Money laundering undermines the integrity of the financial system by disguising the illicit origins of dirty money through legitimate channels. Under the Anti-Money Laundering Act (AMLA), as amended, the Philippine government shifts a significant portion of the enforcement burden onto the private sector by designating specific businesses and individuals as “covered persons” who act as the first line of defense against financial crimes.
Covered persons are legally mandated to move beyond more profit-seeking by integrating rigorous customer due diligence and the proactive reporting of covered and suspicious financial transactions into their core operations. Compliance with the Anti-Money Laundering Council (AMLC) registration and reporting guidelines is, therefore, a critical obligation essential to maintaining both corporate compliance and the stability of the economy.
Anti-Money Laundering Act (AMLA) in the Philippines
The Anti-Money Laundering Act (AMLA) of 2001 (R.A. 9160) serves as the primary legislative framework governing the prevention, detection, and prosecution of money laundering activities within the Philippine jurisdiction.
As amended—most notably by R.A. 9194, R.A. 10365, and R.A. 1152—this law seeks to preserve the integrity and confidentiality of bank accounts while simultaneously upholding the state policy to ensure that the Philippines is not used as a site for the laundering of proceeds derived from any unlawful activity.
By institutionalizing a rigorous reporting and monitoring regime, the AMLA harmonizes the statutory protection of domestic deposits with international standards of financial transparency and mutual legal assistance.
Key Legal Provisions of AMLA (As Amended)
The current legal landscape of the Anti-Money Laundering Act (AMLA) incorporates the following core mandates:
Establishment of the AMLC
Section 7 of the AMLA creates the Anti-Money Laundering Council (AMLC) as the central financial intelligence unit (FIU) of the Philippines, vested with the authority to investigate suspicious transactions, initiate freeze orders, and prosecute money laundering offenses.
Expansion of Covered Persons
The scope of “Covered Persons” under Section 3 has been progressively expanded beyond banking institutions to include real estate developers and brokers, Philippine Offshore Gaming Operators (POGOs) and their service providers, and jewelry dealers for transactions exceeding specific thresholds.
(As of July 2024, Philippine Offshore Gaming Operators (POGOs) were declared under a mandatory wind-down period and ordered to cease operations.)
Mandatory Reporting Obligations
Under Section 9, as amended by R.A. 9194, covered persons are strictly mandated to comply with a dual reporting regime: submission of Covered Transaction Reports (CTRs) for all cash equivalent transactions exceeding a certain threshold within a single banking day; and, simultaneous filing of Suspicious Transaction Reports (STRs).
Know Your Customer (KYC) Rule
Section 9(a) mandates that covered institutions implement a rigorous customer identification system to verify the true identity of individual and corporate clients through official documentation while strictly prohibiting the maintenance of anonymous or fictitious accounts.
Record-Keeping Mandate
Covered persons must maintain a comprehensive record of all transactions for a minimum period of five (5) years from the date of the transaction or the termination of the client relationship.
Freezing of Monetary Instruments
Section 10, as amended by R.A. 10365, empowers the Court of Appeals to issue an immediate Freeze Order upon a verified ex parte petition by the AMLC and a finding of probable cause that a monetary instrument or property is related to an unlawful activity.
Covered Persons: Entities and Individuals Subject to AMLC Registration
Registration with the Anti-Money Laundering Council (AMLC) is exclusively for Covered Persons (CPs) enumerated in Section 3(a)(1) to (10) of the R. A. No. 9160 (AMLA), as amended. These are the:
1. Bangko Sentral ng Pilipinas (BSP)-Supervised and Regulated Entities
These include banks, offshore banking units, quasi-banks, trust entities, savings and loan associations, foreign exchange dealers, pawnshops, money changers, remittance and transfer companies, electronic money issuers, operators of payment systems, virtual asset service providers, and other similar entities or financial institutions.
2. Securities and Exchange Commission (SEC)-Supervised and Regulated Entities
These include securities dealers, brokers, salesmen, investment houses, and other similar persons managing securities or rendering services as investment agents, advisors, or consultants, mutual funds, closed-end investment companies, common trust funds, and other similar persons, and lending or financing companies, transfer companies, and other entities administering or otherwise dealing in currency, commodities, or financial derivatives based thereon, valuable objects, cash substitutes, and other similar monetary instruments or property.
3. Insurance Commission (IC)-Supervised and Regulated Entities
These include insurance or reinsurance companies, pre-need companies, health maintenance organizations, insurance or reinsurance brokers, mutual benefit associations, insurance agents, insurance holding systems, and all other persons.
4. Designated Non-Financial Businesses and Professions (DNFBPs)
These include jewelry dealers in precious metals and stones, as well as company service providers that offer services to third parties such as forming juridical persons, acting as or arranging directors, corporate secretaries, or partners, providing registered offices or business and correspondence addresses, and serving as or arranging nominee shareholders.
5. Professional Service Providers
These include accountants, lawyers, firms, and other professionals who provide services such as managing client money, securities, or other assets; managing bank, savings, or securities accounts; organizing contributions for the creation, operation, or management of companies; and creating, operating, managing, buying, or selling juridical persons or business arrangements.
