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REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9160, AS AMENDED

BY REPUBLIC ACT NO. 9194 AND REPUBLIC ACT NO. 10167

RULE1Title

Rule1.a.Title.TheseRulesshallbeknownandcitedastheRevisedImplementingRulesandRegulationsofRepublicActNo.9160otherwiseknownasTheAntiMoneyLaunderingActof2001,asamendedbyRepublicAct.No.9194andRepublicActNo.10167(theAMLA,asamended).Rule1.b.Purpose.TheseRulesarepromulgatedtoprescribetheproceduresandguidelinesfortheimplementationoftheAMLA,asamended.

RULE2

DeclarationofPolicyRule2.DeclarationofPolicy. It isherebydeclaredthepolicyoftheStatetoprotecttheintegrityandconfidentialityofbankaccountsandtoensurethatthePhilippinesshallnotbeusedasamoney launderingsitefortheproceedsofanyunlawfulactivity.Consistentwithits foreign policy, the Philippines shall extend cooperation in transnational investigationsandprosecutionsofpersonsinvolvedinmoneylaunderingactivitieswherevercommitted.

RULE3

DefinitionsRule3.Definitions. Forpurposesof thisAct, the following termsareherebydefinedasfollows:Rule3.a.CoveredInstitutionrefersto: Rule3.a.1.Banks,offshorebankingunits,quasibanks,trustentities,nonstocksavingsand loanassociations,pawnshops, foreignexchangedealers,moneychangers, remittanceagents,electronicmoney issuersandother financial institutionswhichunder special lawsare subject to Bangko Sentral ng Pilipinas (BSP) supervision and/or regulation, includingtheirsubsidiariesandaffiliates.

(a)Asubsidiarymeansanentitymorethanfiftypercent(50%)oftheoutstandingvotingstockofwhich isownedbyabank,quasibank, trustentityoranyother institutionsupervisedorregulatedbytheBSP.

(b)An affiliatemeans an entity at least twenty percent (20%) but not exceeding fiftypercent (50%) of the voting stock ofwhich is owned by a bank, quasibank, trustentity,oranyotherinstitutionsupervisedand/orregulatedbytheBSP.

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Rule 3.a.2. Insurance companies, insurance agents, insurance brokers, professionalreinsurers, reinsurance brokers, holding companies, holding company systems, preneedcompanies,mutualbenefitassociationsandallotherpersonsandentitiessupervisedand/orregulatedbytheInsuranceCommission(IC).

(a)An insurance company includes those entities authorized to transact insurancebusiness in the Philippines, whether life or nonlife and whether domestic,domesticallyincorporatedorbranchofaforeignentity.Acontractofinsuranceisanagreementwherebyoneundertakesforaconsiderationtoindemnifyanotheragainstloss,damageor liability arising from anunknownor contingentevent. Transactinginsurancebusiness includesmakingorproposing tomake,as insurer,any insurancecontract, or as surety, any contract of suretyship as a vocation and not asmerelyincidentaltoanyotherlegitimatebusinessoractivityofthesurety,doinganykindofbusiness specifically recognized as constituting the doing of an insurance businesswithin themeaningofPresidentialDecree (P.D.)No.612, as amended, including areinsurance business and doing or proposing to do any business in substanceequivalent toanyof the foregoing inamannerdesigned toevade theprovisionsofP.D.No.612,asamended.

(b)An insuranceagent includesanypersonwhosolicitsorobtains insuranceonbehalfofanyinsurancecompanyortransmitsforapersonotherthanhimselfanapplicationforapolicyorcontractofinsurancetoorfromsuchcompanyoroffersorassumestoactinthenegotiationofsuchinsurance.

(c)Aninsurancebrokerincludesanypersonwhoactsoraidsinanymannerinsoliciting,negotiatingorprocuring themakingof any insurance contractor inplacing riskortakingoutinsurance,onbehalfofaninsuredotherthanhimself.

(d)Aprofessionalreinsurerincludesanyperson,partnership,associationorcorporationthattransactssolelyandexclusivelyreinsurancebusinessinthePhilippines,whetherdomestic, domestically incorporated or a branch of a foreign entity.A contract ofreinsuranceisonebywhichaninsurerprocuresathirdpersonto insurehimagainstlossorliabilitybyreasonofsuchoriginalinsurance.

(e)A reinsurancebroker includes anypersonwho,notbeingaduly authorizedagent,employeeorofficerofaninsurerinwhichanyreinsuranceiseffected,actsoraidsinany manner in negotiating contracts of reinsurance or placing risks of effectingreinsurance,foranyinsurancecompanyauthorizedtodobusinessinthePhilippines.

(f)A holding company includes any person who directly or indirectly controls anyauthorized insurer.Aholdingcompanysystem includesaholdingcompanytogetherwithitscontrolledinsurersandcontrolledpersons.

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(g)Apreneedcompany refers toanycorporation registeredwith theCommissionandauthorized/licensed to sell or offer to sell preneed plans. The term preneedcompany also refers to schools, memorial chapels, banks, nonbank financialinstitutions and other entitieswhich have also been authorized/licensed to sell oroffer to sell preneed plans insofar as their preneed activities or business areconcerned.

Preneed plans are contracts, agreements, deeds or plans for the benefit of theplanholders which provide for the performance of future service/s, payment ofmonetaryconsiderationsordeliveryofotherbenefitsat the timeofactualneedoragreed maturity date, as specified therein, in exchange for cash or installmentamountswithorwithout interestor insurance coverageand includes life,pension,education,intermentandotherplans,instruments,contractsordeedsasmayinthefuturebedeterminedbytheCommission.

(h)MutualBenefitAssociationreferstoanysociety,associationorcorporation,withoutcapitalstock,formedororganizednotforprofitbutmainlyforthepurposeofpayingsickbenefitstomembers,oroffurnishingfinancialsupporttomemberswhileoutofemployment,orofpaying torelativesofdeceasedmembersof fixedoranysumofmoney,irrespectiveofwhethersuchaimorpurposeiscarriedoutbymeansoffixedduesorassessments collected regularly from themembers,orofproviding,by theissuance of certificates of insurance, payment of its members of accident or lifeinsurancebenefitsoutofsuchfixedandregularduesorassessments,but innocaseshall include any society, association, or corporation with such mutual benefitfeaturesandwhichshallbecarriedoutpurelyfromvoluntarycontributionscollectednotregularlyandornofixedamountfromwhomsoevermaycontribute.

Rule 3.a.3. (i) Securities dealers, brokers, salesmen, investment houses, investmentagents and consultants, trading advisors, and other entities managing securities orrenderingsimilarservices; (ii)mutual fundsoropenend investmentcompanies,closeendinvestment companies, common trust funds or issuers and other similar entities; (iii)transfer companies and other similar entities; and (iv) other entities administering orotherwisedealingincurrency,commoditiesorfinancialderivativesbasedthereon,valuableobjects, cash substitutes and other similarmonetary instruments or property supervisedand/orregulatedbytheSecuritiesandExchangeCommission(SEC).

