IRR of AMLA

November 22, 2018
2018 IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9160,

OTHERWISE KNOWN AS THE ANTI-MONEY LAUNDERING ACT OF 2001, AS
AMENDED
In accordance with Section 7 (7) of Republic Act No. 9160, otherwise known as
the "Anti-Money Laundering Act of 2001," as amended (AMLA), the following rules and
regulations are hereby promulgated:
Chapter I. General Provisions
Rule 1 — Purpose, Policies and Principles
Rule 2 — Definition of Terms
Rule 3 — Unlawful Activities
Rule 4 — Covered Persons
Chapter II. Supervision and Enforcement
Rule 5 — Anti-Money Laundering Council
Rule 6 — Powers and Functions of the AMLC
Rule 7 — Supervision and Compliance Checking
Rule 8 — Investigation and Law Enforcement
Chapter III. Money Laundering, Terrorism Financing, and Asset Forfeiture
Rule 9 — Money Laundering and Terrorism Financing
Rule 10 — Freeze Order
Rule 11 — Bank Inquiry
Rule 12 — Asset Forfeiture
Chapter IV. National Risk Assessment and Management
Rule 13 — National Risk Assessment
Rule 14 — National Risk Management
Chapter V. Preventive Measures and Obligations of Covered Persons
Rule 15 — Institutional Risk Assessment and Management
Rule 16 — Money Laundering/Terrorism Financing Prevention Program
Chapter VI. Preventive Measures
Rule 17 — Prohibited Accounts
Rule 18 — Customer Due Diligence
Section 1. Purpose and Applicability of CDD
1.1. Purpose of CDD
1.2. When is CDD Applicable
1.3. Existing Customers
Section 2. Customer Due Diligence Measures
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2.1. Measures for CDD
2.2. Timing of CDD
2.3. Average Due Diligence
2.4. Customer Acceptance Policies
Section 3. Customer Identification Process
3.1. General Requirement for CIP
3.2. First Time Transactions
3.3. System for Collection and Recording of Data
3.4. Required Identification from Natural Persons
3.5. Required Identification Data from Juridical Persons
3.6. Required Identification Data from Legal Arrangements
3.7. Sufficiency of PSN or PhilID in Proving Identity
Section 4. Customer Verification Process
4.1. General Requirement for CVP
4.2. CVP for Juridical Persons and Legal Arrangement
4.3. Timing of CVP
4.4. Transacting or Using Relationship prior to CVP
4.5. Modes of CVP
4.6. Use of Communication and Information Technology
Section 5. Identification and Verification of Agents
Section 6. Beneficial Ownership Verification
6.1. General Requirement for BOV
6.2. Documents Evidencing Relationship
6.3. Timing of BOV
6.4. BOV for Juridical Persons
6.5. BOV for Legal Arrangements
Section 7. Determination of the Purpose of Relationship
Section 8. Ongoing Monitoring Process
8.1. General Requirement for OMP
8.2. EDD After Conduct of OMP
8.3. Review and Updating of Records
Section 9. Risk-based Approach in Conducting CDD
9.1. Risk-based CDD
9.2. Risk Profiling of Customers
9.3. Risk Profiling of Juridical Persons
9.4. Documentation of Risk Profiling Results
9.5. Standards for RDD, ADD and EDD
Section 10. Enhanced Due Diligence
Section 11. Reduced Due Diligence
Section 12. Failure to Complete CDD
Section 13. CDD and Tipping-off
Rule 19 — Preventive Measures for Specific Transactions and Activities
Rule 20 — Record-Keeping
Rule 21 — Reliance on Third Parties and Service Providers
Rule 22 — Transaction Reporting
Chapter VII. Beneficial Ownership
Rule 23 — Beneficial Ownership of Juridical Persons
Rule 24 — Beneficial Ownership of Legal Arrangements
Chapter VIII. Sanctions
Rule 25 — Criminal Sanctions
Rule 26 — Administrative Sanctions
Rule 27 — Civil Sanctions
Chapter IX. Domestic and International Cooperation
Rule 28 — Domestic Cooperation
Rule 29 — Mutual Legal Assistance
Rule 30 — Extradition
Rule 31 — Other Forms of International Cooperation
Chapter X. Miscellaneous Provisions
Rule 32 — Asset Management, Feedback Mechanism and Statistics
Rule 33 — Non-Intervention in the Operations of the Bureau of Internal Revenue
Rule 34 — Separability and Repealing Clauses
Rule 35 — Transitory Provisions, Modes of Amendment and Effectivity Clause
CHAPTER I
General Provisions
RULE 1
Purpose, Policies and Principles
SECTION 1. Title and Purpose. —
1.1. This set of rules and regulations shall be known as the "2018
Implementing Rules and Regulations" (IRR) of the AMLA.
1.2. This IRR was promulgated to provide the details of implementation of
the AMLA, as well as to assist all covered persons, supervising authorities, law
enforcement and other government agencies, and other stakeholders by prescribing
the rules and regulations to combat money laundering, terrorism nancing being a
predicate offense to money laundering, and other associated unlawful activities.
SECTION 2. State Policies on AML/CTF. —
The provisions of this IRR are in line with the following State Policies:
(a) To protect and preserve the integrity of the Philippine nancial system,
including the confidentiality of bank accounts.
(b) To ensure that the Philippines shall not be used as a money laundering
site for the proceeds of any unlawful activity.
(c) To extend cooperation, consistent with Philippines' foreign policy, in
transnational investigations and prosecutions of persons involved in
money laundering activities wherever committed.
(d) To protect life, liberty and property from acts of terrorism and to
condemn terrorism and those who support and finance it; and to recognize
it as inimical and dangerous to national security and the welfare of the
people; and to make the nancing of terrorism a crime against the Filipino
people, against humanity and against the law of nations.
(e) To recognize and to adhere to international commitments to combat the
nancing of terrorism, speci cally to the International Convention for the
Suppression of the Financing of Terrorism , as well as other binding
terrorism related resolutions of the United Nations Security Council,
pursuant to Chapter 7 of the United Nations Charter.
(f) To reinforce the ght against terrorism by preventing and suppressing the
commission of said offenses through freezing and forfeiture of property
or funds while protecting human rights.
SECTION 3. Governing Principles. —
The anti-money laundering/counter-terrorism nancing (AML/CTF) regime of the
Philippines shall be governed by the following principles:
(a) The AMLC, as the country's nancial intelligence unit, is vested by law with
independence to perform its mandate. It upholds the continuous
development of a team of highly ethical and professional personnel and
implements efficient processes in the delivery of its mandate.
(b) The AML/CTF laws, rules and regulations and other relevant issuances are
implemented using a risk-based approach in a way that responds to the
need to bring the nancially excluded into the regulated nancial sector,
while at the same time maintaining effective safeguards and effective
controls against money laundering/terrorism financing risks.
(c) A strong compliance culture, good governance and observance of high
ethical standards in the conduct of business are good foundations for an
effective AML/CTF regime. It will be developed and sustained through
capacity building and deterrence of violations through imposition of
appropriate, proportionate and dissuasive sanctions.
(d) A sound risk management system to identify, assess, mitigate, monitor,
and control risks associated with money laundering/terrorism nancing is
essential.
(e) Timely and effective domestic and international cooperation and
established coordination mechanism are critical in the investigation and
prosecution of money laundering/terrorism nancing and associated
unlawful activities.
(f) The implementation of AML laws, rules and regulations shall conform to
international AML/CTF standards and best practices.
(g) The observance of the constitutional requirements on due process, and
injunction against ex post facto laws and bills of attainder.
RULE 2
Definition of Terms
SECTION 1. Definitions. —
For purposes of this IRR, the following terms are hereby defined as follows:
(a) "Account" refers to a bank account, electronic money account,
investment account, insurance policy, membership account, and other
similar contract or service agreement, business or professional
relationships between a covered person and its customers where funds or
any monetary instrument of the latter are held by the former.
(b) "Anti-Money Laundering Act" (AMLA) refers to Republic Act No. 9160,
as amended by Republic Act Nos. 9194, 10167, 10365, and 10927.
(c) "Anti-Money Laundering Council" (AMLC) refers to the Philippines'
central AML/CTF authority and nancial intelligence unit, which is the
government instrumentality mandated to implement the AMLA and TFPSA.
It also refers to the o cial name of the Council, which is the governing
body of the said government agency.
For purposes of this IRR, the government agency shall be referred hereafter
as the "AMLC," while the governing body shall be referred hereafter as the
"Council."
(d) "Appropriate Government Agency" (AGA) refers to the Philippine
Amusement and Gaming Corporation (PAGCOR), Cagayan Economic Zone
Authority (CEZA), Aurora Paci c Economic Zone and Freeport Authority
(APECO), or other government agency, as may be determined by law,
which may authorize casinos to engage in gaming operations.
(e) "Asset" refers to a monetary instrument, property, or both.
(f) "Asset Preservation Order" (APO) refers to a provisional remedy aimed
at preserving monetary instruments or properties in any way related to an
unlawful activity or money laundering offense de ned herein, during the
pendency of civil forfeiture proceedings.
(g) "Average Due Diligence" (ADD) refers to the normal level of customer
due diligence that is appropriate in cases where there is medium risk of
money laundering or terrorism financing.
(h) "Bangko Sentral ng Pilipinas" (BSP) refers to the central bank of the
Republic of the Philippines established pursuant to the provisions of the
1987 Constitution and Republic Act No. 7653.
(i) "Bank Inquiry" (BI) refers to a provisional remedy that allows the AMLC
to examine or inquire into particular bank accounts or investment with a
bank or non-bank nancial institution, notwithstanding the provisions of
Republic Act No. 1405, as amended; Republic Act No. 6426, as amended;
Republic Act No. 8791; and other bank secrecy laws.
(j) "Bearer Negotiable Instruments" (BNIs) refers to monetary
instruments in bearer form such as, traveler's checks; negotiable
instruments, including checks, promissory notes and money orders, that
are either in bearer form, endorsed without restriction, made out to a
ctitious payee, or otherwise in such form that title thereto passes upon
delivery; and incomplete instruments, including checks, promissory notes
and money orders, signed, but with the payee's name omitted.
(k) "Bearer Shares" refers to negotiable instruments that accord ownership
in a juridical person to the person who possesses the bearer share
certificate.
(l) "Beneficial Owner" refers to any natural person who:
(1) Ultimately owns or controls the customer and/or on whose behalf
a transaction or activity is being conducted;
(2) Has ultimate effective control over a juridical person or legal
arrangement; or
(3) Owns, at least, twenty percent (20%) shares, contributions or equity
interest in a juridical person or legal arrangement.
Control includes whether the control is exerted by means of trusts,
agreements, arrangements, understandings, or practices, and whether or
not the individual can exercise control through making decisions about
financial and operating policies.
(m) "Bene cial Ownership Veri cation" (BOV) is the process of taking
reasonable measures to identify and verify the bene cial owner, including
the determination of the true nature of the bene cial owner's capacities
and duties vis-à-vis his agent, nominee or trustee.
(n) "Beneficiary" refers to:
(1) General: any person for whose bene t an account was created or
transaction was made.
(2) For trust agreements: any person for whose bene t the trust has
been created.
(3) For life insurance or investment-linked insurance policies: any
person who will be paid the policy proceeds.
(4) For wire transfers: refers to a person or legal arrangement who is
identi ed by the originator as the receiver of the requested wire
transfer.
(n) n "Bene ciary Financial Institution" refers to the nancial institution,
which receives the wire transfer from the originating/ordering nancial
institution, directly or through an intermediary nancial institution, and
makes the funds available to the beneficiary.
(o) "Biometric Information" refers to front facing photograph, ngerprint,
iris scan, and/or such other unique identifiable features of an individual.
(p) "Casino" refers to a business authorized by the appropriate government
agency to engage in gaming operations.
(q) "Casino Cash Transaction" refers to transactions involving the receipt
of cash by a casino paid by or on behalf of a customer; or transactions
involving the payout of cash by a casino to a customer or to any person in
his behalf.
(r) "Civil Forfeiture" (CF) refers to the non-conviction-based proceedings
aimed at forfeiting, in favor of the government, monetary instruments or
properties related to an unlawful activity or money laundering offense
defined herein.
(s) "Close Relationship/Associate" refers to persons who are widely and
publicly known, socially or professionally, to maintain a particularly close
relationship with the PEP, and include persons who are in a position to
conduct substantial domestic and international nancial transactions on
behalf of the PEP.
(t) "Correspondent Banking" refers to the provision of banking services by
one bank, called the correspondent bank, to another bank, called the
respondent bank.
(u) "Company Service Provider" (CSP) refers to a person engaged in the
business of providing the following services for customers, who need to
perform or offer a service or activity, but are not capable of doing or do
not want to do so directly due to nancial or operational reasons, or
business judgment:
(1) acting as a formation agent of juridical persons;
(2) acting as (or arranging for another person to act as) a director or
corporate secretary of a company, a partner of a partnership, or a
similar position in relation to other juridical persons;
(3) providing a registered office; business address or accommodation,
correspondence or administrative address for a company, a
partnership or any other juridical person or legal arrangement; and
(4) acting as (or arranging for another person to act as) a nominee
shareholder for another person.
(v) "Cover Payment" refers to a wire transfer that combines a payment
message sent directly by the originating/ordering nancial institution to
the bene ciary nancial institution with the routing of the funding
instruction, called the cover, from the originating/ordering nancial
institution to the bene ciary nancial institution through one or more
intermediary financial institutions.
(w) "Covered Transaction" refers to:
(1) A transaction in cash or other equivalent monetary instrument
exceeding Five Hundred Thousand pesos (PHP500,000.00).
(2) A transaction with or involving jewelry dealers, dealers in precious
metals and dealers in precious stones in cash or other equivalent
monetary instrument exceeding One Million pesos
(Php1,000,000.00).
(3) A casino cash transaction exceeding Five Million Pesos
(PHP5,000,000.00) or its equivalent in other currency.
(x) "Covered Transaction Report" (CTR) refers to a report on a covered
transaction, as herein defined, filed by a covered person before the AMLC.
(y) "Cross-Border Wire Transfer" refers to any wire transfer where the
originating and/or bene ciary nancial institutions are located in different
countries. It shall also refer to any chain of wire transfers in which, at least,
one of the financial institutions involved is located in a different country.
(z) "Customer/Client" refers to any person who keeps or maintains an
account, or otherwise transacts business with a covered person. It
includes the following:
(1) Bene cial owner, or any natural person who ultimately owns or
controls a customer and/or on whose behalf an account is
maintained or a transaction is conducted;
(2) Transactors, agents and other authorized representatives of
beneficial owners;
(3) Bene ciaries of trusts, investment and pension funds, insurance
policies, and remittance transactions;
(5) n Persons whose assets are managed by an asset manager;
(5) Trustors/grantors/settlors of a trust; and
(6) Insurance policy holders, whether actual or prospective.
(aa) "Customer Due Diligence" (CDD) refers to the procedure of identifying
and verifying the true identity, of customers, and their agents and
bene cial owners, including understanding and monitoring of their
transactions and activities.
(bb) "Customer Identi cation Process" (CIP) refers to the process of
determining the identity of the customer vis-à-vis the valid and acceptable
identi cation document submitted to, and/or presented before, the
covered person.
(cc) "Customer Veri cation Process" (CVP) refers to the process of
validating the truthfulness of the information, and con rming the
authenticity of the identi cation documents, presented, submitted and
provided by the customer; or other ways of verifying the identity and
assessing the risk pro le of customers, and their agents and bene cial
owners, through the use of reliable and independent sources, documents,
data or information.
(dd) "Dealer in Precious Metals and Stones/Jewelry Dealer" refers to
an individual or entity who buys and/or sells precious metals, precious
stones, and/or jewelry in the course of its business activities. The
purchases or sales of precious metals, precious stones, and/or jewelry, as
referred to herein, exclude those carried out for, connected with, or for the
purpose of extracting precious metals or precious stones from a mine, or
cutting or polishing precious stones.
(ee) "Designated Non-Financial Businesses and Professions" (DNFBP)
refer to businesses and professions, which are not under the supervision
or regulation of the BSP, SEC and IC, and designated as covered persons
under the AMLA.
(ff) "Determination of the Purpose of Relationship" (DPR) refers to the
process of identifying the purpose and intended nature of the account,
transaction, or business or professional relationship.
(gg) "Domestic Wire Transfer" refers to any wire transfer where the
originating and bene ciary nancial institutions are located in the same
country. It shall refer to any chain of wire transfers that takes place entirely
within the borders of a single country, even though the system used to
transfer the payment message may be located in another country.
(hh) "Demographic Data" refers to a person's full name, sex, date and place
of birth, address, citizenship or nationality, and such other personal
information from which the identity of a person can be ascertained.
(ii) "Enhanced Due Diligence" (EDD) refers to the enhanced level of scrutiny
intended to provide a more comprehensive understanding of the risks
associated with the client, as well as con rmation of factual information
provided by the client, to mitigate risks presented.
(jj) "Financial Intelligence" refers to the gathering and analysis of
information about the transactions and nancial activities of persons of
interest, to understand their nature and capabilities, and predict their future
actions. It may also refer to intelligence information, which is the result of
the analysis of the information gathered.
(kk) "Financial Intelligence Unit" (FIU) refers to the national center for the
receipt and analysis of: (a) suspicious transaction reports; and (b) other
information relevant to ML/TF and associated unlawful activities, and for
the dissemination of the results of that analysis.
(ll) "Financial Investigation" refers to an inquiry into the nancial affairs of
persons related to ML/TF and associated unlawful activity, with a view to:
(1) identifying the extent of criminal networks and/or the scale of
criminality;
(2) identifying and tracing the proceeds and instrumentalities of crime,
terrorism funds or any other assets that are, or may become,
subject to forfeiture proceedings; and
(3) developing and/or gathering of evidence which can be used in
litigation of cases.
(mm) "Freeze Order" (FO) refers to a provisional remedy aimed at blocking
or restraining monetary instruments or properties in any way related to an
unlawful activity, as herein de ned, from being transacted, withdrawn,
deposited, transferred, removed, converted, concealed, or otherwise
moved or disposed without affecting the ownership thereof.
(nn) "Gaming Operations" refers to games of chance and variations thereof
offered by casinos, and approved by the AGA under their enabling laws and
other applicable issuances. It shall exclude:
(1) Traditional bingo operations authorized by the AGA;
(2) Lotteries and sweepstakes of the Philippine Charity Sweepstakes
Office; and
(3) Such other games of chance and variations as may be declared
exempt by the AGA based on the result of their risk assessment, in
consultation with AMLC.
(oo) "Identi cation and Veri cation of Agents" (IVA) refers to the
process of establishing and recording the true and full identity and
existence of an agent, nominee, trustee or other authorized representatives
who is acting as an account holder or transactor, and other person who is
acting in behalf of a bene cial owner or principal, including verifying the
validity of the authority of the agent, nominee, trustee, or authorized
representative.
(pp) "Identi cation Data" refers to both the identi cation information and
identification document, as herein defined.
(qq) "Identification Document" (ID) refers to any of the following evidence
of identity:
(1) For Filipino citizens: Those issued by any of the following o cial
authorities:
(a) PhilID;
(b) Other identi cation documents issued by the
Government of the Republic of the Philippines, including
its political subdivisions, agencies, and instrumentalities;
and
(c) Other identi cation documents that can be veri ed
using reliable, independent source documents, data or
information.
(2) For foreign nationals:
(a) PhilID, for resident aliens;
(b) Passport;
(c) Alien Certificate of Registration; and
(d) Other identi cation documents issued by the
Government of the Republic of the Philippines, including
its political subdivisions, agencies, and instrumentalities.
(3) For Filipino students:
(a) PhilID;
(b) School ID signed by the school principal or head of the
educational institution; and
(c) Birth Certi cate issued by the Philippine Statistics
Authority; and
(4) For low risk customers: Any document or information reduced in
writing which the covered person deems su cient to establish the
client's identity.
(rr) "Identi cation Information/Personal Information" refers to the
demographic data and biometric information of a natural person, or
information about a juridical person or legal arrangement, from which the
identity of a person is apparent or can be reasonably and directly
ascertained by the person holding the information, or when put together
with other information would directly and certainly identify a person.
(ss) "Immediate Family Member" refers to individuals related to the PEP
within the second degree of consanguinity or affinity.
(tt) "Independent Legal/Accounting Professional" refers to
lawyers/accountants working in a private rm or as a sole practitioner
who, by way of business or occupation, provides purely legal or accounting
services to their clients.
(uu) "Information and Communication Technology" (ICT) refers to the
totality of electronic means to access, create, collect, store, process,
receive, transmit, present and disseminate information.
(vv) "Institutional Risk Assessment" refers to a comprehensive exercise
to identify, assess and understand a covered person's ML/TF threats,
vulnerabilities and the consequential risks, with a view to mitigate illicit
flow of funds and transactions.
(ww) "Instrumentality" refers to any monetary instrument or property used
to finance, operate, and/or maintain an unlawful activity.
This de nition is in relation to "monetary instrument or property related to
unlawful activity."
(xx) "Insurance Commission" (IC) refers to the Philippines' regulator of the
insurance and pre-need industries.
(yy) "Intermediary Financial Institution" refers to a nancial institution in
a serial payment or cover payment chain that receives and transmits a wire
transfer on behalf of the ordering nancial institution and the bene ciary
financial institution, or another intermediary financial institution.
(zz) "Internet-Based Casino" refers to casinos in which persons participate
by the use of remote communication facilities such as, but not limited to,
internet, telephone, television, radio or any other kind of electronic or other
technology for facilitating communication.
(aaa) "Jewel" refers to organic substances that have a market-recognized
gem level of quality, beauty and rarity, such as pearl, amber and coral.
(bbb) "Jewelry" refers to nished goods deriving fty percent (50%) or more
of their value from jewels, precious metals or precious stones constituting,
forming part of, or attached to said finished goods.
(ccc) "Law Enforcement Agency" (LEA) refers to the Philippine National
Police, National Bureau of Investigation, and other government agencies
that are responsible for the prevention, investigation, apprehension, and/or
detention of individuals suspected of, or convicted for, violations of
criminal laws.
(ddd) "Materially-linked Accounts" refer to:
(1) All accounts or monetary instruments under the name of the
person whose accounts, monetary instruments, or properties are
the subject of the freeze order or an order of inquiry;
(2) All accounts or monetary instruments held, owned, or controlled by
the owner or holder of the accounts, monetary instruments, or
properties subject of the freeze order or order of inquiry, whether
such accounts are held, owned or controlled singly or jointly with
another person;
(3) All "In Trust For" accounts where either the trustee or the trustor
pertains to a person whose accounts, monetary instruments, or
properties are the subject of the freeze order or order of inquiry;
(4) All accounts held for the bene t or in the interest of the person
whose accounts, monetary instruments, or properties are the
subject of the freeze order or order of inquiry;
(5) All accounts of juridical persons or legal arrangements that are
owned, controlled or ultimately effectively controlled by the natural
person whose accounts, monetary instruments or properties are
subject of the freeze order or order of inquiry, or where the latter has
ultimate effective control; and
(6) All other accounts, shares, units, or monetary instruments that are
similar, analogous, or identical to any of the foregoing.
(eee) "Monetary Instrument" refers, but is not limited, to the following:
(1) Coins or currency of legal tender of the Philippines, or of any other
country;
(2) Credit instruments, including bank deposits, nancial interest,
royalties, commissions, and other intangible property;
(3) Drafts, checks, and notes;
(4) Stocks or shares, participation or interest in a corporation or in a
commercial enterprise or pro t-making venture and evidenced by a
certi cate, contract, instrument, whether written or electronic in
character, including those enumerated in Section 3 of the Securities
Regulation Code;
(5) A participation or interest in any non-stock, non-profit corporation;
(6) Securities or negotiable instruments, bonds, commercial papers,
deposit certi cates, trust certi cates, custodial receipts, or deposit
substitute instruments, trading orders, transaction tickets, and
con rmations of sale or investments and money market
instruments;
(7) Contracts or policies of insurance, life or non-life, contracts of
suretyship, pre-need plans, and member certi cates issued by
mutual benefit association; and
(8) Other similar instruments where title thereto passes to another by
endorsement, assignment, or delivery.
(fff) "Monetary Instrument or Property Related to an Unlawful
Activity" refers to:
(1) All proceeds of an unlawful activity;
(2) All instrumentalities of an unlawful activity, including all moneys,
expenditures, payments, disbursements, costs, outlays, charges,
accounts, refunds, and other similar items for the nancing,
operations, and maintenance of any unlawful activity;
(3) All monetary instruments or property, including monetary, nancial
or economic means, devices, accounts, documents, papers, items,
objects or things, used in or having any relation to any unlawful
activity or money laundering, regardless of the current owner or
possessor, and circumstances of ownership or acquisition; and
(4) For purposes of freeze order and bank inquiry order: related and
materially-linked accounts.
(ggg) "Money Laundering" (ML) refers to the crime de ned under Section 4
of the AMLA.
(hhh) "Money Laundering/Terrorism Financing Prevention Program"
(MTPP) refers to a covered person's comprehensive, risk-based, and
written internal policies, controls and procedures to implement the
relevant laws, rules and regulations, and best practices to prevent and
combat ML/TF and associated unlawful activities in the operational level.
(iii) "Money or Value Transfer Service" (MVTS) refers to nancial services
that involve the acceptance of cash, checks, other monetary instruments
or other stores of value, and the payment of a corresponding sum in cash
or other form to a bene ciary by means of a communication, message,
transfer, or through a clearing network to which the service provider
belongs.
(jjj) "Mutual Legal Assistance" (MLA) refers to the formal method of
cooperation between two jurisdictions for purposes of seeking assistance
in the production of documents, asset freezing and forfeiture, extradition,
enforcement of foreign judgment, and other kinds of legal assistance in
criminal matters.
(kkk) "National Risk Assessment" (NRA) refers to a comprehensive
exercise to identify, assess and understand a country's ML/TF threats,
vulnerabilities and the consequential risks, with a view to mitigate illicit
flow of funds and transactions.
(lll) "Non-Pro t Organization" (NPO) refers to a juridical person, legal
arrangement or organization that primarily engages in raising or disbursing
funds for purposes such as charitable, religious, cultural, educational,
social or fraternal purposes, or for the carrying of other types of "good
works."
(mmm) "Offender" refers to any person who commits a money laundering
offense.
(nnn) "Ongoing Monitoring Process" (OMP) refers to the process of
conducting continuing due diligence, including continually assessing the
risks, understanding the transactions and activities, and updating, based
on risk and materiality, the identi cation information and/or identi cation
documents, of customers, their agents and beneficial owners.
(ooo) "Originating/Ordering Financial Institution" refers to the nancial
institution, which initiates the wire transfer and transfers the funds upon
receiving the request for a wire transfer on behalf of the originator.
(ppp) "Originator" refers to the account holder who allows the wire transfer
from that account or where there is no account, the person that places an
order with the originating/ordering nancial institution to perform a wire
transfer.
(qqq) "Other Government Agency" (OGA) refers to a government agency
that is not an SA, AGA or LEA.
(rrr) "Parallel Financial Investigation" refers to conducting a nancial
investigation or investigation into the ML/TF aspect of a case alongside, or
in the context of, the investigation into the associated unlawful activity.
(sss) "Payable-through Accounts" refers to correspondent accounts that
are used directly by third parties to transact business on their own behalf.
(ttt) "Person/Entity" refers to any natural or juridical person.
(uuu) "Philippine Identi cation Card" (PhilID) refers to the non-
transferrable identi cation card issued by the Philippine Statistics
Authority (PSA) to all citizens and resident aliens registered under the
Philippine Identi cation System. It shall serve as the o cial government-
issued identi cation document of cardholders in dealing with all
government agencies, local government units, government and controlled
corporations, government nancial institutions, and all private sector
entities.
(vvv) "Philippine Identi cation System" (PhilSys) refers to the Philippine
Government's central identi cation platform, established under Republic
Act No. 11055, otherwise known as the "Philippine Identi cation System
Act" (PhilSys Act), for all citizens and resident aliens of the Philippines.
(www) "PhilSys Number" (PSN) refers to the randomly generated, unique
and permanent identi cation number assigned to every citizen or resident
alien, upon birth or registration, by the PSA.
(xxx) "Politically-Exposed Person" (PEP) refers to an individual who is or
has been entrusted with prominent public position in (a) the Philippines
with substantial authority over policy, operations or the use or allocation of
government-owned resources; (b) a foreign State; or (c) an international
organization.
(yyy) "Precious Metals" refers to gold, silver, platinum, palladium, rhodium,
ruthenium, iridium, and osmium at a level of purity of ve hundred (500)
parts per one thousand (1,000), singly or in any combination, and alloys of
precious metals, solders, and plating chemicals, such as rhodium and
palladium plating solutions, potassium gold cyanide containing at least
sixty-eight and three-tenths percent (68.3%) gold, potassium silver cyanide
containing at least sixty-eight percent (68%) silver and silver cyanide in salt
solution containing at least fifty-four percent (54%) silver.
(zzz) "Precious Stones" refers to all gems and stones used in jewelry
making, such as gemstones, jewels, and those substances that have
market-recognized gem level of quality, beauty, and rarity, such as
diamond, corundum (including rubies and sapphires), beryl (including
emeralds and aquamarines), chrysoberyl, spinel, topaz, zircon, tourmaline,
garnet, crystalline and cryptocrystalline quartz, olivine peridot, tanzanite,
jadeite jade, nephrite jade, spodumene, feldspar, turquoise, lapis lazuli, opal
and pearl.
(aaaa) "Probable Cause" refers to such facts and circumstances which
would lead a reasonably discreet, prudent, or cautious man to believe that:
(1) any monetary instrument or property sought to be frozen, inquired
into or preserved is in any way related to any unlawful activity and/or
money laundering offense; or
(2) ML/TF has been committed and that the respondent is probably
guilty thereof.
(bbbb) "Proceeds" refers to an amount derived or realized from any
unlawful activity, as herein defined.
(cccc) "Property" refers to anything or item of value, real or personal,
tangible or intangible, or any interest therein, or any bene t, privilege, claim,
or right with respect thereto, including:
(1) Personal property, including proceeds derived therefrom, or
traceable to any unlawful activity, as herein de ned, such as, but not
limited to:
(a) Cash;
(b) Jewelry, precious metals and stones, and other similar
items;
(c) Works of art, such as paintings, sculptures, antiques,
treasures, and other similar precious objects;
(d) Perishable goods; and
(e) Vehicles, vessels, aircraft, or any other similar
conveyance.
(2) Personal property, used as instrumentalities in the commission of
any unlawful activity, as herein defined, such as:
(a) Computers, servers, and other electronic information
and communication systems; and
(b) Any conveyance, including any vehicle, vessel, and
aircraft.
(3) Real estate, improvements constructed or crops growing thereon,
or any interest therein, standing upon the record of the registry of
deeds or local government unit in the name of the party against
whom the freeze order or asset preservation order is issued, or not
appearing at all upon such records, or not belonging to the party
against whom the freeze order or asset preservation order is issued
and held by any other person, or standing on the records of the
registry of deeds or local government unit in the name of any other
person, but are:
(a) derived from, or traceable to, any unlawful activity; or
(b) used as an instrumentality in the commission of any
unlawful activity, as herein defined.
(dddd) "Purely Legal/Accounting Service" refers to:
(1) Rendition of purely litigation, notarial, legal counseling, and/or other
services that can only be undertaken by a lawyer, as a professional;
or
(2) Rendition of purely accounting, auditing and/or other services that
can only be undertaken by a certi ed public accountant, as a
professional.
(eeee) "Relationship" refers to business or professional relationship
between the covered person and its customer.
(ffff) "Request for Information" (RFI) refers to a request for information by
FIUs, LEAs and OGAs, whether domestic or foreign, for intelligence or
investigative purposes only.
(gggg) "Realty Transaction" refers to a real estate transaction involving an
amount in excess of Five Hundred Thousand Pesos (PHP500,000.00).
(hhhh) "Realty Transaction Report" (RTR) refers to a report, including
copies of the relevant documents, on a realty transaction, as herein
de ned, led by the Land Registration Authority and all its Registry of
Deeds, before the AMLC.
(iiii) "Reduced Due Diligence" (RDD) refers to the lowest level of customer
due diligence that is appropriate in cases where there is low risk of money
laundering or terrorism financing.
(jjjj) "Related Account" refers to an account, the funds and sources of which
originated from and/or are materially-linked to the monetary instruments
or properties subject of the freeze order or an order of inquiry, regardless
of the layer of accounts that the funds had passed through or transactions
that they had undergone.
(kkkk) "Risk" refers to risk of loss arising from ML/TF activities.
(llll) "Risk-Based Approach" refers to the process by which countries,
competent authorities, and covered persons identify, assess, and
understand the ML/TF risks to which they are exposed, and take the
appropriate mitigation measures in accordance with the level of risk. This
includes prioritization and e cient allocation of resources by the relevant
key players and stakeholders in applying AML/CTF measures in their
operations in a way that ensures that they are commensurate with the
risks involved.
(mmmm) "Sectoral Risk Assessment" refers to a comprehensive exercise
to identify, assess and understand an industry's, or business or
professional sector's, threats, vulnerabilities and the consequential risks,
with a view to mitigate illicit flow of funds and transactions.
(nnnn) "Securities and Exchange Commission" (SEC) refers to the
Philippines' company register and regulator of the securities industry.
(oooo) "Serial Payment" refers to a direct sequential chain of payment
where the wire transfer and accompanying payment message travel
together from the originating/ordering nancial institution to the
bene ciary nancial institution, directly or through one or more
intermediary financial institutions.
(pppp) "Shell Bank" refers to a bank that has no physical presence in the
country in which it is incorporated and licensed, and which is una liated
with a regulated nancial group that is subject to effective consolidated
supervision.
(qqqq) "Ship-Based Casino" refers to casinos, the operation of which is
undertaken on board a vessel, ship, boat or any other water-based craft
wholly or partly intended for gambling.
(rrrr) "Source of Fund" refers to the origin of the funds or other monetary
instrument that is the subject of the transaction, or business or
professional relationship between a covered person and its customer,
such as cash on hand, safety deposit box with a covered person, and a
particular bank or investment account.
(ssss) "Source of Wealth" refers to the resource from which the
customer's wealth, including all monetary instruments and properties,
came, comes, or will come from, such as employment, business,
investment, foreign remittance, inheritance, donation, and winnings.
(tttt) "Straight-through Processing" refers to payment transactions that
are conducted electronically without the need for manual intervention.
(uuuu) "Strategic Analysis" refers to the high-level macro analysis of data
to decipher the underlying patterns and trends that would enable the
AMLC to draw conclusions and develop long-term strategies for the
prevention of ML/TF, and to provide input for policy formulation.
(vvvv) "Substantial Evidence" refers to such level of evidence which a
reasonable mind might accept as adequate to justify or support a
conclusion that a specific violation was committed.
(wwww) "Supervising Authority" (SA) refers to the BSP, the SEC, the IC, or
other government agencies designated by law to supervise or regulate a
particular financial institution or DNFBP.
(xxxx) "Suspicious Circumstance" refers to any of the following
circumstances, the existence of which makes a transaction suspicious:
(1) there is no underlying legal or trade obligation, purpose or
economic justification;
(2) the client is not properly identified;
(3) the amount involved is not commensurate with the business or
financial capacity of the client;
(4) taking into account all known circumstances, it may be perceived
that the client's transaction is structured in order to avoid being the
subject of reporting requirements under the AMLA;
(5) any circumstance relating to the transaction which is observed to
deviate from the pro le of the client and/or the client's past
transactions with the covered person;
(6) the transaction is in any way related to ML/TF or related unlawful
activity that is about to be committed, is being or has been
committed; or
(7) any transaction that is similar, analogous or identical to any of the
foregoing, such as the relevant transactions in related and
materially-linked accounts, as herein defined.
(yyyy) "Suspicion" refers to a person's state of mind — based on his skills,
experience, and/or understanding of the customer pro le — which
considers that there is a possibility that any of the suspicious
circumstances exists.
(zzzz) "Suspicious Transaction" refers to a transaction, regardless of
amount, where any of the suspicious circumstances, as herein de ned, is
determined, based on suspicion or, if available, reasonable grounds, to be
existing.
(aaaaa) "Suspicious Transaction Report" (STR) refers to a report on a
suspicious transaction, as herein de ned, led by a covered person before
the AMLC.
(bbbbb) "Tactical Analysis" refers to the analysis of data directed towards
the short-term development of investigative priorities and deployment of
resources, which include the analysis of time, space, offender, victim, and
modus operandi for individual high-pro le crimes, repeat incidents, and
crime patterns, with a specific focus on crime series.
(ccccc) "Terrorism Financing" (TF) refers to the crime de ned under
Section 4 of the TFPSA.
(ddddd) "Terrorism Financing Prevention and Suppression Act"
(TFPSA) refers to Republic Act No. 10168.
(eeeee) "Transaction" refers to any act establishing any right or obligation,
or giving rise to any contractual or legal relationship between the covered
person and its customer. It also includes any movement of funds, by any
means, in the ordinary course of business of a covered person.
(fffff) "Trustee" refers to a person in whom con dence is reposed as
regards property for the bene t of another person called the
trustor/grantor/settlor.
(ggggg) "Trustor/Grantor/Settlor" refers to a person who establishes a
trust, or who transfers ownership of his assets to a trustee by means of a
trust deed or similar arrangement.
(hhhhh) "Unique Transaction Reference Number" refers to a combination
of letters, numbers or symbols, determined by the payment service
provider, in accordance with the protocols of the payment and settlement
system or messaging system used for the wire transfer.
(iiiii) "Virtual Asset" refers to a digital representation of value that can be
digitally traded, or transferred, and can be used for payment or investment
purposes.
(jjjjj) "Virtual Asset Provider" refers to any person who, as a business,
conducts one or more of the following activities or operations for or on
behalf of another person:
(a) Exchange between virtual assets and fiat currencies;
(b) Exchange between one or more forms of virtual assets;
(c) Transfer (the conduct of a transaction on behalf of another person
that moves a virtual asset from one virtual asset address or account
to another) of virtual assets;
(d) Safekeeping and/or administration of virtual assets or instruments
enabling control over virtual assets; and
(e) Participation in and provision of nancial services related to an
issuer's offer and/or sale of a virtual asset.
(kkkkk) "Wire Transfer" refers to any transaction carried out on behalf of an
originator, through an originating/ordering nancial institution, by
electronic means, with a view to making an amount of funds available to a
bene ciary at a bene ciary nancial institution, irrespective of whether the
originator and the beneficiary are the same person.
RULE 3
Unlawful Activities
SECTION 1. Unlawful Activities. —
Unlawful activities refer to any act or omission, or series or combination thereof,
involving or having direct relation, to the following:
(a) "Kidnapping for Ransom" under Article 267 of Act No. 3815, otherwise
known as the Revised Penal Code, as amended;
(b) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act No.
9165, otherwise known as the "Comprehensive Dangerous Drugs Act of
2002";
(c) Section 3 paragraphs b, c, e, g, h and i of Republic Act No. 3019, as
amended, otherwise known as the "Anti-Graft and Corrupt Practices Act";
(d) "Plunder" under Republic Act No. 7080, as amended;
(e) "Robbery" and "Extortion" under Articles 294, 295, 296, 299, 300, 301 and
302 of the Revised Penal Code, as amended;
(f) "Jueteng" and "Masiao" punished as illegal gambling under Presidential
Decree No. 1602;
(g) "Piracy on the High Seas" under the Revised Penal Code, as amended, and
Presidential Decree No. 532;
(h) "Quali ed Theft" under Article 310 of the Revised Penal Code, as
amended;
(i) "Swindling" under Article 315 and "Other Forms of Swindling" under Article
(j) "Smuggling" under Republic Act No. 455, and Republic Act No. 1937, as
amended, otherwise known as the "Tariff and Customs Code of the
Philippines";
(k) Violations under Republic Act No. 8792, otherwise known as the
"Electronic Commerce Act of 2000";
(l) "Hijacking" and other violations under Republic Act No. 6235, otherwise
known as the "Anti-Hijacking Law"; "Destructive Arson"; and "Murder," as
defined under the Revised Penal Code, as amended;
(m) "Terrorism" and "Conspiracy to Commit Terrorism," as de ned and
penalized under Sections 3 and 4 of Republic Act No. 9372;
(n) "Financing of Terrorism" under Section 4 and offenses punishable under
Sections 5, 6, 7 and 8 of Republic Act No. 10168, otherwise known as the
"Terrorism Financing Prevention and Suppression Act of 2012";
(o) "Bribery" under Articles 210, 211 and 211-A of the Revised Penal Code, as
amended, and "Corruption of Public O cers" under Article 212 of the
Revised Penal Code, as amended;
(p) "Frauds and Illegal Exactions and Transactions" under Articles 213, 214,
215 and 216 of the Revised Penal Code, as amended;
(q) "Malversation of Public Funds and Property" under Articles 217 and 222
of the Revised Penal Code, as amended;
(r) "Forgeries" and "Counterfeiting" under Articles 163, 166, 167, 168, 169 and
(s) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known
as the "Anti-Trafficking in Persons Act of 2003, as amended";
(t) Violations of Sections 78 to 79 of Chapter IV of Presidential Decree No.
705, otherwise known as the "Revised Forestry Code of the Philippines, as
amended";
(u) Violations of Sections 86 to 106 of Chapter IV of Republic Act No. 8550,
otherwise known as the "Philippine Fisheries Code of 1998";
(v) Violations of Sections 101 to 107, and 110 of Republic Act No. 7942,
otherwise known as the "Philippine Mining Act of 1995";
(w) Violations of Section 27 (c), (e), (f), (g) and (i) of Republic Act No. 9147,
otherwise known as the "Wildlife Resources Conservation and Protection
Act";
(x) Violations of Section 7 (b) of Republic Act No. 9072, otherwise known as
the "National Caves and Cave Resources Management Protection Act";
(y) Violation of Republic Act No. 6539, otherwise known as the "Anti-
Carnapping Act of 2002, as amended";
(z) Violation of Sections 1, 3, and 5 of Presidential Decree No. 1866, as
amended, otherwise known as the decree "Codifying the Laws on
Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or
Disposition of Firearms, Ammunition or Explosives";
(aa) Violation of Presidential Decree No. 1612, otherwise known as the "Anti-
Fencing Law";
(bb) Violation of Section 6 of Republic Act No. 8042, otherwise known as the
"Migrant Workers and Overseas Filipinos Act of 1995, as amended";
(cc) Violation of Republic Act No. 8293, otherwise known as the "Intellectual
Property Code of the Philippines, as amended";
(dd) Violation of Section 4 of Republic Act No. 9995, otherwise known as the
"Anti-Photo and Video Voyeurism Act of 2009";
(ee) Violation of Section 4 of Republic Act No. 9775, otherwise known as the
"Anti-Child Pornography Act of 2009";
(ff) Violations of Sections 5, 7, 8, 9, 10 (c), (d) and (e), 11, 12 and 14 of
Republic Act No. 7610, otherwise known as the "Special Protection of
Children Against Abuse, Exploitation and Discrimination";
(gg) Fraudulent practices and other violations under Republic Act No. 8799,
otherwise known as the "Securities Regulation Code of 2000";
(hh) Felonies or offenses of a nature similar to the aforementioned unlawful
activities that are punishable under the penal laws of other countries.
SECTION 2. Same Conduct Approach. —
In determining whether or not a felony or offense punishable under the penal
laws of other countries is "of a similar nature" so as to constitute an unlawful activity
under the AMLA, it is su cient that both the Philippines and the other jurisdiction
criminalize the conduct or activity underlying the offense, regardless of whether both
countries place the offense within the same category, or denominate the offense under
the same nomenclature.
SECTION 3. Amendment and Repeal of Laws Prescribing the Details of the
Unlawful Activities. —
2.1. n Any unlawful activity which law has been amended, by way of renaming,
renumbering or rephrasing the relevant provisions thereof, shall continue to be an
unlawful activity under the AMLA. Provided, that the material elements of the unlawful
activity under the amendatory law remains the same with the amended law; or the
unlawful activity, as de ned under the amendatory law includes or is necessarily
included in the unlawful activity under the amended law.
2.2. Any law repealing, superseding or replacing the law covering any
unlawful activity de ned herein, shall be construed as the continuation of the repealed,
superseded or replaced law, which is the basis of the unlawful activity cited under the
AMLA. Provided, that the new law provides the same elements as the unlawful activity
under the repealed, superseded or replaced law.
RULE 4
Covered Persons
SECTION 1. Covered Persons. —
The following are the covered persons under the AMLA:
(a) The following financial institutions:
(1) Persons supervised and/or regulated by BSP, including their
subsidiaries and a liates, which are also covered persons,
supervised and/or regulated by the BSP such as:
(a) Banks;
(b) Quasi-banks;
(c) Trust entities;
(d) Pawnshops;
(e) Non-stock savings and loan associations;
(f) Other Non-bank financial institutions which under special
laws are subject to BSP supervision and/or regulation;
(g) Electronic money issuers; and
(h) Foreign exchange dealers, money changers, and
remittance and transfer companies.
(2) Persons supervised or regulated by IC, such as:
(a) Insurance companies;
(b) Pre-need companies;
(c) Insurance agents;
(d) Insurance brokers;
(e) Professional reinsurers;
(f) Reinsurance brokers;
(g) Holding companies;
(h) Holding company systems;
(i) Mutual benefit associations; and
(j) All other persons and their subsidiaries and a liates
supervised or regulated by the IC.
(3) Persons supervised or regulated by SEC, such as:
(a) securities dealers, brokers, salesmen, investment
houses, and other similar persons managing securities or
rendering services, such as investment agents, advisors,
or consultants;
(b) mutual funds or open-end investment companies, close-
end investment companies or issuers, and other similar
entities; and
(c) other entities, administering or otherwise dealing in
commodities, or nancial derivatives based thereon,
valuable objects, cash substitutes, and other similar
monetary instruments or properties, supervised or
regulated by the SEC.
(b) The following DNFBPs:
(1) Jewelry dealers.
(2) Dealers in precious metals, and dealers in precious stones.
(3) Company service providers, which, as a business, provide any of
the following services to third parties:
(a) acting as a formation agent of juridical persons;
(b) acting as (or arranging for another person to act as) a
director or corporate secretary of a company, a partner
of a partnership, or a similar position in relation to other
juridical persons;
(c) providing a registered o ce; business address or
accommodation, correspondence or administrative
address for a company, a partnership or any other
juridical person or legal arrangement; and

