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AND REGULATIONS IMPLEMENTING
Section 1. Title. - These Rules shall be known and cited as the "Rules and Regulations Implementing Republic Act No. 9160" (the Anti-Money Laundering Act of 2001 [AMLA]).
Sec. 2. Purpose. - These Rules are promulgated to prescribe the procedures and guidelines for the implementation of the AMLA.
Sec. 3. Declaration of Policy. – It is the policy of the State that:
(b) The Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity; and
(c) Consistent with its foreign policy, the Philippines shall extend cooperation in transnational investigations and prosecutions of persons involved in money laundering activities wherever committed.
Sec. 4. Definition of Terms. -
A subsidiary means an entity more than fifty percent (50%) of the outstanding voting stock of which is owned by a bank, quasi-bank, trust entity or any other institution supervised or regulated by the BSP.
An affiliate means an entity at least twenty percent (20%) but not exceeding fifty percent (50%) of the voting stock of which is owned by a bank, quasi-bank, trust entity, or any other institution supervised and/or regulated by the BSP.
(2) Insurance companies, insurance agents, insurance brokers, professional reinsurers, reinsurance brokers, holding companies, holding company systems and all other persons and entities supervised and/or regulated by the Insurance Commission (IC).
An insurance company includes those entities authorized to transact insurance business in the Philippines, whether life or non-life and whether domestic, domestically incorporated or branch of a foreign entity. A contract of insurance is an agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event. Transacting insurance business includes making or proposing to make, as insurer, any insurance contract, or as surety, any contract of suretyship as a vocation and not as merely incidental to any other legitimate business or activity of the surety, doing any kind of business specifically recognized as constituting the doing of an insurance business within the meaning of Presidential Decree (P. D.) No. 612, as amended, including a reinsurance business and doing or proposing to do any business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of P. D. No. 612, as amended.
An insurance agent includes any person who solicits or obtains insurance on behalf of any insurance company or transmits for a person other than himself an application for a policy or contract of insurance to or from such company or offers or assumes to act in the negotiation of such insurance.
An insurance broker includes any person who acts or aids in any manner in soliciting, negotiating or procuring the making of any insurance contract or in placing risk or taking out insurance, on behalf of an insured other than himself.
A professional reinsurer includes any person, partnership, association or corporation that transacts solely and exclusively reinsurance business in the Philippines, whether domestic, domestically incorporated or a branch of a foreign entity. A contract of reinsurance is one by which an insurer procures a third person to insure him against loss or liability by reason of such original insurance.
A reinsurance broker includes any person who, not being a duly authorized agent, employee or officer of an insurer in which any reinsurance is effected, acts or aids in any manner in negotiating contracts of reinsurance or placing risks of effecting reinsurance, for any insurance company authorized to do business in the Philippines.
A holding company includes any person who directly or indirectly controls any authorized insurer.
A holding company system includes a holding company together with its controlled insurers and controlled persons.
(3) (i) Securities dealers, brokers, salesmen, associated persons of brokers or dealers, investment houses, investment agents and consultants, trading advisors, and other entities managing securities or rendering similar services, (ii) mutual funds or open-end investment companies, close-end investment companies, common trust funds, pre-need companies or issuers and other similar entities; (iii) foreign exchange corporations, money changers, money payment, remittance, and transfer companies and other similar entities, and (iv) 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 and/or regulated by the Securities and Exchange Commission (SEC).
A securities broker includes a person engaged in the business of buying and selling securities for the account of others.
A securities dealer includes any person who buys and sells securities for his/her account in the ordinary course of business.
A securities salesman includes a natural person, employed as such or as an agent, by a dealer, issuer or broker to buy and sell securities.
An associated person of a broker or dealer includes an employee thereof who directly exercises control of supervisory authority, but does not include a salesman, or an agent or a person whose functions are solely clerical or ministerial.
An investment house includes an enterprise which engages or purports to engage, whether regularly or on an isolated basis, in the underwriting of securities of another person or enterprise, including securities of the Government and its instrumentalities.