(a)Asecuritiesbroker includesapersonengaged inthebusinessofbuyingandsellingsecuritiesfortheaccountofothers.

(b)A securities dealer includes any person who buys and sells securities for his/heraccountintheordinarycourseofbusiness.

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(c)An investmenthouse includesanenterprisewhichengagesorpurports toengage,whetherregularlyoronanisolatedbasis,intheunderwritingofsecuritiesofanotherpersonorenterprise,includingsecuritiesoftheGovernmentanditsinstrumentalities.

(d)A mutual fund or an openend investment company includes an investmentcompanywhich isoffering for saleorhasoutstanding,any redeemable securityofwhichitistheissuer.

(e)Aclosedendinvestmentcompany includesan investmentcompanyotherthanopenendinvestmentcompany.

(f)Acommontrustfundincludesafundmaintainedbyanentityauthorizedtoperformtrust functions under a written and formally established plan, exclusively for thecollective investmentand reinvestmentofcertainmoney representingparticipationintheplanreceivedbyitinitscapacityastrustee,forthepurposeofadministration,holding or management of such funds and/or properties for the use, benefit oradvantageofthetrustororofothersknownasbeneficiaries.

(g)InvestmentAdvisor/Agent/Consultantshallrefertoanyperson:(1)who for an advisory fee is engaged in the business of advising others, either

directlyorthroughcirculars,reports,publicationsorwritings,astothevalueofanysecurityandastotheadvisabilityoftradinginanysecurity;

(2)who for compensation and aspartof a regularbusiness, issuesorpromulgates,analyzesreportsconcerningthecapitalmarket,except:(a) anybankortrustcompany;(b)anyjournalist,reporter,columnist,editor,lawyer,accountant,teacher;(c)the publisher of any bona fide newspaper, news, business or financial

publicationofgeneralandregularcirculation,includingtheiremployees;(d)anycontractmarket;(e)such other person notwithin the intent of thisdefinition, provided that the

furnishingof such serviceby the foregoingpersons is solely incidental to theconductoftheirbusinessorprofession.

(3)who undertakes the management of portfolio securities of investmentcompanies, including the arrangement of purchases, sales or exchanges ofsecurities.

Rule3.b. Customer refers toanypersonorentity that keepsanaccount,orotherwisetransactsbusiness,withacovered institutionandanypersonorentityonwhosebehalfanaccount is maintained or a transaction is conducted, as well as the beneficiary of saidtransactions. A customer also includes the beneficiary of a trust, an investment fund, a

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pensionfundoracompanyorpersonwhoseassetsaremanagedbyanassetmanager,oragrantorofatrust.Itincludesanyinsurancepolicyholder,whetheractualorprospective. Rule 3.b.1. Beneficial owner refers to a natural person who ultimately owns orcontrolstheaccountand/orthepersononwhosebehalfatransaction isbeingconducted.Italsoincludesthosepersonswhoexerciseultimateeffectivecontroloveralegalpersonorarrangement. Rule3.b.2.PoliticallyExposedPerson (PEP) refers toanaturalpersonwho isorhasbeen entrustedwith prominent public positions in the Philippines or in a foreign State,including heads of state or government, senior politicians, senior national or localgovernment,judicialormilitaryofficials,seniorexecutivesofgovernmentorstateownedorcontrolledcorporationsandimportantpoliticalpartyofficials.Rule3.c.Offenderreferstoanypersonwhocommitsamoneylaunderingoffense.Rule3.d.Personreferstoanynaturalorjuridicalperson.Rule3.e.Proceeds refers toanamountderivedor realized fromanunlawfulactivity. Itincludes:

(i) All material results, profits, effects and any amount realized from any unlawfulactivity;

(ii)Allmonetary, financial or economicmeans, devices, documents, papers or thingsusedinorhavinganyrelationtoanyunlawfulactivity;and

(iii) Allmoneys,expenditures,payments,disbursements,costs,outlays,charges,accounts, refunds and other similar items for the financing, operations, andmaintenanceofanyunlawfulactivity.

Rule3.e.1.MonetaryInstrumentrefersto:(a)CoinsorcurrencyoflegaltenderofthePhilippines,orofanyothercountry;(b)Drafts,checksandnotes;(c)Securitiesornegotiableinstruments,bonds,commercialpapers,depositcertificates,

trustcertificates,custodialreceiptsordepositsubstituteinstruments,tradingorders,transaction tickets and confirmations of sale or investments and money marketinstruments;

(d)Contractsorpoliciesof insurance, lifeornonlife,contractsofsuretyship,preneedplansandmutualbenefitassociationinstruments;and

(e)Other similar instrumentswhere title thereto passes to another by endorsement,assignmentordelivery.

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Rule3.e.2.Property includesanythingor itemofvalue,realorpersonal,tangibleorintangible, or any interest therein or any benefit, privilege, claim or right with respectthereto. Rule 3.e.3. Related Accounts are those accounts, the funds and sources of whichoriginated from and/or are materially linked to the monetary instruments or propertiessubjectofthefreezeorder. Rule3.e.3.a.Materiallylinkedaccountsincludebutarenotlimitedtothefollowing:

(1)All accounts or monetary instruments belonging to the same person whoseaccounts, monetary instruments or properties are the subject of the freezeorder;

(2)Allaccountsormonetaryinstrumentsheld,ownedorcontrolledbytheownerorholderoftheaccounts,monetaryinstrumentsorpropertiessubjectofthefreezeorder,whethersuchaccountsareheld,ownedorcontrolledsinglyorjointlywithanotherperson;

(3)Allaccountsormonetary instrumentsthefundsofwhicharetransferredtotheaccounts, monetary instruments or properties subject of the freeze orderwithoutanylegalortradeobligation,purposeoreconomicjustification;

(4)All In Trust For (ITF) accountswhere the personwhose accounts,monetaryinstrumentsorpropertiesarethesubjectofthefreezeorderiseitherthetrusteeorthetrustor;

(5)Allaccountsheldforthebenefitorintheinterestofthepersonwhoseaccounts,monetaryinstrumentsorpropertiesarethesubjectofthefreezeorder;

(6)Allaccountsor monetary instrumentsunderthenameofthe immediatefamilyorhouseholdmembersofthepersonwhoseaccounts,monetaryinstrumentsorpropertiesarethesubjectofthefreezeorderiftheamountorvalueinvolvedisnotcommensuratewith thebusinessor financialcapacityof thesaid familyorhouseholdmember;

(7)All accounts of corporate and juridical entities that are substantially owned,controlled or effectively controlled by the person whose accounts, monetaryinstrumentsorpropertiesaresubjectofthefreezeorder;

(8)Allsharesorunitsinanyinvestmentaccountsand/orpooledfundsofthepersonwhoseaccounts,monetary instrumentsorpropertiesare subjectof the freezeorder;and

(9)All other accounts, shares, units or monetary instruments that are similar,analogousoridenticaltoanyoftheforegoing.

