Anti-Money Laundering Policy (Philippines)

Covered persons under the Anti-Money Laundering Act (RA 9160, as amended by RA 10365 and RA 11521) are entities required to report covered and suspicious transactions to the Anti-Money Laundering Council (AMLC). The list of covered persons is set out in Section 3(a) of RA 9160 and has been expanded significantly through amendments. Covered persons include: banks, offshore banking units, quasi-banks, trust entities, non-stock savings and loan associations, pawnshops, and other supervised entities of the Bangko Sentral ng Pilipinas (BSP); insurance companies, professional reinsurers, mutual benefit associations, and pre-need companies under the Insurance Commission (IC); securities dealers, brokers, salesmen, investment houses, mutual funds, and other entities registered with the SEC under the Securities Regulation Code (RA 8799); foreign exchange dealers and money changers; remittance and transfer companies; jewelry dealers in precious metals and stones when transacting in cash above AMLC thresholds; real estate developers and brokers for single cash transactions of PHP 7,500,000 or more (expanded under RA 11521); casinos, gaming operators, and internet gaming licensees under PAGCOR; and designated non-financial businesses and professions (DNFBPs) performing specified activities, including lawyers and accountants in specific non-litigation roles.

Under Section 3(b) of the Anti-Money Laundering Act (RA 9160, as amended), a covered transaction is a single transaction in cash or other monetary instruments involving an amount in excess of PHP 500,000 (five hundred thousand pesos) within one banking day. This threshold applies to banks, non-bank financial institutions, and most other covered persons. For casinos and gaming establishments, the covered transaction threshold is set at PHP 5,000,000 per gaming session under the AMLC's casino implementing rules. For real estate transactions, Republic Act 11521 (2021) expanded the AMLA coverage to include real estate developers and brokers for single cash transactions of PHP 7,500,000 or more. Covered transactions must be reported to the AMLC within five (5) working days from the date of the transaction using the AMLC's Electronic Reporting System (ERS). It is important to note that covered transaction reporting does not imply that the transaction is suspicious or unlawful — it is a mandatory threshold-based reporting requirement. However, where a covered transaction also exhibits characteristics of a suspicious transaction, a separate Suspicious Transaction Report (STR) must also be filed. The AMLC uses covered transaction data for financial intelligence analysis and may conduct further investigation into patterns of transactions that collectively suggest money laundering activity.

Violations of the Anti-Money Laundering Act (RA 9160, as amended by RA 10365 and RA 11521) in the Philippines carry severe criminal, administrative, and civil penalties. The crime of money laundering under Section 4 of RA 9160 carries imprisonment of 7 to 14 years and a fine not less than three times the value of the monetary instrument or property involved in the offense, but not more than twice the value of the monetary instrument. Failure to report covered or suspicious transactions under Section 9 of RA 9160 carries a fine of PHP 500,000 to PHP 1,000,000 per transaction not reported and/or imprisonment of 6 months to 4 years. For financial institutions, the Anti-Money Laundering Council (AMLC) may also impose administrative sanctions — including fines of up to PHP 500,000 per violation per day — and recommend revocation of license to the Bangko Sentral ng Pilipinas (BSP), Insurance Commission (IC), or Securities and Exchange Commission (SEC). The AMLC may apply ex parte to the Court of Appeals for an order to freeze assets linked to money laundering, and may file civil forfeiture proceedings before the Regional Trial Court. The Philippines' inclusion on the FATF grey list since June 2021 has heightened enforcement of AMLA compliance across all covered persons.

A Anti-Money Laundering Policy (Philippines) does not legally require a lawyer in Philippines, and individuals and businesses may draft and execute the document independently. The Revised Corporation Code (RA 11232, 2019) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Philippines lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of the Philippines has jurisdiction over disputes arising from this type of document, and Securities and Exchange Commission (SEC Philippines) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.

A Anti-Money Laundering Policy (Philippines) does not legally require a lawyer in the Philippines, though legal advice is recommended. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contracts. The Securities and Exchange Commission (SEC) regulates corporate documents. The Department of Labor and Employment (DOLE) oversees employment agreements. The Data Privacy Act of 2012 (Republic Act No. 10173) and National Privacy Commission (NPC) impose data protection obligations. The Bureau of Internal Revenue (BIR) requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Philippine attorney for significant transactions. Under Philippines law, Revised Corporation Code (RA 11232, 2019), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.

AMLC Regulatory Issuance (ARI) No. 1, Series of 2021 is an issuance of the Anti-Money Laundering Council (AMLC) that reinforces customer due diligence (CDD) requirements for covered persons under the Anti-Money Laundering Act (RA 9160, as amended by RA 10365 and RA 11521). It was issued as part of the Philippines' response to the Financial Action Task Force (FATF) mutual evaluation, after the country was placed on the FATF grey list (Jurisdictions under Increased Monitoring) in June 2021. For a covered person's AML policy, ARI No. 1, Series of 2021 means the policy must set out robust procedures to verify the identity of customers and beneficial owners (Know Your Customer), apply enhanced due diligence (EDD) to politically exposed persons, high-risk customers and high-risk jurisdictions, and align ongoing monitoring with a risk-based approach. Covered persons should reflect these CDD standards in their written AML policy and consult the latest AMLC issuances for any updates.

A Suspicious Transaction Report (STR) is a report a covered person must file with the Anti-Money Laundering Council (AMLC) when a transaction is determined to be suspicious under Section 3(b-1) of the Anti-Money Laundering Act (RA 9160, as amended by RA 10365), regardless of the amount involved. Unlike a covered transaction report, which is triggered by a monetary threshold, an STR is triggered by the suspicious character of the transaction — for example, where there is no underlying legal or economic purpose, the client cannot be properly identified, the amount or pattern is inconsistent with the client's known business, or the transaction appears linked to an unlawful activity. The STR must be filed within five working days of the determination, using the AMLC's Electronic Reporting System (ERS). Crucially, the covered person must not disclose to the customer that an STR has been or will be filed — the tipping-off prohibition under Section 9(c) of RA 9160 makes informing the customer an offence.