A mutual fund or an open-end investment company includes an investment company which is offering for sale or has outstanding, any redeemable security of which it is the issuer.
A closed-end investment company includes an investment company other than open-end investment company.
A common trust fund includes a fund maintained by an entity authorized to perform trust functions under a written and formally established plan, exclusively for the collective investment and reinvestment of certain money representing participation in the plan received by it in its capacity as trustee, for the purpose of administration, holding or management of such funds and/or properties for the use, benefit or advantage of the trustor or of others known as beneficiaries.
A pre-need company or issuer includes any corporation supervised and/or regulated by the SEC and is authorized or licensed to sell or offer for sale pre-need plans.
A foreign exchange corporation includes any enterprise which engages or purports to engage, whether regularly or on an isolated basis, in the sale and purchase of foreign currency notes and such other foreign-currency denominated non-bank deposit transactions as may be authorized under its articles of incorporation.
An investment agent or consultant or trading advisor includes any person who is engaged in the business of advising others as to the value of any security and the advisability of trading in any security or in the business of issuing reports or making analysis of capital markets. However, in case the issuance of reports or the rendering of the analysis of capital markets is solely incidental to the conduct of the business or profession of banks, trust companies, journalists, reporters, columnists, editors, lawyers, accountants, teachers, and publishers of newspapers and business or financial publications of general and regular circulation, including their employees, they shall not be deemed to be investment agents or consultants or trade advisors within the contemplation of the AMLA and these Rules.
A money changer includes any person in the business of buying or selling foreign currency notes.
remittance and transfer company includes any person offering to pay,
or transfer or transmit money on behalf of any person to another person.
(2) Drafts, checks and notes;
(3) Securities or negotiable instruments, bonds, commercial papers, deposit certificates, trust certificates, custodial receipts or deposit substitute instruments, trading orders, transaction tickets and confirmations of sale or investments and money market instruments;
(4) Other similar instruments where title thereto passes to another by endorsement, assignment or delivery; and
or policies of insurance, life or non-life, and contracts of suretyship.
(2) All monetary, financial or economic means, devices, documents, papers or things used in or having any relation to any unlawful activity; and
expenditures, payments, disbursements, costs, outlays, charges,
refunds and other similar items for the financing, operations, and
of any unlawful activity.
Sec. 5. Limitations of the Rules. -
(b) The AMLA and these Rules shall not be used for political persecution or harassment or as an instrument to hamper competition in trade and commerce.
COMPOSITION AND PROCEEDINGS OF
THE ANTI-MONEY LAUNDERING COUNCIL
Section 1. Composition. – The members of the Anti-Money Laundering Council (AMLC) created under the AMLA shall be the Governor of the BSP, the Insurance Commissioner and the Chairman of the SEC. The Governor of the BSP shall be the Chairman.
Sec. 2. Collegiality. – The AMLC is a collegial body where the Chairman and the members of the AMLC are entitled to one (1) vote each.
Sec. 3. Unanimous Decision. – The AMLC shall act unanimously in discharging its functions as defined in the AMLA and in these Rules. However, in the case of the incapacity, absence or disability of any member to discharge his functions, the officer duly designated or authorized to discharge the functions of the Governor of the BSP, the Chairman of the SEC or the Insurance Commissioner, as the case may be, shall act in his stead in the AMLC.
Sec. 4. Delegation of Authority. – Action on routinary administrative matters may be delegated to any member of the AMLC or to any ranking official of the Secretariat under such guidelines as the AMLC may determine.
Sec. 5. Secretariat. –
(b) Other than the Executive Director whose qualifications are provided for in the preceding paragraph, in organizing the Secretariat, the AMLC may only choose from among those who have served, continuously or cumulatively, for at least five (5) years in the BSP, the SEC or the IC, but who need not be incumbents therein at the time of their appointment in the Secretariat. All members of the Secretariat shall be considered regular employees of the BSP and shall be entitled to such benefits and subject to such rules and regulations as are applicable to BSP employees of similar rank.