(d) acting as (or arranging for another person to act as) a
nominee shareholder for another person.
(4) Persons, including lawyers, accountants and other professionals,
who provide any of the following services:
(a) Managing of client money, securities or other assets;
(b) Management of bank, savings, securities or other
assets;
(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.
(5) Casinos, including internet-based casinos and ship-based casinos,
with respect to their casino cash transactions related to their
gaming operations.
The "Casino Implementing Rules and Regulations of Republic Act No.
10927" shall govern the implementation of the AMLA with regard to
casinos, unless, otherwise indicated therein by the AMLC and the
AGAs.
SECTION 2. Primary Duties of Covered Persons. —
2.1. Covered persons shall, comply with all the requirements under the AMLA
and TFPSA, their respective IRR, and other AMLC issuances. They shall have the duty to
cooperate with the AMLC in the, discharge of the latter's mandate, and execution of its
lawful orders and issuances, to protect their businesses or professions from being
used in ML/TF activities.
2.2. The covered persons' board of directors, partners or sole proprietors
shall be ultimately responsible for the covered persons' compliance with the AMLA and
TFPSA, their respective IRR, and other AMLC issuances.
SECTION 3. Market Entry. —
3.1. Licensing or Registration with SAs.
Covered persons shall secure a license or registration with the appropriate SAs,
if any, or the appropriate government agency before they shall operate, as required by
the laws covering their operations.
3.2. Registration with AMLC.
All covered persons shall register with the AMLC. In line with this requirement,
and consistent with their respective authorities, SAs, or other licensing or business
registration authorities, shall prescribe registration with the AMLC as a requirement for
continued licensing and/or operations of covered persons, and, when necessary,
transacting with other covered persons.
3.3. Prohibition against Shell Banks.
No shell bank shall be allowed to operate or be established in the Philippines.
3.4. Prevention of Criminals from Participating in the Affairs of Covered
Persons.
The AMLC and the SAs shall take the necessary legal or regulatory measures to
prevent criminals or their associates from holding, or being the bene cial owner of, a
signi cant or controlling interest, or holding a management function, in covered
persons.
CHAPTER II
Supervision and Enforcement
RULE 5
Anti-Money Laundering Council
SECTION 1. The Government Instrumentality. —
1.1. Implementing Agency.
The AMLC is the independent government instrumentality mandated to
implement the AMLA and TFPSA.
1.2. Operational Independence.
The AMLC shall safeguard the integrity and independence of its operations,
including its independent authority to do the following:
(a) Carrying out its functions freely and without delay, including making
decisions to analyze, request and/or share speci c information without,
interference by, or the need to seek permission of, other agency or office;
(b) Making arrangements or engaging independently with SAs, LEAs and
OGAs, or foreign jurisdictions on the exchange of information;
(c) Determining the appropriate organizational structure and the functions of
the different operating units of the agency to properly discharge its
mandate; and
(d) Obtaining and using the resources, consistent with existing laws and
regulations, needed to carry out its functions, on an individual or routine
basis, free from any undue political, government or industry in uence or
interference, which might compromise its operational independence.
1.3. Confidentiality and Security of Records and Premises.
The AMLC shall, ensure the con dentiality of its records and the security of its
systems, and limit access to its premises to authorized persons. Except the
Commission on Audit, or by order of a competent court, no agency or o ce shall audit
or examine the operations and premises of the AMLC, without the consent of the
Council or its duly authorized representative. The AMLC shall establish an identi cation,
monitoring and/or control system for non-AMLC personnel who will be allowed access
to its premises.
1.4. Budget.
The annual budget appropriated by Congress for the AMLC in the General
Appropriations Act shall be used to defray capital outlays, as well as maintenance and
operational expenses of the AMLC.
SECTION 2. The Council. —
2.1. Composition.
The powers and functions of the AMLC shall be exercised by a Council
composed of the following persons:
(a) Chairperson — Governor of the BSP;
(b) Member — Chairperson of the SEC; and
(c) Member — Commissioner of the IC.
2.2. Acting Capacity.
In case of absence, incapacity, resignation, expiration of term, retirement, or
death of any member, the o cer duly designated or authorized to discharge the
functions of the Governor of the BSP, the Chairperson of the SEC, and the
Commissioner of the IC, shall act in their stead in the Council.
2.3. Presiding Officer.
The Chairperson shall serve as the presiding o cer in all Council meetings and
deliberations. In his absence, the o cer duly designated or authorized to discharge the
functions of the Governor of the BSP shall serve as the Acting Chairman of the Council.
2.4. Unity in All Actions.
The Council shall act unanimously in the discharge of its functions.
2.5. Frequency and Mode of Meetings.
The Council shall hold its meetings at such frequency and mode as it may deem
appropriate. The date, time and venue of Council meetings shall be agreed in advance.
2.6. Documentation of Meetings.
The AMLC shall maintain and preserve a complete record of the proceedings and
deliberations of the Council, including the recordings and transcripts of the
stenographic notes, either in their original, digital or electronic form.
SECTION 3. The Secretariat. —
3.1. Establishment of the AMLC Secretariat.
The Council shall establish and organize the AMLC Secretariat to assist in the
discharge of its functions. The Council shall, in accordance with its authority, determine
and provide for such operating units and other o ces of the AMLC as may be
necessary and appropriate for the proper and e cient conduct of the operations and
the accomplishment of the objectives of the AMLC. The functions and duties of such
operating units and other o ces shall be determined by the Council. Provided, that the
determination of the appropriate number and rank of its personnel shall be subject to
the approval of the BSP's Monetary Board.
3.2. Qualifications.
In organizing the Secretariat, the Council shall appoint from those who have
served, continuously or cumulatively, for, at least, ve (5) years either in the BSP, the
SEC or the IC.
3.3. Employment Status.
All members of the Secretariat shall be considered full-time, permanent
employees of the BSP. They shall be entitled to such bene ts and subject to such rules
and regulations as are applicable to BSP employees of similar rank. Provided, that to
protect the independence of the AMLC and prevent the disruption of its operations, no
member of the Secretariat shall be transferred, reassigned or otherwise removed from
the AMLC without the prior approval of the Council.
SECTION 4. The Executive Director. —
4.1. Term of Office.
The AMLC Secretariat shall be headed by an Executive Director who shall be
appointed by the Council for a term of five (5) years.
4.2. Qualifications.
The Executive Director shall, at the time of appointment, have the following
qualifications:
(a) Member in good standing of the Philippine Bar;
(b) At least, thirty-five (35) years of age;
(c) Have served, continuously or cumulatively, for, at least, ve (5) years
either at the BSP, the SEC or the IC; and
(d) Of good moral character, unquestionable integrity, and known probity.
4.3. Employment Status.
The Executive Director shall be considered a full-time, permanent employee of
the BSP. He shall be entitled to such bene ts and subject to such rules and regulations,
as well as prohibitions, as are applicable to officers of similar rank in the BSP.
4.4. Officer-in-Charge.
In case of absence, or temporary incapacity or disability of the Executive
Director, any next-in-rank lawyer of the AMLC that is duly designated in accordance with
existing administrative procedure, shall act in his stead as Officer-in-Charge.
RULE 6
Powers and Functions of the AMLC
SECTION 1. Powers and Functions. —
A. Central AML/CTF Authority.
1.1. AML/CTF Supervisor and Enforcer.
1.1.1. The AMLC shall formulate and implement such measures as may be
necessary and justi ed under the AMLA and TFPSA to counteract ML/TF,
including, but not limited to, the following:
(a) Spearheading the conduct of national risk assessment and
evaluation of existing legal and operational frameworks, and
formulation of national strategies to counteract ML/TF;
(b) Formulation of policy directions for the AML/CTF regime of the
Philippines;
(c) Promulgation of implementing rules and regulations of the AMLA
and TFPSA, and circulars, orders, guidelines, and other AML/CTF
issuances;
(d) Issuance of legal opinions and interpretations of the AMLA and
TFPSA, and their respective IRR;
(e) Conduct of onsite and offsite examination or other forms of
compliance checking mechanism on covered persons to determine
their level and quality of compliance with, the AMLA and TFPSA, their
respective IRR, and other AMLC issuances; and

