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After reading “What is money laundering?”, read also “How Is Employer-Employee Relationship Determined?“
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The Anti-Money Laundering Council (AMLC) is the agency of the Government of the Philippines that is tasked to implement the provisions of Republic Act No. 9160, also known as the “Anti-Money Laundering Act of 2001” (AMLA), as amended.
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Money laundering is a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources.
Money laundering has been defined by the International Criminal Police Organization as “any act or attempted act to conceal or disguise the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources.” Various circulars by the Banko Sentral ng Pilipinas were issued to address money laundering even prior to the passage of AMLA. However, legislative proscription was necessary. Thus, Republic Act No. 9160 was passed in 2001, was amended by R.A. 9194 in 2003 and was further amended by R.A. No. 10365 in 2013.
Section 4 of the AMLA states that “money laundering is a crime whereby the proceeds of the unlawful activity are transacted, thereby making them appear to have originated from legitimate sources.”
The law says:
SEC. 4. Money Laundering Offense. — Money laundering is a crime whereby the proceeds of an unlawful activity as herein defined are transacted, thereby making them appear to have originated from legitimate sources. It is committed by the following:
(a) Any person knowing that any monetary instrument or property represents, involves, or relates to, the proceeds of any unlawful activity, transacts or attempts to transact said monetary instrument or property.
(b) Any person knowing that any monetary instrument or property involves the proceeds of any unlawful activity, performs or fails to perform any act as a result of which he facilitates the offense of money laundering referred to in paragraph (a) above.
(c) Any person knowing that any monetary instrument or property is required under this Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so.
Based on the aforementioned provision, there are three modes through which the crime of money laundering is committed. First, by any person wherein the instrument or property relates to the proceeds of any unlawful activity and transacts or attempts to transact the money or property. Second, by any person that performs or fails to perform any act as a result of unlawfully transacting the money or property. And third, by any person that fails to disclose any money or property to the ALMC when he or she is required to do so.
Who is tasked to implement the provisions of Republic Act No. 9160?
The law says:
Section 7 creates the AMLC and defines its powers, which generally relate to the enforcement of the AMLA provisions and the initiation of legal actions authorized in the AMLA such as civil forefeiture proceedings and complaints for the prosecution of money laundering offenses. In addition to providing for the definition and penalties for the crime of money laundering, the AMLA also authorizes certain provisional remedies that would aid the AMLC in the enforcement of the AMLA. These are the “freeze order” authorized under Section 10, and the “bank inquiry order” authorized under Section 11.
Money laundering is a crime where the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources. Thus, it is hereby declared the policy of the State to protect and preserve the integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity. Consistent with its foreign policy, the State shall extend cooperation in transnational investigations and prosecutions of persons involved in money laundering activities wherever committed.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding illegal dismissal, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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