Comparative Police System

Emerson De Villa
RM Dadivas
Jaironn Navarro
Dindo Samarita
Jhumanuelle Dipalac
Darwin Contemprato
Sergio Balanay Jr.
Richard Biazon
Narciso Maccarubbo Jr.
Glenbrey Sabile
 Introduction
Brief History
Steps In Money Laundering
Methods of Money Laundering
Money Laundering in the Philippines
Functions of AMLAC
Covered and Suspicious Transactions
predicate crimes in the AMLA
Prosecution under AMLA
International Agencies Against Money Laundering
 money laundering is a crime whereby the proceeds of an
unlawful activity are transacted thereby making them appear to
have originated from legitimate sources
the method by which criminals disguise the illegal origins of
their wealth and protect their assets bases, so as to avoid the
suspicion of law enforcement agencies and prevent leaving a
trail of incriminating evidence.
Money obtained from certain crimes, such as extortion, insider
trading, drug trafficking, and illegal gambling is "dirty". It needs
to be cleaned to appear to have been derived from legal
activities so that banks and other financial institutions will deal
with it without suspicion. Money can be laundered by many
methods, which vary in complexity and sophistication
 The concept of money laundering regulations goes back to ancient times
and is intertwined with the development of money and banking. Money
laundering is first seen with individuals hiding wealth from the state to
avoid taxation or confiscation or a combination of both.
In China, merchants around 2000 BCE would hide their wealth from rulers
who would simply take it from them and banish them. In addition to hiding
it, they would move it and invest it in businesses in remote provinces or
even outside China.
The term money laundering originated from Mafia ownership of
Laundromats in the United States.
The first use of the term money laundering was during the Watergate
Scandal 1973 in United States.
 the money enters the financial system without being taxed

the money is the fruit of illegal activity, therefore an extension of the same crime

money laundering forces legitimate businesses to deal with inflated or undercut

transactions, because of the layering effect

criminal elements become more comfortable conducting their activites knowing that
they have resources available

the financial system is manipulated and the factual, just management of national
economies is put in danger
PLACEMENT LAYERING INTEGRATION
introducing cash complex financial acquiring wealth
into the financial transactions to generated from
system by some camouflage the the transactions of
means illegal source of the illicit funds
the cash

Goals of money laundering:

hiding where the money came from
where the money is going
 Structuring/ Smurfing
cash-intensive businesses
Bulk cash smuggling
Round-tripping
Bank capture
Casinos & Other Gambling
Real estate
Black salaries
Tax amnesties
Life Insurance Business
 Often known as smurfing, this is a method of
placement whereby cash is broken into smaller
deposits of money, used to defeat suspicion of money
laundering and to avoid anti-money laundering
reporting requirements. A sub-component of this is to
use smaller amounts of cash to purchase bearer
instruments, such as money orders, and then
ultimately deposit those, again in small amounts.
The term "smurfing" is derived from the image of the
comic book characters, the Smurfs, having a large
group of many small entities.
Miami-based lawyer Gregory Baldwin is said to have
coined the term in the 1980s
 a business that receive a
large proportion of its
revenue as cash and uses
its accounts to deposit
legitimate earnings
blended with illegitimate
funds.
 This involves under or overvaluing invoices to disguise the movement of
money.
 This involves physically smuggling
cash to another jurisdiction and
depositing it in a financial institution,
such as an offshore bank, with
greater bank secrecy or less rigorous
money laundering enforcement
 money is deposited in a controlled
foreign corporation offshore, preferably
in a tax haven where minimal records
are kept, and then shipped back as a
foreign direct investment, exempt from
taxation.
Tax haven - refer to a state, country, or
territory which maintains a system of
financial secrecy, which enables foreign
individuals to hide assets or income to
avoid or reduce taxes in the home
jurisdiction.
Switzerland
Luxembourg
Netherlands
Ireland
British Virgin Islands
Cayman Islands
 money launderers or criminals buy a controlling
interest in a bank, preferably in a jurisdiction with
weak money laundering controls, and then move
money through the bank without scrutiny.
 A company may have unregistered
employees without a written
contract and pay them cash
salaries. Dirty money might be
used to pay them.
 SPO3 RICKY STA ISABEL
accused in the abduction and murder of
South Korean businessman Jee Ick-joo
declared assets totaling more than
P17 million in 2015
Alleged Dirty Money
base monthly pay of P25,394.00.
His annual taxable income is over
P350,000.
 PLACEMENT LAYERING INTEGRATION

