Anti Money Laundering Act Flashcards
Process of making illegally obtained proceeds appear legal
Money Laundering
What are the stages of Money Laundering
Placement
Layering
integration
At this stage, the launderer inserts dirty money into a legitimate financial institution
Placement
Stage that involves sending money through various financial transactions to change its form and make it more difficult to follow
Layering
At this stage, the money re-enters the mainstream economy in a legitimate-looking form, appearing to have come from a legitimate transaction
Integration
What is the RA of AMLA
9160
What is the policy of the State under AMLA
To protect and preserve the integrity and confidentiality of bank accounts
To ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity
What is a prerequisite in all cases of situations constituting a money laundering activity?
The person knows that the assets at hand came from unlawful activity
When is money laundering commited?
- Transacts the monetary instrument from unlawful activity
- Converts, transfers, disposes, move, etc., the monetary instrument
- Conceals or disguises the true nature or source of the instrument
- Attempts or conspires to commit money laundering offenses
- aids or assists the commission of the money laundering offenses
- performs or fails to perform any acts as a result of which he facilitates the offense
Money Laundering is also commited by any __ __ who, knowing that a ___ or ___ ___ is required under this act to be reported to the AMLC fails to do so
covered person, a covered or suspicious transaction
Pedro enacted theft, and the proceeds were transferred to another person. Was money laundering done?
No. Qualified theft must be done
Proceeds from a homicide was used in a transaction. Is it considered money laundering?
No. Murder, and not homicide must be done.
Covered Persons or Institutions: Casino are considered to be under the covered institution if the Cash Casino Transactions is?
In excess of 5M
Covered Persons or Institutions: Real Estate Developers for single cash transaction involving an amount
In excess of 7.5 M
Covered Persons or Institutions: Jewelers of Precious Stones and Metals are included from?
In excess of 1M
What is the exclusion in covered person/institution?
Lawyers and accountants who are authorized to practice in the PH acting as legal professionals.
What are the obligations of Covered Persons/Institution
- Customer Identification
- Record Keeping (5 years)
- Reporting of Covered and Suspicious transactions to the AMLC
When should the covered person/institutions report to the AMLC
Within 5 working days from occurrence or not exceeding 15 working days
T or F: Reporting of a bank to the AMLA is a violation of Bank Secrecy Law
F
No administrative, criminal, or civil proceedings, shall lie against any person or institution for reporting
Safe Harbor Provision
Covered transactions are transactions involving monetary instruments that are in excess of, and must be reported to amla, within _ banking day.
500k, one banking day
What do you call transactions that need to be reported regardless of their value
Suspicious Transaction
The circumstances upon which consitutes a suspicious construction:
- No underlying legal obligation, purpose, or economic justification
- Non Identification of Client
- The amount and the financial capacity of client misaligns greatly
- Transactions structured for avoidance of reporting
- Deviation with client’s past transaction
Enumare the Covered Persons
- Regulated by the BSP
- Regulated by the Insurance Commission
- Regulated by the SEC
- Jewelers for stones and metals transactions over 1m
- Provides service as an officer for others
- Provides management or creation of assets and business
What is the composition of the AMLC?
- BSP Governor (Chairman)
- Commissioner of the Insurance Commission
- Chairman of the SEC
The court of appeals may issue a ____ ___ which shall be effective immediately, and shall not exceed __ months.
freeze order, 6
The court shall act to freeze the instrument within?
24 hours from filing
Only the ___ ___ can issue a temporary restraining order on a freeze order
Supreme Court
The Court of Appeals shall act on the application to inquire into or examine any deposit or
investment with any banking institution or non-bank financial institution within
___ ___ from filing of the application.
(24) hours
