Anti-Money Laundering Flashcards
What is money laundering?
The processing of proceeds of a crime to disguise their origin.
What are the three stages of money laundering?
Placement, layering, integration
What is placement in money laundering?
The physical disposal of cash proceeds derived from illegal activity.
What is layering in money laundering?
Separating illicit proceeds from their source by creating complex layers of financial transactions.
What is integration in money laundering?
Providing appearance of legitimacy to criminally-derived wealth.
What are some examples of unlawful activities under the Anti-Money Laundering Act (AMLA)?
Kidnapping for ransom, drug trafficking, graft and corruption, plunder, robbery and extortion, jueteng and masiao, piracy, qualified theft, swindling, smuggling.
What are the penalties for money laundering?
7-14 years imprisonment and a fine of Php 3M to twice the value of the monetary instrument or property involved, or 4-7 years imprisonment and a fine of Php 1.5M to Php 3M for aiding, abetting, or assisting in money laundering.
Who are the members of the Anti-Money Laundering Council (AMLC)?
Governor of the Bangko Sentral ng Pilipinas (BSP), Commissioner of the Insurance Commission (IC), Chairperson of the Securities and Exchange Commission (SEC).
What are the functions of the AMLC?
Develop educational programs on money laundering, inquire into or examine deposits or investments with probable cause, impose administrative sanctions for violations.
Who are considered covered persons under the AMLA?
Banks, quasi-banks, trust entities, pawnshops, foreign exchange dealers, money changers, remittance companies, insurance companies, pre-need companies, securities dealers, brokers, investment houses, jewelry dealers, company service providers.
What are the duties of covered persons under the AMLA?
Customer identification and due diligence, transaction reporting, record keeping.
What is the objective of customer due diligence (CDD)?
To gain a holistic understanding of a client, including their risk profile.
What are covered transactions?
Single transactions in excess of Php 500,000.00.
What are suspicious transactions?
Transactions with no underlying legal or trade obligation, no economic justification, or involving clients not properly identified.
What is the confidentiality rule for CTRs and STRs?
No communication to any person of the fact that a report was made, its contents, or any related information.
