Unveiling the Predicate Crimes of Money Laundering under Republic Act No. 9160

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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

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AT A GLANCE:

The following are the unlawful activities/predicate crimes under the Money Laundering Act:

1. Kidnapping for ransom;
2. Violation of certain provisions of the Dangerous Drugs Act, Anti-Graft and Corrupt Practices Act, Anti-trafficking in Persons Act, Revised Forestry Code, Philippine Fisheries Code, Philippine Mining Act, Wildlife Resources Conservation and Protection Act, PD 1866, Migrant Workers and Overseas Filipinos Act, Anti-Photo and Video Voyeurism Act, Anti-Child Pornography Act, Republic Act No. 7610;
3. Plunder;
4. Robbery and extortion;
5. Jueteng and Masiao;
6. Piracy on the high seas;
7. Qualified theft;
8. Swindling;
9. Smuggling;
10. Violation of Electronic Commerce Act;
11. Hijacking and violation under Republic Act No. 6235;
12. Terrorism and conspiracy to commit terrorism;
13. Financing of terrorism;
14. Bribery;
15. Frauds and illegal exactions and transactions;
16. Malversation of public funds and property;
17. Forgeries and counterfeiting;
18. Violation of the Anti-Carnapping Act;
19. Violation of the Anti-Fencing Law;
20. Violation of the Intellectual Property Code;
21. Destructive arson;
22. Murder;
23. Fraudulent practices and other violations under the Securities Regulation Code; and,
24. Felonies or offenses of similar nature punishable under penal laws of other countries.

(Republic Act Nos. 10365 and 11521)

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Money laundering generally involves a predicate offense. A predicate offense is a crime that is a component of another offense. In money laundering, the predicate offense is usually an unlawful activity that generates proceeds of money or property.  However, the predicate offense in money laundering is distinct from the offense of money laundering, such that the two offenses may be prosecuted in separate criminal actions. (Girlie Lingad vs, People of the Philippines, G.R. No. 224945, October 11, 2022)

These are the underlying criminal activities that generate the funds subject to money laundering. The law enumerates a comprehensive list of offenses, ranging from serious drug offenses to kidnapping for ransom, that serve as the basis for money laundering charges.

The law says:

Republic Act No. 9160, Section 3(i) “Unlawful activity” refers to any act or omission or series or combination thereof involving or having relation to the following:

“(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the Revised Penal Code, as amended;

“(2) 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;

“(3) 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;

“(4) Plunder under Republic Act No. 7080, as amended;

“(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the Revised Penal Code, as amended;

“(6) Jueteng and Masiao punished as illegal gambling under Presidential Decree No. 1602;

“(7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential Decree No. 532;

“(8) Qualified theft under Article 310 of the Revised Penal Code, as amended;

“(9) Swindling under Article 315 and Other Forms of Swindling under Article 316 of the Revised Penal Code, as amended;

“(10) Smuggling under Republic Act Nos. 455 and 1937;

“(11) Violations of Republic Act No. 8792, otherwise known as the Electronic Commerce Act of 2000;

“(12) Hijacking and other violations under Republic Act No. 6235; destructive arson and murder, as defined under the Revised Penal Code, as amended;

“(13) Terrorism and conspiracy to commit terrorism as defined and penalized under Sections 3 and 4 of Republic Act No. 9372;

“(14) 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:

“(15) Bribery under Articles 210, 211 and 211-A of the Revised Penal Code, as amended, and Corruption of Public Officers under Article 212 of the Revised Penal Code, as amended;

“(16) Frauds and Illegal Exactions and Transactions under Articles 213, 214, 215 and 216 of the Revised Penal Code, as amended;

“(17) Malversation of Public Funds and Property under Articles 217 and 222 of the Revised Penal Code, as amended;

“(18) Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169 and 176 of the Revised Penal Code, as amended;

“(19) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known as the Anti-Trafficking in Persons Act of 2003;

“(20) 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;

“(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act No. 8550, otherwise known as the Philippine Fisheries Code of 1998;

“(22) Violations of Sections 101 to 107, and 110 of Republic Act No. 7942, otherwise known as the Philippine Mining Act of 1995;

“(23) 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;

“(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise known as the National Caves and Cave Resources Management Protection Act;

“(25) Violation of Republic Act No. 6539, otherwise known as the Anti-Carnapping Act of 2002, as amended;

“(26) Violations 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;

“(27) Violation of Presidential Decree No. 1612, otherwise known as the Anti-Fencing Law;

“(28) Violation of Section 6 of Republic Act No. 8042, otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995, as amended by Republic Act No. 10022;

“(29) Violation of Republic Act No. 8293, otherwise known as the Intellectual Property Code of the Philippines;

“(30) Violation of Section 4 of Republic Act No. 9995, otherwise known as the Anti-Photo and Video Voyeurism Act of 2009;

“(31) Violation of Section 4 of Republic Act No. 9775, otherwise known as the Anti-Child Pornography Act of 2009;

“(32) 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;

“(33) Fraudulent practices and other violations under Republic Act No. 8799, otherwise known as the Securities Regulation Code of 2000; and;

“(34) Felonies or offenses of a similar nature that are punishable under the penal laws of other countries.”

Why are these crimes considered predicate crimes? Why is this listing significant?

These crimes hold significance as they serve as the origin of the funds subjected to money laundering. They are termed “predicate offenses” because they represent the initial, smaller-scale crimes that lay the foundation for more significant illicit activities. In essence, they act as the building blocks for more extensive criminal undertakings. This enumeration is crucial as it helps authorities trace the flow of unlawfully obtained funds and establish a legal basis for pursuing money laundering charges. Understanding these predicate crimes provides a vital framework for combating financial wrongdoing and upholding the integrity of financial systems.

 

Read also: What are Covered Transactions Under the Anti-Money Laundering Act?

 

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