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Rule3.f.SupervisingAuthorityreferstotheBSP,theSECandtheIC.WheretheBSP,SECorICsupervisionappliesonlytotheregistrationofthecoveredinstitution,theBSP,theSECortheIC,withinthelimitsoftheAMLA,asamended,shallhavetheauthoritytorequireandask assistance from the government agency having regulatory power and/or licensingauthority over said covered institution for the implementation and enforcement of theAMLA,asamended,andtheseRules.Rule3.g.Transactionreferstoanyactestablishinganyrightorobligationorgivingrisetoany contractual or legal relationship between the parties thereto. It also includes anymovementoffundsbyanymeanswithacoveredinstitution. Rule3.g.1.CoveredTransaction isatransaction incashorotherequivalentmonetaryinstrument involving a total amount in excess of five hundred thousand pesos(Php500,000.00)withinone(1)bankingday. Rule3.g.2.SuspiciousTransactionisatransaction,regardlessofamount,whereanyofthefollowingcircumstanceexists:

(a)thereisnounderlyinglegalortradeobligation,purposeoreconomicjustification;(b)theclientisnotproperlyidentified;(c)theamountinvolvedisnotcommensuratewiththebusinessorfinancialcapacityof

theclient;(d)taking intoaccountallknown circumstances, itmaybeperceived that the clients

transaction is structured in order to avoid being the subject of reportingrequirementsundertheact;

(e)anycircumstancerelatingtothetransactionwhich isobservedtodeviatefromtheprofileoftheclientand/ortheclientspasttransactionswiththecoveredinstitution;

(f) thetransactionisinanywayrelatedtoanunlawfulactivityoranymoneylaunderingactivityoroffenseundertheAMLA,asamended,isbeingorhasbeencommitted;

(g)anytransactionthatissimilar,analogousoridenticaltoanyoftheforegoing.Rule3.h. Unlawfulactivityreferstoanyactoromissionorseriesorcombinationthereofinvolvingorhavingrelation,tothefollowing:(a.)Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the

RevisedPenalCode,asamended; (1)Kidnappingforransom;(b.) Sections4,5,6,8,9,10,11,12,13,14,15and16ofRepublicActNo.9165,otherwise

knownastheComprehensiveDangerousDrugsActof2002;(2)Importationofprohibiteddrugs;

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(3) Saleofprohibiteddrugs;(4)Administrationofprohibiteddrugs;(5)Deliveryofprohibiteddrugs;(6)Distributionofprohibiteddrugs;(7)Transportationofprohibiteddrugs;(8)MaintenanceofaDen,DiveorResortforprohibiteddrugs;(9)Manufactureofprohibiteddrugs;(10) Possessionofprohibiteddrugs;(11) Useofprohibiteddrugs;(12) Cultivationofplantswhicharesourcesofprohibiteddrugs;(13) Cultureofplantswhicharesourcesofprohibiteddrugs;

(c.)Section3paragraphsb,c,e,g,handiofRepublicActNo.3019,asamended,otherwiseknownastheAntiGraftandCorruptPracticesAct;(14) Directly or indirectly requesting or receiving any gift, present, share,

percentage or benefit for himself or for any other person in connection with anycontractor transactionbetween theGovernmentandanyparty,wherein thepublicofficerinhisofficialcapacityhastointerveneunderthelaw;

(15)Directlyorindirectlyrequestingorreceivinganygift,presentorotherpecuniaryormaterialbenefit, forhimselfor foranother, fromanyperson forwhom thepublicofficer,inanymannerorcapacity,hassecuredorobtained,orwillsecureorobtain,anygovernmentpermitorlicense,inconsiderationforthehelpgivenortobegiven,withoutprejudicetoSection13ofR.A.3019;

(16) Causinganyundue injury toanyparty, including thegovernment,orgivingany private party any unwarranted benefits, advantage or preference in thedischarge of his official, administrative or judicial functions through manifestpartiality,evidentbadfaithorgrossinexcusablenegligence;

(17) Entering, on behalf of the government, into any contract or transactionmanifestly and grossly disadvantageous to the same, whether or not the publicofficerprofitedorwillprofitthereby;

(18) Directly or indirectly having financial or pecuniary interest in any businesscontractortransaction inconnectionwithwhichhe intervenesor takespart inhisofficialcapacity,orinwhichheisprohibitedbytheConstitutionorbyanylawfromhavinganyinterest;

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(19) Directly or indirectly becoming interested, for personal gain, or havingmaterialinterestinanytransactionoractrequiringtheapprovalofaboard,panelorgroupofwhichhe isamember,andwhichexerciseofdiscretion insuchapproval,even ifhe votes against the sameorhedoesnotparticipate in the actionof theboard,committee,panelorgroup;

(d.)PlunderunderRepublicActNo.7080,asamended;(20) Plunder through misappropriation, conversion, misuse or malversation of public

fundsorraidsuponthepublictreasury;(21)Plunderbyreceiving,directlyorindirectly,anycommission,gift,share,percentage,

kickbacksoranyother formofpecuniarybenefit fromanypersonand/orentity inconnectionwithanygovernment contractorprojectorby reasonof theofficeorpositionofthepublicofficerconcerned;

(22)Plunderbythe illegalor fraudulentconveyanceordispositionofassetsbelongingtotheNationalGovernmentoranyofitssubdivisions,agencies,instrumentalitiesorgovernmentownedorcontrolledcorporationsortheirsubsidiaries;

(23) Plunder by obtaining, receiving or accepting, directly or indirectly, any shares ofstock,equityoranyotherformofinterestorparticipationincludingthepromiseoffutureemploymentinanybusinessenterpriseorundertaking;

(24)Plunderbyestablishingagricultural, industrialorcommercialmonopoliesorothercombinations and/or implementation of decrees and orders intended to benefitparticularpersonsorspecialinterests;

(25) Plunder by taking undue advantage of official position, authority, relationship,connectionorinfluencetounjustlyenrichhimselforthemselvesattheexpenseandto the damage and prejudice of the Filipino people and the Republic of thePhilippines;

(e.) RobberyandextortionunderArticles294,295,296,299,300,301and302of theRevisedPenalCode,asamended;(26) Robberywithviolenceorintimidationofpersons;(27) Robberywithphysicalinjuries,committedinanuninhabitedplaceandbya

band,orwithuseoffirearmsonastreet,roadoralley;(28) Robberyinanuninhabitedhouseorpublicbuildingoredificedevotedto

worship;(f.)JuetengandMasiaopunishedasillegalgamblingunderPresidentialDecreeNo.1602;

(29) Jueteng;(30) Masiao;

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(g.) PiracyonthehighseasundertheRevisedPenalCode,asamendedandPresidentialDecreeNo.532;

(31)Piracyonthehighseas;(32)PiracyininlandPhilippinewaters;(33)Aidingandabettingpiratesandbrigands;

