RA 9160: Money Laundering

RA 9160, Also known as the Anti-Money Laundering Act, is a welcome -although late- addition to the Philippine justice system.

Offenses punishable under RA9160 are the following:

1.) The crime of money laundering itself

2.) Failure to keep records

3.) Failure to report covered transactions

4.) Malicious reporting

5.) Breach of confidentiality

Money Laundering

It is a crime where the proceeds of an illegal activity are transacted, consequently making them appear to have come from legitimate sources. It takes the form of the following:

1.) Any person who knows that any monetary instrument or property represents, involves or is related to the proceeds of any illegal activity but transact/tries to transact the instrument/property anyway

2.) A person who, knowing that any monetary instrument or property involves the proceeds from any illegal activity, performs or fails to perform an act a result of which he facilitates the offense of money laundering in the previous paragraph

3.) If a person knows that any monetary instrument or property that is required under the money laundering law (RA 9160, as amended by RA 9194) to be disclosed and filed with the Anti-Money Laundering Council and fails to do so

A person can be convicted of both the illegal activity and money laundering. Any case related to the illegal activity, however, is given precedence over the prosecution of any offense or violation of the money laundering law without prejudice to freezing and other remedies. 

The RTC has jurisdiction over money laundering cases except if the money laundering is committed by public officers or private persons conspiring with them. In this instance, the case will be tried by the Sandiganbayan.

Covered Institutions

These are the institutions covered under the money laundering law. They refer to:

1.) Banks, non-banks, quasi-banks, trust entities and all other institutions and their subsidiaries and affiliates under the regulation ans supervision of the Central Bank

2.) Insurance companies and all other institutions supervised and regulated by the Insurance Commissioner

3.) Securities, dealers, brokers, salesmen, investment houses an other similar entities managing securities or rendering services as investment agents, advisers, consultants; mutual funds, close-end investment companies  and other similar entities; forex corporations, money changers, money payment, remittance and transfer companies and other similar entities; and entities administering or otherwise dealing in currency, commodities or financial derivatives based thereon, valuable objects, cash substitutes and other similar monetary instruments or property supervised by the SEC

Transactions Covered by RA 9160

These transactions are reported to the Anti-Money Laundering Council within 5 working days from their occurrence unless the supervising authority prescribes a longer period of up to 10 days. This is an exception to the Bank Secrecy Law, RA 6426, RA 8971 and other similar laws; provided the reporter doesn't communicate any information related to the report to any person.

1.) Covered Transaction

A transaction in cash or equivalent monetary instrument where the amount exceeds Php500,000.00 in a single banking day,

2.) Suspicious Transaction

A transaction with covered institutions, regardless of the amount involved, if any of the following circumstances are present:

a.) No underlying legal trade/obligation, purpose or economic justification

b.) Client isn't properly identified

c.) Amount involved isn't commensurate with the client's business or financial capacity

d.) Client's transaction is structured in order to avoid being subject to the reporting requirements of the money laundering act(!)

e.) Any circumstance related to the transaction is observed to deviate from the client's profits or his past transactions with the covered institution

f.) The transaction is related to any illegal activity or offense under the money laundering law and is about to be, is being or has been committed

g.) Any transaction similar or analogous to any of the above

Unlawful Activities Under RA 9160

1.) Kidnapping for ransom

2.) Drug trafficking

3.) Violations of the Anti-Graft and Corrupt Practices Act

4.) Plunder

5.) Robbery and extortion

6.) Jueteng and masiao

7.) Piracy on the high seas

8.) Qualified theft

9.) Swindling/estafa

10.) Violations of the E-Commerce Act

11.) Hijacking and other violations of RA 6235

12.) Destructive arson and murder, including those committed by terrorists against non-combatants and similar targets

13.) Fraudulent practices and other violations under the Securities Regulations Code

14.) Acts of terrorism

15.) Felonies/offenses of a similar nature punishable under the criminal laws of other countries

These crimes can be prosecuted together with the violation of RA 9160

Penalties

1.) Imprisonment from 7 to 14 years and a fine of at least Php3M, but not to exceed double the value of the monetary instrument or property involved in the offense for the first form of money laundering (see above.)

2.) Imprisonment from 4 to 7 years and a fine of between Php1.5M to Php3M for the second form of money laundering (same.)

3.) Imprisonment from 6 months to 4 years and/or a fine of Php100,000.00 to Php500,000.00 for the third form of money laundering (same.)

4.) Imprisonment of 6 months to 1 year and/or a fine of Php100,000.00 to Php500,000.00 for failure to keep records.

5.) Imprisonment of 6 months to 4 years and a fine of Php100,000.00 to Php500,000.00 for malicious reporting. Also, the offender can't avail of the Probation Law. If the offender is a corporation or any juridical person, the officers responsible will get this penalty and the juridical entity's license will be revoked. If the offender is an alien, he will be deported after serving sentence. If the offender is a public official or employee, perpetual or temporary absolute disqualification; he will also suffer the same if he refuses or purposely fails to testify.

6.) Imprisonment of 3 to 8 years and a fine of Php 500,000.00 to Php1M for breach of confidentiality. If committed by a media company, the reporter responsible, writer, editor-in-chief, president, publisher and manager will be held liable.