Anti-Money Laundering Act (RA 9160)

Question 1

It is a crime committed by any person knowing that any monetary instrument or property represents, involves, or relates to, the proceeds of any unlawful activity

Answer 1

Money Laundering

Question 2

What are the stages of money laundering?

Answer 2

1. Placement
2. Layering
3. Integration

Question 3

the launderer inserts dirty money into a legitimate financial institution

Answer 3

Placement

Question 4

Involves sending money through various financial transactions to change its form and make it more difficult to follow

Answer 4

Layering

Question 5

The money re-enters mainstream economy in legitimate-looking form, appearing to have come from legitimate transaction

Answer 5

Integration

Question 6

Theft, or the taking of personal property with intent to gain but without violence or intimidation of persons or force upon things, is___

Answer 6

not an unlawful activity under the AMLA

Question 7

Covered transactions

Answer 7

1. cash or other equivalent monetary instrument involving a total amount in excess of P500,000 within one banking day
2. casino - a single casino transaction in excess of P5,000,000
3. real estate developer/brokers - single cash transaction involving an amount in excess of P7,500,000

Question 8

When shall covered transactions be reported to the AMLC?

Answer 8

within 5 working days from occurrence thereof, unless AMLC prescribes a longer period NOT EXCEEDING 15 WORKING DAYS

Question 9

Is conviction of the unlawful activity necessary before a report is made?

Answer 9

NO

Question 10

Suspicious Transactions

Answer 10

1. No underlying legal or trade obligation, purpose or economic justification
2. the client is not properly identified
3. the amount involved is not commensurate with the business or financial capacity of the client
4. the client’s transaction is structured in order to avoid being the subject of reporting requirements under the ACt
5. Circumstances relating to the transaction is observed to deviate from the profile of the client and/or the client’s past transactions with the covered institution
6. the transaction is in any was related to an unlawful activity or offense that is about to be, is being, or has been committed
7. any transaction similar or analogous to any of the following

Question 11

When shall a suspicious transaction be reported?

Answer 11

Within the next working day from occurrence thereof

Question 12

Anti-Money Laundering Council is composed of

Answer 12

1. Chairman: BSP Governor
2. Members:
   a. Commissioner of Insurance Commission
   b. Chairman of SEC

Question 13

When is a court order not necessary?

Answer 13

1. Kidnapping for ransom
2. Sections 4,5,7,8,9,12,13,14,15 and 16 of Comprehensive Dangerous drugs Act
3. Hijacking
4. Terrorism and conspiracy to commit terrorism