(h.)QualifiedtheftunderArticle310oftheRevisedPenalCode,asamended; (34) Qualifiedtheft;(i.) SwindlingunderArticle315oftheRevisedPenalCode,asamended;

(35) Estafawithunfaithfulnessorabuseofconfidencebyalteringthesubstance,qualityorquantityofanythingofvaluewhichtheoffendershalldeliverbyvirtueofanobligationtodoso,eventhoughsuchobligationbebasedonanimmoralorillegalconsideration;

(36) Estafa with unfaithfulness or abuse of confidence by misappropriating orconverting, to the prejudice of another, money, goods or any other personalpropertyreceivedbytheoffender intrustoroncommission,orforadministration,orunderanyotherobligation involving theduty tomakedeliveryor to return thesame,eventhoughsuchobligationbetotallyorpartiallyguaranteedbyabond;orbydenyinghavingreceivedsuchmoney,goods,orotherproperty;

(37) Estafawithunfaithfulnessorabuseofconfidencebytakingundueadvantageofthesignatureoftheoffendedpartyinblank,andbywritinganydocumentabovesuchsignatureinblank,totheprejudiceoftheoffendedpartyoranythirdperson;

(38) Estafa by using a fictitious name, or falsely pretending to possess power,influence, qualifications, property, credit, agency, business or imaginarytransactions,orbymeansofothersimilardeceits;

(39) Estafabyalteringthequality,finenessorweightofanythingpertainingtohisartorbusiness;

(40) Estafabypretendingtohavebribedanygovernmentemployee;(41) Estafabypostdatinga check,or issuing a check inpaymentof anobligation

whentheoffenderhasnofunds inthebank,orhisfundsdepositedthereinwerenotsufficienttocovertheamountofthecheck;

(42) Estafabyinducinganother,bymeansofdeceit,tosignanydocument;(43) Estafa by resorting to some fraudulent practice to ensure success in a

gamblinggame;

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(44) Estafabyremoving,concealingordestroying, inwholeor inpart,anycourtrecord,officefiles,documentoranyotherpapers;

(j.) Smuggling under Sections 2702 and 2703 of Act No. 2711, otherwise known as theRevisedAdministrativeCodeof1917,asamendedbyRepublicActNo.455andunderRepublicActNo.1937,asamended,otherwiseknownastheTariffandCustomsCodeofthePhilippines;(45) Fraudulentimportationofanyvehicle;(46) Fraudulentexportationofanyvehicle;(47) Assistinginanyfraudulentimportation;(48) Assistinginanyfraudulentexportation;(49) Receivingsmuggledarticleafterfraudulentimportation;(50) Concealingsmuggledarticleafterfraudulentimportation;(51) Buyingsmuggledarticleafterfraudulentimportation;(52) Sellingsmuggledarticleafterfraudulentimportation;(53) Transportationofsmuggledarticleafterfraudulentimportation;(54) Fraudulentpracticesagainstcustomsrevenue;

(k.)ViolationsunderRepublicActNo.8792,otherwiseknownas theElectronicCommerceActof2000;k.1.Hackingorcracking,whichrefersto:

(55) unauthorized access into or interference in a computer system/server orinformationandcommunicationsystem;

(56) anyaccess inorder to corrupt,alter, steal,ordestroyusinga computerorother similar information and communication devices, information andcommunicationssystem, includingtheknowledgeandconsentoftheownerofthecomputer;or

(57) the introduction of computer viruses and the like, resulting in the corruption,destruction, alteration, theft or loss of electronic data messages or electronicdocument;

k.2.Piracy,whichrefersto:(58) theunauthorizedcopying,reproduction;(59) theunauthorizeddissemination,distribution;(60) theunauthorizedimportation;(61) theunauthorizeduse,removal,alteration,substitution,modification;

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(62) the unauthorized storage, uploading, downloading, communication, makingavailabletothepublic,or

(63) theunauthorizedbroadcastingofprotectedmaterial,electronicsignatureorcopyrightedworks including legallyprotected sound recordingsorphonogramsorinformation material on protected works, through the use of telecommunicationnetworks, such as, but not limited to, the internet, in a manner that infringesintellectualpropertyrights;

k.3. ViolationsunderRepublicActNo.7394,otherwiseknownasTheConsumerActofthePhilippinesandotherrelevantorpertinentlawsthroughtransactionscoveredbyorusingelectronicdatamessagesorelectronicdocuments:(64) Saleofanyconsumerproductthatisnotinconformitywithstandardsunder

theConsumerAct;(65) SaleofanyproductthathasbeenbannedbyaruleundertheConsumerAct;(66) Saleofanyadulteratedormislabeledproductusingelectronicdocuments;(67) Adulterationormisbrandingofanyconsumerproduct;(68) Forging, counterfeiting or simulating any mark, stamp, tag, label or other

identificationdevice;(69) Revealingtradesecrets;(70) Alterationorremovalofthelabelingofanydrugordeviceheldforsale;(71) Saleofanydrugordevicenotregisteredinaccordancewiththeprovisionsof

theECommerceAct;(72) Saleofanydrugordevicebyanypersonnotlicensedinaccordancewiththe

provisionsoftheECommerceAct;(73) Saleofanydrugordevicebeyonditsexpirationdate;(74) Introduction into commerce of any mislabeled or banned hazardous

substance;(75) Alterationorremovalofthelabelingofahazardoussubstance;(76) Deceptivesalesactsandpractices;(77) Unfairorunconscionablesalesactsandpractices;(78) Fraudulentpracticesrelativetoweightsandmeasures;(79) False representations in advertisements as the existence of awarranty or

guarantee;(80) Violationofpricetagrequirements;

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(81) Mislabelingconsumerproducts;(82) False,deceptiveormisleadingadvertisements;(83) Violationofrequireddisclosuresonconsumerloans;(84) OtherviolationsoftheprovisionsoftheECommerceAct;

(l.)Hijacking and other violations under RepublicActNo. 6235, otherwise known as theAntiHijackingLaw;destructivearsonandmurder,asdefinedunder theRevisedPenalCode, as amended, including those perpetrated by terrorists against noncombatantpersonsandsimilartargets;(85) Hijacking;(86) Destructivearson;(87) Murder;(88) Hijacking,destructivearsonormurderperpetratedbyterroristsagainstnon

combatantpersonsandsimilartargets;(m.) Fraudulentpractices andother violationsunderRepublicActNo. 8799,otherwise

knownastheSecuritiesRegulationCodeof2000;(89) Sale, offer or distribution of securities within the Philippines without a

registrationstatementdulyfiledwithandapprovedbytheSEC;(90) Violationofreportorialrequirementsimposeduponissuersofsecurities;(91) Manipulationofsecuritypricesbycreatingafalseormisleadingappearance

ofactive trading inany listed security traded inanExchangeoranyother tradingmarket;

