Operations of the Anti-Money Laundering Council by Atty. Vicente S. Aquino (March 16, 2012)

presented by ATTY. VICENTE S. AQUINO

Execu&ve  Director  An&-­‐Money  Laundering  Council  Secretariat  

OPERATIONS OF THE ANTI-MONEY LAUNDERING COUNCIL (AMLC)

§  created by Republic Act No. 9160, otherwise as the Anti-Money Laundering Act of 2001 (AMLA), as amended.

§  principal task is to implement the AMLA, as amended.

I. THE ANTI-MONEY LAUNDERING COUNCIL (AMLC)

A. Composition 1. The BSP Governor – as Chairman

2. The SEC Chairperson – as Member

3. The IC Commissioner– as Member

AMLC is assisted by a Secretariat which is headed by an Executive Director.

Executive Director

Technical Services Staff

Compliance and Investigation Group

Legal Services Group

Information Management and Analysis Group

Administrative and Financial Services

Division

B. Secretariat

§  a financial intelligence unit (FIU) - requires, receives and analyzes STRs and CTRs from covered institutions. - receives referrals from other LEAs and complaints from other sources. - shares requested/volunteers financial information, if warranted.

C. Nature of AMLC Functions

§  an investigative and asset discovery agency

- investigates suspicious transactions,

covered t ransac t ions deemed suspicious, ML activities and other AMLA violations.

- inquires into/examines particular bank/ NBFI deposits or investments related to an unlawful activity or a money laundering offense.

C. Nature of AMLC Functions

§  Investigative triggers

a.  STRs; b.  CTRs that are or can be materially linked to

any specified unlawful activity, suspicious transaction, money laundering activities and/or other AMLA related violations;

c.  Referrals by Supervisory Authorities, LEAs and other agencies on possible money laundering activities/offenses and other violations of the AMLA;

d.  Subject to the rules on reciprocity, referrals by foreign jurisdictions/states or FIUs involving possible money laundering activities/offenses of similar nature to the unlawful activities under the AMLA, as amended;

§  Investigative triggers

e.  Newspaper or media reports of money laundering activit ies which contain sufficient leads or particulars to warrant the taking of further action, provided that the predicate offense can be sufficiently established by the following: (i)  proof of its on-going investigation by

the concerned law enforcement agency;

(ii)  the filing of the corresponding criminal information ; or

(iii)  the pendency of the criminal case for the predicate offense;

§  Investigative triggers

f.  Citizens’ sworn complaints relating to money laundering activities and/or other violations of the AMLA, provided the conditions under paragraph (e) above are met with regard to sufficient leads and proof of the predicate offense.

g.  Text (SMS) scams; h.  Media reports in violation of Section 9 [c] of

the AMLA (Breach of Confidentiality); i.  Sworn complaints from alleged victims of

malicious reporting (Section 14 [c], AMLA); and

j.  Such other reports, referrals or complaints similar, analogous or identical to any of the foregoing as may be determined

§  an asset recovery unit - files petitions to freeze funds/other assets

related to an unlawful activity (with the Court of Appeals) and for civil forfeiture (with the Regional Trial Court) of funds/other assets related to or derived from an unlawful activity or a money laundering offense.

- only AMLC can initiate civil forfeiture proceedings against assets related to or derived from an unlawful activity or a money laundering offense.

- assisted by OSG AML solicitors.

C. Nature of AMLC Functions

§  a prosecutorial office - files money laundering and other cases of AMLA violations with the DOJ or the Office of the Ombudsman as the case may be. - prosecutes money laundering and related cases before the courts. - assisted by DOJ AML state prosecutors.

C. Nature of AMLC Functions

n  a mutual legal assistance office

- assists foreign States in tracking down, freezing, restraining, seizing and forfeiting assets alleged to be proceeds of any unlawful activity.

- coordinates with DOJ AML state counsels.

C. Nature of AMLC Functions

§  a support agency to the Anti-Terrorism Council (ATC)

- helps the ATC examine and freeze

terrorist funds/assets/records.

C. Nature of AMLC Functions

§  a support agency to the Office of the Ombudsman

- helps the Office of the Ombudsman

examine, freeze and forfeit corruption proceeds.

- corruption and plunder are predicate crimes to money laundering under the AMLA, as amended

C. Nature of AMLC Functions

n  a quasi-judicial body

- hears and decides administrative cases involving AMLA violations by covered institutions.

- imposes administrative sanctions, i.e. fine on erring covered institutions.

- coordinates with the Supervising Authorities (BSP, SEC and IC).

C. Nature of AMLC Functions

§  an AML/CFT advocate - develops and implements educational

programs on the pernicious effects of money laundering, the methods and techniques used in money laundering, the viable means of preventing money laundering and the effective ways of prosecuting and punishing offenders.

- conducts public information campaign on anti-money laundering/combating the financing of terrorism for covered institutions, other government agencies, pr ivate organizations, NGOs, media, academe, public, etc.