He said his wife he and his wife ran Properties:

raised their capital has five houses and lots
out of her several businesses: 4-story commercial
commissions from Insurance building
insurance sales. Sta. 3 lots in Caloocan
Isabel further told Bayad Center
that all these were 2014 Toyota Hilux
declared in his and Western Union 2012 Toyota Vios
his wifes tax franchise 2014 Honda tricycle
payments. 2012 Kawasaki
Lotto outlet motorcycle
 criminalizes money laundering
creates a financial intelligence unit (AMLAC) to investigate suspicious transactions
and activities
Relaxes Strict bank deposits secrecy law
Provides for bank inquiry & seizure of dirty money/ property
provides international cooperation
It also acts as the Philippines' financial intelligence unit (FIU) and anti-money
laundering/counter-terrorism financing (AML/CTF) regulator.
 The Anti-Money Laundering Council (AMLC) Philippines government agency
tasked to implement the provisions of Republic Act No. 9160, also known as the
Anti-Money Laundering Act of 2001 (AMLA), as amended, and Republic Act No.
10168, also known as the Terrorism Financing Prevention and Suppression Act of
2012 (TFPSA). It also acts as the Philippines' financial intelligence unit (FIU) and
anti-money laundering/counter-terrorism financing (AML/CTF) regulator.
Members of AMLAC:
1. Bangko Sentral ng Pilipinas - BSP governor is the chairman
2. Securities and Exchange Commission - SEC chairman
3. Insurance Commission -IC comissioner
AMLAC is assisted by a secretariat tasked to implement various directive
 Require and receive covered or suspicious transaction reports from covered institutions
issue orders to determine the true identity of the owner of any monetary instrument or property that
is the subject of a report
institute civil forfeiture and all other remedial proceedings through the office of the Solicitor General
Cause the filing of complaints with the DOJ or the Ombudsman for the prosecution of Money
laundering case
investigate suspicious transactions covered transactions deemed suspicious money laundering
activities and other violations of AMLA
secure the order of the court of appeals to freeze any monetary instrument or property alleged to be
the proceeds of unlawful activities
implement necessary and justified measures to counteract money laundering
develop educational programs to make the public aware of the pernicious effects of money
laundering and how they can participate in bringing offender to justice
enlist the assistance of any branch of government, including intelligence agencies, for the
prevention, detection and investigation of money laundering offenses and the prosecution of
offenders
impose administrative sanctions to those who violate the law and the rules, regulations, orders and
resolutions issues in connection with the enforcement of the law
 one or more transactions covering 500,000 & above in one day
or any transactions regardless of amount involving :
unidentified parties
amount is not commensurate to financial capacities of involve parties
unlawful activities or predicate crimes
circumstances that deviate from the history of involved parties
covered institutions or individuals are mandated by the AMLA to submit covered and suspicious
transaction reports to the AMLAC

The AMLAC can only pursue dirty money generated from specific crimes listed as
predicate crimes in the AMLA
July 2017 The House of Representatives has approved on third and final reading a
bill including casinos in the coverage of the Anti-Money Laundering Law
P5 million the threshold amount that would require casinos to report suspicious
transactions to the Anti-Money Laundering Council.
 All entities that fall under the regulation and supervision of BSP, SE, and IC

BANKS

INSURANCE, PRE-NEED COMPANIES

Preneed plans are contracts which provide for the performance of future service/s or payment of
future monetary consideration at the time of actual need, payable either in cash or installments by
plan holders at prices stated in the contract with or without interest or insurance coverage. It
includes life, pension, education, interment and other plans which the commission may approve
occasionally.