(92) Manipulationofsecuritypricesbyeffecting,aloneorwithothers,aseriesoftransactionsinsecuritiesthatraisestheirpricestoinducethepurchaseofasecurity,whether of the same or different class, of the same issuer or of a controlling,controlledorcommonlycontrolledcompanybyothers;

(93) Manipulationofsecuritypricesbyeffecting,aloneorwithothers,aseriesoftransactions insecuritiesthatdepressestheirpriceto inducethesaleofasecurity,whether of the same or different class, of the same issuer or of a controlling,controlledorcommonlycontrolledcompanybyothers;

(94) Manipulationofsecuritypricesbyeffecting,aloneorwithothers,aseriesoftransactions in securities that creates active trading to induce such apurchaseorsale though manipulative devices such as marking the close, painting the tape,squeezingthefloat,hypeanddump,boilerroomoperationsandsuchothersimilardevices;

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(95) Manipulation of security prices by circulating or disseminating informationthat the price of any security listed in an Exchangewill or is likely to rise or fallbecauseofmanipulativemarketoperationsofanyoneormorepersonsconductedforthepurposeofraisingordepressingthepriceofthesecurityforthepurposeofinducingthepurchaseorsaleofsuchsecurity;

(96) Manipulation of security prices by making false or misleading statementswith respect to any material fact, which he knew or had reasonable ground tobelievewassofalseandmisleading,forthepurposeofinducingthepurchaseorsaleofanysecuritylistedortradedinanExchange;

(97) Manipulationofsecuritypricesbyeffecting,aloneorwithothers,anyseriesof transactions for thepurchaseand/orsaleofanysecurity traded inanExchangefor the purpose of pegging, fixing or stabilizing the price of such security, unlessotherwiseallowedbytheSecuritiesRegulationCodeorbytherulesoftheSEC;

(98) Saleorpurchaseofanysecurityusinganymanipulativedeceptivedeviceorcontrivance;

(99) ExecutionofshortsalesorstoplossorderinconnectionwiththepurchaseorsaleofanysecuritynotinaccordancewithsuchrulesandregulationsastheSECmayprescribeasnecessaryandappropriateinthepublicinterestortheprotectionoftheinvestors;

(100) Employmentofanydevice,schemeorartificetodefraud inconnectionwiththepurchaseandsaleofanysecurities;

(101) Obtainingmoneyorpropertyinconnectionwiththepurchaseandsaleofanysecuritybymeansofanyuntrue statementofamaterial factoranyomission tostateamaterialfactnecessaryinordertomakethestatementsmade,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading;

(102) Engaging inanyact,transaction,practiceorcourseofaction inthesaleandpurchaseofanysecuritywhichoperatesorwouldoperateasafraudordeceituponanyperson;

(103) Insidertrading;(104) EngaginginthebusinessofbuyingandsellingsecuritiesinthePhilippinesasa

brokerordealer,oractingasasalesman,oranassociatedpersonofanybrokerordealerwithoutanyregistrationfromtheCommission;

(105) Employmentbyabrokerordealerofanysalesmanorassociatedpersonorbyanissuerofanysalesman,notregisteredwiththeSEC;

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(106) Effectinganytransactioninanysecurity,orreportingsuchtransaction,inanExchangeorusingthefacilityofanExchangewhichisnotregisteredwiththeSEC;

(107) MakinguseofthefacilityofaclearingagencywhichisnotregisteredwiththeSEC;

(108) Violationsofmarginrequirements;(109) Violations on the restrictions on borrowings by members, brokers and

dealers;(110) AidingandAbettinginanyviolationsoftheSecuritiesRegulationCode;(111) Hindering,obstructingordelayingthefilingofanydocumentrequiredunder

theSecuritiesRegulationCodeortherulesandregulationsoftheSEC;(112) Violationsofanyoftheprovisionsoftheimplementingrulesandregulations

oftheSEC;(113) Any other violations of any of the provisions of the Securities Regulation

Code;(n.)Sections 4, 5, 6 and 7 ofRepublicActNo. 10168,otherwise known as the Terrorism

FinancingPreventionandSuppressionActof2012:(114) Directly or indirectly, willfully and, without lawful excuse, possessing,

providing,collectingorusingpropertyorfundsormakingavailableproperty,fundsorfinancialserviceorotherrelatedservices,byanymeans,withtheunlawfulandwillfulintentionthattheyshouldbeusedorwiththeknowledgethattheyaretobeused,infullorinpart:(a)tocarryoutorfacilitatethecommissionofanyterroristact;(b)byaterroristorganization,associationorgroup;or(c)byanindividualterrorist;

(115) Organizingordirectingotherstocommitfinancingofterrorism;(116) Attempt to commit the crimes of financing of terrorism and dealing with

propertyorfundsofdesignatedpersons;(117) Conspiracy tocommit thecrimesof financingof terrorismanddealingwith

propertyorfundsofdesignatedpersons;(118) Cooperating,bypreviousorsimultaneousacts,intheexecutionofeitherthe

crimeof financingof terrorismorconspiracy tocommit thecrimeof financingofterrorism;

(119) Havingknowledgeof thecommissionof thecrimeof financingof terrorismbutwithouthavingparticipatedthereinasprincipal,takingpartsubsequenttothecommissionofthecrimeoffinancingofterrorismbyprofitingfromitorbyassistingthe principal or principals in the crime of financing of terrorism to profit by theeffectsofthecrime,orbyconcealingordestroyingtheeffectsofthecrimeinorder

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topreventitsdiscovery,orbyharboring,concealingorassistingintheescapeoftheprincipalinthecrimeoffinancingofterrorism;and

(o)Feloniesoroffensesofasimilarnature to theaforementionedunlawfulactivities thatarepunishableunderthepenallawsofothercountries.

