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DEVELOPMENTS ON
THE ANTI-MONEY
LAUNDERING ACT
Overview
Substantive Updates (AMLA)
Problems in Investigation?
Becomes increasingly
harder to detect
Sophistication
Creativity
Hidden in legitimate funds
Number of people/institutions involved
Stages of ML
1. Placement – involves initial
placement or introduction of
the illegal funds into the
financial system. Banks and
other financial institutions are
usually used at this point.
Examples
• smurfing or structuring
• converted into financial instruments
• commingled with legitimate funds
• purchases of insurance contract
10
Stages of ML
2. Layering – involves a series of
financial transactions during
which the dirty money is passed
through a series of procedures,
putting layer upon layer of
persons and financial activities
into the laundering process.
Examples:
electronic transfer of funds
disguise the transfer as a payment
for goods or services
transfer the funds to shell
corporation
11
Stages of ML
3. Integration – the money is once again
made available to the criminal with the
occupational and geographic origin obscured
or concealed. The laundered funds are now
integrated back into the legitimate economy
through the purchase of properties, businesses
and other investments.
12
Terrorism Financing
13
State Policies
1. Ensure that the Philippines shall
not be used as a money
laundering site for the proceeds
of any unlawful activity.
2. Extend cooperation in
transnational investigations and
prosecutions of persons involved
in money laundering activities
wherever committed.
3. Protect and preserve the
integrity and confidentiality of
bank accounts.
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Salient Features
1. Criminalized money
laundering.
2. Created a financial
intelligence unit or
implementing agency.
Salient Features
4. Relaxed strict bank deposit
secrecy laws.
Composition
Covered Persons
(Natural or Juridical)
1. Banks, non-banks, quasi-banks, trust
entities, FX dealers, pawnshops,
money changers, remittance and
transfer companies and other similar
entities and all other persons and
their subsidiaries and affiliates
supervised or regulated by the
Bangko Sentral ng Pilipinas (BSP);
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Covered Persons
(Natural or Juridical)
2. Insurance companies, pre-need companies and all
other institutions supervised or regulated by the
Insurance Commission (IC);
Covered Persons
(Natural or Juridical)
4. Jewelry Dealers in precious metals, for transactions
in excess of Php1,000,000.00;
Covered Persons
(Natural or Juridical)
7. Persons who provide any of the ff. services:
a) Managing client money, securities or other assets;
b) Management bank, savings & securities
accounts;
c) Organization of contributions for the creation,
operation or management of companies; and
d) Creation, operation or management of juridical
persons or arrangements, and buying and selling
business entities.
8. Casino Industry
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Covered Persons
(Natural or Juridical)
EXCLUDING: Lawyers and Accountants
acting as independent legal professionals
or where disclosure would compromise client
confidences or attorney-client relationship
Provided:
(i) authorized to practice in the Philippines ; and
(ii) subject to their respective codes of conduct and/or
professional responsibility or any of its amendments
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Covered Transaction
“Covered transaction” - a transaction in cash
or other equivalent monetary instrument
involving a total amount in excess of Five
Hundred Thousand Pesos (Php500,000.00)
within one (1) banking day.
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Suspicious Transaction
Suspicious transaction - a
transaction with a covered
institution, regardless of the
amount involved, where
any of the following
circumstances exist(s):
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Suspicious Transaction
1. No underlying legal or
trade obligation,
purpose or economic
justification;
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Suspicious Transaction
Suspicious Transaction
3. Not commensurate
with the business or
financial capacity of
the client
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Suspicious Transaction
4. Structuring
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Suspicious Transaction
Suspicious Transaction
7. Similar, analogous or identical to any of the
foregoing
Examples:
Questions on how to avoid
reporting/recordkeeping;
Customer attempt to influence an employee
not to file a report;
Circumvention of internal control procedures;
Short-term/no vacations, etc.