Sec. 6. Detail and Secondment of Personnel. – The AMLC is authorized under Section 7 (10) of the AMLA to enlist the assistance of the BSP, the SEC or the IC or any other branch, department, bureau, office, agency or instrumentality of the government, including government-owned and –controlled corporations, in undertaking any and all anti-money laundering operations. This includes the use of any member of their personnel who may be detailed or seconded to the AMLC, subject to existing laws and Civil Service Rules and Regulations.
Sec. 7. Confidentiality of Proceedings. – The members of the AMLC, the Executive Director, and all the members of the Secretariat, whether permanent, on detail or on secondment, shall not reveal in any manner except under orders of the court, the Congress or any government office or agency authorized by law, or under such conditions as may be prescribed by the AMLC, any information known to them by reason of their office. In case of violation of this provision, the person shall be punished in accordance with the pertinent provisions of R. A. Nos. 3019, 6713 and 7653.
Sec. 8. Meetings. – The AMLC shall meet every first Monday of the month or as often as may be necessary at the call of the Chairman. Subject to the rule on confidentiality in the immediately preceding section, the meetings of the AMLC may be conducted through modern technologies such as, but not limited to, teleconferencing and video-conferencing.
Sec. 9. Budget. – The budget appropriated by the Congress shall be used to defray operational expenses of the AMLC, including indemnification for legal costs and expenses reasonably incurred for the services of external counsel or in connection with any civil, criminal or administrative action, suit or proceedings to which members of the AMLC and the Executive Director and other members of the Secretariat may be made a party by reason of the performance of their functions or duties.
POWERS OF THE AMLC
Section 1. Authority to Initiate Investigations on the Basis of Voluntary Citizens’ Complaints and Government Agency Referrals. -
(b) The person so reporting shall file a Voluntary Citizens’ Complaint (VCC) or Government Referral (GR) in the form prescribed by the AMLC. The VCC and GR forms shall indicate that the members of the AMLC, the Executive Director and all the members of the Secretariat are bound by the confidentiality rule provided in Section 7, Rule 2 of these Rules. The VCC shall be signed by the complainant. The GR shall be signed by the authorized representative of the government agency concerned, indicating his current position and rank therein.
(d) On the basis of the VCC or GR, the AMLC may initiate investigation thereof, and based on the evidence gathered, the AMLC may cause the filing of criminal complaints with the Department of Justice or the Ombudsman for the prosecution of money laundering offenses.
Sec. 2. Authority to Initiate Investigations on the Basis of Covered Transaction Reports. -
(2) A single transaction involving an amount in excess of Four million Philippine pesos (Php4,000,000.00) or an equivalent amount in foreign currency based on the prevailing exchange rate which has no underlying legal or trade obligation, purpose, origin, or economic justification.
(3) A series or combination of transactions conducted within five (5) consecutive banking days aggregating to a total amount in excess of Four million Philippine pesos (Php4,000,000.00) or an equivalent in foreign currency based on the prevailing exchange rate where the client is not properly identified and/or the amount is not commensurate with his business or financial capacity.
(4) A series or combination of transactions conducted within five (5) consecutive banking days aggregating to a total amount in excess of Four million Philippine pesos (Php4,000,000.00) or an equivalent in foreign currency based on the prevailing exchange rate exchange rate where most, if not all the transactions, do not have any underlying legal or trade obligation, purpose, origin, or economic justification.
(5) A single unusually large and complex transaction in excess of Four million Philippine pesos (Php4,000,000.00), especially a cash deposit or investment having no credible purpose or origin, underlying trade obligation or contract, regardless of whether or not the client is properly identified and/or the amount is commensurate with his business or financial capacity.
(6) A series, combination or pattern of unusually large and complex transactions aggregating to, without reference to any period, a total amount in excess of Four million Philippine pesos (Php4,000,000.00), especially cash deposits and/or investments having no credible purpose or origin, underlying trade obligation or contract, regardless of whether or not the client is properly identified and/or the amount is commensurate with his business or financial capacity.