Indeterminingwhetherornota felonyoroffensepunishableunder thepenal lawsofother countries is of a similar nature, as to constitute an unlawful activity under theAMLA,asamended,thenomenclatureofsaidfelonyoroffenseneednotbeidenticaltoanyoftheunlawfulactivitieslistedunderRule3.h.Rule 3.i. Wire/Fund Transfer refers to any transaction carried out on behalf of anoriginator(bothnaturalandjuridical)throughafinancialinstitution(OriginatingInstitution)byelectronicmeanswithaviewtomakinganamountofmoneyavailabletoabeneficiaryatanother financial institution (Beneficiary Institution). The originator person and thebeneficiarypersonmaybethesameperson. Rule3.i.1.CrossBordertransferreferstoanywiretransferwheretheoriginatingandbeneficiaryinstitutionsarelocatedindifferentcountries.Itshallalsorefertoanychainofwiretransfersthathasatleastonecrossborderelement. Rule 3.i.2. Domestic Transfer refers to anywire transferwhere theoriginating andbeneficiary institutionsare located inthesamecountry. Itshallrefertoanychainofwiretransfersthattakesplaceentirelywithinthebordersofasinglecountry,eventhoughthesystemusedtoeffectthefund/wiretransfermaybelocatedinanothercountry. Rule 3.i.3. Originating institution refers to the entity utilized by the originator totransfer funds to thebeneficiaryandcaneitherbe (a)acovered institutionasspecificallydefinedbytheseRulesandasgenerallydefinedbytheAMLA,asamended,andtheseRules,or (b)a financial institutionorotherentityoperatingoutside thePhilippines that isotherthan the covered institution referred to in (a) but conducts business operations andactivitiessimilartoit. Rule3.i.4.Beneficiary institution refers to theentity thatwillpayout themoney tothebeneficiaryandcaneitherbe (a)acovered institutionasspecificallydefinedby theseRulesandasgenerallydefinedbytheAMLA,asamended,andtheseRules,or(b)afinancialinstitutionorotherentityoperatingoutsidethePhilippinesthat isotherthanthecoveredinstitutionreferredtoin(a)butconductsbusinessoperationsandactivitiessimilartoit. Rule3.i.5.Intermediary institutionreferstotheentityutilizedbytheoriginatingandbeneficiary institutionswherebothhavenocorrespondentbankingrelationshipwitheachotherbuthaveestablishedrelationshipwith the intermediary institution. Itcaneitherbe(a)acoveredinstitutionasspecificallydefinedbytheAMLA,asamended,andtheseRules,or (b)a financial institutionorotherentityoperatingoutside thePhilippines that isotherthan the covered institution referred to in (a) but conducts business operations andactivitiessimilartoit.

RULE4MoneyLaunderingOffense

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Rule4.MoneyLaunderingOffense.Moneylaunderingisacrimewherebytheproceedsofanunlawfulactivityashereindefinedaretransacted,therebymakingthemappeartohaveoriginatedfromlegitimatesources.Itiscommittedbythefollowing:

(a) Anypersonknowingthatanymonetaryinstrumentorpropertyrepresents,involves,orrelatesto,theproceedsofanyunlawfulactivity,transactsorattemptstotransactsaidmonetaryinstrumentorproperty.

(b)Any person knowing that any monetary instrument or property involves theproceedsofanyunlawfulactivity,performsorfailstoperformanyactasaresultofwhichhe facilitates theoffenseofmoney laundering referred to inparagraph (a)above.

(c) AnypersonknowingthatanymonetaryinstrumentorpropertyisrequiredundertheAMLA,asamended,bedisclosedandfiledwiththeAntiMoneyLaunderingCouncil(AMLC),failstodoso.

RULE5

JurisdictionofMoneyLaunderingCasesandMoneyLaunderingInvestigationProceduresRule5.a.JurisdictionofMoneyLaunderingCases.TheRegionalTrialCourtsshallhavethejurisdiction to tryall casesonmoney laundering.Those committedbypublicofficersandprivate persons who are in conspiracy with such public officers shall be under thejurisdictionoftheSandiganbayan.Rule5.b.InvestigationofMoneyLaunderingOffenses.TheAMLCshallinvestigate: (1)suspicioustransactions; (2)covered transactions deemed suspicious after an investigation conducted by theAMLC; (3)moneylaunderingactivities;and (4)otherviolationsoftheAMLA,asamended.Rule 5.c. Attempts at Transactions. Section 4 (a) and (b) of the AMLA, as amended,provides thatanypersonwhoattempts to transactanymonetary instrumentorpropertyrepresenting, involving or relating to the proceeds of any unlawful activity shall beprosecuted foramoney launderingoffense.Accordingly, the reports requiredunderRule9.cof theseRulesshall includethosepertainingtoanyattemptbyanypersontotransactanymonetaryinstrumentorpropertyrepresenting,involvingorrelatingtotheproceedsofanyunlawfulactivity.

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RULE6ProsecutionofMoneyLaundering

Rule6.a.ProsecutionofMoneyLaundering.(1)Any person may be charged with and convicted of both the offense of money

launderingand theunlawfulactivityasdefinedunder Section3.iof theAMLA,asamended.

(2)Anyproceedingrelatingtotheunlawfulactivityshallbegivenprecedenceovertheprosecution of any offense or violation under the AMLA, as amended, withoutprejudice to theexparteapplicationby theAMLCwith theCourtofAppeals forafreezeorderwithrespecttothemonetary instrumentorproperty involvedthereinand resort tootherremediesprovidedunder theAMLA,asamended, theRulesofCourtandotherpertinentlawsandrules.

Rule6.b. WhentheAMLCfinds,afterinvestigation,thatthereisprobablecausetochargeanypersonwithamoney launderingoffenseunderSection4oftheAMLA,asamended, itshall cause a complaint tobe filed,pursuant to Section7 (4)of theAMLA, as amended,beforetheDepartmentofJusticeortheOfficeoftheOmbudsman,whichshallthenconductthepreliminaryinvestigationofthecase.Rule6.c. Ifafterduenoticeandhearing inthepreliminary investigationproceedings,theDepartmentofJustice,ortheOfficeoftheOmbudsman,asthecasemaybe,findsprobablecause for amoney laundering offense, it shall file the necessary information before theRegionalTrialCourtsortheSandiganbayan.Rule6.d. TrialforthemoneylaunderingoffenseshallproceedinaccordancewiththeCodeofCriminalProcedureortheRulesofProcedureoftheSandiganbanyan,asthecasemaybe.Rule6.e. Knowledge of the offender that any monetary instrument or propertyrepresents,involves,orrelatestotheproceedsofanunlawfulactivityorthatanymonetaryinstrumentorproperty isrequiredundertheAMLA,asamended,tobedisclosedandfiledwith the AMLC, may be established by direct evidence or inferred from the attendantcircumstances.Rule6.f. All the elements of every money laundering offense under Section 4 of theAMLA,asamended,mustbeprovedbyevidencebeyond reasonabledoubt, including theelementof knowledge that themonetary instrument or property represents, involvesorrelatestotheproceedsofanyunlawfulactivity.Rule6.g. No element of the unlawful activity, however, including the identity of theperpetrators and the details of the actual commission of the unlawful activity need beestablished by proof beyond reasonable doubt. The elements of the offense of money

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launderingareseparateanddistinctfromtheelementsofthefelonyoroffenseconstitutingtheunlawfulactivity.

