The Anti-Money Laundering Act (AMLA) of 2001, officially known as Republic Act No. 9160, is a cornerstone of the Philippines’ efforts to combat financial crimes. Enacted to protect the integrity of the country’s financial system, the AMLA criminalizes money laundering activities and establishes a comprehensive framework for identifying, investigating, and prosecuting such offenses.
Key Provisions of the AMLA
- The AMLA defines money laundering as a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources.
- The law covers various financial entities, including banks, insurance companies, securities dealers, foreign exchange dealers, money changers, remittance agents, and other similar entities, comply with its provisions.
- These covered institutions are required to verify the identity and business of their clients.
- The institutions are obligatioed to report the following transactions:
- Transactions exceeding PHP 500,000 within one banking day must be reported to the Anti-Money Laundering Council (AMLC).
- Any transaction, regardless of amount, that lacks economic or lawful purpose must be reported.
- Institutions are obligated to maintain records of transactions for at least five years, ensuring they are available for scrutiny by authorities when necessary.
The AMLA led to the creation of the AMLC, the Philippines’ central authority on anti-money laundering and counter-terrorism financing. The council is composed of the Governor of the Bangko Sentral ng Pilipinas (BSP) as chairman, and the heads of the Insurance Commission and the Securities and Exchange Commission as members.
The AMLC functions as the financial intelligence unit, regulator, and primary law enforcement agency against money laundering and terrorist financing in the country.
Notable Amendments
Over the years, the AMLA has undergone several amendments to strengthen its provisions, notable among which others, are::
- Inclusion of casinos as covered institutions, requiring them to report transactions exceeding PHP 5,000,000.
- Expansion of AMLC’s authority to issue freeze orders and implement targeted financial penalties related to terrorism and weapons of mass destruction financing.
