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Financial Crimes Definition in Philippines: A Vital Step Towards Economic Growth and Transparency
The Philippines has been striving for economic development and poverty alleviation through corporate governance and public office transparency. To contribute to the global fight against money laundering, the country has enacted responsive anti-money laundering legislation to establish an effective regime that will increase investor confidence.
The Anti-Money Laundering Act of 2001
Republic Act No. 9160, also known as The Anti-Money Laundering Act of 2001, was signed into law on September 29, 2001, and took effect on October 17, 2001. An amendment to the original act, Republic Act No. 9194, was signed into law on March 7, 2003.
Definition of Money Laundering
Money laundering is defined as a crime where the proceeds of an unlawful activity are transacted or attempted to be transacted to make them appear to have originated from legitimate sources.
Offenses and Penalties Under the Anti-Money Laundering Act
The following offenses and penalties are included under the Anti-Money Laundering Act:
- Knowingly Transacting or Attempting to Transact: Penalty is 7-14 years imprisonment and a fine of P3 million to twice the value of the monetary instrument/property.
- Knowing Performance or Failure to Perform an Act: Penalty is 7-14 years imprisonment and a fine of P3 million to twice the value of the monetary instrument/property.
- Concealment, Disguise, Conversion, or Transfer of Criminally Obtained Funds: Penalty is 6-12 years imprisonment and a fine of P2 million to four times the value of the criminally obtained funds.
Reporting Requirements
Covered institutions, including banks, insurance companies, securities dealers, and other entities supervised by relevant regulatory bodies, are mandated to submit:
- Covered Transactions: Single transactions in cash or other equivalent monetary instruments involving an amount exceeding P500,000 within one banking day.
- Suspicious Transactions: Transactions where there is no underlying legal/trade obligation, purpose, or economic justification, among others.
Freezing of Monetary Instruments and Properties
The Anti-Money Laundering Act also provides for the freezing of monetary instruments or properties related to unlawful activities and authorizes the Anti-Money Laundering Council (AMLC) to inquire into bank deposits upon order of a competent court.
Conclusion
In conclusion, the Philippines has taken significant steps towards combating money laundering and terrorist financing. The Anti-Money Laundering Act provides a robust framework for identifying, preventing, and prosecuting these crimes, thereby enhancing transparency and trust in the financial system.