RULE7

CreationofAntiMoneyLaunderingCouncil(AMLC)Rule7.a.TheAntiMoneyLaunderingCouncil Rule7.a.1.Composition. TheAntiMoney LaunderingCouncil ishereby created andshall be composed of theGovernor of the Bangko Sentral ng Pilipinas as Chairman, theCommissioner of the Insurance Commission and the Chairman of the Securities andExchangeCommissionasMembers. Rule 7.a.2.UnanimousDecision. TheAMLC shall actunanimously indischarging itsfunctionsasdefinedintheAMLA,asamended,andintheseRules.However,inthecaseofthe incapacity,absenceordisabilityofanymember todischargehis functions, theofficerdulydesignatedorauthorized todischarge the functionsof theGovernorof theBSP, theChairmanof theSECor the InsuranceCommissioner,as the casemaybe, shallact inhissteadintheAMLC.Rule7.b.Functions.ThefunctionsoftheAMLCaredefinedhereunder:

(1) to require and receive covered or suspicious transaction reports from coveredinstitutions;

(2) to issueordersaddressed to theappropriateSupervisingAuthorityor thecoveredinstitutiontodeterminethetrue identityoftheownerofanymonetaryinstrumentor property subject of a covered or suspicious transaction report, or request forassistance from a foreign State, or believed by the Council, on the basis ofsubstantial evidence, to be, in whole or in part, wherever located, representing,involving,or related to,directlyor indirectly, inanymannerorbyanymeans, theproceedsofanyunlawfulactivity;

(3) to investigate suspicious transactionsand covered transactionsdeemed suspiciousafteraninvestigationbytheAMLC,moneylaunderingactivitiesandotherviolationsoftheAMLA,asamended;

(4) to file with the Court of Appeals, exparte, through the Office of the SolicitorGeneral:a.)apetitionforthefreezingofanymonetaryinstrumentorpropertyallegedtobe

proceedsofanyunlawfulactivityasdefinedundersubparagraphs (a)to (o)ofRule3.hhereof;

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b.)anapplicationforauthorityto inquire intoorexamineanyparticulardepositorinvestment,includingrelatedaccounts,withanybankinginstitutionornonbankfinancialinstitution;

(5)to institutecivil forfeitureproceedingsandallother remedialproceedings throughtheOfficeoftheSolicitorGeneral;

(6) to filecomplaintswith theDepartmentof Justiceor theOfficeof theOmbudsmanfor the prosecution ofmoney laundering offenses and other violations under theAMLA,asamended;

(7)toformulateandimplementsuchmeasuresasmaybeinherent,necessary,implied,incidental and justified under the AMLA, as amended, to counteract moneylaundering. Subject to such limitations provided by law, the AMLC is authorizedunderSection7 (7)of theAMLA,asamended, toestablishan information sharingsystem thatwill enable the AMLC to store, track, analyze and investigatemoneylaunderingtransactionsandtodisseminateresultsofitsanalysisandinvestigationtocompetent authorities for the resolute prevention, detection and prosecution ofmoney launderingoffensesandotherviolationsoftheAMLA,asamended.Forthispurpose, the AMLC shall install a computerized system that will be used in thecreationandmaintenanceofaninformationdatabase;

(8) toreceiveandtakeactioninrespectofanyrequestfromforeignstatesforassistancein their own antimoney laundering operations as provided in the AMLA, asamended. TheAMLC is authorizedunder Sections7 (8) and13 (b) and (d)of theAMLA,asamended,toreceiveandtakeactioninrespectofanyrequestfromforeignstates for assistance in theirown antimoney launderingoperations, in respectofconventions, resolutions and other directives of theUnitedNations (UN), theUNSecurityCouncil,andother internationalorganizationsofwhichthePhilippines isamember.However,theAMLCmayrefusetocomplywithsuchrequest,convention,resolutionordirectivewheretheactionsoughtthereincontravenestheprovisionsoftheConstitution,ortheexecutionthereofislikelytoprejudicethenationalinterestofthePhilippines;

(9) todevelopeducationalprogramsontheperniciouseffectsofmoneylaundering,themethodsandtechniquesusedinmoneylaundering,theviablemeansofpreventingmoneylaunderingandtheeffectivewaysofprosecutingandpunishingoffenders;

(10) toenlisttheassistanceofanybranch,department,bureau,office,agencyorinstrumentality of the government, including governmentowned and controlledcorporations, in undertaking any and all antimoney laundering operations,whichmay includetheuseof itspersonnel, facilitiesandresources forthemoreresoluteprevention, detection and investigation of money laundering offenses and

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prosecutionofoffenders.TheAMLCmayrequiretheintelligenceunitsoftheArmedForcesofthePhilippines,thePhilippineNationalPolice,theDepartmentofFinance,theDepartmentofJustice,aswellastheirattachedagencies,andotherdomesticortransnationalgovernmentalornongovernmentalorganizationsorgroupstodivulgetotheAMLCallinformationthatmay,inanyway,facilitatetheresoluteprevention,investigationandprosecutionofmoney launderingoffensesandotherviolationsoftheAMLA,asamended,andotherrelevantlawsandregulations;

(11) to issueand implementrules,regulations,ordersandresolutionsasmaybenecessaryandproper toeffectively implement theAMLA,asamended,andotherrelevantlawsandregulations;and

(12) to imposeadministrativesanctionspursuanttoRule14.a.4 fortheviolationoflaws,rules,regulations,ordersandresolutionsissuedpursuantthereto,asmaybedeterminedbytheAMLC.

Rule7.c.Meetings.TheAMLCshallmeetonceamonth,orasoftenasmaybenecessaryatthecalloftheChairman.

RULE8CreationofaSecretariat

Rule8.TheAntiMoneyLaunderingCouncilSecretariat.TheCouncilshallbeassistedbytheAMLCSecretariatinthedischargeofitsfunctions.Rule8.a.TheExecutiveDirector.TheSecretariatshallbeheadedbyanExecutiveDirectorwhoshallbeappointedbytheAMLCforatermoffive(5)years.HemustbeamemberofthePhilippineBar,atleastthirtyfive(35)yearsofage,musthaveservedforatleastfive(5)years either at the BSP, the SEC or the IC and of goodmoral character, unquestionableintegrityandknownprobity.HeshallbeconsideredafulltimepermanentemployeeoftheBSPwiththerankofAssistantGovernor,andshallbeentitledtosuchbenefitsandsubjecttorulesandregulations,aswellasprohibitions,asareapplicabletoofficersofsimilarrank.Rule8.b.Composition. Inorganizing theSecretariat, theAMLCmay choose from thosewhohaveserved,continuouslyorcumulatively,foratleastfive(5)yearsintheBSP,theSECortheIC.AllmembersoftheSecretariatshallbeconsideredregularemployeesoftheBSPand shall be entitled to such benefits and subject to such rules and regulations as areapplicabletoBSPemployeesofsimilarrank.Rule 8.c.Detail and Secondment. TheAMLC is authorized under Section 7(10) of theAMLA, as amended, to enlist the assistance of the BSP, the SEC or the IC, or any otherbranch,department,bureau,office,agencyorinstrumentalityofthegovernment,includinggovernmentowned and controlled corporations, in undertaking any and all antimoneylaunderingoperations.Thisincludestheuseofanymemberoftheirpersonnelwhomaybe

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detailed or seconded to the AMLC, subject to existing laws and Civil Service Rules andRegulations. Detailed personnel shall continue to receive their salaries, benefits andemolumentsfromtheirrespectivemotherunits.Secondedpersonnelshallreceive,inlieuoftheir respective compensation packages from their respectivemother units, the salaries,emolumentsandallotherbenefitswhichtheirAMLCSecretariatpositionsareentitledto.

