Financial Crime World

Criminal Prosecution Looms for Institutions and Media Entities

Philippines Enacts Stricter Anti-Money Laundering Law

MANILA, PHILIPPINES - In a significant move to combat money laundering and terrorist financing, the Philippine government has enacted Republic Act (RA) 9194. This new law imposes strict penalties on institutions and media entities that fail to comply with anti-money laundering laws.

Prohibited Activities

Under RA 9194, covered institutions and their officers and employees are prohibited from:

  • Communicating directly or indirectly any information related to suspicious transactions reported to the Anti-Money Laundering Council (AMLC)
  • Publishing or airing information about such transactions without prior approval from the AMLC

Penalties for Non-Compliance

Violations of these provisions can lead to criminal prosecution, with penalties ranging from:

  • Six months to four years imprisonment
  • Fines of up to P500,000 for individuals
  • Similar penalties for corporate entities, including responsible officers who participated in or allowed the commission of the crime

Enhanced Powers for Bangko Sentral ng Pilipinas (BSP)

RA 9194 also empowers the BSP to:

  • Inquire into or examine deposits or investments with banking institutions or non-bank financial institutions during periodic or special examinations

Stricter Penalties for Malicious Reporting

The law introduces stricter penalties for malicious reporting of money laundering transactions. Those found guilty may face:

  • Imprisonment ranging from six months to four years
  • Fines of up to P500,000

Severe Penalties for Public Officials and Employees

RA 9194 also imposes severe penalties on public officials or employees who fail to comply with the law’s provisions. For instance:

  • Those who refuse to testify or intentionally fail to provide information may suffer perpetual or temporary absolute disqualification from office

Expert Analysis

Experts say that RA 9194 is a significant step forward in the country’s efforts to combat money laundering and terrorist financing. “This law demonstrates the government’s commitment to addressing these threats and ensuring that our financial system remains stable and secure,” said a leading expert on anti-money laundering laws.

Compliance Required

As the law takes effect, institutions and media entities are advised to review their policies and procedures to ensure compliance with the new regulations. Failure to do so may result in criminal prosecution and severe penalties.