C. Nature of AMLC Functions

D. Special Powers

1. Financial Analysis/Investigation

•  suspicious transactions •  covered transactions deemed suspicious •  money laundering activities •  other AMLA violations •  referrals from LEAs and other government

agencies •  sworn complaints of citizens •  media reports

Under the AMLA, money laundering is transaction-based. It is a crime whereby the proceeds of an unlawful activity as defined in the AMLA are transacted (or attempted to be transacted) thereby making them appear to have originated from legitimate sources.

•  AMLC Resolution - Probable cause*

•  Court Order - Probable cause*

2. Bank Inquiry

* The bank deposits or investments are related to an unlawful activity as defined in Sec. 3 of the AMLA or a money laundering offense under Sec. 4 of the AMLA.

•  Petition to freeze with Court of Appeals (CA)

•  Probable cause* to get CA freeze order

3. Freeze

* The bank deposits and/or other assets are related to an unlawful activity as defined in the AMLA.

•  Petition for civil forfeiture with the Regional Trial Court (RTC)

•  Probable cause* to get Provisional Asset P reservat ion Order (PAPO)/Asset Preservation Order (APO)

•  Preponderant evidence to get civil forfeiture judgment

4. Civil Forfeiture

* The bank deposits and/or other assets are related to an unlawful activity as defined in the AMLA or a money laundering offense under Sec. 4 of the AMLA.

•  AMLC Resolution authorizing filing of money laundering case with the Department of Justice (DOJ)/Office of the Ombudsman

- Probable cause* •  Criminal charges filed by the DOJ/ Office of

t h e O m b u d s m a n w i t h t h e R T C /Sandiganbayan

- Probable cause* •  Money laundering conviction/criminal

forfeiture of proceeds - Proof of guilt beyond reasonable doubt**

5. Money laundering cases

* The criminal proceeds were transacted or attempted to be transacted thereby making them appear to have originated from legitimate sources.

** However, under Rule 6.7 of the RIRRs “no element of the unlawful activity i n c l u d i ng t h e i d en t i t y o f t h e perpetrators and the details of the actual commission of the unlawful activity need be established by proof beyond reasonable doubt.”

§  a member of the NALECC (59 member-agencies and its various Sub-Committees (SCILEC, SCIC, SCDDCC, etc.)

§  chairs the NALECC’s Sub-Committee on AML/CFT

§  chairs the Financial Sector Liaison Committee (member-associations from the banking, securities and insurance sectors)

§  a support agency to the Anti-Terrorism Council

§  a support agency to the Office of the Ombudsman

E. Domestic (Inter-agency Cooperation)

§  a member of the Egmont Group of Financial Intelligence Units

F. International Cooperation

II. Money Laundering-Related Cases (as of 29 February 2012)

A. Active Cases Types of

Cases OMB Sandigan DOJ RTC CA SC Total

ML Criminal Complaints 1 15 24 40

Petitions for Freeze Order 4 4

Court-based Application for Bank Inquiry

8 8

Civil Forfeiture Cases 41 41

Total No. of Active Cases 1 15 73 4 93

A.1. Corruption-based ML Cases

Type of ML Case

Predicate Offense

No. of Cases

Petition for Freeze Order

Plunder 1

Civil Forfeiture Cases

Graft and Corruption

1

Plunder 2

B. Resolved/Decided Cases

Types of Cases

OMB Sandigan DOJ RTC CA SC Total

ML Criminal Complaints 1 1 13 3 18

Petitions for Freeze Order 57 57

Court-based Application for Bank Inquiry

46 46

Civil Forfeiture Cases 12 12

Total No. of Resolved/ Decided Cases

1 1 13 61 57 133

B.1. Corruption-based Decided Cases

Type of ML Case

Predicate Offense

No. of Cases

Remarks

Civil Forfeiture Cases

Plunder 1 Forfeited in favor of the Government

Graft and Corruption

2 With civil forfeiture judgments but pending execution

C. Amount of Criminal Proceeds Frozen/Forfeited (amount in millions)

Subject of Pending Civil Forfeiture Cases Php1,241.21 Subject of Pending Freeze Orders 26.90 Unfrozen - Forfeited in Favor of the National Treasury 109.43

Unfrozen - Forfeited and Claimed by Third Party 2.40

Unfrozen - Forfeited but Pending Execution 137.58 Unfrozen in Favor of the Victims/Investors 1,348.00 Unfrozen - Others 54.45 GRAND TOTAL (in Philippine Pesos) Php2,919.97

C.1. Corruption-based Criminal Proceeds Frozen/Forfeited (amount in millions)

Type of ML Case No. of Cases

Amount

Subject of Pending Freeze Orders

1 Php 2.079

Subject of Pending Civil Forfeiture Cases

3 408.773

Forfeited in Favor of the National Treasury

1 17.941

Forfeited but Pending Execution

2 8.029

Total 7 Php436.822

Parting Shot:

“Thus, what enables the wise sovereign and the good general to strike and conquer, and achieve things beyond the r e a c h o f o r d i n a r y m e n , i s ‘foreknowledge‘. Now this foreknowledge cannot be elicited from spirits; it cannot be obtained inductively from experience, nor by any deductive calculation.

Knowledge of the enemy's dispositions can only be obtained from other men.”

(Sun Tzu, The Art of War, 4th Century, B.C.)

Thank you…