(f) Analysis and use of intelligence information to detect, prevent and
counteract ML/TF and associated unlawful activities.
1.1.2. The Council shall ensure that the provisions of the AMLA and TFPSA,
their respective IRR, and other AMLC issuances are faithfully executed, and
complied with by all public and private stakeholders.
1.2. Lead Agency on AML/CTF Matters.
1.2.1. The AMLC shall enlist the assistance of any branch, department,
bureau, o ce, agency or instrumentality of the government, including
government-owned and controlled corporations, in undertaking any and all
AML/CTF operations, such as:
(a) formulation of national strategies for a concerted and holistic
government effort to combat ML/TF;
(b) conduct of parallel nancial investigation and prosecution as part
of domestic cooperation and coordination;
(c) execution of requests for mutual legal assistance and other forms
of international cooperation;
(d) conduct of national risk assessment and mutual evaluation; and
(e) conduct of capacity-building programs and information campaign.
1.2.2. Enlistment of assistance may include the use of personnel, facilities
and resources of the enlisted party for the more resolute prevention,
detection and investigation of ML/TF offenses and prosecution of
offenders.
1.2.3. The AMLC may enlist the SAs to assist in checking compliance of
covered persons under their respective jurisdictions on the requirements
of the AMLA and TFPSA, their respective IRR, and other AMLC issuances,
through monitoring, examination, inspection, audit, investigation, or such
other fact- nding mechanism. Subject to the parameters set by the
Council, the ndings of the SAs shall be submitted to the AMLC for
evaluation for possible sanctions against the covered persons, and their
responsible directors, o cers and employees, as may be warranted under
the circumstances.
1.2.4. The AMLC may enlist the relevant SAs, LEAs and OGAs to assist the AMLC
in investigation and other domestic coordination and cooperation efforts
to counteract ML/TF.
1.3. Authority to Resolve Administrative Cases.
1.3.1. The AMLC shall, after due notice and hearing, impose administrative
sanctions for the violation of the AMLA and TFPSA, their respective IRR,
other AMLC issuances.
1.3.2. The "Rules on the Imposition of Administrative Sanctions under
Republic Act No. 9160, as Amended" shall govern the administrative
proceedings before the AMLC.
1.4. International Cooperation Advocate.
1.4.1. The AMLC shall receive and take action in respect of any request from
foreign States for assistance in their own AML/CTF operations as
provided in the AMLA.
1.4.2. The AMLC shall formulate clear and e cient processes for the timely
prioritization and execution of requests for mutual legal assistance and
international cooperation concerning ML/TF and the associated unlawful
activities.
1.4.3. The AMLC shall ensure that its responsible unit for mutual legal
assistance is provided with adequate nancial, human and technical
resources. The AMLC shall have in place processes to ensure that the staff
in the said unit maintain high professional standards, including standards
concerning con dentiality, and should be of high integrity and
appropriately skilled.
1.5. AML/CTF Educator.
1.5.1. The AMLC shall develop educational programs, carry out capacity-
building activities or offer training opportunities, and conduct awareness
campaign on the pernicious effects, the methods and techniques used,
and the viable means of preventing ML/TF and associated unlawful
activities, and the effective ways of investigating, prosecuting and
punishing offenders.
1.5.1. n The AMLC shall develop an AML/CTF training system for public and
private stakeholders, especially for the nancial intelligence, investigation
and legal personnel, on the fundamentals of ML/TF, the AMLA and TFPSA,
and all requisite knowledge, skills, and abilities to be able to discharge
their functions effectively.
1.5.2. The AMLC shall develop a mechanism for accreditation of subject
matter experts to assist in the continuing training program of covered
persons, and their responsible directors, officers and employees.
B. Financial Intelligence Unit.
1.6. National Center for Receipt and Analysis of CTRs and STRs.
1.6.1. The AMLC shall require and receive CTRs and STRs from covered
persons, in accordance with Rule 22 hereof.
1.6.2. The AMLC shall formulate guidelines and develop protocols necessary
to require covered persons to submit relevant information, consistent with
existing laws, as part of CTRs and STRs.
1.6.3. The AMLC shall, as may be allowed by law, access all relevant nancial,
administrative and law enforcement information for a holistic nancial
intelligence analysis of CTRs and STRs.
1.6.4. The AMLC shall conduct tactical analysis, which uses available and
obtainable information to identify speci c targets, to follow the trail of
particular activities or transactions, and to determine the relationship
between monetary instruments and properties, and ML/TF and associated
1.6.5. The AMLC shall conduct strategic analysis, which uses available and
obtainable information, including data that may be provided by SAs, LEAs
and OGAs, to identify ML/TF-related trends and patterns.
1.6.6. The AMLC shall develop a mechanism to use CTRs and STRs to
identify, in a timely manner, whether natural or juridical person, or legal
arrangement hold or control accounts, and to identify assets, without prior
notification to the owner or holder.
1.6.7. The AMLC shall establish or adopt a mechanism for, and/or formulate
guidelines on, exchange and dissemination, whether spontaneously or
upon request, of information and the results of its analysis, to LEAs, OGAs,
foreign jurisdictions, covered persons, and relevant private entities; and
shall use dedicated, secure and protected channels for dissemination.
1.6.8. The AMLC shall protect the confidentiality of CTRs and STRs by:
(a) having policies and procedures in place governing the security and
con dentiality of information, including procedures for handling,
storage, dissemination, and protection of, and access to,
information;
(b) ensuring that AMLC personnel have the necessary security
clearance levels and understanding of their responsibilities in
handling and disseminating sensitive and con dential information;
and
(c) ensuring that there is limited access to its facilities and
information, including Information and Communication Technology
equipment.
1.7. National Center for Receipt and Analysis of RTRs.
1.7.1. The AMLC shall require and receive RTRs from the Land Registration
Authority and all its Registries of Deeds within fteen (15) days from the
date of registration of the transaction, in a form to be prescribed by the
AMLC.
1.7.2. The AMLC may also require the Land Registration Authority and all its
Registries of Deeds to submit copies of relevant documents of all real
estate transactions.
1.7.3. The provisions of Rule 6, Section 1.6 hereof shall apply to RTRs.
C. ML/TF Investigator.
1.8. Identity Verifier.
1.8.1. The AMLC shall issue orders addressed to the appropriate SA or the
covered person to determine the true identity of the owner of any
monetary instrument or property:
(a) subject of CTR or STR;
(b) subject of request for assistance from a foreign State or
jurisdiction; or
(c) believed by the Council, on the basis of substantial evidence, to be,
in whole or in part, wherever located, representing, involving, or
related to, directly or indirectly, in any manner or by any means, the
proceeds of any unlawful activity.
1.8.2. SAs and covered persons shall have the following duties in relation to
AMLC requests or orders for the production of records of identi cation
information and IDs:
(a) Act on the requests or orders immediately upon receipt thereof;
(b) Submit within ve (5) working days from receipt of the request or
order from the AMLC certi ed true copies of the records of
identi cation information and documents pertaining to account,
transaction and/or person subject of the order; and
(c) Keep the con dentiality of the request or order, and ensure that the
owner of any monetary instrument or property or other unauthorized
personnel shall not be informed about the request or order, to
prevent tipping-off.
1.9. Financial Investigator.
1.9.1. The AMLC shall investigate the following:
(a) Suspicious transactions and covered transactions deemed
suspicious after investigation by the AMLC;
(b) ML/TF activities;
(c) Any property or funds that are in any way related to TF or acts of
terrorism;
(d) Properties or funds of any person in relation to whom there is
probable cause to believe that such person or persons are
committing or attempting to commit or conspiring to commit, or
participating in or facilitating terrorism and TF; and
(e) Other violations of the AMLA and TFPSA, their respective IRR, and
other AMLC issuances.
1.9.2. The AMLC shall conduct an ex parte inquiry or examination, in
accordance with Rule 11 hereof, when investigating particular transactions
in deposit or investment accounts with any banking institution.
1.9.3. The AMLC shall use its investigative powers, and other existing
mechanism or arrangements, to identify, in a timely manner, whether
natural or juridical person, or legal arrangement hold or control accounts,
and to identify assets without prior notification to the owner or holder.
1.9.4. In the exercise of its investigative functions, the AMLC may:
(a) direct covered persons to produce information, documents and
objects necessary to determine the true identity of persons subject
of investigation;
(b) request responsible o cers and employees of covered persons
and relevant government agencies to give statements pertinent to
the transaction, person or violation being investigated;
(c) request information, documents and objects from domestic
government agencies; foreign states, including its FIUs, LEAs, and
nancial regulators; or the United Nations and other international
organizations or entities. Provided, that request for transaction
documents pertaining to speci c deposits and investments in
banks shall be subject to the provisions on Bank Inquiry under Rule
11 hereof;
(d) use all appropriate investigative techniques, allowed under existing
laws, to obtain access to all information, documents and objects for
investigative and prosecutorial purposes, including the formation of
joint investigative teams to conduct cooperative investigations; and
(e) adopt measures to ensure the con dentiality of requests and
timeliness of the response of covered persons.
D. Government Representative on ML/TF Cases.
1.10. Initiator of Freeze Order Proceedings.
1.10.1. The AMLC shall le with the Court of Appeals, ex parte, through the
O ce of the Solicitor General, a petition for the freezing of any monetary
instrument or property that is in any way related to an unlawful activity, in
accordance with Rule 10 hereof.
1.10.2. Notwithstanding the foregoing, the AMLC shall directly issue, in
accordance with the TFPSA, an ex parte freeze order:
(a) against properties or funds that are in any way related to terrorism
or TF;
(b) against properties or funds of any person, group of persons,
terrorist organization, or association or group of persons, in relation
to whom there is probable cause to believe that they are committing
or attempting or conspiring to commit, or participating in or
facilitating the commission of terrorism or TF; and
(c) with respect to property or funds of a designated organization,
association, group or any individual to comply with binding
terrorism-related Resolutions, including Resolution No. 1373, of the
UN Security Council pursuant to Article 41 of the Charter of the UN.
1.11. Initiator of Civil Forfeiture Proceedings.
The AMLC shall institute civil forfeiture proceedings and all other remedial
proceedings, through the O ce of the Solicitor General, to con scate all monetary
instruments or properties related to ML/TF or associated unlawful activity, in
accordance with Rule 12 hereof.
1.12. Complainant in ML/TF cases.
The AMLC shall le complaints with the Department of Justice (DOJ) or the
O ce of the Ombudsman for the prosecution of ML/TF and other criminal violations
under the AMLA and TFPSA.
SECTION 2. Functions of the Executive Director. —
The Executive Director shall be the chief executive o cer of the AMLC, and shall
perform the following functions as hereby delegated by the Council:
(a) to act, in such capacity and in accordance with the speci c instructions
from the Council, as the principal representative of the Council and of the
AMLC, in all dealings with other agencies of the government and all other
persons or entities, public or private, whether domestic or international;
(b) to prepare the agenda for the meetings of the Council, and submit for
consideration of the Council policies and measures necessary to carry out
the purposes and provisions of the AMLA and TFPSA;
(c) to supervise the execution and administration of policies and measures
approved by the Council;
(d) to direct and supervise the operations and internal administration of the
AMLC. The Executive Director may delegate certain of his administrative
responsibilities to other o cers or may assign speci c tasks or
responsibilities to any unit of the AMLC whenever he may deem t or
subject to such rules and regulations as the Council may prescribe;
(e) to sign administrative issuances "For the AMLC" on policies and
measures already approved, and subject to conditions imposed, by the
Council;
(f) to exercise functions that may be delegated by the Council under such
guidelines it may determine, and such other functions that are incidental
and necessary thereto.
RULE 7
Supervision and Compliance Checking
SECTION 1. General Supervision. —
1.1. The AMLC shall exercise general AML/CTF supervision over all covered
persons to ensure faithful compliance with the AMLA and TFPSA, their respective IRR,
and other AMLC issuances.
1.2. The provisions applicable to SAs under Rule 7 hereof shall apply to
AMLC's AML/CTF supervision over covered persons.
SECTION 2. Supervising Authorities. —
2.1. Authority to Assist the AMLC in AML/CTF Supervision.
SAs shall assist the AMLC in supervising the implementation of the AMLA and
TFPSA, their respective IRR, and other AMLC issuances.
2.2. Functions of SAs on AML/CTF Compliance.
In assisting the AMLC in the discharge of its mandate to implement the AMLA
and TFPSA, their respective IRR, and other AMLC issuances, the SAs shall perform the
following with regard to their respective jurisdiction:
(a) Conduct sectoral risk assessment to understand the risks across the
different sectors or sub-sectors;
(b) Issue AML/CTF guidelines to guide covered persons on how to comply
with their AML/CTF duties and responsibilities, and/or recommend to the
AMLC regulations unique to a particular covered person, industry or
profession;
(c) Supervise, assess and monitor compliance with AML/CTF requirements,
through the conduct of AML/CTF inspection, examination, audit, or such
other mechanism the SAs deem appropriate;
(d) Take necessary measures to prevent criminals or their associates from
being professionally accredited; or holding or being the beneficial owner of
a signi cant or controlling interest; or holding a management function in a
covered person;
(e) Require the submission of necessary information and documentation on
AML/CTF compliance;
(f) Take enforcement actions and other necessary measures to correct
AML/CTF deficiencies;
(g) Escalate AML/CTF ndings to the AMLC for possible administrative
sanctions;
(h) Assess, monitor and conduct outreach programs on NPOs with regard to
TF matters; and
(i) Take other measures necessary and justified in assisting the AMLC.
SECTION 3. Sectoral Risk Assessment. —
SAs shall conduct sectoral or sub-sectoral risk assessment to facilitate the
preparation for the national risk assessment, or as it may deem necessary to
determine, understand, mitigate, and manage the risks on their respective jurisdiction.
SECTION 4. AML/CTF Guidelines. —
4.1. Issuance.
The SAs shall, in coordination with the AMLC, issue and/or update their
respective AML/CTF guidelines to complement the provisions of this IRR, in relation to
the speci c industry, product or operation of covered persons under their respective
jurisdiction.
4.2. Contents.
The AML/CTF guidelines of SAs shall include, but not limited to, the following:
(a) Details, policies, and procedures in implementing the provisions on CDD,
including instances where delayed veri cation and no face-to-face contact
may be implemented, considering risk-based approach, nancial inclusion,
and sound risk management policies and procedures;
(b) Red ag indicators that engender a reasonable belief that an ML/TF
offense or associated unlawful activity is about to be, is being, or has been
committed;
(c) System/procedure of agging and monitoring transactions that qualify as
suspicious transactions or covered transactions;
(d) Guidelines on setting up of risk management systems, including policies
on identi cation, assessment, management and mitigation of risks that
may arise from the development of new products and new business
practices, as well as new delivery mechanisms; and the use of new or
developing technologies for both new and pre-existing products; and
(e) Rules on AML/CTF compliance checking, including access to pertinent
records and information, and use of risk rating system.
4.3. International Standards and Best Practices.
SAs shall consider internationally-accepted standards and best practices in
formulating their AML/CTF guidelines. Provided, that they are consistent with the
provisions of the AMLA, TFPSA, their respective IRR, and other AMLC issuances.
SECTION 5. Risk-Based AML/CTF Supervision. —
5.1. Supervision and Monitoring in General.
The SAs shall, in accordance with law and its procedures, check compliance by
covered persons with the provisions of the AMLA, TFPSA, their respective IRR, and
other AMLC issuances using risk-based approach. SAs shall subject covered persons
to:
(a) Supervision having regard to the ML/TF risks in their respective sector
and in line with applicable AML/CTF standards, including the application of
consolidated group supervision for AML/CTF purposes.
(b) Monitoring and ensuring compliance with national AML/CTF
requirements.
5.2. Supervision and Monitoring of DNFBPs.
Supervision of DNFBPs shall be performed on a risk-sensitive basis, including:
(a) determining the frequency and intensity of AML/CTF supervision of
DNFBPs on the basis of their understanding of the ML/TF risks, taking into
consideration the characteristics of the DNFBPs, in particular their
diversity and number; and
(b) taking into account the ML/TF risk pro le of those DNFBPs, and the
degree of discretion allowed to them under the risk-based approach, when
assessing the adequacy of the AML/CTF internal controls, policies and
procedures of DNFBPs.
5.3. Frequency and Intensity of Compliance Checking.
The frequency and intensity of on-site and off-site AML/CTF monitoring,
inspection, examination, or audit of covered persons or groups shall be determined
based on:
(a) the risks and the policies, internal controls and procedures associated
with the covered person or group, as identi ed by the SAs' assessment of
the covered person's or group's risk profile;
(b) the risks present in the country; and
(c) the characteristics of the covered persons or groups, in particular the
diversity and number of covered persons and the degree of discretion
allowed to them under the risk-based approach.
5.4. Review of Risk Profiles of Covered Persons or Groups.
The SAs shall review the assessment of the risk pro le, including the risks of
non-compliance, of a covered person or group periodically, and when there are major
events or developments in the management and operations of the covered person or
group.
5.5. Escalation of AML/CTF Findings to the AMLC.
Subject to the parameters set by the AMLC, and agreed to by the SAs,
considering the risks involved, the ndings of the SAs shall be submitted to the AMLC
for evaluation for possible administrative proceedings against the covered persons,
and their responsible directors, officers and employees.
RULE 8
Investigation and Law Enforcement
SECTION 1. Primary Investigator and Law Enforcer. —
1.1. AMLC Investigation.
The AMLC shall investigate ML/TF offenses and other violations of the AMLA and
TFPSA.
1.2. Duty of Covered Persons to Cooperate in AMLC Investigations.
Covered persons shall have the following duties in relation to AMLC
investigations:
(a) Give the authorized personnel of the AMLC, full access to all information,
documents or objects pertaining to the account, transaction and/or
person subject of the investigation immediately upon receipt of the
request or order;
(b) Submit within ve (5) working days from receipt of the request or order
from the AMLC, certi ed true copies of the documents pertaining to
account, transaction and/or person subject of the investigation; and
(c) Keep the con dentiality of the investigation and ensure that the owner of
any monetary instrument or property, or other unauthorized personnel,
shall not be informed about the investigation, to prevent tipping off.
SECTION 2. Law Enforcement and Other Government Agencies. —
2.1. Authority to Assist the AMLC in Law Enforcement.
The SAs, LEAs and OGAs investigating the unlawful activities de ned herein shall
assist the AMLC in enforcing the AMLA and TFPSA, their respective IRR, and other
AMLC issuances, particularly on the aspect of investigation and prosecution.
2.2. Roles of Government Agencies in AML/CTF Enforcement.
In assisting the AMLC in the discharge of its mandate to implement the AMLA
and TFPSA, their respective IRR, and other AMLC issuances, the SAs, LEAs and OGAs
shall perform the following with regard to their respective jurisdiction:
(a) Ensure that ML/TF and associated unlawful activities are properly
investigated, within the framework of national AML/CTF policies and the
laws they are implementing.
(b) Pursue the investigation of any ML/TF offenses, whenever applicable,
during a parallel nancial investigation with the AMLC, or refer the case to
the AMLC for nancial investigation, regardless of where the unlawful
activity occurred. Provided, that when the cases are referred to the AMLC,
the LEAs and OGAs shall provide the necessary support in obtaining
evidence for the AMLC to prosecute the financial aspects of the crime.
(c) Formulate their respective AML/CTF policies and procedures, in
accordance with the AMLA and TFPSA, their respective IRR, and other
AMLC issuances.
(d) Establish a mechanism, or designate a unit in their respective agencies
dedicated, in addressing AML/CTF matters, including cooperation and
coordination with the AMLC.
2.3. Investigative Powers of Specific Government Agencies.
2.3.1 The relevant SAs, LEAs and OGAs conducting investigations of ML/TF
and/or associated unlawful activities shall, in accordance with their
respective charters or laws, obtain access to all necessary documents and
information for use in those investigations, and in prosecutions and related
actions. This shall include powers to use compulsory measures for:
(a) the production of records held by nancial institutions, DNFBPs
and other natural or legal persons;
(b) the search of persons and premises;
(c) taking witness statements; and
(d) seizing and obtaining evidence.
2.3.2 The relevant SAs, LEAs and OGAs shall, in accordance with their
respective charters or laws, use a wide range of investigative techniques
for the investigation of ML/TF and/or associated unlawful activities.
2.3.3 The relevant SAs, LEAs and OGAs shall, in accordance with their
respective charters or laws, adopt mechanisms:
(a) to identify, in a timely manner, whether natural or legal persons hold
or control accounts; and
(b) to ensure that they have processes to identify assets without prior
notification to the owner.
2.3.4 The relevant SAs, LEAs and OGAs conducting investigations of ML/TF
and/or associated unlawful activities shall, in accordance with their
respective charters or laws and existing agreement, be able to ask for all
relevant information from the AMLC.
2.3. n Pursuing Forfeiture of Assets Related to Unlawful Activity.
The LEAs and OGAs, in relation to their investigative authority, and in accordance
with their respective charter or the relevant provisions of the Rules of Court, shall
expeditiously identify, trace, attach, freeze and/or seize all monetary instrument or
property related to unlawful activity defined herein, for purposes of forfeiture.
2.4. Immediate Implementation of Freeze and Asset Preservation Orders.
LEAs and OGAs shall immediately implement all freeze orders and asset
preservation orders issued by the Court of Appeals and Regional Trial Courts,
respectively, with regard to the monetary instruments or properties in their custody.
They shall, likewise, comply with the required detailed returns for the said court orders,
in accordance with Rule 10, Sections 4.4 and 4.5.
CHAPTER III
Money Laundering, Terrorism Financing and Asset Forfeiture
RULE 9
Money Laundering and Terrorism Financing
SECTION 1. Money Laundering. —
Money laundering is committed by:
(a) Any person who, knowing that any monetary instrument or property
represents, involves, or relates to the proceeds of any unlawful activity:
(1) transacts said monetary instrument or property;
(2) converts, transfers, disposes of, moves, acquires, possesses or
uses said monetary instrument or property;
(3) conceals or disguises the true nature, source, location, disposition,
movement or ownership of or rights with respect to said monetary
instrument or property;
(4) attempts or conspires to commit ML offenses referred to in (1),
(2), or (3) above;
(5) aids, abets, assists in, or counsels the commission of the ML
offenses referred to in (1), (2), or (3) above; and
(6) performs or fails to perform any act as a result of which he
facilitates the offense of ML referred to in items (1), (2), or (3)
above.
(b) Any covered person who, knowing that a covered or suspicious
transaction is required under the AMLA to be reported to the AMLC, fails
to do so.
SECTION 2. Predicate Offenses to Money Laundering. —
All unlawful activities, as de ned herein, are the predicate offenses to ML
committed under Rule 9, Section 1 (a) hereof.
SECTION 3. Jurisdiction over Money Laundering Cases. —
3.1. Regional Trial Court.
The regional trial courts shall have jurisdiction to try ML cases committed by
private individuals, and public o cers not covered by the jurisdiction of the
Sandiganbayan.
3.2. Sandiganbayan.
The Sandiganbayan shall have jurisdiction to try ML cases committed by public
o cers under its jurisdiction, and private persons who are in conspiracy with such
public officers.
SECTION 4. Prosecution of Money Laundering Cases. —
4.1. Independent Proceedings.
The prosecutions of ML and the associated unlawful activity shall proceed
independently. Any person may be charged with and convicted of both ML and the
associated unlawful activity.
4.2. Separate and Distinct Elements.
The elements of ML are separate and distinct from the elements of the
associated unlawful activity. The elements of the unlawful activity, including the identity
of the perpetrators and the details of the commission of the unlawful activity, need not
be established by proof beyond reasonable doubt in the case for ML.
4.3. Knowledge.
The element of knowledge may be established by direct or circumstantial
evidence. The deliberate non-performance of the preventive measures under the AMLA,
this IRR, AMLC issuances, and SA's guidelines by a covered person's responsible
directors, o cers and employees shall be considered in determining knowledge of the
commission of ML offenses.
4.4. Rules of Procedure.
The Rules of Court shall govern all proceedings concerning the prosecution of
ML. The prosecution of ML and other violations of the AMLA shall be handled by the
Department of Justice, through its public prosecutors, the O ce of the Ombudsman,
through the O ce of the Special Prosecutor, pursuant to the Rules on Criminal
Procedure.
4.5. No ML Case during Election Period.
No case for ML may be led against a candidate for an electoral o ce during an
election period.
SECTION 5. Terrorism Financing. —
The provisions of the TFPSA and its IRR shall govern matters relating to TF,
including the implementation of the relevant targeted financial sanctions.
RULE 10
Freeze Order
SECTION 1. General Rules on Freeze Orders. —
The following requirements shall be observed in the issuance of freeze orders:
(a) No prior criminal charge, pendency of a case, or conviction for an unlawful
activity or ML offense is necessary for the commencement or the
resolution of a petition for freeze order.
(b) No asset shall be frozen to the prejudice of a candidate for an electoral
office during an election period.
(c) No court shall issue a temporary restraining order or a writ of injunction
against any freeze order, except the Supreme Court.
SECTION 2. Court-Issued Freeze Order. —
2.1. Petition for Issuance of Freeze Order.
By authority of the Council, the AMLC Secretariat shall le before the Court of
Appeals, through the O ce of the Solicitor General, an Ex Parte Petition for Issuance of
Freeze Order.
2.2. Related Accounts.
Considering the intricate and diverse web of interlocking accounts that a person
may create in different covered persons, and the high probability that these accounts
are utilized to divert, move, conceal, and disguise the monetary instrument or property
subject of the freeze order, the AMLC may include in its petition the freezing of related
and materially-linked accounts.
2.3. Rule of Procedure.
Proceedings for the issuance of freeze order shall be governed by the "Rule of
Procedure in Cases of Civil Forfeiture, Asset Preservation, and Freezing of Monetary
Instrument, Property, or Proceeds Representing, Involving, or Relating to an Unlawful
Activity or Money Laundering Offense under Republic Act No. 9160, as amended (A.M.
No. 05-11-04-SC)" and other applicable rules that may be promulgated by the Supreme
Court.
2.4. Period to Resolve Petition.
The Court of Appeals shall resolve the petition to freeze within twenty-four (24)
hours from filing thereof.
2.5. Issuance.
Upon veri ed ex parte petition by the AMLC and after determination that
probable cause exists that any monetary instrument or property is in any way related to
an unlawful activity, the Court of Appeals may issue a freeze order, which shall be
effective immediately, for a period of twenty (20) days, directing the concerned covered
persons and government agencies to desist from allowing any transaction, withdrawal,
deposit, transfer, removal, conversion, other movement, concealment, or other
disposition of the subject monetary instrument or property.
2.6. Coverage.
The freeze order shall be limited only to the amount of cash or monetary
instrument, or value of property that the Court of Appeals nds there is probable cause
to be considered as proceeds of a predicate offense or otherwise related to an
unlawful activity. The freeze order shall not apply to amounts in the same account in
excess of the amount or value of the proceeds of the predicate offense or otherwise
related to an unlawful activity.
2.7. Summary Hearing and Extension.
Before the expiration of the twenty (20)-day freeze order, the Court of Appeals
shall conduct a summary hearing, with notice to the parties, to determine whether or
not to modify or lift the freeze order, or to extend its effectivity. Pending resolution by
the Court of Appeals, the freeze order shall remain effective.
2.8. Effectivity of Freeze Order.
The freeze order shall take effect immediately and shall remain effective for a
total period not exceeding six (6) months. This is without prejudice to an asset
preservation order that the regional trial court having jurisdiction over the appropriate
AMLC case or civil forfeiture case may issue on the same account depending upon the
circumstances of the case, where the Court of Appeals will remand the case and its
records.
2.9. Motion to Lift.
(a) A person whose monetary instrument or property has been frozen may
file a motion to lift the freeze order.
(b) If a freeze order is imposed on an account, including bank account, of a
covered person that it uses for payment of salary, rent, suppliers, and/or
taxes in the ordinary course of a legitimate business, the covered person
may apply with the court which issued the freeze order to lift the same by
submitting a bond or other acceptable securities of equal value to the
amount or value subject of the freeze order. The bond or security when
approved by the court shall secure the payment or enforcement of any
order or judgment that the AMLC may recover in the appropriate action
relating to the freeze order.
(c) The court must resolve the motion before the expiration of the freeze
order.
2.10. Lifting the Effects of the Freeze Order.
(a) The freeze order shall be deemed ipso facto lifted after its expiration,
unless an ML complaint against the person whose monetary instrument or
property was frozen, or a petition for CF against the frozen monetary
instrument or property, has been led, in which case the freeze order shall
remain effective until the ML case is terminated or an asset preservation
order is issued, respectively.
(b) Before the expiration of the freeze order, the covered person shall secure
a written con rmation from the AMLC to ascertain if a petition for civil
forfeiture or an ML complaint has been filed.
SECTION 3. AMLC-Issued Freeze Order. —
Freeze orders issued by the AMLC shall be governed by the TFPSA and its IRR.
SECTION 4. Duties of Covered Persons and Concerned Government
Agencies. —
4.1. Implement Freeze Order.
(a) Upon receipt of the notice of the freeze order, the covered person and
government agency concerned shall immediately freeze the monetary
instrument or property subject thereof, and shall immediately desist from
and not allow any transaction, withdrawal, transfer, removal, conversion,
other movement or concealment thereof.
(b) Interests earned during the effectivity of the freeze order shall be earned
to the bene t of the frozen monetary instrument or property, and shall be
considered as fruits of the said assets in cases the court grants the
petition for civil forfeiture.
(c) Government agencies concerned, shall annotate the freeze order on the
title of the property, as may be allowed under existing laws, or such other
mechanism that would prevent any transaction, withdrawal, transfer,
removal, conversion, other movement or concealment of the property
subject of the freeze order.
4.2. Freeze and Report Related Accounts.
(a) Upon receipt of the freeze order that directs the freezing of related
accounts, and upon veri cation by the covered person that there are
accounts related to the monetary instrument or property subject of the
freeze order, the covered person shall immediately freeze these related
accounts wherever these may be found.
(b) If the related accounts cannot be determined within twenty-four (24)
hours from receipt of the freeze order due to the volume and/or
complexity of the transactions, or any other justi able factors, the covered
person shall effect the freezing of the related accounts within a reasonable
period and shall submit a supplemental return thereof to the Court of
Appeals and the AMLC within twenty-four (24) hours from the freezing of
said related accounts.
(c) Relevant transactions of related accounts shall be reported to the AMLC
as suspicious transactions.
4.3. Furnish Copy of Freeze Order to Owner or Holder.
(a) The covered person and government agency concerned shall immediately
furnish a copy of the freeze order upon the owner or holder of the
monetary instrument or property or related accounts subject thereof.
(b) The covered person and government agency concerned shall, likewise,
immediately notify the owner or holder of a frozen related account on why
the monetary instrument or property was considered as such, and furnish
a copy of the freeze order, which was used as the basis for the freeze.
4.4. Submit Detailed Return.
(a) Within twenty-four (24) hours from receipt of the freeze order or freezing
of the related account, the covered person and government agency
concerned shall submit, by personal delivery, to the Court of Appeals and
to the AMLC, a written detailed return on the freeze order.
(b) The covered person shall also submit to the AMLC, through the internet,
an electronic detailed return in a format to be prescribed by the latter.
4.5. Contents of the Detailed Return.
The detailed return on the freeze order shall specify all the pertinent and relevant
information, which shall include the following:
(a) For covered persons and government agencies, whichever are applicable:
(1) The names of the account holders, personal property owners or
possessors, or real property owners or occupants;
(2) The value of the monetary instrument, property, or proceeds as of
the time the assets were ordered frozen;
(3) All relevant information as to the status and nature of the monetary
instrument, property, or proceeds;
(4) The date and time when the freeze order was served; and
(5) The basis for the identification as related accounts.
(b) For covered persons: The account numbers and/or description of the
monetary instrument, property, or proceeds involved;
(c) For concerned government agencies:
(1) Certi cates of title numbers of registered real property and the
volumes and pages of the registration books of the Register of
Deeds where the same are registered;
(2) Registration in the Primary Entry Book and corresponding
Registration Book in the Register of Deeds for unregistered real
property;
(3) Registration with the Register of Deeds of the enabling or master
deed for a condominium project, declaration of restrictions relating
to such condominium project, certi cate of title conveying a
condominium and notice of assessment upon any condominium;
(4) Tax declarations for improvements built on land owned by a
different party, together with the annotation of the contract of lease
on the title of the owner of the land as registered in the Register of
Deeds;
(5) Certi cates of registration for motor vehicles and heavy equipment
indicating the engine numbers, chassis numbers and plate numbers;
(6) Certificates of numbers for seacraft;
(7) Registration certificates for aircraft; or
(8) Commercial invoices or notarial identi cation for personal property
capable of manual delivery.
RULE 11
Bank Inquiry
SECTION 1. Bank Inquiry Order by the Court. —
1.1. Application for Issuance of Bank Inquiry Order.
By authority of the Council, the AMLC Secretariat shall le before the Court of
Appeals, through the O ce of the Solicitor General, an Ex Parte Application for the
Issuance of Bank Inquiry Order to examine or inquire into any particular deposit or
investment account that is related an unlawful activity or ML offense.
1.2. Inquiry into or Examination of Related Accounts.
A court order ex parte must be obtained before the AMLC can inquire into the
related accounts. The procedure for the ex parte application for an order of inquiry into
the principal account shall be the same for that of the related accounts.
1.3. No Prior Criminal Charge, Pendency of a Case, or Conviction Necessary.
No prior criminal charge, pendency of a case, or conviction for an unlawful
activity or ML offense is necessary for the ling or the resolution of an application for
issuance of bank inquiry order.
1.4. Compliance with Article III, Sections 2 and 3 of the Constitution.
The authority to inquire into or examine the main account and the related
accounts shall comply with the requirements of Article III, Sections 2 and 3 of the 1987
Constitution.
1.5. Period to Resolve Application.
The Court of Appeals shall resolve the application within twenty-four (24) hours
from filing thereof.
1.6. Bank Inquiry Order.
Notwithstanding the provisions of Republic Act No. 1405, as amended; Republic
Act No. 6426, as amended; Republic Act No. 8791, and other laws, the AMLC may
inquire into or examine any particular deposit or investment account, including related
accounts, with any banking institution or non-bank nancial institution, upon order by
the Court of Appeals based on an ex parte application in cases of violation of the AMLA
when it has been established that probable cause exists that the deposits or
investments involved, including related accounts, are in any way related to an unlawful
activity or ML offense.
SECTION 2. Bank Inquiry Order by the AMLC. —
2.1. The AMLC shall issue an ex parte order authorizing the AMLC Secretariat
to inquire into or examine any particular deposit or investment account, including
related accounts, with any banking institution or non-bank nancial institution and their
subsidiaries and a liates when it has been established that probable cause exists that
the deposits or investments involved, including related accounts, are in any way related
to any of the following unlawful activities:
(a) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise
known as the Revised Penal Code, as amended;
(b) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act No.
9165, otherwise known as the Comprehensive Dangerous Drugs Act of
2002;
(c) Hijacking and other violations under Republic Act No. 6235; destructive
arson and murder, as defined under the Revised Penal Code, as amended;
(d) Felonies or offenses of a nature similar to those mentioned in Rule 11,
Section 2.1 (a), (b) and (c), which are punishable under the penal laws of
other countries;
(e) Terrorism and conspiracy to commit terrorism as de ned and penalized
under Republic Act No. 9372; and
(f) Financing of terrorism under Section 4 and offenses punishable under
Sections 5, 6, 7 and 8 of the TFPSA.
2.2. The relevant requirements for Bank Inquiry Order by the Court shall apply
to Bank Inquiry Order by the AMLC, including the procedure for inquiry into related
accounts.
SECTION 3. Duties of the Covered Persons. —
Covered persons shall have the following duties in relation to bank inquiry orders:
(a) The concerned covered persons shall immediately, upon receipt of the
court order or AMLC Resolution, give the AMLC and/or its Secretariat full
access to all information, documents or objects pertaining to the deposit,
investment, account and/or transaction.
(b) Certi ed true copies of the documents pertaining to deposit, investment,
account and/or transaction subject of the bank inquiry shall be submitted
to the AMLC Secretariat, within ve (5) working days from receipt of the
court order or notice of AMLC Resolution.
(c) Keep the con dentiality of the inquiry, and ensure that the owner of any
monetary instrument or property or other unauthorized personnel shall not
be informed about the inquiry, to prevent tipping-off.
SECTION 4. Bank Examination by the BSP. —
4.1. In the course of a periodic or special examination of covered persons
under its supervision and/or regulation, the BSP may inquire into or examine bank
accounts, including customer identi cation, account opening, and transaction
documents, for the purpose of checking compliance with the requirements of the
AMLA and TFPSA, their respective IRR, and other AMLC issuances.
4.2. The AML/CTF ndings that fall within the parameters set by the AMLC
shall be referred by the BSP to the AMLC for evaluation and ling of an administrative
case, if warranted, against the covered person and its responsible directors, o cers
and employees.
RULE 12
Asset Forfeiture
SECTION 1. General Rules on Asset Forfeiture. —
The following rules shall be observed in asset forfeiture proceedings:
(a) No prior criminal charge, pendency of a case, or conviction for an unlawful
activity or ML offense is necessary for the commencement or the
resolution of a petition for civil forfeiture.
(b) No asset shall be attached or forfeited to the prejudice of a candidate for
an electoral office during an election period.
SECTION 1. n Civil Forfeiture. —
1.1. Petition for Civil Forfeiture.
Upon determination that probable cause exists that any monetary instrument or
property is in any way related to an unlawful activity or ML offense, the AMLC shall le
with the regional trial court, through the O ce of the Solicitor General, a veri ed
petition for civil forfeiture.
1.2. Equal Value Assets.
The petition for civil forfeiture shall include other monetary instrument or
property of equal value in cases where the monetary instrument or property that should
be subject of forfeiture:
(a) cannot be located despite due diligence;
(b) has been substantially altered, destroyed, diminished in value or
otherwise rendered worthless by any act or omission;
(c) has been concealed, removed, converted, or otherwise transferred;
(d) is located outside the Philippines or has been placed or brought outside
the jurisdiction of the court; or
(e) has been commingled with other monetary instrument or property
belonging to either the offender himself or a third person or entity, thereby
rendering the same di cult to identify or be segregated for purposes of
forfeiture.
1.3. Rule of Procedure.
Civil forfeiture proceedings shall be governed by the "Rule of Procedure in Cases
of Civil Forfeiture, Asset Preservation, and Freezing of Monetary Instrument, Property,
or Proceeds Representing, Involving, or Relating to an Unlawful Activity or Money
Laundering Offense under Republic Act No. 9160, as Amended" (A.M. No. 05-11-04-SC).
1.4. Asset Preservation Order.
Upon veri ed petition by the AMLC, with prayer for issuance of asset
preservation order, and after determination that probable cause exists that any
monetary instrument or property is in any way related to an unlawful activity, the
Regional Trial Court may issue an asset preservation order, in accordance with the "Rule
of Procedure in Cases of Civil Forfeiture, Asset Preservation, and Freezing of Monetary
Instrument, Property, or Proceeds Representing, Involving, or Relating to an Unlawful
Activity or Money Laundering Offense under Republic Act No. 9160, as Amended" (A.M.
No. 05-11-04-SC), which shall be effective immediately, forbidding any transaction,
withdrawal, deposit, transfer, removal, conversion, concealment or other disposition of
the subject monetary instrument or property.
1.5. Motion to Discharge.
(a) A person whose monetary instrument or property has been preserved
may file a motion to discharge the asset preservation order.
(b) If an asset preservation order is imposed on an account of a covered
person that it uses for payment of salary, rent, suppliers, and/or taxes in
the ordinary course of a legitimate business, the covered person may
apply with the court which issued the asset preservation order to
discharge the same by submitting a bond or other acceptable securities of
equal value to the amount or value subject of the asset preservation order.
The bond or security when approved by the court shall secure the payment
or enforcement of any order or judgment that the AMLC may recover in the
appropriate action relating to the asset preservation order.
SECTION 2. Asset Forfeiture in ML Cases. —
Where there is conviction for ML, 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 or related to an unlawful activity.
SECTION 3. Claim on Forfeited Assets. —
3.1. Where the court has issued an order of forfeiture of the monetary
instrument or property in a criminal prosecution for any ML offense, the offender or any
other person claiming an interest therein may apply, by veri ed petition, for a
declaration that the same legitimately belongs to him and for segregation or exclusion
of the monetary instrument or property corresponding thereto.
3.2. The veri ed petition shall be led with the court which rendered the
judgment of forfeiture, within fteen (15) days from the date of the nality of the order
of forfeiture, in default of which the said order shall become executory.
3.3. This provision shall also apply in civil forfeiture.
SECTION 4. Payment in Lieu of Forfeiture. —
4.1. Where the court has issued an order of forfeiture of the monetary
instrument or property subject of an ML offense, and said order cannot be enforced
because:
(a) any particular monetary instrument or property cannot, with due diligence,
be located;
(b) 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;
(c) it has been concealed, removed, converted, or otherwise transferred to
prevent the same from being found or to avoid forfeiture thereof;
(d) it is located outside the Philippines or has been placed or brought outside
the jurisdiction of the court; or
(e) 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 di cult 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.
4.2. This provision shall apply in both civil and criminal forfeiture.
CHAPTER IV
National Risk Assessment and Management
RULE 13
National Risk Assessment
SECTION 1. Conduct of National Risk Assessment. —
The AMLC, unless otherwise provided by law or the O ce of the President, in
coordination with all relevant SAs, LEAs and OGAs, covered persons, and other
stakeholders, shall conduct a National Risk Assessment (NRA) to identify and assess
the ML/TF risks of the Philippines.
SECTION 2. Frequency of Updating. —
The NRA shall be updated, at least, once every three (3) years, or as often as the
Council may deem necessary, depending on the level of risks found in the previous NRA
or other relevant developments that may impact the Philippines AML/CTF regime.
SECTION 3. Publication and Dissemination. —
The results of the NRA and all relevant AML/CTF risk assessments and
strategies shall be published, posted in the website of the AMLC, and disseminated to
relevant LEAs and OGAs. SAs shall assist the AMLC in disseminating the results of the
NRA to covered persons.
RULE 14
National Risk Management
SECTION 1. Risk-Based Approach to Risk Management. —
Based on their understanding of their risks, the AMLC, SAs, LEAs and OGAs shall
apply a risk-based approach to allocating resources and implementing measures to
prevent or mitigate ML/TF.
SECTION 2. Policy on Exemptions to AML/CTF Requirements. —
The SAs, upon approval of the AMLC, may allow certain exemptions to CDD and
record-keeping requirements. Provided, that:
(a) there is proven low risk of ML/TF, the exemption occurs in strictly limited
and justi ed circumstances, and it relates to a particular type of covered
person or activity; or
(b) a nancial activity, except money or value transfer services, is carried out
by a natural or juridical person on an occasional or very limited basis, such
that there is a low risk of ML/TF.
SECTION 3. Management of High-Level Risks. —
Where the AMLC or the SAs identify higher risks, they shall require covered
persons to:
(a) take enhanced measures to manage and mitigate the risk; or
(b) ensure that these information are incorporated into their institutional risk
assessment.
SECTION 4. Management of Low-Level Risks. —
The AMLC and the SAs may allow covered persons to take RDD measures;
Provided, that lower risks have been identi ed, and this is consistent with the results of
the NRA.
CHAPTER V
Risk Assessment and Management by Covered Persons
RULE 15
Institutional Risk Assessment and Management
SECTION 1. Institutional Risk Assessment. —
1.1. Covered persons shall take appropriate steps to identify, assess, and
understand their ML/TF risks.
1.2. Covered persons shall perform the following activities when conducting
institutional risk assessment:
(a) Document the risk assessments;
(b) Consider all the relevant risk factors before determining the level of
overall risk and the appropriate mitigation measures to be applied;
(c) Keep these assessments up to date; and
(d) Establish appropriate mechanisms to provide the risk assessment
results and any information related thereto to the AMLC and the SAs.
1.3. Covered person shall assess relevant risk factors, taking into
consideration the results of the NRA, such as but not limited to the following:
(a) Customers;
(b) Countries or geographic areas;
(c) Products and services; and
(d) Transactions and delivery channels.
1.4. Institutional risk assessment shall be conducted, at least, once every two
(2) years, or as often as the board or senior management, SAs, or the Council may
direct, depending of the level of risks found in the previous institutional risk
assessment or other relevant AML/CTF developments that may impact the operations
of covered persons.
SECTION 2. Institutional Risk Management. —
2.1. The board of directors, partners or sole proprietor of the covered person
shall exercise active control and supervision in the formulation and implementation of
institutional risk management. They shall be ultimately responsible for the covered
person's compliance with the AMLA and TFPSA, their respective IRR, and other AMLC
issuances.
2.2 Covered persons shall:
(a) develop sound risk management policies, controls and procedures, which
are approved by the board of directors, partners or sole proprietor, to
enable them to manage and mitigate the risks that have been identi ed in
the NRA, or by the AMLC, SAs or the covered person itself;
(b) monitor the implementation of those controls and to enhance them if
necessary; and
(c) take enhanced measures to manage and mitigate the risks where higher
risks are identified.
2.3. Covered persons may adopt RDD to manage and mitigate risks if lower
risks have been identi ed. Provided, that the requirements of Rules 13 to 16 hereof are
met. RDD is not allowed whenever there is a suspicion of ML/TF.
RULE 16
Money Laundering/Terrorism Financing Prevention Program
SECTION 1. General MTPP Requirements. —
Covered persons shall formulate and implement a comprehensive and risk-based
MTPP that is compliant with the AMLA and TFPSA, their respective IRR, and other
AMLC issuances, and the AML/CTF guidelines of SAs; and commensurate to the size
and risk pro le of the covered person. The covered person shall consider the results of
the NRA and its own risk assessment in the development and/or updating of its MTPP.
The MTPP shall be in writing and shall include, at the minimum, internal policies,
controls and procedures on the following:
(a) Risk management;
(b) Compliance management setup, including the designation of a
compliance o cer at the management level or creation of compliance
unit;
(c) Screening procedures to ensure high standards when hiring employees;
(d) Continuing education and training program;
(e) Independent audit function;
(f) Details of implementation of CDD, record-keeping and reporting
requirements;
(g) Compliance with freeze, bank inquiry and asset preservation orders, and
all directives of the AMLC;
(h) Adequate safeguards on the con dentiality and use of information
exchange, including safeguards to prevent tipping-off; and
(i) Cooperation with the AMLC and SAs.
SECTION 2. Compliance Management Structure. —
2.1. Covered persons shall designate a compliance o cer or create a
compliance unit, who shall be responsible for the covered person's day-to-day
compliance with the AMLA and TFPSA, their respective IRR, and other AMLC issuances.
In case the resources of the covered persons hamper the establishments of the
compliance unit, the internal auditor, general manager or proprietor, as the case may be,
shall be the compliance officer.
2.2. The compliance o cer or the head of the compliance unit shall be of
senior management level. It shall have the support and a direct line of communication
to the covered persons' Board of Directors, partners, or sole proprietor.
2.3. Covered persons with complex operations or multiple business
locations, shall, taking into consideration the different risk factors, make and document
its decision on the necessity of, creating a compliance unit, or appointing separate
compliance officer for each of the covered persons' business locations.
2.4. Covered persons shall, as far as practicable, designate a separate
records officer or create a records unit, who shall be responsible for the record-keeping
requirements under the AMLA and this IRR. In case of sole proprietorships with no
support employee or third party support staff, the proprietor shall be the records
officer.

