REPUBLIC ACT NO. 11521, January 29, 2021
[ REPUBLIC ACT NO. 11521, January 29, 2021 ]
AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE "ANTI-MONEY LAUNDERING ACT OF 2001", AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
SECTION 1. Section 2 of Republic Act No. 9160, as amended, is hereby amended
to read as follows:"SEC. 2. Declaration of Policy. - It is hereby declared the policy
of the State to protect and preserve the integrity and confidentiality of bank
accounts and to ensure that the Philippines shall not be used as a money
laundering site for the proceeds of any unlawful activity. Consistent with its
foreign policy, the State shall extend cooperation in transnational
investigations and prosecutions of persons involved in money laundering
activities wherever committed, as well as in the implementation of targeted
financial sanctions related to the financing of the proliferation of weapons
of mass destruction, terrorism, and financing of terrorism, pursuant to the
resolution of the United Nations Security Council."
SEC. 2. Section 3 of the same Act is hereby amended as follows:
"SEC. 3. Definitions. - For purposes of this Act, the following
terms are hereby defined as follows:
"(a) Covered persons', natural or juridical refer to:
"(1) x x x;
"(9) Real estate developers and brokers;
"(10) Offshore gaming operation, as well as their service providers,
supervised, accredited or regulated by the Philippine Amusement and Gaming
Corporation (PAGCOR) or any government agency;
"(b) 'Covered transactions' is a transaction in cash or other equivalent
monetary instrument involving a total amount in excess of Five hundred
thousand pesos (P500,000.00) within one (1) banking day; for covered persons
under Section 3(a)(8), a single casino cash transaction involving an amount in
excess of Five million pesos (P5,000,000.00) or its equivalent in any other
currency.
"For covered persons under Section 3(a)(9) herein, a single cash transaction
involving an amount in excess of Seven million five hundred thousand pesos
(P7,500,000.00) or its equivalent in any other currency.
"(b-1) 'Suspicious transactions' are transactions with covered persons,
regardless of the amounts involved, where any of the following circumstances
exist:
"1. There is no underlying legal or trade obligation, purpose or economic
justification;
"2. The client is not properly identified;
"3. The amount involved is not commensurate with the business or financial
capacity of the client;
"4. Taking into account all known circumstances, it may be perceived that the
client's transaction is structured in order to avoid being the subject of
reporting requirements under the Act
"5. Any circumstance relating to the transaction which is observed to deviate
from the profile of the client and/or the client's past transactions with the
covered person;
"6. The transaction is in any way related to an unlawful activity or offense
under this Act that is about to be, is being or has been committed; or
"7. Any transaction that is similar or analogous to any of the foregoing.
"x x x
"(i) 'Unlawful activity' refers to any act or omission or series or
combination thereof involving or having relation to the following:
"(1) x x x;
"(33) Fraudulent practice and other violations under Republic Actr No. 8799,
otherwise known as "The Securities Regulation Code of 2000;
"(34) Violation of Section 9 (a)(3) of Republic Act No. 10697, otherwise known
as the "Strategic Trade Management Act", in relation to the proliferation of
weapons of mass destruction and its financing pursuant to United Nations
Security Council Resolution Numbers 1718 of 2006 and 2231 of 2015";
"(35) Violation of Section 254 of Chapter II, Title X of the National Internal
Revenue Code of 1997, as amended, where the deficiency basic tax due in the
final assessment is in excess of Twenty-five million pesos (P25,000,000.00)
per taxable year, for each tax type covered and there has been a finding of
probable cause by the competent authority: Provided, further, That
there must be a finding of fraud, willful misrepresenting or malicious intent
on the part of the taxpayer: Provided, finally, That in no case
shall the AMLC institute forfeiture proceedings to recover monetary
instruments, property or proceeds representing, involving, or relating to a
tax crime, if the same has already been recovered or collected by the Bureau
of Internal Revenue (BIR) in a separate proceeding and
"(36) Felonies and offenses of a similar nature that are punishable under the
penal laws of other countries.
"x x x.
"(4) 'Offshore gaming operator' refers to an entity engaged in offering online
games of chance or sporting events via the internet using a network and
software program, by themselves or through local service providers.
"(5) 'Service providers' refer to duly constituted business corporations who
provide components of offshore gaming operations to offshore gaming operators.
"x x x.
"(m) 'Real estate developer' refers to any natural or juridical person engaged
in the business of developing real estate development project for the account
of the developer and offering them for sale or lease.
