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RA 9160: Philippine Anti Money Laundering Act Of 2001

Money laundering -  is a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources.

PERSONS LIABLE:
1. 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.
2. 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.
3. 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.

Covered transaction:
Transaction In excess of P500,000 within one banking day.

Suspicious transaction, Requisites:
1. Covered institution,
2. Regardless of amount, and
3. Any of the ff. circumstances:
   a. no economic justification
   b. client not properly identified
   c. amount not commensurate with financial capacity
   d. structured to avoid reporting
   e. deviation from client’s profile or past transactions
   f. unlawful activity under this Act
   g. Similar or analogous

UNLAWFUL ACTIVITY:
1. Kidnapping for ransom
2. Comprehensive Dangerous Drugs Act of 2002 (Sec. 4,5,6,8,9,10,12,14,15,16)
3. Anti-Graft and Corrupt Practices Act (Sec. 3, par. B,C,E,G,H and I)
4. Plunder
5. Robbery and extortion
6. Jueteng and Masiao punished as illegal gambling
7. Piracy on the high seas
8. Qualified theft
9. Swindling
10.Smuggling
11.Electronic Commerce Act of 2000
12.Hijacking and other violation of RA 6235; destructive and murder, including those
   perpetrated by terrorists against non-combatants
13. Securities Regulations Code of 2000
14. Offenses of similar nature punishable by foreign penal laws

WHAT IS REQUIRED TO BE REPORTED?
Covered institutions shall report to the Anti Money Laundering Council all covered transactions and suspicious transactions within 5 working days from the occurrence.

AUTHORITY TO INQUIRE INTO BANK DEPOSITS:
1. Court order upon showing of probable cause that the deposit is related to an unlawful  
   activity or a money laundering offense.
2. No court order required for the ff. unlawful activities:
   a. Kidnapping for ransom
   b. Comprehensive Dangerous Drugs Act of 2002 Hijacking and other violation of RA 6235;
      destructive and murder, including those perpetrated by terrorists against non-combatants

PROSECUTION OF MONEY LAUNDERING:
1. Offender may be charged with and convicted of BOTH money laundering and the unlawful
   activity
2. Proceeding of unlawful activity shall be given precedence over the prosecution for
   money laundering, without prejudice to freezing and other remedies of this Act.

Bar Exam Question (2005)

R.A. No. 9160 Anti-Money Laundering Act (2005)

Don Gabito, a philanthropist, offered to fund several projects of the Mayor. He opened an account in the Mayor’s name and regularly deposited various amounts ranging from P500,000.00 to P1 Million. From this account, the Mayor withdrew and used the money for constructing feeder roads, barangay clinics, repairing schools and for all other municipal projects. It was subsequently discovered that Don Gabito was actually a jueteng operator and the amounts he deposited were proceeds from his jueteng operations. What crime/s were committed? Who are criminally liable? Explain. 

Suggested Answer:

Don Gabito violated the Anti-Money Laundering Act (Sec. 4, R.A. No. 9160) for knowingly transacting money as property which involves or relates to the proceeds of an unlawful activity such as jueteng. In addition, he may be prosecuted for liability as ajueteng operator. (R.A. No. 9287) The mayor who allowed the opening of an account in his name is likewise guilty for violation of the AMLA. He, knowing that the money instrument or property involves the proceeds of an unlawful activity, performs or fails to perform any act which results in the facilitation of money laundering.