SECTION 3. Screening and Hiring of Employees. —
3.1. Covered persons shall establish adequate screening procedures to
ensure high standards when hiring employees.
3.2. Covered persons shall exercise due diligence in verifying that its
employees were not involved in any ML/TF and associated unlawful activities, or were
not found guilty of any serious, major or grave administrative offenses by the AMLC
and/or the SAs, or convicted in any criminal case involving moral turpitude.
SECTION 4. Continuing Education and Training Program. —
4.1. Covered persons shall develop, or create opportunities for, continuing
education and training programs for its directors, o cers and employees to promote
AML/CTF awareness and strong compliance culture.
4.2. The education and training programs shall include relevant topics, such
as:
(a) Overview on ML/TF, and the AMLA and TFPSA;
(b) Roles of directors, officers and employees in ML/TF prevention;
(c) Risk management;
(d) Preventive measures;
(e) Compliance with freeze, bank inquiry and asset preservation orders, and
all directives of the AMLC;
(f) Cooperation with the AMLC and the SAs; and
(g) International standards and best practices.
4.3. Attendance by covered persons' directors, o cers and employees in all
education and training programs, whether internally or externally organized, shall be
documented. Copies of training certi cates, attendance and materials, and shall be
made available to the AMLC and the SAs, upon request.
4.4. Covered persons shall provide refresher programs, at least, every three
(3) years. In cases where there are new developments brought about by new
legislations, rules and regulations, and other AMLC issuances, covered persons shall
immediately cascade these information to its responsible directors, o cers and
employees; Provided, that the cascading of the information is documented.
SECTION 5. Internal Audit. —
5.1. Covered persons shall have an independent audit function
commensurate with its size and risk profile.
5.2. Covered persons shall appoint an internal auditor or establish an internal
audit unit that is independent from the personnel or unit to be audited. The internal
auditor or internal audit unit shall be responsible for the periodic and comprehensive
evaluation of the AML/CTF risk management framework.
5.3. The internal auditor or internal audit unit shall have the support and a
direct line of reporting to the covered persons' Board of Directors, partners, or sole
proprietor.
5.4. Covered persons shall develop their respective internal audit program,
which shall include the audit scope. The audit scope shall include the review or
evaluation of specific areas, such as but not limited to:
(a) Risk management framework;
(b) Compliance with the AMLA and TFPSA, their respective IRR, and other
issuances by the AMLC and other SAs;
(c) Adequacy and effectiveness of the MTPP.
5.5. Internal audits shall be conducted on a regular basis, commensurate
with the size and risk profile of the covered person.
5.6. The results of the internal audit shall be timely and directly reported to
the covered persons' Board of Directors, partners, or sole proprietor, copy furnished the
compliance o cer. The covered person shall establish a mechanism to promptly
address and monitor noted weaknesses or ndings in the internal audit report. Internal
audit reports shall be made available to the AMLC and the SAs, upon request.
SECTION 6. Approval and Implementation. —
6.1. The board of directors, partners or sole proprietors of the covered
person shall approve, and exercise active oversight in the implementation of the MTPP.
The compliance officer shall be the lead implementor of the MTPP.
6.2. Covered persons shall make the MTPP readily available in user-friendly
form, and disseminated to all o cers and staff who are responsible in implementing
the same. Covered persons shall ensure that there is an audit trail evidencing the
dissemination of the MTPP to all concerned officers and staff.
6.3. Where covered persons operate at multiple locations in the Philippines, it
shall adopt an institution-wide MTPP to be implemented in a consolidated manner.
SECTION 7. Group-Wide MTPP. —
Financial and DNFBP groups shall implement group-wide MTPP, which should be
applicable, and appropriate to, all branches and majority-owned subsidiaries of the
nancial and professional group. These shall include the measures set out in Rule 16,
Section 1.1, and also:
(a) policies and procedures for sharing information required for the purposes
of CDD and risk management;
(b) the provision, at group-level compliance, audit, and/or AML/CTF
functions, of customer, account, and transaction information from
branches and subsidiaries when necessary for AML/CTF purposes. This
should include information and analysis of transactions or activities which
appear unusual, if such analysis was done. Similarly branches and
subsidiaries should receive such information from these group-level
functions when relevant and appropriate to risk management; and
(c) adequate safeguards on the con dentiality and use of information
exchanged, including safeguards to prevent tipping-off.
SECTION 8. Foreign Branches and Subsidiaries. —
8.1. Covered persons shall ensure that their foreign branches and majority-
owned subsidiaries apply the AML/CTF measures consistent with the AMLA and
TFPSA, their respective IRR, and other AMLC issuances, where the minimum AML/CTF
requirements of the host country are less strict, to the extent that the laws and
regulations of the host country permit.
8.2. If the host country does not permit the proper implementation of the
measures under the AMLA and TFPSA, their respective IRR, and other AMLC issuances,
covered persons shall apply appropriate additional measures to manage the ML/TF
risks, and inform their respective SAs and the AMLC.
SECTION 9. Inspection/Review of MTPP. —
Covered persons shall, upon request, make available its MTPP to the AMLC and
SAs, for inspection/review.
SECTION 10. Updating. —
The MTPP shall be updated, at least, once every two (2) years or whenever
necessary to re ect changes in AML/CTF obligations, ML/TF trends, detection
techniques, and typologies.
CHAPTER VI
Preventive Measures
RULE 17
Prohibited Accounts
SECTION 1. Anonymous Accounts and Accounts under Fictitious Names. —
1.1. Covered persons shall maintain customers' account only in the true and
full name of the account owner or holder.
1.2. Anonymous accounts, accounts under ctitious names, and all other
similar accounts shall be absolutely prohibited.
SECTION 2. Numbered Accounts. —
2.1. Numbered accounts, except non-checking numbered accounts, shall not
be allowed.
2.2. CTRs and STRs involving non-checking numbered accounts shall contain
the true name of the account holder.
SECTION 3. Annual Testing to Determine True Identity of Accounts. —
The SAs may conduct annual testing for the sole purpose of determining the
existence and true identity of the foregoing accounts, if any.
RULE 18
Customer Due Diligence
SECTION 1. Purpose and Applicability of CDD. —
1.1. Purpose of CDD.
Covered persons shall conduct CDD for the following purposes:
(a) To identify the customer, and its agents and beneficial owners;
(b) To determine the risk posed by each customer;
(c) To establish, maintain, close or terminate the account or business
relationship; and
(d) To assess the level of monitoring to be applied.
1.2. When is CDD Required.
Covered persons shall undertake CDD measures when:

(a) establishing business or professional relationship;
(b) carrying out occasional transactions above (Php100,000.00) or any other
threshold as may be determined by the relevant SAs, with notice to the
Council, including situations where the transaction is carried out in a single
operation or in several operations that appear to be linked;
(c) carrying out occasional wire transfers in the circumstances under Rule 19,
Section 6 hereof;
(d) there is a suspicion of ML/TF, regardless of any exemptions or thresholds
that are referred to elsewhere under this IRR; or
(e) the covered person has doubts about the veracity or adequacy of
previously obtained identification information and/or data.
1.3. Existing Customers.
Covered persons shall apply CDD requirements to existing customers on the
basis of materiality and risk, and to conduct due diligence on existing relationships at
appropriate times, taking into account whether and when CDD measures have
previously been undertaken and the adequacy of information and document obtained.
SECTION 2. Customer Due Diligence Measures. —
2.1. Covered persons shall conduct the appropriate CDD measures, which
include the following procedures:
(a) Customer Identification Process;
(b) Customer Verification Process;
(c) Identification and Verification of Agents;
(d) Beneficial Ownership Verification;
(e) Determination of the Purpose of Relationship; and
(f) Ongoing Monitoring Process.
2.2. Timing of CDD Measures.
The foregoing CDD measures may be conducted simultaneously, consecutively,
or at such timing and frequency as the covered person may determine to be
appropriate, depending on the risks involved, unless otherwise provided in this IRR.
2.3. Average Due Diligence.
The requirements set forth in this IRR are for Average Due Diligence (ADD), unless
otherwise stated or allowed to be RDD or EDD.
2.4. Customer Acceptance Policies.
Covered persons shall have clear, written and graduated customer acceptance
policies and procedures that will seek to prevent suspicious individuals or entities from
transacting with, or establishing or maintaining business relationship with them.
Covered persons shall develop guidelines to assist their responsible o cers in
assessing whether a customer's pro le warrants acceptance or refusal of service to
protect the security and integrity of the business.
SECTION 3. Customer Identification Process. —
3.1. General Requirement for CIP.

