONAL 
ASSET PRESERVATION ORDER OR ASSET PRESERVATION ORDER, 
EXCEPT THE COURT OF APPEALS OR THE SUPREME COURT."
16 
Sec. 9. Section 20 of Republic Act No. 9160, as amended, is hereby deleted.
17 
[SECTION 20. Non-intervention in the Bureau of Internal Revenue (BIR)
18 
Operations. - Nothing contained in this Act nor in related antecedent laws or
19 
existing agreements shall be construed to allow the AMLC to participate in any
20 
manner in the operations of the BIR.]
21 
Sec. 10. Implementing Rules and Regulations. - The AMLC shall within
22 
ninety (90) days from the effectivity of this Act issue the necessary rules and
23 
regulations.
24 
Sec. 11. Separability Clause. - If any provision or section of this Act is


1 
held to be unconstitutional or invalid, the other provisions or sections hereof, which
2 
are not affected thereby shall continue to be in full force and effect.
3 
Sec. 12. Repealing Clause. - All provisions of existing iaws, orders, rules and
4 
regulations, or parts thereof which are in conflict or inconsistent with the provisions of
5 
this Act are hereby repealed, amended or modified accordingly; Provided, that all
6 
provisions of Republic Act No. 9160, as amended, which are not inconsistent
7 
with this Act are hereby adopted.
8 
Sec. 13. Effectivity. - This Act shall take effect immediately after the
9 
completion of its publication in the Official Gazette or in a newspaper of general 
10 circulation.
Approved,
10