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ANTI-MONEY
LAUNDERING ACT
By: ATTY. JACINTO D. JIMENEZ
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I. Money
Laundering
A.
Definition
Money laundering is a crime whereby the proceeds of an
unlawful activity are transacted, thereby making them appear to have
originated from legitimate sources. It is committed by:
1. Any person knowing that any monetary
instrument or property relates to the proceeds of any unlawful activity,
transacts it.
2. Any person knowing that any monetary
instrument or property involves the proceeds of any unlawful activity,
performs or fails to perform any act as a result of which he facilitates
its transaction.
3. Any person
knowing that any monetary instrument or property is required to be
disclosed and filed with the Anti-Money Laundering Council, fails to do
so. (Section 4)
B.
Institutions Covered
1. Banks, non-banks, quasi-banks, trust entities
and all other institutions and their subsidiaries and affiliates
supervised by the Bangko Sentral ng Pilipinas.
2. Insurance companies and all other institutions
supervised by the Insurance Commission.
3.
Securities dealers, brokers, salesmen,
investment houses, and other similar entities managing securities or
rendering services as investment agent, advisor or consultant.
4.
Mutual funds, close-end investment
companies, common-trust funds, pre-need companies and other similar
entities.
5.
Foreign exchange corporations, money
changers, money payment, remittance and transfer companies and other
similar entities.
6.
Other entities dealing in currency,
commodities or financial derivatives, valuable objects, cash substitutes
and other similar monetary instruments or property regulated by the
Securities and Exchange Commission. [Section 3 (a)]
C.
Covered Transactions
Any transaction in cash
or other equivalent monetary instrument involving a total of more than
P500,000.00 in one banking day is covered. [Section 3(B)]
D.
Suspicious Transactions
Suspicious transactions
are transactions with covered institutions, regardless of amount, where
any of the following circumstances exists:
1.
There is no underlying legal or trade
obligations, 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.
It may be perceived that the transaction is
structured to avoid being the subject of reporting requirements.
5.
Any circumstance which deviates from the
profile of the client or the client’s past transactions with the covered
institution.
6.
The transaction is related to an unlawful
activity.
7.
The transaction is similar or analogous to
any of the foregoing (Section 2 [b-1)]a)
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