6. Casinos and Internet Gaming Licensees
These include internet and ship-based casinos, with respect to their casino cash transactions related to their gaming operations, as well as the service providers of internet gaming licensees supervised, accredited, or regulated by the Philippine Amusement and Gaming Corporation (PAGCOR) or any government agencies.
7. Real Estate Developers and Individual Brokers
These only include real estate developers and real estate (individual) brokers and not real estate agents and real estate brokerage firms.
Our compliance team at Duran & Duran-Schulze Law provides end-to-end assistance with the AMLC registration process, guiding covered persons through the online portal and facilitating the issuance of the AMLC Certificate of Registration to ensure initial regulatory compliance.
AMLC Registration Requirements
To process AMLC registration in the Philippines, the following documents must be prepared and submitted:
- For corporations and partnerships, the most recent Articles of Incorporation or Partnership and Secretary’s Certificate or Board Resolution designating a Compliance Officer (CO)
- For sole proprietorships, Department of Trade and Industry (DTI) Registration Certificate (and notarized document designating a Compliance Officer (CO), if the owner is not the CO)
- For professionals, such as real estate brokers, lawyers, and accountants, Professional Regulation Commission (PRC) or Integrated Bar of the Philippines (IPB) ID
How to Process AMLC Registration (Step-By-Step Guide)
Covered persons must complete the registration process through the AMLC online portal. Here is a step-by-step guide:
1. Create an Account in the AMLC Portal.
Covered persons (CPs) must first sign up through the AMLC Portal at https://portal.amlc.gov.ph. This portal serves as the official platform for submitting and processing AMLC registration in the Philippines.
2. Provide Required Basic Information.
Applicants must complete the mandatory fields by entering their basic organizational information and contact details. All information provided must be accurate and consistent with official records.
3. Upload the Required Documentary Requirements.
Documentary requirements, as enumerated above, must then be scanned and uploaded to the portal in their prescribed filename formats (e.g., Articles of Incorporation as AOI.pdf or AOI.jpg).
4. Provide a Valid Email Address.
Applicants must enter a valid and active email address during registration. This email will be used by the AMLC portal to send important notifications and verification links.
5. Verify the Email Address.
An email verification message will be sent to the designated Compliance Officer and alternate contact. The verification must be completed within 72 hours to proceed with the AMLC registration process.
6. Receive the Provisional Certificate of Registration (PCOR).
After successful submission, applicants will receive an email containing a link to their AMLC Provisional Certificate of Registration (PCOR), which is valid for six (6) months and serves as temporary proof of registration.
7. Wait for Approval and Issuance of the Certificate of Registration.
The AMLC will review the submitted application and supporting documents for completeness and compliance. Once approved, the covered person will receive an email with a link to download the official AMLC Certificate of Registration.
AMLC Transaction Reports
Based on AMLC Regulatory Issuance (ARI) No. 4, Series of 2021, also known as the 2021 AMLC Registration and Reporting Guidelines (ARRG), the reporting of Covered Transaction Reports (CTRs) and Suspicious Transaction Reports (STRs) is governed by strict procedural timelines and technical requirements.
Covered Transaction Reports (CTRs)
Covered Transaction Reports (CTRs) are mandatory filings submitted by covered persons to the AMLC documenting specific financial thresholds: generally, any transaction in cash or equivalent exceeding PHP 500,000 within one banking day; for jewelry dealers and dealers in precious metals or stones, the threshold is elevated to PHP 1,000,000; while for real estate developers and brokers, the reporting requirement is triggered by cash transactions exceeding PHP 7,500,000 or its foreign currency equivalent.
Covered persons are mandated to file CTRs within five (5) working days from the date of the transaction’s occurrence, unless the AMLC prescribes a different period (not exceeding 15 working days). Under the 2021 guidelines, “occurrence” refers to the date the transaction was executed. It is critical to note that weekends and declared “non-reporting days” are excluded from the five-day count, though voluntary submissions remain encouraged during these periods.
Suspicious Transaction Reports (STRs)
Additionally, Suspicious Transaction Reports (STRs) are mandatory filings submitted to the AMLC for any transaction, regardless of amount, where “suspicious circumstances” exist based on suspicion or reasonable grounds. These circumstances include transactions lacking legal or economic justification, improper client identification, or amounts inconsistent with a client’s financial capacity and historical profile.
Furthermore, reports are triggered by attempts to “structure” transactions to evade reporting limits, potential links to money laundering or unlawful activity, and high-risk indicators associated with Terrorism Financing (TF)—such as unexplained wire transfers to high-risk jurisdictions, transactions involving individuals or NGOs linked to terrorist activities, or financial behavior that deviates significantly from a client’s known business purpose.
The reporting window for STRs is more immediate. Once a “triggering event” occurs, the covered person enters a Determination Period—typically up to ten (10) calendar days for most cases—to evaluate if the transaction is indeed suspicious. Upon the final determination of suspicion, the STR must be filed with the AMLC within the next working day. If the suspicion is immediately evident, the “occurrence” is the date of the transaction itself, and the report is due the following working day.
For legal consultations and service inquiries regarding AMLC registration and compliance in the Philippines, call us at (02) 8478-5826 (landline) or +639171940482 (mobile), or email info@duranschulze.com.
