Question-   Anti-Money Laundering Council

Solution-

Answer:

Anti-Money Laundering Councilimplemented the provisions of R.A no. 9160 known as the Anti Money Laundering Act of 2001and R.A. No. 10168 (Terrorism Financing Prevention and Suppression Act of 2012)

  • Central Anti Money Laundering / Counter Terrorism Financing Authority,
  • Anti Money Laundering / Counter Terrorism Financing Regulator and Supervisor

Refers to:

  1. Government Agency
  2. The Council (head of GA)

Money Launderingis an act or omission or series or combination  of acts whereby proceed of an unlawful activity, whether in cash, property or other assets, are converted, concealed or disguised to make then appear to have originated from legitimate sources.

It is a crime because it allows criminals to preserve and enjoy the proceeds of their predicate crimes, thus providing then with the incentives and the means to continue their illegal activities.

Predicate Crimes- origin or results of an act. It is an offence that is a component of a more serious crime as it serves as a too or instrument to actualize or achieve the evil end of another crime.

Money laundering– vehicle or the instrument.

Predicate Crimes covered by AMLA:

  1. Kidnapping for ransom
  2. Drug Offenses
  3. Graft and Corrupt Practices
  4. Plunder
  5. Robbery and Extortion
  6. Jueteng and Masiao
  7. Piracy on the high seas
  8. Qualified Theft
  9. Swindling
  10. Electronic Commerce Crimes
  11. Hijacking, destructive arson and murder, including those perpetrated against non combalant persons (terrorist acts)
  12. Securities fraud; and
  13. Felonies or offenses of a similar nature punishable under penal laws of other countries.

The foregoing predicate crimes are associated to the acts of money laundering which our government is keenly monitoring through suspicious covered transactions.

Money is Laundered through the Financial System:

  1. By Placement –launderer introduces the illegal profit to financial system. E.g. cash broken into smaller deposits of money, used to defeat suspicion of money laundering.
  2. By Layering –launderer engages in a series of conversions or movements or the funds to distance them from their source. (camouflage) E.g. it moves around to create confusion by wiring or transferring through numerous accounts.
  3. By Integration –the funds reenter the legitimate economy. E.g. stock and investments

Covered Transaction under AMLA:

Transactions with covered institutions in cash or other equivalent monetary instruments involving a total amount in excess of P500,000 within 1 business day.

Covered Institutionsmandatory to monitors and report to AMLA within 5 working days from the occurrence thereof, unless the supervision authority (the BSP, SEC or Insurance Commission) prescribes a longer period not exceeding ten working days:

  1. Covered transactions –those involving cash ang other quivalent monetary instruments in excess of P500,000.00 within one business day. The covered institution has the duty to report the same to AMLC.
  2. Suspicious Transactions –those involving an amount of at least or less than P500,000 in one business day but circumstances are present that are sufficient to call the attention of the authorities. Thus, the covered institution still has the duty to monitor and report the same to AMLC.

NOTE:If transaction determined to be both covered and a suspicious transaction, it shall be reported as suspicious transaction.

Penalty for Failure to Report Covered or Suspicious Transactions:

Any person, required to report covered and suspicious transactions who failed to do so will be subjected to penalty of 6 months to 4 years imprisonment or a fine of not less than P100,000 but not more than P500,000, or both (RA 9160).

AMLA composed of:

  • Governor of the Bangko Sentral ng Pilipinas (BSP) as Chairman
  • Commissioner of the Insurance Commision (IC) and Chairman of the Securities and Exchange Commision (SEC) as Members.

Other Offenses Punishable Under AMLA:

  • Failure to keep records
  • Malicious Reporting
  • Breach of Confidentiality
  • Administrative Offenses

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