"(n) 'Real estate broker' refers to a duly registered and licensed natural
person who, for a professional fee, omission or other valuable consideration,
acts as an agent of a party in a real estate transaction to offer, advertise,
solicit, list, promote, mediate, negotiate, or effect the meeting of the minds
on the sale, purchase, exchange, mortgage, lease or joint venture, or other
similar transaction on real estate or any interest therein.
"(o) 'Targeted financial sanctions' refer to both asset freezing and
prohibition to prevent funds or other assets from being made available,
directly or indirectly, for the benefit of any individual, natural or legal
persons or entity designated pursuant to relevant United Nations Security
Council resolution and its designation processes.
"(p) 'Proliferation financing' refers when a person:
"(1) Makes available an asset; or
"(2) Provides a financial service; or
"(3) Conducts a financial transaction; and the person knows that, or is
reckless as to whether, the asset, financial service or financial transaction
is intended to, in whole or in part, facilitate proliferation of weapons of
mass destruction in relation to UN Security Council Resolution Number 1718 0f
2006 and 2231 of 2015."
SEC. 3. Section 7 of the same Act is hereby amended to read as follows:
"SEC. 7. Creation of Anti-Money Laundering Council (AMLC). - The
Anti-Money Laundering Council is hereby created and shall be composed of the
Governor of the Bangko Sentral ng Pilipinas as Chairman, the Commissioner of
the Insurance Commission and the Chairman of the Securities and Exchange
Commission, as members. The AMLC shall act unanimously in the discharge of its
functions as defined hereunder:
"(1) to investigate suspicious transactions and covered transactions deemed
suspicious after determination by AMLC, money laundering activities and other
violations of this Act.
"x x x;
"(13) in the conduct of its investigation, the AMLC shall apply for the
issuance of a search and seizure order with any competent court;
"(14) in the conduct of its investigation, the AMLC shall apply for the
issuance of subpoena ad testificandum and/or subpoena duces
tecum with any competent court;
"(15) to implement targeted financial sanctions in relation to proliferation
of weapons of mass destruction and its financing, including ex
parte freeze, without delay, against all funds and other assets that are
owned and controlled, directly or indirectly, including funds and assets
derived or generated therefrom, by individuals or entities designated and
listed under United Nations Security Council Resolution Numbers 1718 of 2006
and 2231 of 2015 and their successor resolutions as well as any binding
resolution of the Security Council; and
"(16) to preserve, manage or dispose assets pursuant to a freeze order, asset
preservation order, or judgment of forfeiture: Provided,
however, That pending their turnover to the national government, all
expenses incurred in relation to the duties herein mentioned shall be deducted
from the amount to be turned over to the national government."
SEC. 4. A new Section 8-A is hereby inserted after Section 8 (Creation of a
Secretariat) of Republic Act No. 9160, as amended to read as follows:
"SEC. 8-A. Information Security and Confidentiality. - The AMLC and
its Secretariat shall securely protect information received or processed and
shall not reveal, in any manner, any information known to them by reason of
their office. This prohibition shall apply even after their separation from
the AMLC.
"The AMLC shall formulate rules governing information exchange and
dissemination, the security and confidentiality of such information, including
procedures for handling, storage, and protection of, as well as access to such
information."
SEC. 5. Section 10 of the same Act, is hereby further amended by inserting a
new paragraph to read as follows:
"SEC. 10. Freezing Monetary Instrument or Property. -
"(a) Upon a verified ex parte petition by the AMLC and after
determination that probable cause exists that any monetary instrument or
property is in any way related to an unlawful activity as defined in Section
3(i) hereof, the Court of Appeals may issue a freeze order which shall be
effective immediately, for a period of twenty (20) days. Within the twenty
(20) day period, the Court of Appeals shall conduct a summary hearing, with
notice to the parties, to determine whether or not to modify or lift the
freeze order, or extend its effectivity. The total period of the freeze order
issued by the Court of Appeals under this provision shall not exceed six (6)
months. This is without prejudice to an asset preservation order that the
Regional Trial Court having jurisdiction over the appropriate anti-money
laundering case or civil forfeiture case may issue on the same account
depending on the circumstances of the case, where the Court of Appeals will
remand the case and its records: Provided, That if there is no case
filed against a person whose account has been frozen within the period
determined by the Court of Appeals, not exceeding six (6) months, the freeze
order shall be deemed ipso facto lifted: Provided,
further, That this new rule shall not apply to pending cases in the
courts. In any case, the court should act on the petition to freeze within
twenty-four (24) hours from filing of the petition. If the application is
filed a day before a nonworking day, the computation of the twenty-four (24)
hour period shall exclude the nonworking days.