Covered persons shall identify and record the true identity of their customers,
whether permanent or occasional, and whether natural or juridical person, or legal
arrangement.
3.2. First Time Transactions.
Customers who engage in a transaction with a covered person for the rst time
shall be required to present the original and submit a clear copy of, at least, one (1) ID
as herein de ned. In case the ID presented does not bear any photo of the customer, or
the photo-bearing ID or a copy thereof does not clearly show the face of the customer,
a covered person may utilize ICT or any other technology to take the photo of the
customer.
3.3. System for Collection and Recording of Data.
Covered persons shall implement appropriate systems of collecting and
recording identification information and ID, such as:
(a) Photocopying/scanning of the ID presented;
(b) Using ICT to capture and record the demographic data and/or biometric
information of customers; and/or
(c) Manual recording of identification information.
3.4. Required Identification Data from Natural Persons.
For customers who are natural persons, covered persons shall gather the
following identi cation information and ID before or during account opening or
onboarding:
(a) Identification Information:
(1) Full name;
(2) Date of birth;
(3) Place of birth;
(4) Sex;
(5) Citizenship or nationality;
(6) Address;
(7) Contact number or information, if any;
(8) Specimen signatures or biometric information.
(b) Identification Documents:
(1) PhilID; or
(2) Other identification document, as herein defined.
3.5. Required Identification Data from Juridical Persons.
For customers that are juridical persons, covered persons shall gather the
following identi cation information and IDs before or during account opening or
onboarding:
(a) Identification Information:
(1) Full name;
(2) Name of authorized representative/transactor/signer;
(3) Current office address;
(4) Contact number or information, if any;
(5) Nature of business; and
(6) Specimen signatures or biometric information of the authorized
representative/transactor/signer.
(b) Identification Documents:
(1) Certi cates of Registration issued by the Department of Trade and
Industry (DTI) for sole proprietors, or Certi cate of Incorporation or
Partnership issued by the SEC for corporations and partnerships,
respectively, and by the BSP for money changers/foreign exchange
dealers and remittance agents, and by the AMLC for covered
persons.
(2) Articles of Incorporation/Partnership;
(3) Registration Data Sheet/Latest General Information Sheet;
(4) Secretary's Certi cate citing the pertinent portion of the Board or
Partners' Resolution authorizing the signatory to sign on behalf of
the entity; and
(5) For entities registered outside of the Philippines, similar
documents and/or information duly authenticated by a senior officer
of the covered person assigned in the country of registration; in the
absence of said o cer, the documents shall be authenticated by the
Philippine Consulate, company register or notary public, where said
entities are registered.
3.6. Required Identification Data from Legal Arrangements.
For customers that are legal arrangements, Rule 24 shall apply, in addition to the
requirements for juridical persons, as applicable.
3.7. Sufficiency of PSN or PhilID in Proving Identity.
Notwithstanding the foregoing, covered persons shall deem the provision and
submission of the PSN or PhilID as o cial and su cient proof of identity, subject to
the authentication requirements under the PhilSys Act and its IRR.
SECTION 4. Customer Verification Process. —
4.1. General Requirement for CVP.
Covered persons shall implement and maintain a system of verifying the true
identity of their clients, including validating the truthfulness of the information and
con rming the authenticity of the identi cation documents presented, submitted and
provided by the customer, using reliable and independent sources, documents, data, or
information.
4.2. CVP for Juridical Persons and Legal Arrangements.
For customers that are juridical persons or legal arrangements, covered persons
shall maintain a system of understanding the nature of the customer's business or
profession, and ownership and control structure, as well as the authority and
identi cation of all persons purporting to act on their behalf. They shall verify the
customer's identity through the following information:
(a) name, legal form and proof of existence;
(b) the powers and other legal requirements or contracts that regulate and
bind the juridical person or legal arrangement, as well as the names of the
relevant persons having a senior management position or perform
significant responsibilities in the juridical person or legal arrangement; and
(c) the address of the registered o ce and, if different, a principal place of
business.
4.3. Timing of CVP.
Covered persons shall verify the identity of the customer before or during the
course of establishing a business or professional relationship, or conducting
transactions for occasional customers. They may complete the veri cation process
after the establishment of the business or professional relationship; Provided, that:
(a) completion occurs as soon as reasonably practicable;
(b) deferred CVP is essential so as not to interrupt the normal conduct of
business; and
(c) the ML/TF risks are effectively managed, taking into consideration risk
and materiality.
4.4. Transacting or Using the Relationship Prior to CVP.
Covered persons shall adopt risk management procedures concerning the
conditions under which a customer may utilize the business or professional
relationship prior to verification.
4.5. Modes of CVP.
Covered persons shall independently verify the collected data during CIP, through
any of the following:
(a) face-to-face contact;
(b) use of ICT;
(c) by con rming the authenticity of the identi cation documents to the
issuing office;
(d) reliance on third parties and service providers; or
(e) such other methods of validation based on reliable and independent
sources, documents, data, or information.
SECTION 5. Identification and Verification of Agents. —
5.1. General Requirement for IVA.
Covered persons shall verify that any person purporting to act on behalf of a
customer is so authorized, and identify and verify the identity of that person.
5.2. Where an account is opened or an occasional transaction in excess of
the threshold is conducted by any person in behalf of another, covered persons shall
establish and record the true and full identity and existence of both the account holder
or person purporting to act on behalf of the customer, and the bene cial owner or the
principal on whose behalf the transaction is being conducted.
5.3. Covered persons shall verify the validity of the authority of the agent. In
case it entertains doubts as to whether the account holder or person purporting to act
on behalf of the customer is being used as a dummy in circumvention of existing laws,
it shall apply EDD and file an STR, if warranted.
SECTION 6. Beneficial Ownership Verification. —
6.1. General Requirement for BOV.
Covered persons shall identify the bene cial owner and take reasonable
measures to verify the identity of the bene cial owner, using the relevant information or
data obtained from a reliable sources, such that the covered person is satis ed that it
knows who the beneficial owner is.
6.2. Document Evidencing Relationship.
Covered persons shall determine the true nature of the bene cial owner's
capacities and duties vis-à-vis his agent by obtaining a copy of the written document
evidencing their relationship and apply the same standards for assessing the risk
profile and determining the standard of CDD to be applied to both.
6.3. Timing of BOV.
Covered persons shall verify the identity of the bene cial owner before or during
the course of establishing a business or professional relationship, or conducting
transactions for occasional customers in excess of the threshold. They may complete
the BOV after the establishment of the business or professional relationship; Provided,
that:
(a) this occurs as soon as reasonably practicable;
(b) this is essential not to interrupt the normal conduct of business; and
(c) the ML/TF risks are effectively managed.
6.4. BOV for Juridical Persons.
For customers that are juridical persons, the covered persons shall identify and
take reasonable measures to verify the identity of bene cial owners through the
following information:
(a) the identity of the natural persons, if any, who ultimately have controlling
ownership interest in a juridical person;
(b) to the extent that there is a doubt under item (a) above, as to whether the
persons with the controlling ownership interest are the bene cial owners
or where no natural person exerts control through ownership interests, the
identity of the natural persons, if any, exercising control over the juridical
person through other means; and
(c) where no natural person is identi ed under items (a) and (b) above, the
identity of the relevant natural persons who hold senior management
positions.
6.5. BOV for Legal Arrangements.
For customers that are legal arrangements, the covered person shall identify and
take reasonable measures to verify the identity of bene cial owners through the
following information:
(a) For trust agreements: the identity of the trustors/grantors/settlors, the
trustees, the bene ciaries or class of bene ciaries, the protector, if any,
and any other natural person exercising ultimate effective control over the
trust agreement.
(b) For bene ciaries of trust agreements that are designated by
characteristics or by class: su cient information concerning the
bene ciary to satisfy the covered person that it will be able to establish
the identity of the bene ciary at the time of the payout or when the
beneficiary intends to exercise vested rights.
(c) For other types of legal arrangements: the identity of persons in
equivalent or similar positions.
6.6. Guidelines on Beneficial Ownership.
The AMLC shall formulate guidelines on the detailed implementation of the
requirements on BOV.
SECTION 7. Determination of the Purpose of Relationship. —
Covered persons shall understand and, as appropriate, obtain information on, the
purpose and intended nature of the account, transaction, or the business or
professional relationship with their customers.
SECTION 8. Ongoing Monitoring Process. —
8.1. General Requirement for OMP.
Covered persons shall, on the basis of materiality and risk, conduct ongoing
monitoring by establishing a system that will enable them to understand the normal
and reasonable account or business activity of customers, and scrutinize transactions
undertaken throughout the course of the business or professional relationship to
ensure that the customers' accounts, including transactions being conducted, are
consistent with the covered person's knowledge of its customer, their business and
risk profile, including where necessary, the source of funds.
8.2. EDD After Conduct of OMP.
Covered persons shall apply EDD on the customer if it acquires information in the
course of its customer account or transaction monitoring that:
(a) Raises doubt as to the accuracy of any information or document provided
or the ownership of the juridical person or legal arrangement;
(b) Justi es reclassi cation of the customer from low or normal risk to high
risk, pursuant to this IRR;
(c) Indicates that any of the suspicious circumstances, as herein de ned,
exists.
8.3. Review and Updating of Records.
Covered persons shall, based on materiality and risk, ensure that information and
documents collected under the CDD process are kept up-to-date and relevant, by
undertaking reviews of existing records, particularly for higher risk categories of
customers. Updating of records shall be mandatory when enhanced OMP is warranted.
SECTION 9. Risk-Based Approach in Conducting CDD. —
9.1. Risk-based CDD.
In conducting CDD, a risk-based approach shall be undertaken. Covered persons
shall assess their customers to determine who are likely to pose low, normal, or high
risk.
9.2 Risk Profiling of Customers.
Covered persons shall develop a clear set of criteria for customer risk pro ling
and assessment. Criteria shall include, at least, three (3) of the following; Provided, that
the covered person is satisfied that customer's risk profile is sufficiently established:
(a) the nature of the service or product to be availed of by the customers;
(b) the purpose of the account or transaction;
(c) the source of fund and source of wealth;
(d) the nature of business and/or employment;
(e) country of origin and residence of operations, or the fact that a customer
came from a high-risk jurisdiction or geographical area;
(f) watchlist of individuals and entities engaged in illegal activities or terrorist
related activities as circularized by the BSP, AMLC, and other international
entities or organizations, such as the O ce of Foreign Assets Control
(OFAC) of the U.S. Department of the Treasury and United Nations
Sanctions List;
(g) the existence of suspicious transaction indicators; and
(h) such other factors as the covered persons may deem reasonable or
necessary to consider in assessing the risk of a customer, including the
amount of funds to be transacted by a customer or the size of
transactions undertaken, regularity or duration of the transaction, and/or
are included in the negative list.
9.3. Risk Profiling of Juridical Persons.
In assessing the risk pro le of juridical persons, the covered person shall also
consider the nancial pro le and other relevant information of the active authorized
signatories.
9.4. Documentation of Risk Profiling Results.
The covered person shall document the risk pro ling results, as well as how a
customer was profiled and the standard of CDD applied.
9.5. Standards for RDD, ADD and EDD.
Covered persons shall set the standards in applying RDD, ADD, and EDD, including
a set of conditions for continuance or discontinuance of service, or business
relationship.
SECTION 10. Enhanced Due Diligence. —
10.1. Covered persons shall examine the background and purpose of all
complex, unusually large transactions, all unusual patterns of transactions, which have
no apparent economic or lawful purpose, and other transactions that may be
considered suspicious. Where the risks are higher, covered persons shall conduct EDD.
10.2. When conducting EDD, covered persons shall perform the following:
(a) Gather documents to support the:
(1) Sources of wealth and fund;
(2) Nature of occupation and/or business;
(3) Reason for intended or performed transaction; and
(4) Other identi cation information, which the covered person deems
necessary to verify the identity of the customer, and their agents and
beneficial owners.
(b) Conduct additional validation procedures, such as:
(1) verifying volume of assets, information available through public
databases, internet and other records;
(2) verifying the declared residence address and conducting face-to-
face contact with the customers, and their agents and bene cial
owners; and
(3) other modes of validation, which the covered person deems
reliable and practical.
(c) Secure the approval of senior management to commence or continue
transacting with the customer;
(d) Conduct enhanced ongoing monitoring, including more frequent or
regular updating of identi cation information and identi cation
documents;
(e) Require the rst payment to be carried out through an account in the
customer's name with a bank subject to similar CDD standards, where
applicable; and
(f) Such other measures as the covered persons may deem reasonable or
necessary.
SECTION 11. Reduced Due Diligence. —
11.1. Where lower risks of ML/TF have been identi ed, through an adequate
analysis of risk by the covered persons, RDD procedures may be applied. The RDD
procedures shall be commensurate with the lower risk factors, but are not acceptable
whenever there is suspicion of ML/TF, or specific higher risk scenarios apply.
11.2. In strictly limited circumstances and where there is proven low risk of
ML/TF, the SAs may issue guidelines allowing certain exemptions on CDD measures,
taking into account the nature of the product, type of business and the risks involved;
Provided, that ML/TF risks are effectively managed.
SECTION 12. Failure to Satisfactorily Complete CDD. —
Covered persons who are unable to comply with the relevant CDD measures
shall:
(a) refuse to open an account, commence business relations or perform the
transaction; or shall terminate the business relationship; and
(b) File an STR in relation to the customer, if circumstances warrant.
SECTION 13. CDD and Tipping-Off. —
In cases where covered persons form a suspicion of ML/TF and associated
unlawful activities, and they reasonably believe that performing the CDD process will
tip-off the customer, they need not pursue the CDD process, but should le an STR,
closely monitor the account, and review the business relationship.
RULE 19
Preventive Measures for Specific Transactions and Activities
SECTION 1. Politically-Exposed Persons. —
1.1. Covered persons shall establish and record the true and full identity of
PEPs, as well as their immediate family members and close relationships/associates.
1.2. Domestic and International Organization PEPs.
In addition to performing the applicable CDD measures under Rule 18 hereof,
covered persons shall:
(a) Take reasonable measures to determine whether a customer, and his
agent and beneficial owner are PEPs; and
(b) In cases when there is a higher risk business relationship, adopt the
following measures:
(1) Obtain senior management approval before establishing or, for
existing customers, continuing, such business relationships;
(2) Take reasonable measures to establish the source of wealth and
the source of funds of customers and bene cial owners identi ed
as PEPs; and
(3) Conduct enhanced ongoing monitoring on that relationship.
1.3. Foreign PEPs.
In addition to performing the applicable CDD measures under Rule 18 hereof,
covered persons shall:
(a) Put in place risk management systems to determine whether a customer
or the beneficial owner is a PEP;
(b) Obtain senior management approval before establishing (or continuing,
for existing customers) such business relationships;
(c) Take reasonable measures to establish the source of wealth and the
source of funds of customers and bene cial owners identi ed as PEPs;
and
(d) Conduct enhanced ongoing monitoring on that relationship.
SECTION 2. Life Insurance and Other Investment-Related Insurance Policies.
—
2.1. In addition to the CDD required for the customers and bene cial owner,
covered persons shall conduct the following CDD measures on the bene ciary of life
insurance and other investment-related insurance policies, as soon as the bene ciary is
identified or designated:
(a) For a beneficiary that is identified as specifically named natural or juridical
person, or legal arrangements: taking the name of the person.
(b) For a bene ciary that is designated by characteristics, by class, or by
other means: obtaining sufficient information concerning the beneficiary to
satisfy the covered person that it will be able to establish the identity of
the beneficiary at the time of payout.
(c) For both the above cases: the veri cation of the identity of the bene ciary
should occur at the time of payout.
2.2. Covered persons shall include the bene ciary of life insurance policy as a
relevant risk factor in determining whether EDD is applicable. If the covered person
determines that a bene ciary who is a juridical person or legal arrangement presents a
higher risk, it shall take enhanced measures, which include reasonable measures to
identify and verify the identity of the bene cial owner of the bene ciary, at the time of
payout.
2.3. In relation to life insurance policies, covered persons shall take
reasonable measures to determine whether the bene ciaries and the bene cial owner
of the bene ciary, are PEPs. This should occur, at the latest, at the time of the payout.
Where higher risks are identi ed, covered persons shall inform senior management
before the payout of the policy proceeds, to conduct enhanced scrutiny on the whole
business relationship with the policyholder, and to consider filing an STR.
SECTION 3. Correspondent Banking. —
3.1. Covered persons shall adopt policies and procedures to prevent
correspondent banking activities from being utilized for ML/TF activities, and designate
an officer responsible in ensuring compliance with these policies and procedures.
3.2. A covered person may rely on the CDD measures undertaken by the
respondent bank pursuant to the AML/CTF guidelines of the BSP.
3.3. In relation to cross-border correspondent banking and other similar
relationships, covered persons are required to:
(a) Gather su cient information about the respondent institution to
understand fully the nature of the respondent's business, and to determine
from publicly available information the reputation of the institution and the
quality of supervision, including whether it has been subject to a ML/TF
investigation or regulatory action;
(b) Assess the respondent institution's AML/CTF controls;
(c) Obtain approval from senior management before establishing new
correspondent relationships; and
(d) Clearly understand the respective AML/CTF responsibilities of each
institution.
3.4. With respect to payable-through accounts, covered persons are required
to satisfy themselves that the respondent bank:
(a) Has performed CDD on its customers that have direct access to the
accounts of the correspondent bank; and
(b) Is able to provide relevant CDD information upon request to the
correspondent bank.
3.5. Covered persons shall not enter into, or continue, correspondent banking
relationships with shell banks and shall have measures to satisfy themselves that
respondent nancial institutions do not permit their accounts to be used by shell
banks.
SECTION 4. Money or Value Transfers Services. —
4.1. Covered persons which provide money or value transfer services shall
register with the BSP for purposes of supervision and checking compliance with the
AMLA and TFPSA, their respective IRR, and other AMLC issuances. They shall also
register with the AMLC for purposes of filing CTRs and STRs.
4.2. Covered persons that provide money or value transfer services without
the required license or registration shall be subject to enforcement actions of the BSP
or administrative sanctions of the AMLC, whichever is appropriate.
4.3. Covered persons that provide money or value transfer services shall
maintain a current list of its agents accessible by the AMLC and the BSP, and available
upon request.
4.4. Covered persons which provide money or value transfer services that
use agents shall include them in their AML/CTF programs and monitor them for
compliance with these programs.
SECTION 5. New Technologies. —
5.1. The AMLC, in coordination with the relevant SAs, LEAs, OGAs, and
covered persons, should identify and assess the ML/TF risks that may arise in relation
to the development of new products and new business practices, including new
delivery mechanisms, and the use of new or developing technologies for both new and
pre-existing products.
5.2. The AMLC and the relevant SAs shall adopt mechanisms to manage and
mitigate risks emerging from virtual assets by ensuring that virtual asset providers are:
(a) regulated for AML/CTF purposes;
(b) licensed or registered; and
(c) subject to effective systems for monitoring and ensuring compliance with
the relevant preventive measures.
5.3. Covered persons shall undertake risk assessments prior to the launch or
use of such products, practices and technologies; and take appropriate measures to
manage and mitigate the risks.
SECTION 6. Wire Transfers. —
6.1. Originating/Ordering Financial Institutions.
6.1.1. Originating/ordering nancial institutions shall not accept instructions
for wire transfer from a non-customer originator, for occasional
transactions exceeding the set threshold, unless it has conducted the
necessary CDD measures to establish the true and full identity and
existence of said originator.
6.1.2. Financial institutions shall ensure that all cross-border wire transfers in
the amount or threshold to be determined by the BSP or its equivalent in
foreign currency are always accompanied by the following:
(a) Required and accurate originator information:
(1) the name of the originator;
(2) the account number of the originator, where such an
account is used to process the transaction or, in the
absence of an account, a unique transaction reference
number, which permits traceability of the transaction;
and
(3) the originator's address, or national identity number, or
customer identi cation number, or date and place of
birth.