(c) Covered Transaction Report Form. The Covered Transaction Report (CTR) shall be in the form prescribed by the appropriate Supervising Authority and approved by the AMLC. It shall be signed by the employee(s) who dealt directly with the customer in the transaction and/or who made the initial internal report within the covered institution, the compliance officer or his equivalent, and a senior official of the bank with a rank not lower than senior vice-president. The CTR shall be filed with the AMLC in a central location, to be determined by the AMLC, as indicated in the instructions on the CTR form.
(d) Exemption from Bank Secrecy Laws. When reporting covered transactions to the AMLC, banks and their officers, employees, representatives, agents, advisors, consultants or associates shall not be deemed to have violated R. A. No. 1405, as amended, R. A. No. 6426, as amended, R. A. No. 8791 and other similar laws.
(e) Safe Harbor Provision. No administrative, criminal or civil proceedings shall lie against any person for having made a covered transaction report in the regular performance of his duties and in good faith, whether or not such reporting results in any criminal prosecution under the AMLA or any other Philippine law.
(f) Filing of Criminal Complaints. On the basis of the CTR, the AMLC may initiate investigation thereof, and based on the evidence gathered, the AMLC may cause the filing of criminal complaints with the Department of Justice or the Ombudsman for the prosecution of money laundering offenses.
(g) Malicious Reporting. Any person who, with malice, or in bad faith, reports or files a completely unwarranted or false information relative to any money laundering transaction against any person, shall be subject to a penalty of imprisonment from six (6) months to four (4) years and 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), at the discretion of the court: Provided, That the offender is not entitled to avail of the benefits under the Probation Law.
If the offender is a corporation, association, partnership or any juridical person, the penalty shall be imposed upon the responsible officers, as the case may be, who participated or failed to prevent its commission. If the offender is a juridical person, the court may suspend or revoke its license. If the offender is an alien, he shall, in addition to the penalties herein prescribed, be deported without further proceedings after serving the penalties herein prescribed. If the offender is a public official or employee, he shall, in addition to the penalties prescribed herein, suffer perpetual or temporary absolute disqualification from office, as the case may be.
(h) Breach of Confidentiality. When reporting covered transactions to the AMLC, covered institutions and their officers, employees, representatives, agents, advisors, consultants or associates are prohibited from communicating, directly or indirectly, in any manner or by any means, to any person, entity, or the media, the fact that a covered transaction report was made, the contents thereof, or any other information in relation thereto. Neither may such reporting be published or aired in any manner or form by the mass media, electronic mail, or other similar devices. Violation of this provision shall constitute the offense of breach of confidentiality punished under Section 14 (d) of the AMLA with imprisonment from three (3) to eight (8) years and a fine of not less than Five hundred thousand Philippine pesos (Php500,000.00) but not more than One million Philippine pesos (Php1,000,000.00).
(i) File of Covered Transactions. – Covered institutions shall maintain a complete file on all covered transactions that have been reported to the AMLC. Covered institutions shall undertake the necessary adequate security measures to ensure the confidentiality of such file. The file of covered transactions shall be kept for at least five (5) years: Provided, That if money laundering cases based thereon have been filed in court, the file must be retained beyond the five(5)-year period until it is confirmed that the case has been finally resolved or terminated by the court.
Sec. 3. Authority to Freeze Accounts. –
(b) The freeze order on such account shall be effective immediately for a period not exceeding fifteen (15) days.
(c) The AMLC must serve notice of the freeze order upon the covered institution concerned and the owner or holder of the deposit, investment or similar account, simultaneously with the issuance thereof. Upon receipt of the notice of the freeze order, the covered institution concerned shall immediately stop, freeze, block, suspend or otherwise place under its absolute control the account and the monetary instrument or property subject thereof.
