PENALTY FOR MONEY LAUNDERING ACTIVITY

The Philippine government has imposed stiff penalties for those found guilty of money laundering activities.

Imprisonment and Fine

According to Section 4(b) of the Anti-Money Laundering Law, a person convicted of money laundering shall face:

• Imprisonment from six months to four years
• A fine ranging from P100,000 to P500,000
• Both imprisonment and fine

Additional Penalties

The law also provides for penalties for:

• Failure to keep records: imprisonment from six months to one year or a fine ranging from P100,000 to P500,000, or both
• Malicious reporting: imprisonment from six months to one year or a fine ranging from P100,000 to P500,000, or both
• Breach of confidentiality: imprisonment from six months to one year or a fine ranging from P100,000 to P500,000, or both

Special Incentives and Rewards

The law also provides for special incentives and rewards for:

• Government agencies and personnel who led and initiated an investigation, prosecution, and conviction of persons involved in money laundering offenses

Prohibitions

The Anti-Money Laundering Law prohibits the use of anti-money laundering laws for:

• Political persecution or harassment
• As an instrument to hamper competition in trade and commerce
• Filing cases against candidates during election periods
• Freezing, attaching, or forfeiting assets to the prejudice of a candidate

Restitution

The law provides for restitution for any aggrieved party, governed by the provisions of the New Civil Code.

Implementation

The Bangko Sentral ng Pilipinas, Insurance Commission, and Securities and Exchange Commission are mandated to promulgate rules and regulations to implement effectively the provisions of the Anti-Money Laundering Law. A Congressional Oversight Committee has also been created to oversee the implementation of this Act.