SECURITIES DEALERS(ex. stock brokers)

 Kidnapping for ransom July 2017 The House
Violation of Republic Act No. 9165, otherwise known as the Comprehensive Dangerous of Representatives has
Drugs Act of 2002 approved on third and
Anti-Graft and Corrupt Practices final reading of House
Plunder Bill 014 including
Robbery and extortion
casinos in the
coverage of the Anti-
Jueteng and Masiao (jai alai) punished as illegal gambling
Money Laundering
Piracy on the High Seas Law
Qualified theft
Swindling P5 million the
Smuggling threshold amount that
would require casinos
Violations Under R.A. 8792 Electronics commerce act
to report suspicious
Hijacking and other violations under Republic Act No. 6235; destructive arson and murder, transactions to the
as defined under the Revised Penal Code, as amended, including those perpetrated by
terrorists against non-combatant persons and similar targets; Anti-Money
Fraudulent practices and other violations under Republic Act No. 8799, otherwise known Laundering Council.
as the Securities Regulation Code of 2000;
Felonies or offenses of a similar nature that are punishable under the penal laws of other
countries.
 Direct Perpetrator 7 to 14 years of imprisonment and a fine less than 3 Million but not twice the value of monetary instrument

or property

Facilitating 4 to 7 years of imprisonment and a fine not less than 1.5 Million but not more than 3 Million

Failure to report 6 months to 4 years of imprisonment or a fine not less than 100,000 but not more than 500,000

failure to keep records 6 months to 4 years of imprisonment or a fine not less than 100,000 but not more than 500,000

malicious reporting 6 months to 4 years or a fine not less than 100,000 but not more than 500,000 or both the offender is not

entitled to the benefits of the probation law

breach of confidentiality 3 to 8 years and a fine of not less than 500,000 but no more than 1 million

incase prohibited information is reported by media the responsible reporter, writer, president, publisher,

manager and editor-in-chief are held criminally liable

administrative violations 100,000 to 500,000

 SEC. 15.System of Incentives and Rewards. A system of special incentives and
rewards is hereby established to be given to the appropriate government agency
and its personnel that led and initiated an investigation, prosecution and conviction
of persons involved in the offense penalized in Section 4 of this Act]. Repealed by
Sec. 10 of RA 9194
SEC. 16. Prohibitions Against Political Harassment. This Act shall not be used for
political persecution or harassment or as an instrument to hamper competition in
trade and commerce.
No case for money laundering may be filed against and no assets shall be frozen,
attached or forfeited to the prejudice of a candidate for an electoral office during
an election period.
SEC. 17. Restitution. Restitution for any aggrieved party shall be governed by the
provisions of the New Civil Code.
 Branch 167 of the Pasig Regional Trial Court
Eric Allagadan, branch manager of Union Bank in Annapolis, Greenhills.
Sentenced to pay P1.5 million or face a prison term of not less than four years and not
more than six years
facilitated the laundering of some P14 million that was reportedly hijacked by a
criminal syndicate from Mitsubishi Corp
Court records revealed that in March 2002, Mitsubishi had imported cargo from Japan to
Manila for its project in Iligan and had paid taxes and duties amounting to P15.92
million.
However, the amount was never deposited to the account of the Bureau of Customs
(BOC) and was instead deposited into the account of one Mario Misa.
AMLC was able to freeze the accounts that received the deposits and only about P1
million was unaccounted for after being withdrawn
 G7:
Canada
France
Germany
Italy
These agencies are the foremost authorities in the world geared against money Japan
United Kingdom
laundering, and are the primary contacts of the Philippines AMLaC U.S.
European Union
Financial Action Task Force (FATF)
also known by its French name, Groupe d'action financire (GAFI)
Headquarters Paris France
intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to
combat money laundering. It monitors countries' progress in implementing the FATF
Recommendations by peer reviews (mutual evaluations) of member countries.
Egmont Group
is an informal network of national financial intelligence units (FIUs). National FIUs collect information on
suspicious or unusual financial activity from the financial industry and other entities or professions
required to report transactions suspected of being money laundering or terrorism financing.
The Asia Pacific Group on Money Laundering
The FATF-style regional body for the Asia/Pacific region. It is an inter-governmental (international)
organisation founded in 1997 in Bangkok, Thailand. The APG consists of 41 member jurisdictions and a
number of observer jurisdictions and international/regional observer organisations.
 SWIFT - Society for Worldwide Interbank Financial Telecommunication
provides a network that enables financial institutions worldwide to send and receive
information about financial transactions in a secure, standardized and reliable
environment.
DRIDEX MALWARE
also known as Bugat and Cridex is a form of malware that specializes in stealing bank
credentials via a system that utilizes macros from Microsoft Word.
email attachment in Word or Excel, causing macros to activate and download Dridex,
infecting the computer and opening the victim to banking theft.