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Unlawful activity
(a.k.a. predicate offense)
39
Unlawful Activity
(a.k.a. Predicate Offense)
“Unlawful activity” refers to any
act or omission or series or
combination thereof involving or
having direct relation to the
following:
Unlawful Activity
(a.k.a. Predicate Offense)
3. Graft and Corruption
(R.A. No. 3019, as
amended)
4. Plunder (R.A. No. 7080,
as amended)
5. Robbery and extortion
(RPC)
6. Jueteng and Masiao
(PD 1602)
7. Piracy (RPC & PD 532)
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Unlawful Activity
(a.k.a. predicate offense)
8. Qualified Theft (RPC)
9. Swindling/Estafa (RPC)
10. Smuggling (R.A. Nos. 455 &
1937)
11. Violations of Electronic
Commerce Act of 2000 (R.A.
No. 8792)
12. Hijacking (R.A. No. 6235),
Destructive Arson and
Murder (RPC)
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Unlawful Activity
(a.k.a. Predicate Offense)
13. Terrorism and Conspiracy to Commit Terrorism
(R.A. No. 9372);
Unlawful Activity
(a.k.a. Predicate Offense)
15. Bribery and Corruption of Public
Officers (RPC);
Unlawful Activity
(a.k.a. Predicate Offense)
20. Violations of the Revised Forestry Code (PD 705);
The Crime of ML
The Crime of ML
c) Conceals or disguises the true nature,
source, location, disposition, movement
or ownership of or rights with respect to
said MI/P;
The Crime of ML
ACOSTA v. STATE
Court of Criminal Appeals of Texas.
429 S.W.3d 621 (Tex. Crim. App. 2014)
The unexplained presence of half a million dollars in cash behind
a freight truck's stereo speakers is, by itself, extremely suspicious.
The larger the sum of secreted cash, the more likely its
unexplained presence may be found to be proceeds from
criminal activity.
Prosecution of ML
Jurisdiction
Regional Trial Courts
Sandiganbayan
- committed by public officers or
private persons who are in
conspiracy with such public officers.
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Prosecution of ML
Any person may be charged with
and convicted of both the
offense of money laundering
(subject offense) and the
unlawful activity (predicate
offense)
REPUBLIC v. BOLANTE
G.R. Nos. 190357, April 17, 2017
For the court to issue a bank inquiry order, it is necessary for
the AMLC to be able to show specific facts and circumstances
that provide a link between an unlawful activity or a money
laundering offense, on the one hand, and the account or
monetary instrument or property sought to be examined on the
other hand.
As it stands, the evidence relied upon by the AMLC in 2006
was still the same evidence it used to apply for a bank inquiry
order in 2008. Regrettably, this evidence proved to be insufficient
when weighed against that presented by the respondents, who
were given notice and the opportunity to contest the issuance of
the bank inquiry order pursuant to Eugenio. In fine, the RTC did
not commit grave abuse of discretion in denying the
application.
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- Ex parte
Direct Filing; Confidentiality
with the Presiding Justice in Manila, or the
Executive Justices in Cebu City or
Cagayan de Oro City
Strictly confidential
b) Civil forfeiture
- Jurisdiction over the person not required
(court must exercise some control over
the property)
- Criminal conviction not necessary, can forfeit
property from dead criminals or fugitives
SC Ruling
Republic vs. Glasgow Credit & Collection
Services, Inc., et al.
G.R. No. 170281; 18 Jan. 2008
Executive Director
Technical
Services Staff
Administrative and
Financial Services Division
Internal Procedure
Investigation (CIG)
Evaluation (LSG)
Review (E.D.)
Resolution (Council)
Deposit/Withdrawal Analysis
Cross-Match Analysis
Check Analysis
Memo/Contra Analysis
Multiple Accounts Analysis
Graft and Corruption Typology
Methods Used
Use of Non-Profit Organization
Use of Gatekeepers
Use of Domestic Financial Institutions
Use of Nominees – Trusted
Associates/Family
Use of Cash
Drug Trafficking Typology