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

Eighteenth Congress
Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand twenty.

[ 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:

Section 2. Section 3 of the same Act is hereby amended as follows:

Section 3. Section 7 of the same Act is hereby amended to read as follows:

Section 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:

Section 5. Section 10 of the same Act, is hereby further amended by inserting a new paragraph to read as follows:

Section 6. Section 12 of the same Act is hereby amended by inserting a new paragraph to read as follows:

Section 7. Section 14, paragraph (d) of Republic Act No. 9160, as amended, is hereby further amended to read as follows:

Section 8. Section 20 of the same Act is hereby amended to read as follows:

Section 9. Implementing Rules and Regulations. - The AMLC shall, within ninety (90) days from the effectivity of this Act, issue the necessary rules and regulations.

Section 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.

Section 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rules and regulations, or parts thereof which are in conflict or inconsistent with provisions of this Act are hereby repealed or modified accordingly: Provided, That all provisions of Republic Act No. 9160, as amended, which are not inconsistent with this Act are hereby adopted.

Section 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,       

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.

Approved: JAN 29 2021

(SGD.) RODRIGO ROA DUTERTE
President of the Philippines

"Section 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."

"Section 3. Definitions. - For purposes of this Act, the following terms are hereby defined as follows:

"Section 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:

"Section 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 tyo 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."

"(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."

"Section 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."

"Section 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."