(d) The owner or holder of the account so notified shall have a non-extendible period of seventy-two (72) hours upon receipt of the notice to file a verified explanation with the AMLC why the freeze order should be lifted. Failure of the owner or holder of the account to file such verified explanation shall be deemed waiver of his right to question the freeze order.
(e) The AMLC shall have seventy-two (72) hours from receipt of the written explanation of the owner or holder of the frozen account to resolve the same. If the AMLC fails to act within said period, the freeze order shall automatically be dissolved. However, the covered institution shall not lift the freeze order without securing official confirmation from the AMLC.
(f) Before the fifteen (15)-day period expires, the AMLC may apply in court for an extension of said period. Upon the timely filing of such application and pending the decision of the court to extend the period, said period shall be suspended and the freeze order shall remain effective.
(g) In case the court denies the application for extension, the freeze order shall remain effective only for the balance of the fifteen (15)-day period.
(h) No court shall issue a temporary restraining order or writ of injunction against any freeze order issued by the AMLC or any court order extending period of effectivity of the freeze order except the Court of Appeals or the Supreme Court.
(i) No assets shall be frozen to the prejudice of a candidate for an electoral office during an election period.
Sec. 4. Authority to Inquire into Accounts. –
(b) In case of any violation of the AMLA involving bank deposits and investments, the AMLC may inquire into or examine any particular deposit or investment with any banking institution or non-bank financial institution upon order of any competent court when the AMLC has established that there is probable cause that the deposits or investments involved are in any way related to any unlawful activity and/or money laundering offense. The AMLC may file the application for authority to inquire into or examine any particular bank deposit or investment in court, prior to the institution or in the course of, the criminal proceedings involving the unlawful activity and/or money laundering offense to which said bank deposit or investment is any way related. For purposes of Section 11 of the AMLA and Section 4, Rule 3 of these Rules, probable cause includes such facts and circumstances which would lead a reasonably discreet, prudent or cautious man to believe that an unlawful activity and/or a money laundering offense is about to be, is being or has been committed and that the bank deposit or investment sought to be inquired into or examined is in any way related to said unlawful activity and/or money laundering offense.
Sec. 5. Authority to Institute Civil Forfeiture Proceedings. – The AMLC is authorized under Section 7 (3) of the AMLA to institute civil forfeiture proceedings and all other remedial proceedings through the Office of the Solicitor General.
Sec. 6. Authority
to Assist the United Nations and other International Organizations and
Foreign States. – The AMLC is authorized under Sections 7 (8) and
(b) and (d) of the AMLA to receive and take action in respect of any
of foreign states for assistance in their own anti-money laundering
It is also authorized under Section 7 (7) of the AMLA to cooperate with
the National Government and/or take appropriate action in respect of
resolutions and other directives of the United Nations (UN), the UN
Council, and other international organizations of which the Philippines
is a member. However, the AMLC may refuse to comply with any such
convention, resolution or directive where the action sought therein
the provision of the Constitution or the execution thereof is likely to
prejudice the national interest of the Philippines.
Sec. 8. Authority
to Issue, Clarify and Amend the Rules and Regulations
R. A. No. 9160. – The AMLC is authorized under Sections 7 (7), 18
19 of the AMLA to promulgate as well as clarify and/or amend, as may be
necessary, these Rules. The AMLC may make appropriate issuances for
MONEY LAUNDERING OFFENSES
Section 1. Money Laundering Offenses and their Corresponding Penalties. – Money laundering is a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources. It is a process comprising of three (3) stages, namely, placement or the physical disposal of the criminal proceeds, layering or the separation of the criminal proceeds from their source by creating layers of financial transactions to disguise the audit trail, and integration or the provision of apparent legitimacy to the criminal proceeds. Any transaction involving such criminal proceeds or attempt to transact the same during the placement, layering or integration stage shall constitute the crime of money laundering.
(b) When it is committed by a person who, 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, the penalty is 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).
(c) When it is committed by a person who, knowing that any monetary instrument or property is required under this Act to be disclosed and filed with the AMLC, fails to do so, the penalty is 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.
