AMLA Flashcards
What is the relevant law on AMLA?
Republic Act No. 9160 AKA Anti-Money Laundering Act of 2001
What is the State’s policy regarding AMLA?
It is 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.
A crime whereby the proceeds of an unlawful activity are transacted; thereby making them appear to have originated from legitimate sources.
Money laundering
How is money laundering committed?
Money laundering is committed by the following:
* 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.
* 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 above.
* 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.
What is a covered transaction?
A transaction in cash or other equivalent monetary instrument involving a total amount of more than P500,000 within 1 banking day.
What are suspicious transactions? (read the answer nalang for familiarization)
Suspicious transactions are transactions with covered institutions, regardless of the amounts involved, where any of the following circumstances exist:
* there is no underlying legal or trade obligation, purpose or economic justification
* the client is not properly identified
* the amount involved is not commensurate with the business or financial capacity of the client
* 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 Act
* any circumstances relating to the transaction which is observed to deviate from the profile of the client
and/or the client’s past transactions with the covered institution
* the transaction is in a way related to an unlawful activity or offense under this Act that is about to be, is
being or has been committed
* any transactions that is similar or analogous to any of the foregoing
Who are covered persons?
banks, non-banks,quasi banks, etc.
Please read up R.A. 9160/9140 for familiarization
Are there exceptions to the definitions of covered persons?
Yes, covered persons shall not include lawyers and accountants acting as independent legal professionals in relation to information concerning their clients or where disclosure of information would compromise client confidences or the attorney-client relationship. thank
When should covered persons report suspicious transactions?
Covered persons shall report to the AMLC all covered transactions and suspicious transactions within 5 working days from occurrence thereof, unless the AMLC prescribes a different period not exceeding 15 working days.
