Rule 4 and Rule 5

Money Laundering Offense and Jurisdiction

of Laundering Cases and Investigation
Procedures

Money Laundering - proceeds of an unlawful

activity are transacted, thereby making them
appear to have originated from legitimate
sources.

Committed by the following:

A. Any person knowing that any monetary instrument or
property represents, involves, or relates to, the proceeds
of any unlawful activity, transacts or attempts to transact
said monetary instrument or property.
B. Any person knowing that any monetary instrument or
property involves the proceeds of any unlawful activity,
performs or fails to perform any act as a result of which he
facilitates the offense of money laundering referred to
paragraph (a)

C. Any person knowing that any monetary

instrument or property is required under this Act
to be disclosed and filed with the Anti-Money
Laundering Council (AMLC), fails to do so.

The responsive legislation of AMLA is to ensure

that the country is not used as a site to launder
proceeds of unlawful activities in addition to
establishing and strengthening an antimonetary laundering regime in the country.

Rule 5: Jurisdiction and Investigation Procedures

The regional trial courts shall have

jurisdiction to try all cases on money
laundering. Those committed by public
officers and private persons who are in
conspiracy with such public officers shall
be under the jurisdiction of the
Sandiganbayan

Investigation of Money Laundering

AMLC shall investigate:
a. Suspicious Transactions
b. Covered Transactions deemed suspicious
after an investigation conducted by the AMLC
c. Money Laundering Activities; and
d. Other Violations of the Act

Covered transactions are those mandated by the AMLA to submit

covered and suspicious transaction reports to the AMLC.
These are:
Banks and all other entities, including their subsidiaries and
affiliates, supervised and regulated by the Bangko Sentral ng
Pilipinas
Insurance companies, pre-need companies and all other
institutions supervised or regulated by the Insurance Commission
Securities dealers and other entities supervised or regulated by
the Securities and Exchange Commission

Covered & Suspicious Transactions (From AMLC)

Covered transactions are single transactions in cash or other equivalent monetary

instrument involving a total amount in excess of Five Hundred Thousand
(P500,000) Pesos within one (1) banking day
Suspicious transactions are transactions with covered institutions, regardless of the
amounts involved, where any of the following circumstances exists:
there is no underlying legal/trade obligation, purpose or economic justification; the
client is not properly identified;
the amount involved is not commensurate with the business or financial capacity of
the client;
the transaction is structured to avoid being the subject of reporting requirements
under the AMLA;
there is a deviation from the clients profile/past transactions;
the transaction is related to an unlawful activity/offense under the AMLA;
and transactions similar or analogous to the above.