AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW

Case Overview and Summary

Summary of Republic Act No. 10365

Definitions and Coverage
- Defines "covered persons" as natural or juridical persons subject to the law, including banks, non-banks, insurance companies, securities dealers, jewelry dealers in precious metals/stones (for transactions over ₱1 million), company service providers, and persons providing certain financial services. Excludes lawyers and accountants acting as independent legal professionals. (Section 1)
- Defines "unlawful activity" as a list of offenses, including kidnapping, drug trafficking, graft and corruption, plunder, robbery, illegal gambling, piracy, qualified theft, swindling, smuggling, cybercrime, terrorism, bribery, forgery, human trafficking, environmental crimes, and similar offenses under foreign laws. (Section 2)
- Defines "precious metals" and "precious stones" covered by the law. (Section 3)

Money Laundering Offense
- Defines the acts constituting the offense of money laundering, including transacting, converting, concealing, or facilitating the proceeds of unlawful activity. (Section 4)
- Allows prosecution for both money laundering and the underlying unlawful activity. (Section 5)

Anti-Money Laundering Council (AMLC)
- Establishes the AMLC, composed of the BSP Governor, IC Commissioner, and SEC Chairman, to act unanimously in its functions. (Section 6)
- Empowers the AMLC to freeze assets related to unlawful activity, require reporting of real estate transactions over ₱500,000, and other powers. (Section 7)

Reporting and Record Keeping Requirements
- Requires covered persons to report covered and suspicious transactions to the AMLC within 5-15 working days, with exceptions for lawyers and accountants. (Section 9)
- Prohibits covered persons from disclosing the fact that a report has been made to the AMLC, with criminal penalties for violation. (Section 9)

Freezing of Assets and Civil Forfeiture
- Allows the Court of Appeals to issue a freeze order on assets related to unlawful activity for up to 6 months, with provisions for lifting the order. (Section 8)
- Provides for civil forfeiture of assets related to unlawful activity or money laundering, including equivalent assets if the original assets cannot be located or have been altered. (Section 9)
- Allows offenders or claimants to petition for exclusion of legitimately owned assets from forfeiture within 15 days of the order. (Section 9)
- Allows the court to order payment of an equivalent value if the assets cannot be located or have been commingled. (Section 9)

Penalties
- Imposes imprisonment of 7-14 years and a fine of at least ₱3 million (up to twice the value of the assets involved) for money laundering offenses. (Section 10)
- Imposes imprisonment of 4-7 years and a fine of ₱1.5-3 million for aiding or facilitating money laundering. (Section 10)
- Imposes imprisonment of 6 months to 4 years or a fine of ₱100,000-500,000 for failure to report by covered persons. (Section 10)
- Imposes administrative sanctions, including monetary penalties up to ₱500,000 per violation, on covered persons and their personnel. (Section 10)
- Prohibits discrimination against certain customer types in implementing the law. (Section 10)

Other Provisions
- Prohibits the AMLC from participating in Bureau of Internal Revenue operations. (Section 11)
- Requires compliance with constitutional rights and prohibitions on ex post facto laws and bills of attainder. (Section 11)
- Includes separability and repealing clauses. (Sections 13-14)