Sec. 2. Unlawful Activities. - These refer to any act or omission or series or combination thereof involving or having relation to the following:
(b) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the same Code;
(c) Qualified theft under Article 310 of the same Code;
(d) Swindling under Article 315 of the same Code;
(e) Piracy on the high seas under the same Code and Presidential Decree (P.D.) No. 532;
(f) Destructive arson and murder as defined under the same Code and hijacking and other violations under Republic Act (R. A.) No. 6235, including those perpetrated by terrorists against non-combatant persons and similar targets;
(g) Jueteng and Masiao punished as illegal gambling under P.D. No. 1602;
(h) Smuggling under R. A. Nos. 455 and 1937;
(i) Section 3, paragraphs B, C, E, G, H and I of R. A. No. 3019, the Anti-Graft and Corrupt Practices Act, as amended;
(j) Sections 3, 4, 5, 7, 8 and 9 of Article Two of R. A. No. 6425, the Dangerous Drugs Act of 1972 as amended;
(k) Plunder under R. A. No. 7080, as amended;
(l) Violations under R. A. No. 8792, the Electronic Commerce ct of 2000;
(m) Fraudulent practices and other violations under R. A. No. 8799, the Securities Regulation Code of 2000; and
(n) Felonies or offenses of a similar nature that are punishable under the penal laws of other countries.
Sec. 3. Jurisdiction of Money Laundering Cases. – The Regional Trial Courts shall have the jurisdiction to try all cases on money laundering. Those committed by public officers and private persons who are in conspiracy with such public officers shall be under the jurisdiction of the Sandiganbayan.
Sec. 4. Prosecution of Money Laundering. –
(b) Any proceeding relating to the unlawful activity shall be given precedence over the prosecution of any offense or violation under the AMLA without prejudice to the issuance by the AMLC of a freeze order with respect to the deposit, investment or similar account involved therein and resort to other remedies provided under the AMLA.
(c) Knowledge of the offender that any monetary instrument or property represents, involves, or relates to the proceeds of an unlawful activity or that any monetary instrument or property is required under the AMLA to be disclosed and filed with the AMLC, may be established by direct evidence or inferred from the attendant circumstances.
(d) All the elements of every money laundering offense under Section 4 of the AMLA must be proved by evidence beyond reasonable doubt, including the element of knowledge that the monetary instrument or property represents, involves or relates to the proceeds of any unlawful activity. No element of the unlawful activity, however, including the identity of the perpetrators and the details of the actual commission of the unlawful activity need be established by proof beyond reasonable doubt. The elements of the offense of money laundering are separate and distinct from the elements of the felony or offense constituting the unlawful activity.
(e) No case for money laundering may be filed to the prejudice of a candidate for an electoral office during an election period. However, this prohibition shall not constitute a bar to the prosecution of any money laundering case filed in court before the election period.
(f) The AMLC may apply, in the course of the criminal proceedings, for provisional remedies to prevent the monetary instrument or property subject thereof from being removed, concealed, converted, commingled with other property or otherwise to prevent its being found or taken by the applicant or otherwise placed or taken beyond the jurisdiction of the court. However, no assets shall be attached to the prejudice of a candidate for an electoral office during an election period.
(g) Where there is conviction for money laundering under Section 4 of the AMLA, the court shall issue a judgment of forfeiture in favor of the Government of the Philippines with respect to the monetary instrument or property found to be proceeds of one or more unlawful activities. However, no assets shall be forfeited to the prejudice of a candidate for an electoral office during an election period.
(h) Restitution for any aggrieved party shall be governed by the provisions of the New Civil Code.
PREVENTION OF MONEY LAUNDERING
Section 1. Customer Identification Requirements. –
For this purpose, they shall develop clear customer acceptance policies and procedures when conducting business relations or specific transactions, such as, but not limited to, opening of deposit accounts, accepting deposit substitutes, entering into trust and other fiduciary transactions, renting of safety deposit boxes, performing remittances and other large cash transactions.
