AMLA Explained Philippines
The Anti-Money Laundering Act (AMLA) of the Philippines is a legislative framework aimed at preventing and penalizing money laundering activities. Enacted as Republic Act No. 9160, the law was later amended several times to strengthen its coverage and implementation, most notably by Republic Acts 9194, 10167, and 10365.
Money laundering, as defined by the act, is a process wherein unlawfully obtained money is made to appear legitimate. It involves a series of transactions designed to obscure the origins of illicitly acquired funds. The AMLA lays down specific procedures and requirements for detecting and reporting potential money laundering activities.
Reporting Entities
The law places an obligation on covered institutions, such as banks, insurance companies, and securities dealers, to report certain transactions to the Anti-Money Laundering Council (AMLC), an independent governmental body responsible for implementing the AMLA. These transactions include:
- Single transactions involving an amount exceeding PHP 500,000 within one banking day
- Suspicious transactions, regardless of the amount
Freezing and Forfeiture of Assets
The AMLC has the authority to freeze assets that are suspected to be related to money laundering or other unlawful activities, usually within a specific period, pending an investigation. The Council can also petition the Court of Appeals for the forfeiture of said assets.
Penalties
Violators of the AMLA face harsh penalties, including imprisonment of up to 14 years and hefty fines. Corporate entities can also be held liable and may have their licenses revoked.
International Obligations
The Philippines is a member of international bodies focused on combating money laundering and the financing of terrorism. The AMLA is also geared towards complying with international standards set by organizations such as the Financial Action Task Force (FATF).
Compliance Measures
Covered institutions are required to develop internal programs for employee training and procedure manuals that are designed to detect and impede money laundering activities. These institutions are also mandated to employ a compliance officer who will oversee the program's implementation.
Amendments
Subsequent amendments to the AMLA have expanded the scope of predicate crimes to include not just drug trafficking and kidnapping for ransom but also other unlawful activities like corruption, smuggling, and terrorism.
In summary, the AMLA is a comprehensive legal framework aimed at curbing money laundering activities in the Philippines. It places specific obligations on covered institutions, creates a body to enforce these regulations, and imposes severe penalties for violations. Ensuring compliance with this law is crucial for institutions that fall under its jurisdiction, as well as for maintaining the integrity of the Philippine financial system.