(b) Required beneficiary information:
(1) the name of the beneficiary; and
(2) the bene ciary account number, where such an account
is used to process the transaction or, in the absence of
an account, a unique transaction reference number, which
permits traceability of the transaction.
6.1.3. Where several individual cross-border wire transfers from a single
originator are bundled in a batch le for transmission to bene ciaries, the
batch le shall contain required and accurate originator information, and
full bene ciary information, that is fully traceable within the bene ciary
country; and the nancial institution shall include the originator's account
number or unique transaction reference number.
6.1.4. If a de minimis threshold, as determined by the BSP, or its equivalent in
foreign currency, is applied for the requirements under Rule 19, Section
6.1.2 hereof, originating/ordering nancial institutions shall ensure that all
cross-border wire transfers below the applicable de minimis threshold are
always accompanied by the following:
(a) Required originator information:
(1) the name of the originator; and
(2) the originator account number, where such an account
(b) Required beneficiary information:
(1) the name of the beneficiary; and
(2) the bene ciary account number, where such an account
6.1.5. The information mentioned in Rule 19, Section 6.1.4 hereof need not be
veri ed for accuracy. However, the nancial institution shall verify the
information pertaining to its customer where there is a suspicion of
ML/TF.
6.1.6. For domestic wire transfers, the originating/ordering nancial
institution shall ensure that the information accompanying the wire
transfer includes originator information as indicated for cross-border wire
transfers, unless this information can be made available to the bene ciary
financial institution and appropriate authorities by other means.
6.1.7. Where the information accompanying the domestic wire transfer can
be made available to the bene ciary nancial institution and appropriate
authorities by other means, the originating/ordering nancial institution
need only be required to include the account number or a unique
transaction reference number; Provided, that this number or identi er will
permit the transaction to be traced back to the originator or the
bene ciary. The originating/ordering nancial institution shall make the
information available within ve (5) working days from receipt of the
request either from the bene ciary nancial institution or from appropriate
authorities.
6.1.8. The ordering nancial institution shall maintain all originator and
beneficiary information collected, in accordance with Rule 19 hereof.
6.1.9. The ordering nancial institution shall not be allowed to execute the
wire transfer if it does not comply with all the requirements under Rule 19,
Sections 6.1.1 to 6.1.8 hereof.
6.2. Intermediary Financial Institutions.
6.2.1. For cross-border wire transfers, an intermediary nancial institution
shall ensure that all originator and bene ciary information that
accompanies a wire transfer is retained with it.
6.2.2. Where technical limitations prevent the required originator or
bene ciary information accompanying a cross-border wire transfer from
remaining with a related domestic wire transfer, the intermediary nancial
institution should be required to keep a record, for at least ve (5) years, of
all the information received from the originating/ordering nancial
institution or another intermediary financial institution.
6.2.3. Intermediary nancial institutions shall take reasonable measures,
which are consistent with straight-through processing, to identify cross-
border wire transfers that lack required originator information or required
beneficiary information.
6.2.4. Intermediary nancial institutions shall have risk-based policies and
procedures for determining:
(a) when to execute, reject, or suspend a wire transfer lacking required
originator or required beneficiary information; and
(b) the appropriate follow-up action.
6.3. Beneficiary Financial Institutions.
6.3.1. A bene ciary nancial institution shall verify the identity of the
bene ciary, if the identity has not been previously veri ed, and maintain
this information in accordance with Rule 19 hereof. Should the originator
and bene ciary be the same person, the bene ciary nancial institution
may rely on the CDD conducted by the originating institution, treating the
originating institution as third party.
6.3.2. Bene ciary nancial institutions shall take reasonable measures, which
may include post-event monitoring, or real-time monitoring where feasible,
to identify cross-border wire transfers that lack required originator
information or required beneficiary information.
6.3.3. Bene ciary nancial institutions shall have risk-based policies and
procedures for determining:
(a) when to execute, reject, or suspend a wire transfer lacking required
originator or required beneficiary information; and
(b) the appropriate follow-up action.
6.4. Money or Value Transfer Service Providers.
6.4.1. MVTS providers shall comply with all of the relevant requirements of
Rule 19, Section 6 hereof in all countries in which they operate, directly or
through their agents.
6.4.2. In the case of a MVTS provider that controls both the ordering and the
beneficiary side of a wire transfer, the MVTS provider shall:
(a) take into account all the information from both the ordering and
bene ciary sides in order to determine whether an STR has to be
filed; and
(b) le an STR in any country affected by the suspicious wire transfer,
and make relevant transaction information available to the
concerned FIU.
6.5. Implementation of Targeted Financial Sanctions.
Covered persons shall secure the consent of all their customers to be bound by
obligations set out in the relevant United Nations Security Council Resolutions relating
to the prevention and suppression of proliferation nancing of weapons of mass
destruction, including the freezing and unfreezing actions as well as prohibitions from
conducting transactions with designated persons and entities.
SECTION 7. Shell Bank, Shell Company and Bearer Share Entity. —
7.1. A covered person shall always apply EDD on both the entity and its
beneficial owners when dealing with a shell company.
7.2. Covered persons shall refuse to deal, enter into, or continue,
correspondent banking relationship with shell banks. They shall likewise guard against
establishing relations with foreign nancial institutions that permit their accounts to be
used by shell banks.
7.3. A covered person dealing with bearer share entities shall be required to
conduct EDD diligence on said entities and their existing stockholders and/or bene cial
owners at the time of opening of the account. These entities shall be subject to
ongoing monitoring procedure at all times and the list of stockholders and/or
bene cial owners shall be updated within thirty (30) days after every transfer of
ownership and the appropriate enhanced due diligence shall be applied to the new
stockholders and/or beneficial owners.
SECTION 8. High-Risk Jurisdiction or Geographical Location. —
8.1. Covered persons shall apply EDD, proportionate to the risks, to accounts,
transactions, and business and professional relationships with customers who are
nationals or citizens from foreign jurisdiction or geographical location that presents
greater risk for ML/TF or its associated unlawful activities, or is recognized as having
inadequate internationally accepted AML/CTF standards, as determined by the relevant
domestic or international bodies.
8.2. The AMLC and the SAs shall apply proportionate countermeasures to
address risks posed by customers from high-risk jurisdiction or geographical location.
8.3. The AMLC and the SAs shall establish measures to ensure that covered
persons are advised of concerns about weaknesses in the AML/CTF systems of other
countries.
RULE 20
Record-Keeping
SECTION 1. Record-Keeping. —
Covered persons shall maintain and safely store for ve (5) years from the dates
of transactions all customer records and transaction documents.
SECTION 2. Closed Accounts and Terminated Relationships. —
Covered persons shall keep all records obtained through CDD, account les and
business correspondence, and the results of any analysis undertaken, for, at least, ve
(5) years following the closure of account, termination of the business or professional
relationship or after the date of the occasional transaction.
SECTION 3. Retention of Records Where There is a Case. —
If a case has been led in court involving the account, records must be retained
and safely kept beyond the ve (5)-year period, until it is o cially con rmed by the
AMLC Secretariat that the case has been resolved, decided or terminated with finality.
SECTION 4. Form of Records. —
4.1. Complimented by the requirements under the 2018 Guidelines on
Digitization of Customer Records, covered persons shall retain all transaction records
either in:
(a) their original forms; or
(b) such other forms su cient to permit reconstruction of individual
transactions so as to provide admissible evidence in court.
4.2. Covered persons shall keep the electronic copies of all CTRs and STRs
for, at least, five (5) years from the dates of submission to the AMLC.
4.3. For low risk customers, covered persons shall maintain and store, in
whatever form, a record of information data and transactions, su cient to permit
reconstruction of individual transactions so as to provide, if necessary, evidence for
prosecution of criminal activity.
SECTION 5. Availability of Records. —
5.1. Covered persons shall ensure that all CDD information and transaction
records are available swiftly to domestic competent authorities in the exercise of their
official functions or upon order by a competent authority.
5.2. Covered persons shall take measures to ensure that customer records
are submitted in the manner, quality and period as would assist the AMLC in its prompt
nancial investigations and institution of legal actions. For this purpose, covered
persons shall implement the guidelines on the digitization of customer records issued
by the AMLC.
RULE 21
Reliance on Third Parties and Service Providers
SECTION 1. Third Party Reliance. —
1.1. A covered person may rely on a third party in conducting CDD under
items a, b, d, e of Section 2.1 under Rule 18 and record-keeping measures. The third
party shall be:
(a) A covered person; or
(b) A nancial institution or DNFBP operating outside the Philippines that is
covered by equivalent CDD and record-keeping measures. When
determining in which countries the third party that meets the conditions
can be based, covered persons shall have regard to information available
on the level of country risk.
1.2. Notwithstanding the foregoing, the ultimate responsibility for CDD and
record-keeping remains with the covered person relying on the third party, which shall
be required to:
(a) obtain immediately the necessary information received and gathered
during the conduct of the different CDD measures;
(b) take steps to satisfy itself that copies of record of identi cation
information and IDs shall be made available from the third party upon
request without delay; and
(c) satisfy itself that the third party is a covered person, and has measures in
place for compliance with, CDD and record-keeping requirements.
1.3. In cases of high-risk customers, the covered person relying on the third
person shall also conduct EDD procedure.
1.4. Covered persons may rely on a third party that is part of the same
financial, business or professional group under the following circumstances:
(a) the group applies CDD and record-keeping requirements, in line with the
AMLA and TFPSA, their respective IRR, and other AMLC issuances; and the
MTPP, in accordance with Rule 16 hereof;
(b) the implementation of CDD and record-keeping requirements, and the
MTPP is supervised at a group level by an SA; and
(c) any higher country risk is adequately mitigated by the group's AML/CTF
policies.
RULE 22
Transaction Reporting
SECTION 1. CTR and STR. —
1.1. Filing of CTRs and STRs.
Covered persons shall le all CTRs and STRs, in accordance with the registration
and reporting guidelines of the AMLC.
1.2. Covered Transaction also a Suspicious Transaction.
Should a transaction be determined to be both a covered and a suspicious
transaction, the same shall be reported as a suspicious transaction. In this regard, it
shall be reported rst as a CTR, subject to updating if it is nally con rmed to be
reportable as STR.
1.3. Exemption from Reporting.
Lawyers and accountants who are: (a) authorized to practice their profession in
the Philippines; and (b) engaged as independent legal or accounting professionals, in
relation to information concerning their clients, or where disclosure of information
would compromise client con dences or the attorney-client relationship are not
required to file CTRs.
Lawyers and accountants, however, are not precluded from submitting STRs to
the AMLC with regard to any transaction of their clients that is in any way related to
ML/TF or related unlawful activity that is about to be committed, is being or has been
committed.
SECTION 2. Timing of Reporting. —
2.1. CTRs shall be led within ve (5) working days, unless the AMLC
prescribes a different period not exceeding fteen (15) working days, from the
occurrence thereof.
2.2. STRs shall be led within the period prescribed under the registration
and reporting guidelines of the AMLC.
SECTION 3. Quality and Form of Reports. —
3.1. Covered persons shall ensure the completeness, accuracy, and
timeliness of CTRs and STRs.
3.2. CTRs and STRs shall be led in such form as may be prescribed by the
AMLC and shall be submitted in a secured manner to the AMLC in electronic form.
SECTION 4. Registration with the AMLC. —
All covered persons shall register with the AMLC's electronic reporting system
accordance with the registration and reporting guidelines.
SECTION 5. AML/CTF Monitoring System. —
5.1. All covered persons shall adopt an AML/CTF monitoring system that is
appropriate for their risk-pro le and business complexity and in accordance with these
Rules. The system should be capable of generating timely, accurate and complete
reports to lessen the likelihood of any reputational and compliance risks, and to
regularly apprise the board of directors and senior management on AML/CTF
compliance.
5.2. Electronic Monitoring and reporting systems for AML/CTF.
5.2.1. Covered persons that are considered complex, as determined by SAs
shall adopt an electronic AML/CTF system capable of monitoring risks
associated with ML/TF as well as generating timely reports for the
guidance and information of its board of directors and senior
management. It should ensure that the system, at a minimum, shall detect
and raise to the covered person's attention, transaction and/or accounts
that qualify either as covered transaction or suspicious transaction, as
herein de ned. The covered person shall endeavor to interface the
electronic monitoring system with the systems of its branches,
subsidiaries and affiliates, if any, for group-wide AML/CTF monitoring.
5.2.2. The system must have, at least, the following automated
functionalities:
a. CTR/STR Monitoring — performs statistical analysis, pro ling and
able to detect unusual patterns of account activity;
b. Watchlist Monitoring — checks transfer parties (originator,
bene ciary, and narrative elds) and the existing customer database
for any listed undesirable individual or corporation;
c. Investigation — checks for given names throughout the history of
payment stored in the system;
d. Can generate all the CTRs of the covered person accurately and
completely with all the mandatory field properly filled up;
e. Must provide a complete audit trail;
f. Capable of aggregating activities of a customer with multiple
accounts on a consolidated basis for monitoring and reporting
purposes; and
g. Has the capability to record all suspicious transactions and support
the investigation of alerts generated by the system and brought to
the attention of Senior Management whether or not a report was
filed with the AMLC.
5.2.3. Covered persons with existing electronic system of agging and
monitoring transactions already in place shall ensure that their existing
system is updated to be fully compliant with functionalities as those
required herein.
5.3. Manual Monitoring.
Covered persons which are not required to have an electronic system of agging
and monitoring transactions, as determined by SAs shall ensure that they have the
means of agging and monitoring the transactions mentioned in Section 5.1. They shall
maintain a register of all STs that have been brought to the attention of Senior
Management whether or not the same was reported to the AMLC.
SECTION 5. n Safe Harbor Provision. —
No administrative, criminal or civil proceedings shall lie against any person for
having made a CTR or an STR 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.
SECTION 6. Confidentiality of Reporting. —
6.1. When reporting covered or suspicious transactions, covered persons,
and their o cers and employees, are prohibited from communicating, directly or
indirectly, in any manner or by any means, to any person or entity, or the media, the fact
that a covered or suspicious transaction has been or is about to be reported, the
contents of the report, or any other information in relation thereto.
6.2. Any information about such reporting shall not be published or aired, in
any manner or form, by the mass media, or through electronic mail, or other similar
devices.
6.3. In case of violation thereof, the concerned o cer, and employee, of the
covered person and media shall be held criminally liable.
SECTION 7. Registration and Reporting Guidelines. —
Covered persons shall ensure compliance with registration and reporting
guidelines in complying with their obligations under Rule 22 hereof.
CHAPTER VII
Beneficial Ownership
RULE 23
Beneficial Ownership of Juridical Persons
SECTION 1. Mechanism for Identification of Juridical Persons. —
1.1. The SEC is hereby enlisted to develop mechanisms that identify and
describe the following:
(a) Different types, forms and basic features of legal persons in the country;
(b) Processes for the creation of those legal persons; and
(c) Processes for obtaining and recording of basic and bene cial ownership
information.
1.2. The SEC shall develop a mechanism to make the information on the legal
persons and their bene cial owners publicly available, as may be allowed under existing
laws.
1.3. In the conduct of risk assessments, all stakeholders, including SAs and
covered persons, shall assess the risks associated with all types of legal person
created in the country.
SECTION 2. Basic Information. —
2.1. The SEC, as may be allowed under existing laws, shall, at the time of
registration, require all companies to submit the following basic information:
(a) company name;
(b) proof of incorporation;
(c) legal form and status;
(d) official address;
(e) organizational structure; and
(f) list of directors and responsible officers.
2.2. The SEC, as may be allowed under existing laws, require their juridical
persons to maintain records of, and submit, the information set out in Rule 23, Section
2.1 hereof, and maintain a register of their shareholders or members, containing the
number of shares held by each shareholder or member, and the categories of shares,
including the nature of the associated voting rights.
2.3. The SEC, as may be allowed under existing laws, shall develop
mechanisms to make the information referred to in Rule 23, Sections 2.1 and 2.2 hereof
are maintained in a location within the Philippines that is known to SEC.
2.4. The SEC shall develop mechanisms to ensure that the information
referred to in Rule 23, Sections 2.1 and 2.2 hereof are accurate and regularly updated
on a timely basis.
SECTION 3. Beneficial Ownership Information. —
3.1. Mechanism to Ensure Accessibility.
To ensure that information on the bene cial ownership of a company is
accessible to the AMLC or SAs in a timely manner, the following mechanisms shall be
observed:
(a) The SEC shall obtain and hold up-to-date information on the companies'
beneficial ownership;
(b) The SEC shall require companies and clients that are legal persons,
respectively, to take reasonable measures to obtain and hold up-to-date
information on the companies' beneficial ownership;
(c) Use existing information, including:
(1) information obtained by covered persons in the course of CDD;
(2) information held by other competent authorities on the legal and
beneficial ownership of companies;
(3) information held by the company and submitted to the SEC as
required under Rule 24, Section 2.1; and
(4) available information on companies listed on a stock exchange,
where disclosure requirements ensure adequate transparency of
beneficial ownership.
3.2. Accuracy of Beneficial Ownership Information.
The SEC shall require companies and corporate clients, respectively, to submit
accurate and regularly updated beneficial ownership information.
3.3. Cooperation by Juridical Persons with the AMLC and/or SAs.
The SEC, as may be allowed under existing laws, shall ensure that juridical
persons cooperate with the AMLC and all SAs, to the fullest extent possible, in
determining the beneficial owner, by:
(a) requiring that, at least, one (1) natural person resident in the Philippines is
authorized by the company, and accountable to the AMLC and the SAs, for
providing all basic information and available bene cial ownership
information, and giving further assistance to them; and/or
(b) requiring DNFBPs in the country to provide AMLC and SAs basic
information and available beneficial ownership information; and/or
(c) taking other comparable measures, specifically identified by the SEC.
3.4. Record-Keeping after Dissolution of Company.
The information and records referred to under Rule 23, Sections 2 and 3 hereof
shall, as may be allowed under existing laws, be maintained by the following entities, at
least, ve (5) years after the date on which the company is dissolved or otherwise
ceases to exist, or ve (5) years after the date on which the company ceases to be a
customer of the covered person, subject to the following conditions:
(a) The SEC; and
(b) All companies; or its administrators, liquidators or other persons involved
in the dissolution of the company, upon the directive of the SEC.
SECTION 4. Other Requirements. —
4.1. The AMLC, SAs, LEAs and OGAs shall, in accordance with their respective
powers and functions, have timely access to the basic and bene cial ownership
information held by the SEC, covered persons or juridical persons.
4.2. Covered persons shall not be allowed to issue bearer shares or bearer
share warrants, in accordance with the Corporation Code of the Philippines.
4.3. The SEC, as may be allowed under existing laws, shall apply, at least, one
(1) of the following mechanisms to juridical persons that are able to have nominee
shares and nominee directors to ensure they are not misused:
(a) requiring nominee shareholders and directors to disclose the identity of
their nominator to the company and to any relevant registry, and for this
information to be included in the relevant register;
(b) requiring nominee shareholders and directors to be licensed, for their
nominee status to be recorded in company registries, and for them to
maintain information identifying their nominator, and make this
information available to the competent authorities upon request; or
(c) using other mechanisms identified by the SEC.
4.4. The SEC shall, as may be allowed under existing laws, hold liable, and
impose proportionate and dissuasive sanctions, as appropriate for any juridical person
that fails to comply with the requirements under Rule 23 hereof.
RULE 24
Beneficial Ownership of Legal Arrangements
SECTION 1. Trustees and Other Legal Arrangement. —
Covered persons, as the case may be, shall require clients that are:
(a) trustees of any express trust are required to obtain and hold adequate,
accurate, and current information on the identity of the
trustors/grantors/settlors, the trustee, the bene ciaries or class of
bene ciaries, and any other natural person exercising ultimate effective
control over the trust. For bene ciaries of trusts that are designated by
characteristics or by class, nancial institutions should obtain su cient
information concerning the bene ciary to satisfy the nancial institution
that it will be able to establish the identity of the bene ciary at the time of
the payout or when the beneficiary intends to exercise vested rights.
(b) trustees of any trust are required to hold basic information on other
regulated agents of, and service providers to, the trust, including
investment advisors or managers, accountants, and tax advisors; and
(c) professional trustees are required to maintain this information for, at
least, five (5) years after their involvement with the trust ceases.
SECTION 2. Accuracy of Beneficial Ownership Information. —
Covered persons shall ensure that any information held pursuant to Rule 24
hereof is kept accurate and as up to date as possible, and is updated on a timely basis.
SECTION 3. Disclosure of Status of Trustees. —
Covered persons shall require trustees to disclose their status when forming a
business or professional relationship, or carrying out an occasional transaction above
the threshold.
SECTION 4. Submission of Bene cial Ownership Information to Covered
Persons. —
Covered persons shall, depending on its risk assessment, require clients that are
trustees to submit information on the bene cial ownership and the assets of the trust
to be held or managed under the terms of the business or professional relationship.
SECTION 5. Other Requirements. —
5.1. The AMLC, SAs, LEAs and OGAs shall, in accordance with their respective
powers and functions, be able to obtain timely access to information held by trustees
and covered persons, on the beneficial ownership and control of the trust, including:
(a) the beneficial ownership;
(b) the residence of the trustee; and
(c) any assets held or managed by the nancial institution or DNFBP, in
relation to any trustees with which they have a business relationship, or for
which they undertake an occasional transaction.
5.2. The applicable SAs shall, as may be allowed under existing laws, hold
liable, and impose proportionate and dissuasive sanctions, as appropriate for any legal
arrangement that fails to grant to competent authorities timely access to information
regarding the trust referred to in Rule 24, Section 1 hereof.
CHAPTER VIII
Sanctions
RULE 25
Criminal Sanctions
SECTION 1. Penalties for ML. —
The following are the penalties to be imposed on persons convicted of ML:
(a) Penalties for Section 4 (a), (b), (c) and (d) of the AMLA.
The penalty of imprisonment ranging from seven (7) to fourteen (14) years
and a ne of not less than three million pesos (PHP3,000,000.00), but not
more than twice the value of the monetary instrument or property involved
in the offense, shall be imposed upon a person convicted under Section 4
(a), (b), (c) and (d) of the AMLA, as amended.
(b) Penalties for Section 4 (e) and (f) of the AMLA.
The penalty of imprisonment from four (4) to seven (7) years and a ne of
not less than one million ve hundred thousand pesos (PHP1,500,000.00)
but not more than three million pesos (PHP3,000,000.00), shall be
imposed upon a person convicted under Section 4 (e) and (f) of the AMLA,
as amended.
(c) Penalties for the Last Paragraph of Section 4 of the AMLA.
The penalty of imprisonment from six (6) months to four (4) years or a ne
of not less than one hundred thousand pesos (PHP100,000.00) but not
more than five hundred thousand pesos (PHP500,000.00), or both, shall be
imposed on a person convicted under the last paragraph of Section 4 of
the AMLA, as amended.
SECTION 2. Penalties for Knowingly Participating in ML. —
The penalty of imprisonment ranging from four (4) to seven (7) years and a ne
corresponding to not more than two hundred percent (200%) of the value of the
monetary instrument or property laundered shall be imposed upon the covered person,
its directors, officers or personnel who knowingly participated in the commission of the
crime of ML.
SECTION 3. Penalties for Failure to Keep Records. —
The penalty of imprisonment from six (6) months to one (1) year or a ne of not
less than one hundred thousand pesos (PHP100,000.00), but not more than ve
hundred thousand pesos (PHP500,000.00), or both, shall be imposed on a person
convicted under Section 9 (b) of the AMLA.
SECTION 4. Penalties for Malicious Reporting. —
4.1. Any person who, with malice, or in bad faith, reports or les a completely
unwarranted or false information relative to ML transaction against any person shall be
subject to a penalty of six (6) months to four (4) years imprisonment and a ne of not
less than one hundred thousand pesos (PHP100,000.00) but not more than ve
hundred thousand pesos (PHP500,000.00), at the discretion of the court: Provided, that
the offender is not entitled to avail of the benefits of the Probation Law.
4.2. If the offender is a corporation, association, partnership or any other
juridical person, the penalty of imprisonment and/or ne shall be imposed upon the
responsible o cers, who participated in, or allowed by their gross negligence the
commission of the crime and 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 o cial or employee, he shall, in addition to the penalties prescribed
herein, suffer perpetual or temporary absolute disqualification from office.
4.3. Any public o cial or employee who is called upon to testify and refuses
to do the same or purposely fails to testify shall suffer the same penalties herein
prescribed.
SECTION 5. Penalties for Breach of Confidentiality. —
The punishment of imprisonment ranging from three (3) to eight (8) years and a
ne of not less than ve hundred thousand pesos (PHP500,000.00) but not more than
one million pesos (PHP1,000,000.00), shall be imposed on a person convicted for a
violation under Section 9 (c) of the AMLA. In case of a breach of con dentiality that is
published or reported by the media, the responsible reporter, writer, president,
publisher, manager and editor-in-chief shall be liable under the AMLA.