When dealing with customers who are acting as trustee, nominee, agent or in any capacity for and on behalf of another, covered institutions shall verify and record the true and full identity of the person(s) on whose behalf a transaction is being conducted. Covered institutions shall also establish and record the true and full identity of such trustees, nominees, agents and other persons and the nature of their capacity and duties. In case a covered institution has doubts as to whether such persons are being used as dummies in circumvention of existing laws, it shall immediately make the necessary inquiries to verify the status of the business relationship between the parties.
Information/Documents required for Individual Customers. Covered
shall require customers to produce original documents of identity
by an official authority, preferably bearing a photograph of the
Examples of such documents are identity cards and passports. Where
file copies of documents of identity are to be kept. Alternatively, the
identity card or passport number and/or other relevant details are to
recorded. The following minimum information/documents shall be obtained
from individual customers:
(2) Present address;
(3) Permanent address;
(4) Date and place of birth;
(6) Nature of work and name of employer or nature of self-employment/business;
(7) Contact numbers;
(8) Tax identification number, Social Security System number or Government Service and Insurance System number;
(9) Specimen signature;
(10) Source of fund(s); and
(11) Names of beneficiaries in case of insurance contracts and whenever applicable.
(3) Official address or principal business address;
(4) List of directors/partners;
(5) List of principal stockholders owning at least two percent (2%) of the capital stock;
(6) Contact numbers;
(7) Beneficial owners, if any; and
(8) Verification of the authority and identification of the person purporting to act on behalf of the client.
(e) Acquisition of Another Covered Institution. – When a covered institution acquires the business of another covered institution, either in whole or as a product portfolio, it is not necessary for the identity of all existing customers to be re-established: Provided, That all customer account records are acquired with the business and due diligence inquiries do not raise any doubt as to whether or not the acquired business has fully complied with all the requirements under the AMLA and these Rules.
(f) Risk-monitoring and Review. Covered institutions shall adopt programs for on-going monitoring of high-risk accounts and risk management, subject to such rules and regulations as may be prescribed by the appropriate Supervising Authority. Regular reviews of customer base should be undertaken to ensure that the nature of accounts and potential risks are properly identified, monitored and controlled.
(g) Prohibition against Certain Accounts. Covered institutions shall maintain accounts only in the true name of the account owner or holder. The provisions of existing laws to the contrary notwithstanding, anonymous accounts, accounts under fictitious names, incorrect name accounts and all other similar accounts shall be absolutely prohibited.
(h) Numbered Accounts. Peso and foreign currency non-checking numbered accounts shall be allowed: Provided, That the true identity of the customer is satisfactorily established based on official and other reliable documents and records, and that the information and documents required under Section 1 (b) and (c) of Rule 5 of these Rules are obtained and recorded by the covered institution. The BSP may conduct annual testing for the purpose of determining the existence and true identity of the owners of such accounts.
Sec. 2. Recordkeeping Requirements. – Covered transactions shall prepare and maintain documentation on their customer accounts, relationships and transactions such that any account, relationship or transaction can be so reconstructed as to enable the AMLC, the law enforcement and prosecutorial authorities, and/or the courts to establish an audit trail for money laundering.
(b) Closed Accounts. With respect to closed accounts, the records on customer identification, account files and business correspondence shall be preserved and safely stored for at least five (5) years from the dates when they were closed.
(c) Retention of Records in Case a Money Laundering Case Has Been Filed in Court. – If a money laundering case based on any record kept by the covered institution concerned has been filed in court, said file must be retained beyond the period stipulated in the two (2) immediately preceding subsections, as the case may be, until it is confirmed that the case has been finally resolved or terminated by the court.
(d) Form of Records. – Records shall be retained as originals or certified true copies on paper, microfilm or electronic form: Provided, That such forms are admissible in court pursuant to existing laws and the applicable rules promulgated by the Supreme Court.
(e) Penalties for Failure to Keep Records. The penalty of imprisonment from six (6) months to one (1) year 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 for a violation of Section 9 (b) of the AMLA.
