AMLA-Reviewer - Lecture notes 1 PDF

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AMLA-Reviewer - Lecture notes 1...

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CPA in Transit Reviewer: Anti Money Laundering Act of 2001 (RA

1

9160) 2017-2018 ed.

I.

MONEY LAUNDERING

It is committed by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity: a) Transacts said instrument or property b) Converts, transfers, disposes of, moves, acquires, possesses or use it c) Conceals or disguise the true nature, source, location, disposition, movement or ownership of or rights d) Attempts or conspires to commit money laundering offenses e) Aids, abets, assist in or councils the commission of the money laundering offenses f) Performs or fails to perform any act as a result of which he facilitates the offense Money laundering is also committed by any covered persons who, knowing that a covered or suspicious transaction is required to be reported to the Anti-Money Laundering Council (AMLC). [Sec 4] II. COVERED PERSONS It refers to the following, natural or judicial: a. all persons and their subsidiaries and affiliates supervised or regulated by the BSP.

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RFBT

b. all persons supervised or regulated by the Insurance Commission c. Entities administrating or otherwise dealing in currency, commodities or financial derivatives and other similar monetary instrument or property supervised or regulated by the Securities and Exchange Commission. d. Jewelry dealers in precious metals and/or stones for transactions in excess of One million pesos (P1M). e. Company service providers which, as a business, provide any of the following services to 3rd parties: i. Acting as a formation agent ii. Acting as director or corporate secretary of a company, a partner of a partnership, or a similar position to other judicial persons iii. Providing a registered office, business address or accom-modation, correspondence or administrative address for a company, a partnership or any other legal persons or arrangement iv. Acting as a nominee share-holder for another person f. Persons who provide any of the following services:

CPA in Transit Reviewer: Anti Money Laundering Act of 2001 (RA

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9160) 2017-2018 ed.

RFBT

i.

Managing of client money, securities or other assets ii. Management of bank, savings or securities accounts iii. Organization of contributions for the creation, operation or management of companies iv. Creation, operation or management of judicial persons or arrangements, and buying and selling business entities III. OBLIGATIONS OF COVERED PERSONS The following are required to performed by covered persons in order to prevent Money Laundering: 1. Customer Identification 2. Record Keeping 3. Reporting of Covered Suspicious Transaction

and

A.) Customer Identification Covered institutions shall establish and record the true identity of its clients based on official documents. They shall maintain a system of verifying the same, and in case of corporate clients, require a system of verifying their legal existence and organizational structure, as well as authority and identification of all persons purporting to act on their behalf. B.) Record Keeping Ver. 1.00 | BY: R.M.P

All records of all transactions of covered institutions shall be maintained and safely stored for five (5) years from the dates of transactions. With respect to closed accounts, the records on customer identification, account files and business correspondence, shall be preserved and safely stored for at least five (5) years from the dates when they were closed. C.) Reporting of Covered and Suspicious Transactions Covered persons shall report to the AMLC all covered transactions and suspicious transactions within five (5) working days from occurrence thereof, unless the AMLC prescribes a different period not exceeding fifteen (15) working days. Independent lawyers and accountants are not required to report if they are subject to professional secrecy or legal professional privilege. When reporting covered or suspicious transactions, it is prohibited to communicate it through mass media. Any of the report’s contents should not be made into public knowledge. IV. COVERED AND SUSPICIOUS TRANSACTIONS Covered Transactions Transactions in cash or any other equivalent monetary instrument involving a total amount of

CPA in Transit Reviewer: Anti Money Laundering Act of 2001 (RA

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9160) 2017-2018 ed.

P500,000 within one (1) banking day. [Sec 3, (b)] Suspicious Transactions Transactions with covered institutions, regardless of the amounts involved, where any of the following circumstances exist: 1. No underlying legal or trade, obligation, purpose or economic justification; 2. Client is not properly identified 3. Amount involved is not commensurate with business or financial capacity of the client 4. 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; 5. Any circumstances which is observed to deviate from the profile of the client and/or the client’s past transactions wit the covered institutions; 6. transaction is in anyway related to an unlawful activity or offense that is about to be, I being or has been committed; or 7. Any transactions that is similar or analogous to any of the foregoing. V. PENALTIES Jurisdiction The Regional Trial Courts shall have jurisdiction to try all cases on money laundering.

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The Sandiganbayan shall have jurisdiction over cases those committed by public officers and private persons who are in conspiracy with such public officers. [Sec 5] Penal Provision Offense

Money Laundering (a,b,c,d)

(e & f) Last parag. of Sec 4 Failure to keep records Malicious Reporting Breach of Confidentialit y Covered persons, its directors, or personnel who knowingly participated in the commission of the crime of money

Fine P3 M, but not more than twice the value of the instrum ent or property involved P1.5 MP3M P100KP500K P100KP500K P100KP500K P500kP1M Not more than 200% of the value of the monetar y instrum ent or

Imprison ment

7-4 years

7-4 years 6 months4 years 6 months1 year 6 months4 years 3-8 years 4-7 years

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laundering Imposition of Administrativ e Sanctions

RFBT

property laundere d Not more than P500k

VI. FREEZING OF MONEY OR PROPERTY The Court of Appeals may issue a freeze order effective immediately, and shall not exceed 6 months, if the following has been satisfied: 1. Verified ex parte petition by the AMLC; and 2. Determining that probable cause exist that any monetary instrument or property is in any way related to an unlawful activity A person whose account has been frozen may file a motion to lift the freeze order and the court must resolve this motion before the expiration of the freeze order. No court shall issue a temporary restraining order or a writ of injunction against any freeze order, except the Supreme Court.

VII. ANTI-MONEY LAUNDERING COUNCIL The Anti-Money Laundering Council shall be composed of the Governor of the Bangko Sentral ng Pilipinas (BSP) as chairman, the Commissioner of the Insurance

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Commission and the Chairman of the Securities and Exchange Commission (SEC) as members. [Sec. 7]...