SECTION 6. Criminal Liability of Corporate Entities. —
If the offender is a corporate entity, the penalties herein shall be imposed upon
the responsible o cers who participated in, or allowed by their gross negligence the
commission of the crime; and/or directors or trustees who willfully and knowingly
voted for or assented to violate the AMLA and TFPSA, their respective IRR, and other
AMLC issuances.
RULE 26
Administrative Sanctions
SECTION 1. Coverage. —
The Council shall, after due notice and hearing, impose administrative sanctions
upon covered persons, and their responsible directors, o cers and employees, or any
other person for violations of the AMLA, this IRR, or for failure or refusal to comply with
the orders, resolutions and other issuances of the AMLC.
SECTION 2. Independent Proceedings. —
The administrative proceedings before the AMLC, including the imposition of
administrative sanctions, shall be without prejudice to the ling of criminal charges
against the persons responsible for the violation.
SECTION 3. Nature of the Proceedings. —
The administrative proceedings before the AMLC shall be non-litigious and
summary in nature, subject to the requirement of due process and substantial evidence.
SECTION 4. Rules on Imposition of Administrative Sanctions. —
4.1. The AMLC shall promulgate or update the rules on the imposition of
administrative sanctions, taking into consideration the following:
(a) Requirement of notice and hearing, and substantial evidence;
(b) Need for an independent and impartial administrative adjudication unit to
hear and recommend actions on administrative cases;
(c) Exercise of AMLC's discretion in choosing the type and extent of
sanctions to be imposed, if warranted;
(d) Types and extent of proportionate and dissuasive sanctions that may be
imposed; and
(e) Attendant circumstances to be considered by the AMLC in determining,
such as the nature and gravity of the violation or irregularity.
4.2. In the absence of any applicable provision in the rules on the imposition
of administrative sanctions, and in order to effectuate the objectives of the AMLA, the
pertinent provisions of the Rules of Court may, in the interest of expeditious
dispensation of administrative cases, and whenever practicable and convenient, be
applied by analogy or in a suppletory character and effect.
SECTION 5. Types of Administrative Sanctions. —
5.1. The Council shall, at its discretion, impose sanctions, including
reprimand, warning, ne, or such other measures as may be necessary and justi ed to
prevent and counteract ML/TF, as identi ed in the rules on the imposition of
administrative sanctions.
5.2. Fines shall be in amounts as may be determined by the Council to be
appropriate, which shall not be more than ve hundred thousand pesos
(PHP500,000.00) per violation.
SECTION 6. Enforcement Actions by Covered Persons. —
6.1. The SAs shall, consistent with their charters or laws, formulate rules on
the imposition of enforcement actions for violation of their respective circulars and
orders.
6.2. The ndings of SAs with regard to violations of the AMLA and TFPSA,
their respective IRR and other AMLC issuances shall be escalated to the AMLC for
possible administrative sanctions.
SECTION 7. Non-Discrimination against Certain Types of Customers. —
6.1. Whenever covered persons discriminate against certain customer types,
such as politically-exposed persons, as well as their relatives; or against a certain
religion, race, or ethnic origin; or such other attributes or pro les when used as the only
basis to deny these persons access to the services provided by the covered persons,
the person or persons responsible for such violation shall be subject to sanctions as
may be deemed appropriate by their respective SAs.
6.2. SAs shall promulgate or update their rules to timely and su ciently
address discrimination against customers committed by covered persons, and their
respective directors, officers and employees.
RULE 27
Civil Sanctions
SECTION 1. Asset Recovery. —
Monetary instruments and properties related to ML/TF and associated unlawful
shall be the subject of freeze order and civil forfeiture proceedings, as provided under
Rules 10 and 12 hereof.
SECTION 2. Restitution. —
Restitution for any aggrieved party whose rights were violated shall be governed
by the provisions of the New Civil Code.
CHAPTER IX
Domestic and International Cooperation
RULE 28
Domestic Cooperation
SECTION 1. National AML/CTF Strategies. —
The AMLC, in coordination with the relevant SAs, LEAs, OGAs, covered persons,
and other stakeholders, shall formulate, and regularly review, update, and monitor the
national strategies, which are informed by the risks identi ed, for a concerted effort in
fighting ML/TF.
SECTION 2. AML/CTF Policies. —
The AMLC shall, formulate policy directions for, and regulate the Philippines'
AML/CTF regime. SAs, LEAs, OGAs, covered persons, and other stakeholders may
propose AML/CTF policies to the AMLC, through the AMLC Secretariat.
SECTION 3. Mechanism for Cooperation and Coordination. —
The AMLC, SAs, LEAs and OGAs shall establish mechanisms, including exchange
of information, for cooperation and coordination in:
(a) Developing and implementing the national AML/CTF strategies, policies
and activities; and
(b) Combating the financing of proliferation of weapons of mass destruction.
Provided, that the nancing thereof has any relation to ML/TF or
associated unlawful activities.
SECTION 4. Confidentiality of Information. —
The AMLC shall maintain the con dentiality of requests for information that they
receive and the information received from SAs, LEAs and OGAs.
RULE 29
Mutual Legal Assistance
SECTION 1. MLA Request from a Foreign State. —
1.1. Where a foreign State makes an MLA request in the investigation or
prosecution of a ML/TF 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.
1.2. The AMLC may refuse to comply with any MLA request where the action
sought in the request contravenes any provision of the Constitution or the execution of
the request is likely to prejudice the national interest of the Philippines, unless there is a
treaty between the Philippines and the requesting State relating to the provision of
assistance in relation to ML/TF or associated unlawful activity.
SECTION 2. Basis for Making and Acting on MLA Request. —
A foreign State may make, and the Philippines may execute, an MLA request
pursuant to conventions, treaties and international agreements over which the
Philippines is a party. The principles of mutuality and reciprocity shall, at all times, be
recognized.
SECTION 3. Requirements for MLA Requests from Foreign States. —
All MLA requests from a foreign State must:
(a) con rm that an investigation or prosecution is being conducted in
respect of a money launderer or terrorism nancer named therein, or that
he has been convicted of any ML/TF offense or associated unlawful
activity;
(b) state the grounds on which any person is being investigated or
prosecuted for ML/TF or associated unlawful activity or the details of his
conviction;
(c) give su cient particulars as to the identity of said person, including
specific monetary instrument or property;
(d) give particulars su cient to identify any covered person believed to have
any information, document, material or object which may be of assistance
to the investigation or prosecution;
(e) specify the concerned covered person from which any information,
document, material or object that may be of assistance to the
investigation or prosecution may be gathered;
(f) specify the manner in which and to whom said information, document,
material or object obtained pursuant to said request, is to be produced;
(g) give all the particulars necessary for the issuance by the court in the
requested State of the writs, orders or processes needed by the
requesting State; and
(h) contain such other information as may assist in the execution of the
request, including the statement of the speci c legal provision of the penal
law on ML/TF or associated unlawful that was violated in the requested
State. Provided, that the felonies or offenses punishable under the penal
laws of the requesting State are of a nature similar to the unlawful
activities as herein defined.
SECTION 4. Procedure for MLA Requests from Foreign States. —
4.1. Receipt of MLA Request.
MLA requests shall be received by the following government agencies:
(a) All MLA requests from foreign States shall be led with the DOJ, as the
central authority on all MLA matters; or
(b) The AMLC may directly receive and act on MLA requests made on the
basis of reciprocity; Provided, that all actions taken on such requests shall
be transmitted to the DOJ for formal response to the requesting State.
4.2. Powers of the AMLC to Act on MLA Requests.
The AMLC may execute an MLA request from a foreign State by:
(a) tracking down, freezing, restraining and seizing assets alleged to be
proceeds of or related to any unlawful activity under the procedures laid
down in the AMLA and TFPSA, their respective IRR, and other AMLC
issuances;
(b) giving information or documents needed by the foreign State, for
evidentiary purposes, within the procedures laid down in the AMLA and
TFPSA, their respective IRR, and other AMLC issuances; and
(c) applying for an order of forfeiture of any monetary instrument or property
with the court: Provided, that the court shall not issue such an order unless
the application is accompanied by an authenticated copy of the order of a
court in the requesting State ordering the forfeiture of said monetary
instrument or property of a person who has been convicted of a ML/TF
offense or an unlawful activity in the requesting State, and a certi cation or
an a davit of a competent o cer of the requesting State stating that the
conviction and the order of forfeiture are nal and that no further appeal
lies in respect of either.
4.3. Investigation, Freeze Order, Bank Inquiry and Civil Forfeiture.
4.3.1. The provisions on AMLC investigation, and freeze order, bank inquiry
and civil forfeiture, shall apply to MLA requests when necessary to effect
the assistance to be extended.
4.3.2. The AMLC shall adopt a flexible mechanism for:
(a) coordinating with other States regarding requests for freezing and
forfeiture of assets; and
(b) managing, including disposal, of frozen, preserved and forfeited
assets.
4.3.3. The AMLC shall coordinate, if necessary, with the requesting State on
the, procedure for, and mode of, turnover of the portion of the forfeited
assets that belongs to the relevant persons in the requesting State.
4.4. Suppletory Application of the Rules of Court.
For attachment of Philippine properties in the name of persons convicted of any
unlawful activity, execution and satisfaction of nal judgments of forfeiture, application
for examination of witnesses, procuring search warrants, production of bank
documents and other materials, and all other actions not speci ed in the AMLA and
TFPSA, their respective IRR, and other AMLC issuances, and assistance for any of the
aforementioned actions, which is subject of a request by a foreign State, resort may be
had to the proceedings pertinent thereto under the Rules of Court.
4.5. Results of AMLC Action.
The results of the actions taken by the AMLC shall be transmitted to the DOJ for
formal response to the requesting State.
SECTION 5. Authentication of Documents. —
5.1. A document is authenticated if it is signed or certi ed by a judge,
magistrate or equivalent o cer in or of, the requesting State, and authenticated by the
oath or a rmation of a witness or sealed with an o cial or public seal of a minister,
secretary of state, or o cer in or of, the government of the requesting State, or of the
person administering the government or a department of the requesting territory,
protectorate or colony.
5.2. The certi cate of authentication may also be made by a secretary of the
embassy or legation, consul general, consul, vice consul, consular agent or any o cer in
the foreign service of the Philippines stationed in the foreign State in which the record
is kept, and authenticated by the seal of his office.
SECTION 6. MLA Request to a Foreign State. —
6.1. The AMLC may make an MLA request to foreign States pursuant to Rule
29, Section 2 hereof.
6.2. The AMLC may make an MLA request to any foreign State in:
(a) tracking down, freezing, restraining and seizing assets alleged to be
proceeds of any unlawful activity;
(b) obtaining pertinent information and documents that it needs relating to
any ML/TF offense or any other matter directly or indirectly related thereto;
(c) to the extent allowed by the law of the foreign State, applying with the
proper court therein for an order to enter any premises belonging to or in
the possession or control of, any or all of the persons named in said
request, and/or search any or all such persons named therein and/or
remove any document, material or object named in said request: Provided,
that the documents accompanying the request in support of the
application have been duly authenticated in accordance with the applicable
law or regulation of the foreign State; and
(d) applying for an order of forfeiture of any monetary instrument or property
in the proper court in the foreign State: Provided, that the request is
accompanied by an authenticated copy of the order of the Regional Trial
Court ordering the forfeiture of said monetary instrument or property and
an a davit of the clerk of court stating that the order of forfeiture is nal
and that no further appeal lies in respect of it.
6.3. All MLA requests to a foreign State shall be coursed through the DOJ.
SECTION 7. Prioritization and Monitoring of MLA Requests. —
7.1. The AMLC shall formulate processes for the timely prioritization and
execution of mutual legal assistance requests.
7.2. The AMLC shall maintain a case management system to monitor
progress of MLA requests.
SECTION 8. Confidentiality of MLA Requests. —
The AMLC shall maintain the con dentiality of MLA requests that they receive
and the information contained in them, subject to the requirements of the necessary
legal remedies to execute them, in order to protect the integrity of the investigation or
inquiry.
RULE 30
Extradition
SECTION 1. ML as an Extraditable Offense. —
With respect to the state parties that are signatories to the United Nations
Convention Against Transnational Organized Crime that was rati ed by the Philippine
Senate on October 22, 2001, ML is deemed to be included as an extraditable offense in
any extradition treaty existing between said state parties, and the Philippines shall
include ML as an extraditable offense in every extradition treaty that may be concluded
between the Philippines and any of said state parties in the future.
SECTION 2. TF as an Extraditable Offense. —
The Philippines may, at its option, subject to the principle of reciprocity, consider
t he International Convention for the Suppression of the Financing of Terrorism as a
legal basis for requesting or granting extradition in respect of any offenses set forth
under the TFPSA.
SECTION 3. Extradition Requirements and Procedure. —
Presidential Decree No. 1069 (Prescribing the Procedure for the Extradition of
Persons Who Have Committed Crimes in a Foreign Country) shall govern extradition
proceedings.
SECTION 4. Negotiation of Future Treaties. —
The Philippines shall negotiate for the inclusion of ML offenses among the
extraditable offenses in all future treaties.
SECTION 5. Prioritization and Monitoring. —
The DOJ and the AMLC shall adopt a case management system, and clear
processes for prioritization and timely execution of extradition requests.
RULE 31
Other Forms of International Cooperation
SECTION 1. Assistance to International Organizations. —
1.1. The AMLC shall cooperate and act in respect of conventions, resolutions
and other directives, including the implementation of targeted nancial sanctions, of
the United Nations, United Nations Security Council, and other international
organizations of which the Philippines is a member, that has relation to the following:
(a) ML/TF and associated unlawful activities, and
(b) Financing of proliferation of weapons of mass destruction. Provided, that
the nancing thereof is in any way related to ML/TF and associated
1.2. The AMLC may refuse to comply with the request of any international
organization where the action sought therein contravenes the provision of the
Constitution or the execution thereof is likely to prejudice the national interest of the
Philippines, or if the requesting organization cannot effectively protect the
confidentiality of the requested information.
SECTION 2. Request for Information from a Foreign Jurisdiction. —
2.1. The AMLC may execute RFIs from a foreign jurisdiction's FIU, LEA or
OGA, by giving information needed by the foreign jurisdiction, for intelligence or
investigative purposes, within the procedures laid down in the AMLA and TFPSA, their
respective IRR, and other AMLC issuances. The exchanges of information shall be made
spontaneously or upon request.
2.2. The AMLC may refuse to comply with the RFI where the action sought
therein contravenes the provision of existing laws or the execution thereof is likely to
prejudice the national interest of the Philippines, or if the requesting party cannot
effectively protect the confidentiality of the requested information.
2.3. The LEAs and OGAs may execute a RFI from their foreign counterparts or
non-counterparts, as may be allowed by their respective charters or laws, or refer it to
the proper agency for appropriate action. The exchanges of information shall be made
spontaneously or upon request.
2.4. The SAs shall, consistent with their respective charters or laws, provide
cooperation with their foreign counterparts, consistent with the applicable international
standards for supervision, in particular, with respect to the exchange of supervisory
information related to or relevant for AML/CTF purposes.
2.5. The SAs shall, consistent with their respective charters or laws, exchange
with foreign counterparts, in accordance with existing laws, information domestically
available to them, including information held by covered persons under their respective
jurisdiction, in a manner proportionate to their needs.
2.6. The SAs shall, consistent with their respective charters or laws, exchange
the following types of information when relevant for AML/CTF purposes, with foreign
counterparts that have shared responsibility for nancial institutions operating in the
same group:
(a) Regulatory information, such as information on domestic regulatory
system, and general information on the financial sectors;
(b) Prudential information, such as information on the nancial institution's
business activities, bene cial ownership, management, and t and
properness; and
(c) AML/CTF information, such as internal AML/CTF procedures and policies
of nancial institutions, and other information from or about the nancial
institutions.
2.7. The SAs shall, consistent with their respective charters or laws, conduct
inquiries in behalf of their foreign counterparts, and, as appropriate, to authorize or
facilitate the ability of foreign counterparts to conduct inquiries themselves in the
Philippines, in order to facilitate effective group supervision.
SECTION 3. Requests for Beneficial Ownership Information. —
3.1. The AMLC, SAs, LEAs and OGAs shall, consistent with their respective
mandates, provide international cooperation in relation to basic and bene cial
ownership information in a timely manner, based on mutual legal assistance and
informal exchange of information. This should include:
(a) facilitating access by foreign competent authorities to basic information
held by the SEC;
(b) exchanging information on shareholders; and
(c) using their investigative powers, as may be allowed under existing laws,
to obtain bene cial ownership information on behalf of foreign
counterparts.
3.2. The AMLC, SAs, LEAs and OGAs shall, consistent with their respective
mandates, rapidly provide international cooperation in relation to information, including
bene cial ownership information, on trusts and other legal arrangements. This shall
include:
(a) facilitating access by foreign competent authorities to basic information
held by registries or other domestic authorities;
(b) exchanging domestically available information on the trusts or other legal
arrangement; and
(c) using their competent authorities' investigative powers, in accordance
with domestic law, in order to obtain bene cial ownership information on
behalf of foreign counterparts.
SECTION 4. Requirements for Request for Information from a Foreign
Jurisdiction. —
All RFIs from a foreign jurisdiction shall, at the minimum:
(a) state the purpose for which the information is being requested;
(b) state the relevant LEAs or OGAs, if any, for whom the information is being
requested or who will ultimately use the requested information; and
(c) undertake to extend the same assistance on the basis of reciprocity or
existing agreement.
SECTION 5. Procedure for Requests for Information from a Foreign
Jurisdiction. —
5.1. Receipt of RFI.
The AMLC shall receive requests for information:
(a) directly from a requesting jurisdiction's FIU;
(b) directly from a requesting jurisdiction's LEA or OGA to which the AMLC
has an existing agreement;
(c) indirectly, through requests coursed through domestic SAs, LEAs or
OGAs, if the latter cannot act on the requests in accordance with their
respective charter or laws.
5.2. Powers of the AMLC to Act on Requests for Information.
The AMLC may execute requests for information from a foreign jurisdiction by:
(a) identifying personalities, involved in suspicious transactions, or subject of
ML/TF and associated unlawful activities investigation or prosecution;
(b) tracking down assets alleged to be proceeds of or related to any unlawful
activity;
(c) giving information or documents needed by the foreign jurisdiction, for
intelligence or investigative purposes, within the procedures laid down in
the AMLA and TFPSA, their respective IRR, and other AMLC issuances.
5.3. Financial Analysis, Investigation and Bank Inquiry.
The provisions on AMLC nancial analysis and investigation, and bank inquiry,
shall apply to requests for information when necessary in gathering the information
requested.
5.4. Results of AMLC Action.
Intelligence information shall be shared through a secured mechanism to be
developed or adopted by the AMLC.
SECTION 6. RFI to a Foreign Jurisdiction. —
6.1. The AMLC may request information from its foreign counterpart or non-
counterpart to assist in its transnational investigation of ML/TF and associated
6.2. The SAs, LEAs and OGAs may request information from their foreign
counterparts or non-counterparts, as may be allowed by their respective charters or
laws, to pursue investigations involving transnational elements.
SECTION 7. Controls and Safeguards. —
7.1. The AMLC shall establish controls and safeguards to ensure that
information exchanged is used only for the purpose for, and by the authorities, for
which the information was requested or provided.
7.2. The SAs shall ensure that they have prior authorization from the
requested foreign counterpart for any dissemination of information exchanged, or use
of that information for supervisory and non-supervisory purposes, unless the
concerned SA is under obligation to disclose or report the information. In such cases,
at a minimum, the requesting SA shall promptly inform the requested foreign
counterpart of this obligation.
SECTION 8. Prioritization and Monitoring. —
8.1. The AMLC, SAs, LEAs, and OGAs shall have clear and secure gateways,
mechanisms or channels that will facilitate and allow for the transmission and
execution of requests.
8.2. The AMLC, SAs, LEAs, and OGAs shall have clear processes for the
prioritization and timely execution of requests and have clear processes for
safeguarding the information received.
SECTION 9. Confidentiality of Information. —
The AMLC shall maintain the con dentiality of requests for information it
receives and the information exchanged, in the same manner as it would protect similar
request or information received from domestic sources.
CHAPTER X
Miscellaneous Provisions
RULE 32
Asset Management, Feedback Mechanism and Statistics
SECTION 1. Management of Frozen, Preserved and Forfeited Assets. —
The AMLC shall establish mechanisms for managing and/or disposing preserved
and forfeited assets.
SECTION 2. Guidelines and Feedback Mechanism. —
2.1. The AMLC and SAs shall provide guidelines and feedback to assist
covered persons in implementing the AMLA and TFPSA, their respective IRR and other
AMLC issuances, particularly in detecting and filing STRs.
2.2. The use of the feedback mechanism shall be maximized to improve the
quality and timeliness of domestic cooperation, MLA, extradition, and other forms of
international cooperation.
2.3. Requesting Feedback.
The AMLC and the relevant SAs, LEAs and OGAs, shall request feedback from the
requesting parties, including foreign counterparts and non-counterparts, on the quality,
timeliness and usefulness of the assistance, cooperation or information provided.
2.4. Providing Feedback.
The AMLC, and the relevant SAs, LEAs and OGAs shall, as far as practicable,
monitor and assess the quality, timeliness and usefulness of the assistance,
cooperation or information obtained, including responses to requests for basic and
bene cial ownership information or requests for assistance in locating bene cial
owners residing abroad, they receive from the requested parties. The AMLC and the
relevant SAs, LEAs and OGAs, shall, whenever required, provide feedback to the
requested parties, including foreign counterparts and non-counterparts, on the quality,
timeliness and usefulness of the assistance, cooperation or information obtained.
SECTION 3. Statistics. —
The AMLC, SAs, LEAs and OGAs, as applicable, shall maintain comprehensive
statistics on matters relevant to the effectiveness and e ciency of their AML/CTF
systems. This should include keeping statistics on:
(a) CTR, STR, RTR, and other reports, received, analyzed and shared;
(b) ML/TF and associated unlawful activity investigations, prosecutions and
convictions;
(c) Monetary instruments and properties frozen and forfeited; and
(d) Mutual legal assistance and other international requests for cooperation
received and made.
RULE 33
Non-Intervention in the Operations of the Bureau of Internal Revenue
The AMLC shall not intervene or participate in the operations of the Bureau of
Internal Revenue.
RULE 34
Separability and Repealing Clauses
SECTION 1. Separability Clause. —
If any provision of this IRR or the application thereof to any person or
circumstance is held to be invalid, the other provisions of this IRR, and the application
of such provision to other persons or circumstances, shall not be affected thereby.
SECTION 2. Repealing Clause. —
2.1. This IRR shall supersede the "2016 Revised Implementing Rules and
Regulations of Republic Act No. 9160, as Amended" and all previous IRRs of the AMLA.
2.2. All AML/CTF rules, regulations, orders, circulars, guidelines, and other
issuances, or parts thereof, that are inconsistent with the AMLA and TFPSA, and their
respective IRR are hereby repealed, amended or modi ed, accordingly. Provided, that
the penal provisions shall not apply to acts done prior to the effectivity of the AMLA on
October 17, 2001.
RULE 35
Transitory Provision, Amendment and Effectivity Clauses
SECTION 1. Transitory Provision. —
1.1. Any violation of the previous IRRs of the AMLA that is discovered during
the effectivity of this IRR shall be governed by the provisions of the IRR in effect at the
time of the violation.
1.2. SAs shall update their respective AML/CTF guidelines within six (6)
months from effectivity of this IRR.
1.3. Covered persons shall update or formulate their respective MTPP, as
follows:
(a) For existing covered persons: update their MTPP within one (1) year from
effectivity of this IRR.
(b) For new covered persons: formulate their MTPP within one (1) year from
issuance of license by, or registration with, their respective SAs or the
relevant government agencies.
1.4. Covered persons shall register with the AMLC, as follows:
(a) For existing covered persons who are not yet registered: they shall not be
cited for non-registration. Provided, that they shall apply for registration
within thirty (30) working days from effectivity of this IRR.
(b) For new covered persons: they shall apply for registration within thirty
(30) working days from issuance of license by their respective SAs or the
relevant government agencies.
SECTION 2. Modes of Amendment. —
2.1. Total repeal of this IRR shall be effected through the promulgation of a
new IRR by the Council, indicating in its title the year it was promulgated.
2.2. Bullet amendments, and speci c rules or guidelines of implementation
of the provisions, of this IRR shall be effected through the issuance of circulars by the
Council.
2.3. Non-policy amendments, including those clari catory in nature, to the
rules or guidelines of implementation of the provisions of this IRR shall be effected
through the issuance of memorandum circular by the Executive Director or, in his
absence, the Officer-in-Charge.
2.4. All amendments of this IRR, and speci c rules or guidelines of
implementation, shall be properly documented and monitored for purposes of quasi-
legislative history.
2.5. All amendments of this IRR, if applicable on their nature, shall undergo
the required publication in the O cial Gazette or newspaper of general circulation, and
ling with the O ce of the National Administrative Register, University of the
Philippines, Diliman, Quezon City.
SECTION 3. Effectivity Clause. —
This IRR shall take effect immediately after the completion of its publication in
the O cial Gazette or in a newspaper of general circulation, and ling before the O ce
of the National Administrative Register, University of the Philippines, Diliman, Quezon
City.
The "2018 Implementing Rules and Regulations of Republic Act No. 9160, as
Amended" is hereby approved by the ANTI-MONEY LAUNDERING COUNCIL this
22nd day of November 2018 in the City of Manila, Philippines.
(SGD.) NESTOR A. ESPENILLA, JR.