Sec. 3. Money Laundering Prevention Programs. – Covered institutions shall formulate their respective money laundering prevention programs in accordance with Section 9 and other pertinent provisions of the AMLA and Sections 1 and 2 of Rules 3 and 4 and other pertinent provisions of these Rules, subject to such guidelines as may be prescribed by the Supervising Authority and approved by the AMLC. Every covered institution shall submit its own money laundering program to the Supervising Authority concerned within a non-extendible period of sixty (60) days from the date of effectivity of these Rules.
Every money laundering program shall establish detailed procedures implementing a comprehensive, institution-wide "know-your-client" policy, set-up an effective dissemination of information on money laundering activities and their prevention, detection and reporting, adopt internal policies, procedures and controls, designate compliance officers at management level, institute adequate screening and recruitment procedures, and set-up an audit function to test the system.
Covered institutions shall adopt, as part of their money laundering programs, a system of flagging and monitoring transactions that qualify as covered transactions except that they involve amounts below the threshold to facilitate the process of aggregating them for purposes of future reporting of such transactions to the AMLC when their aggregated amounts breach the threshold. Covered institutions not subject to account secrecy laws shall incorporate in their money laundering programs the provisions of Section 1, Rule 3 of these Rules and such other guidelines for the voluntary reporting to the AMLC of all transactions that engender the reasonable belief that a money laundering offense is about to be, is being, or has been committed.
Sec. 4. Training of Personnel. – Covered institutions shall provide all their responsible officers and personnel with efficient and effective training and continuing education programs to enable them to fully comply with all their obligations under the AMLA and these Rules.
Section 1. 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. However, no assets shall be forfeited to the prejudice of a candidate for an electoral office during an election period.
Sec. 2. Claim on Forfeited Assets. - Where the court has issued an order of forfeiture of the monetary instrument or property in a criminal prosecution for any money laundering offense under Section 4 of the AMLA, 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 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.
Sec. 3. Payment in lieu of Forfeiture. - Where the court has issued an order of forfeiture of the monetary instrument or property subject of a money laundering offense under Section 4 of the AMLA, 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, 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 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.
MUTUAL ASSISTANCE AMONG STATES
Section 1. Request for Assistance from a Foreign State. - Where a foreign state makes a request for assistance in the investigation or prosecution of a money laundering offense, the AMLC may execute the request or refuse to execute the same and inform the foreign state of any valid reason for not executing the request or for delaying the execution thereof. The principles of mutuality and reciprocity shall, for this purpose, be at all times recognized.
Sec. 2. Powers
of the AMLC to Act on a Request for Assistance from a Foreign State.
- The AMLC may execute a request for assistance from a foreign state
(a) tracking down, freezing, restraining and seizing assets alleged to
be proceeds of any unlawful activity under the procedures laid down in
the AMLA and in these Rules; (b) giving information needed by the
state within the procedures laid down in the AMLA and in these Rules;
(c) applying for an order of forfeiture of any monetary instrument or
in the court: Provided, That the court shall not issue such an
unless the application is accompanied by an authenticated copy of the
of a court in the requesting state ordering the forfeiture of said
instrument or property of a person who has been convicted of a money
offense in the requesting state, and a certification or an affidavit of
a competent officer of the requesting state stating that the conviction
and the order of forfeiture are final and that no further appeal lies
respect of either.
Sec. 7. Extradition. – The Philippines shall negotiate for the inclusion of money laundering offenses as defined under Section 4 of the AMLA among the extraditable offenses in all future treaties.
AMENDMENTS AND EFFECTIVITY
Section 1. Amendments. – These Rules or any portion thereof may be amended by unanimous vote of the members of the AMLC and approved by the Congressional Oversight Committee as provided for under Section 19 of the AMLA.
Sec. 2. Effectivity. – These Rules shall take effect after its approval by the Congressional Oversight Committee and fifteen (15) days after the completion of its publication in the Official Gazette or in a newspaper of general circulation.
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