"The freeze order or asset preservation order issued under this Act shall be
limited only to the amount of cash or monetary instrument or value of property
that court finds there is probable cause to be considered as proceeds of a
predicate offense, and the freeze order or asset preservation order shall not
apply to amounts in the same account in excess of the amount or value of the
proceeds of the predicate offense.
"A person whose account has been frozen may file a motion to lift the freeze
order and the court must resolve this motion before the expiration of the
freeze order.
"No court shall issue a temporary restraining order or a writ of injunction
against any freeze order, except the Supreme Court.
"(b) For purposes of implementing targeted financial sanctions in relation to
proliferation of weapons of mass destruction and its financing, as provided
under Section 3(15), the AMLC shall have the power to issue, ex
porte, an order to freeze without delay.
"The freeze order shall be effective until the basis for its issuance shall
have been lifted. During the effectivity of the freeze order, the aggrieved
party may, within twenty (20) days from issuance, file with the Court of
Appeals a petition to determine the basis of the freeze order according to the
principle of effective judicial protection: Provided, That the
person whose property or funds have been frozen may withdraw such sums as the
AMLC determines to be reasonably needed for monthly family needs and
sustenance including the services of counsel and the family medical needs of
such person.
"The AMLC, if circumstance warrant, may initiate civil forfeiture proceedings
to preserve the assets and to protect it from dissipation. No court shall
issue a temporary restraining order or a writ of injunction against the freeze
order, except the Court of Appeals or the Supreme Court."
SEC. 6. Section 12 of the same Act is hereby amended by inserting a new
paragraph to read as follows:
"(d) No court shall issue a temporary restraining order (TRO) or a writ of
injunction against any provisional asset preservation order or asset
preservation, except the Court of Appeals or the Supreme Court."
SEC. 7. Section 14, paragraph (d) of Republic Act No. 9160, as amended, is
hereby further amended to read as follows:
"SEC. 14. Penal Provisions. -
"x x x
"(d) Breach of Information Security and Confidentiality. The punishment of
imprisonment ranging from three (3) to eight (8) years and a fine of not less
than Five hundred thousand Philippine pesos (P500,000.00) but not more than
One million Philippine pesos (P1,000,000.00), shall be imposed on a person
convicted for a violation under Section 9(c) 0r Section 8-A on information
security and confidentiality of this Act. If the offender is public official
or employee, he shall, in addition to the penalties prescribed herein, suffer
the penalty of perpetual or temporary absolute disqualification from public
office, as the case may be. In the case of a breach of confidentiality that is
published or reported by media, the responsible reporter, writer, president,
publisher, manager and editor-in-chief shall be liable under this Act."
SEC. 8. Section 20 of the same Act is hereby amended to read as follows:
"SEC. 20. Non-Intervention in the Bureau of Internal Revenue (BIR)
Operations. - Nothing contained in this Act nor in related antecedent
laws or existing agreements shall be construed to allow the AMLC to
participate in any manner in the operation of the BIR. The AMLC, may, however,
coordinate with the BIR On investigations in relating to violations of Section
254 of NIRC, as amended, as a predicate offense to money laundering."
SEC. 9. Implementing Rules and Regulations. - The AMLC shall, within
ninety (90) days from the effectivity of this Act, issue the necessary rules
and regulations.
SEC. 10. Separability Clause. - If any provision or section of this
Act is held to be unconstitutional or invalid, the other provisions or
sections hereof, which are not affected thereby shall continue to be in full
force and effect.
SEC. 11.. Repealing Clause. - All provisions of existing laws,
orders, rules and regulations, or parts thereof which are in conflict or
inconsistent with provisions of this Act are hereby repealed or modified
accordingly: Provided, That all provisions of Republic Act No. 9160,
as amended, which are not inconsistent with this Act are hereby adopted.
SEC. 12. Effectivity.- This Act shall take effect immediately after the
completion of its publication in the Official Gazette or in a
newspaper of general circulation.
Approved,
(SGD.) VICENTE C. SOTTO III
President of the Senate |
(SGD.) LORD ALLAN JAY Q. VELASCO Speaker of the House
of Representatives |
This Act which is a consolidation of House Bill No. 7904 and Senate Bill No.
1495 was passed by the House of Representatives and the Senate of the
Philippines on January 20, 2021.
(SGD.) MYRA MARIE D. VILLARICA
Secretary of the Senate |
(SGD.) MARK LLANDRO L. MENDOZA
Secretary General House of Representatives
|
Approved: JAN 29 2021
(SGD.) RODRIGO ROA DUTERTE
President of the Philippines