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Anti-Money Laundering Act: Penalties for Failure to Keep Records and Malicious Reporting

The Philippine government has introduced stricter penalties for individuals and corporations found guilty of failure to keep records and malicious reporting in connection with money laundering transactions.

Failure to Keep Records

Under Section 4(b) of the Anti-Money Laundering Act, any person convicted of failing to keep records shall face a penalty ranging from six months to one year imprisonment or a fine of not less than P100,000 but not more than P500,000, or both.

Malicious Reporting

Those found guilty of malicious reporting of money laundering transactions against another person shall be penalized with six months to four years imprisonment and a fine of not less than P100,000 but not more than P500,000, at the discretion of the court.

Penalties for Corporate Offenders

The penalty for corporate offenders shall be imposed on responsible officers who participated in the commission of the crime or failed to prevent it. If the offender is a juridical person, the court may suspend or revoke its license.

Additional Sanctions

If the offender is an alien, he/she shall be deported without further proceedings after serving the penalties prescribed by law. Public officials and employees found guilty of malicious reporting or refusal to testify in connection with money laundering cases shall suffer perpetual or temporary absolute disqualification from office.

Implementation and Oversight

The Anti-Money Laundering Council (AMLC) has been tasked with implementing the provisions of the Act, including the promulgation of rules and regulations to ensure its effective implementation. The AMLC has also been provided with an initial appropriation of P25 million to carry out its functions.

Congressional Oversight Committee

To ensure the effective implementation of the Act, a Congressional Oversight Committee has been created to oversee the implementation of the Act and review or revise implementing rules issued by the AMLC. The committee shall be composed of seven members from the Senate and seven members from the House of Representatives.

Stiffer Penalties for Money Laundering Offenses

The government is determined to curb money laundering activities in the country, which have been linked to organized crime and corruption. Stiffer penalties for those found guilty of money laundering offenses are expected to serve as a deterrent to would-be offenders.

Contact Us

For more information on the Anti-Money Laundering Act and its implementing rules and regulations, contact the Bangko Sentral ng Pilipinas, the Insurance Commission, or the Securities and Exchange Commission.