Anti-Money Laundering (Busfin) Flashcards
its been described by many as
the lifeblood of crime and
is a major threat to the economic and social
well-being of societies.
Money laundering
is an act or series or combination of acts whereby proceeds of an unlawful activity, whether in cash, property or other assets, are converted, concealed or disguised to make them appear to have originated from legitimate sources.
Money laundering
Money laundering is a serious threat. It has devastating consequences for the financial system and for national security, since it provides funds for terrorists, drug traffickers, arms
dealers, and criminal groups.
WHY MONEY LAUNDERING
A SERIOUS PROBLEM?
IS ANTI -MONEY LAUNDERING
A FOREIGN POLICY?
Yes
Anti-money laundering initiatives rose to global prominence in 1989, when a group of countries and organizations around the world formed the ____________. Its mission is to devise international standards to prevent money laundering and promote their
implementation.
In October 2001, following the 9/11 terrorist attacks, FATF expanded its mandate to include
combating terrorist financing.
Financial Action Task Force (FATF).
Anti-money laundering (AML)
refers to the laws, regulations
and procedures intended to
prevent criminals from
disguising illegally obtained
funds as legitimate income.
According to Investopedia
Otherwise known as the Anti-Money Laundering Act of 2001 (AMLA), as amended, defined money laundering as a scheme whereby proceeds of an unlawful activity are transacted or attempted to be transacted, thereby making them appear to have originated from legitimate sources.
REPUBLIC ACT 9160
The government enacted Republic Act (R.A.) No. 9160 (The
Anti-Money Laundering Act of 2001), which took effect on __
October 2001.
Certain provisions of AMLA were amended by R.A. No.
____ (An Act Amending R.A. 9160) effective 23 March 2003.
It has also issued the ____________ implementing R.A. No. 9160, as amended.
- 17
- 9194
3.Revised Implementing Rules and
Regulations (RIRR)
Can Money Laundering be Stopped?
Money laundering cannot be completely stopped but it can be reduced through constant vigilance.
how many unlawful activities or predicate crimes covered by
the AMLA. These are enumerated in the law:
34
34 unlawful actvities
- Kidnapping for ransom
- Drug offenses
- Graft and corrupt practices
- Plunder
- Robbery and extortion
- Jueteng and masiao
- Piracy on the high seas
- Qualified theft
- Swindling
- Smuggling
- Electronic Commerce crimes
- Hijacking, destructive arson and murder, including those perpetrated against
non-combatant persons (terrorist acts) - Terrorism and conspiracy to commit terrorism;
- Financing of Terrorism (FT) including the attempt and conspiracy to commit FT (RA No.
10168) - Bribery and Corruption of Public Officials under the Revised Penal Code
- Frauds and other illegal transactions under Articles 213,214,215 and 216 of the Revised
Penal Code) - Malversation of Public Funds and Property
- Forgeries and Counterfeiting
- Violations of RA 9208 (Anti Trafficking in Persons Act of 2003)
- Violations under PD No. 705 (Revised Forestry Code of the Philippines
- Violations under RA 8559 (Philippine Fisheries Code of 1998)
- Violations under RA 7942 (Philippine Mining Act)
- Violations under RA 9147 (Wildlife Resources Conservation and Protection Act)
- Violations of RA 9072 (National Caves and Cave Resources Management Protection
Act) - Violation under RA 6539 (Anti-Carnapping Act of 2002)
- “Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition
or Disposition of Firearms, Ammunition or Explosives”; - Anti Fencing Law (pagbili ng mga nakaw na bagay)
- Violation of Section 6 of Republic Act No. 8042, otherwise known as the “Migrant
Workers and Overseas Filipinos Act of 1995, as amended”; (Illegal recruitment) - Violation of Republic Act No. 8293, otherwise known as the “Intellectual Property Code
of the Philippines, as amended”; - Violation of Section 4 of Republic Act No. 9995, otherwise known as the “Anti-Photo and
Video Voyeurism Act of 2009”; - Violation of Section 4 of Republic Act No. 9775, otherwise known as the “Anti-Child
Pornography Act of 2009”; - Violations of Sections 5, 7, 8, 9, 10 (c), (d) and (e), 11, 12 and 14 of Republic Act No.
7610, otherwise known as the “Special Protection of Children Against
Abuse, Exploitation and Discrimination” - Fraudulent practices and other violations under Republic Act No. 8799, otherwise known
as the “SecuritiesRegulation Code” - Felonies or offenses of a nature similar to the aforementioned unlawful activities that are
punishable under the penal laws of other countries.
3 Stages of Money Laundering
- Placement
- Layering
- Integration
involves initial
placement or introduction of the
illegal money.
Placement
involves a series of financial
transactions during which the dirty money is passed through a series of procedures, putting layer upon layer of persons and
financial activities into the laundering process.
Ex. wire transfers, use of shell corporations, etc.
Layering
the money is once again
made available to the criminal with the occupational and geographic origin obscured or concealed.
The laundered funds are now integrated back into the legitimate economy through
the purchase of properties, businesses and other investments.
Integration