Chairman
(Governor, Bangko Sentral ng Pilipinas)
(SGD.) EMILIO B. AQUINO

Member
(Chairman, Securities and Exchange Commission)
(SGD.) DENNIS B. FUNA

Member
(Insurance Commissioner, Insurance Commission)
n Note from the Publisher: Copied verbatim from the o cial copy. Irregular alphabetical
sequence.
n Note from the Publisher: Copied verbatim from the o cial copy. Irregular numerical
sequence.
n Note from the Publisher: Copied verbatim from the official copy.
sequence.
sequence.
sequence.
sequence.

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November 22, 2018

2018 IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9160,

CD Technologies Asia, Inc. © 2019 cdasiaonline.com

CD Technologies Asia, Inc. © 2019 cdasiaonline.com

CD Technologies Asia, Inc. © 2019 cdasiaonline.com

CD Technologies Asia, Inc. © 2019 cdasiaonline.com

CD Technologies Asia, Inc. © 2019 cdasiaonline.com

CD Technologies Asia, Inc. © 2019 cdasiaonline.com

(SGD.) NESTOR A. ESPENILLA, JR.

(SGD.) EMILIO B. AQUINO

(SGD.) DENNIS B. FUNA

CD Technologies Asia, Inc. © 2019 cdasiaonline.com

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