Senate Office of the Sriretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 26 FEB 10 P3:45 SENATE RECEIVED BY: S. No. 1828 Introduced by Senator Rodante D. Marcoleta AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING ACT, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE "ANTI-MONEY LAUNDERING ACT OF 2001", AS AMENDED EXPLANATORY NOTE The recent expose on the anomalous flood control projects has brought to light the weaknesses in our current regulatory framework, including our own anti-money laundering system. Despite our exit from the Financial Action Task Force's Grey List last February 2025, the fact remains that money laundering still persists as a rampant scheme in our financial system-more so when facilitated by corrupt government officials hiding behind false identities and with relevant institutions failing to properly report covered or suspicious transactions. Accordingly, this bill proposes the following amendments to Republic Act No. 9160 or the Anti-Money Laundering Act of 2001 or AMLA, as amended, to plug the policy gaps and further strengthen our system against money laundering: 1. Mandate PAGCOR, in cooperation with AMLC and other relevant government agencies, to coordinate with casinos and other covered persons under Section 3(a)(8) of AMLA in verifying the true identity of the said businesses' clients and to conduct annual testing solely to determine the authenticity of their clients' submitted identification; 2. Require heightened know-your-customer measures for covered institutions, including a mandatory assessment on the purpose and nature of the transaction;
3. Lift the court order requirement on AMLC's authority to inquire into bank deposits in cases involving government corruption such as Republic Act No. 7080 or the Anti-Graft and Corrupt Practices Act, Republic Act No. 7080 or An Act Defining and Penalizing the Crime of Plunder, etc.; and 4. Clearly define the motu-proprio investigative powers of AMLC. In view of the foregoing, the passage of this bill is urgently sought. Que, RODANTE D. MARCOLETA
Senate Offior of the fatetary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session 26 FEB 10 P3:45 SENATE RECEIVED BY: S. No. 1828 Introduced by Senator Rodante D. Marcoleta AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING ACT, 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 7 of Republic Act No. 9160, as amended, 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: XXX (5) to investigate suspicious transactions and covered transactions deemed suspicious after an investigation by AMLC, money laundering activities and other violations of this Act MOTU PROPRIO OR UPON COMPLAINT OR REQUEST OF ANY GOVERNMENT BRANCH, DEPARTMENT, BUREAU, OFFICE, AGENCY OR INSTRUMENTALITY, OR FOREIGN STATE OR AUTHORITY; XXX
(10) to COOPERATE WITH OR enlist the assistance of any branch, department, bureau, office, agency, or instrumentality of the government including government-owned and-controlled corporations, in undertaking any and all anti-money laundering operations, which may include the use of its personnel, facilities, and resources for the more resolute prevention, detection, and investigation of money laundering offenses and prosecution of offenders; Xxx."
Sec. 2. Section 9(a) of the same Act is hereby further amended to read as
follows: "Sec. 9. Prevention of Money Laundering; Customer Identification Requirements and Record Keeping. - (a) Customer Identification. - Covered institutions shall establish and record the true identity of its clients based on official documents. They shall maintain a system of verifying the true identity of their clients and, in case of corporate clients, require a system of verifying their legal existence and organizational structure, as well as the authority and identification of all persons purporting to act on their behalf. THEY SHALL ALSO ASSESS AND, IF APPROPRIATE, OBTAIN INFORMATION ON THE PURPOSE AND NATURE OF THE TRANSACTION. The provisions of existing laws to the contrary notwithstanding, THE USE OF FAKE IDENTIFICATION IN TRANSACTING WITH COVERED PERSONS, anonymous accounts, accounts under fictitious names, and all other similar accounts shall be absolutely prohibited. Peso and foreign currency non-checking numbered accounts shall be allowed. The BSP may conduct annual testing solely limited to the determination of the existence and true identity of the owners of such accounts. PAGCOR, IN COOPERATION WITH AMLC AND OTHER RELEVANT GOVERNMENT AGENCIES, SHALL CLOSELY COORDINATE WITH CASINOS AND OTHER COVERED PERSONS
UNDER SECTION 3(A)(8) OF THIS ACT IN VERIFYING THE TRUE IDENTITY OF THEIR CLIENTS, AND SHALL LIKEWISE CONDUCT ANNUAL TESTING SOLELY LIMITED TO THE DETERMINATION OF THE AUTHENTICITY OF THEIR CLIENTS' SUBMITTED IDENTIFICATION."
Sec. 3. Section 9(c) of the same Act is hereby further amended to read as
follows: "Sec. 9. Prevention of Money Laundering; Customer Identification Requirements and Record Keeping. - XXX (c) Reporting of Covered and Suspicious Transactions. - Covered persons shall report to the AMLC all covered transactions and suspicious transactions within five (5) working days from occurrence thereof, unless the AMLC prescribes a different period not exceeding fifteen (15) working days. Lawyers and accountants acting as independent legal professionals are not required to report covered and suspicious transactions if the relevant information was obtained in circumstances where they are subject to professional secrecy or legal professional privilege. Should a transaction be determined to be both a covered transaction and a suspicious transaction, the covered institution shall be required to report the same as a suspicious transaction. SHOULD A COVERED OR SUSPICIOUS TRANSACTION INVOLVE GOVERNMENT FUNDS OR A GOVERNMENT ACCOUNT, THE COVERED INSTITUTION SHALL AUTOMATICALLY REPORT THE SAME TO AMLC. Xxx."
Sec. 4. Section 11 of the same Act is hereby further amended to read as follows:
"Sec. 11. Authority to Inquire into Bank Deposits. - Notwithstanding the provisions of Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791; and other
laws, the AMLC may inquire into or examine any particular deposit or investment, including related accounts, with any banking institution or non-bank financial institution upon order of any competent court based on an ex parte application in cases of violations of this Act, when it has been established that there is probable cause that the deposits or investments, including related accounts involved, are related to an unlawful activity as defined in Section 3(i) hereof or a money laundering offense under Section 4 hereof; except that no court order shall be required in cases involving activities defined in Section 3(i)(1), (2), (3), (4), [and](12), (15), AND (17) hereof, and felonies or offenses of a nature similar to those mentioned in Section 3(i)(1), (2), (3), (4), [and](12), (15), AND (17), which are punishable under the penal laws of other countries, and terrorism and conspiracy to commit terrorism as defined and penalized under Republic Act No. 9372. Xxx."
Sec. 5. Separability Clause. - If any provision or part of this Act is declared
invalid or unconstitutional, the remaining parts not affected shall remain in full force and effect.
Sec. 6. Repealing Clause. - All laws, presidential decrees, executive orders,
letters of instructions, administrative orders, proclamations, or administrative regulations that are inconsistent with the provisions of this Act, are hereby repealed, amended, or modified accordingly.
Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days following its
complete publication in the Official Gazette or in a newspaper of general circulation. Approved,