RULE9PreventionofMoneyLaundering;

CustomerIdentificationRequirementsandRecordKeepingRule9.a.CustomerIdentificationRequirements. Rule9.a.1.CustomerIdentification.Coveredinstitutionsshallestablishandrecordthetrue identity of its clients based on official documents. They shallmaintain a system ofverifyingthetrueidentityoftheirclientsand,incaseofcorporateclients,requireasystemofverifyingtheir legalexistenceandorganizationalstructure,aswellastheauthorityandidentification of all persons purporting to act on their behalf. Covered institutions shallestablishappropriate systemsandmethodsbasedon internationally compliant standardsandadequateinternalcontrolsforverifyingandrecordingthetrueandfullidentityoftheircustomers. Rule9.a.2.Trustee,NomineeandAgentAccounts.Whendealingwithcustomerswhoare acting as trustee, nominee, agent or in any capacity for and on behalf of another,covered institutions shall verify and record the true and full identity of the persons onwhosebehalfatransactionisbeingconducted.Coveredinstitutionsshallalsoestablishandrecordthetrueandfull identityofsuchtrustees,nominees,agentsandotherpersonsandthe nature of their capacity and duties. In case a covered institution has doubts as towhethersuchpersonsarebeingusedasdummiesincircumventionofexistinglaws,itshallimmediatelymake thenecessary inquiries toverify thestatusof thebusinessrelationshipbetweentheparties. Rule 9.a.3. Minimum Information/Documents Required for Individual Customers. Covered institutions shall require customers to produce original documents of identityissued by an official authority, bearing a photograph of the customer. Examples of suchdocuments are identity cards and passports. The following minimuminformation/documentsshallbeobtainedfromindividualcustomers:

(a)Name;(b)Presentaddress;(c)Permanentaddress;(d)Dateandplaceofbirth;

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(e)Nationality;(f)Natureofworkandnameofemployerornatureofselfemployment/business;(g)Contactnumbers;(h)Taxidentificationnumber,SocialSecuritySystemnumberorGovernmentService

InsuranceSystemnumber;(i) Specimensignature;(j) Sourceoffunds;and(k)Namesofbeneficiariesincaseofinsurancecontractsandwheneverapplicable.

Rule 9.a.4 Valid Identification Documents. Customers and the authorizedsignatory/iesofacorporateor juridicalentitywhoengage inafinancialtransactionwithacovered institutionforthefirsttimeshallberequiredtopresenttheoriginalandsubmitaclearcopyofatleastone(1)validphotobearingIDissuedbyanofficialauthority. Forthispurpose,thetermofficialauthorityshallrefertoanyofthefollowing: i. GovernmentoftheRepublicofthePhilippines; ii. Itspoliticalsubdivisionsandinstrumentalities; iii. GovernmentOwnedorControlledCorporations(GOCCs);and iv. Privateentitiesor institutions registeredwithor supervisedor regulatedeitherbytheBSP,SEC orIC. Incasethe identificationdocumentpresentedtothecovered institutiondoesnotbearany photo of the customer or authorized signatory, or the photo bearing ID or a copythereofdoesnotclearlyshowthefaceofthecustomerorauthorizedsignatory,acoveredinstitutionmayutilize itsowntechnologytotakethephotoofthecustomerorauthorizedsignatory. Rule 9.a.5. Minimum Information/Documents Required for Corporate and JuridicalEntities.Beforeestablishingbusinessrelationships,covered institutionsshallendeavortoensurethatthecustomerisacorporateorjuridicalentitywhichhasnotbeenorisnotintheprocessofbeingdissolved,wounduporvoided,orthat itsbusinessoroperationshasnotbeen or is not in the process of being, closed, shut down, phased out, or terminated.Dealingswithshellcompaniesandcorporations,beinglegalentitieswhichhavenobusinesssubstance in theirown rightbut throughwhich financial transactionsmaybe conducted,should be undertaken with extreme caution. The following minimuminformation/documents shall be obtained from customers that are corporate or juridicalentities, including shellcompaniesand corporationswhichhavenobusiness substance intheirownrightbutthroughwhichfinancialtransactionsmaybeconducted:

(a) CertificatesofRegistrationissuedbytheDepartmentofTradeandIndustryforsingleproprietors,

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or by the Securities and Exchange Commission for corporations and partnerships,andbythe

BSPformoneychangers/foreignexchangedealersandremittanceagents;(b)ArticlesofIncorporation/Partnership;(c) Latest General Information Sheet which lists the names of

directors/trustees/partners,principal stockholdersowningat least twentypercent(20%)oftheoutstandingcapitalstockandprimaryofficerssuchasthePresidentandTreasurer;

(d)Beneficialownersandbeneficiariesofthecorporateand/orjuridicalentities;(e) Board or Partners resolution duly certified by the Corporate/Partners Secretary

authorizingthesignatorytosignonbehalfoftheentity;and(f)For entities registered outside of the Philippines, similar documents and/or

informationshallbeobtaineddulyauthenticatedbythePhilippineConsulatewheresaidentitiesareregistered.

Rule9.a.6.ProhibitionagainstCertainAccounts. Covered institutions shallmaintainaccountsonly inthetrueandfullnameoftheaccountownerorholder.Theprovisionsofexisting laws to the contrary notwithstanding, anonymous accounts, accounts underfictitiousnames,andallothersimilaraccountsshallbeabsolutelyprohibited. Rule9.a.7.ProhibitionagainstopeningofAccountswithoutFacetofaceContact.NonewaccountshallbeopenedandcreatedwithoutfacetofacecontactandfullcompliancewiththerequirementsunderRule9.a.3oftheseRules. Rule9.a.8.NumberedAccounts. Pesoand foreign currencynoncheckingnumberedaccountsshallbeallowed:Provided,Thatthetrueidentityofthecustomersofallpesoandforeign currencynoncheckingnumberedaccountsare satisfactorilyestablishedbasedonofficialandotherreliabledocumentsandrecords,andthattheinformationanddocumentsrequired under the provisions of these Rules are obtained and recorded by the coveredinstitution.Nopesoand foreigncurrencynoncheckingaccountsshallbeallowedwithouttheestablishmentof such identityand in themannerhereinprovided.Provided, further,Thatcoveredandsuspicioustransactionreports involvingpesoandforeigncurrencynoncheckingnumberedaccountssubmittedtotheAMLCpursuanttoRule7.b.1oftheseRulesshallcontainthetruenameoftheaccountholder.TheBSPmayconductannualtestingforthepurposeofdeterminingtheexistenceandtrueidentityoftheownersofsuchaccounts.TheSECandthe ICmayconductsimilartestingmoreoftenthanonceayearandcoveringsuchotherrelatedpurposesasmaybeallowedundertheirrespectivecharters. Rule 9.a.9. Riskbased Customer Identification Process. A covered institution shalldevelop clear, written and graduated customer acceptance policies and procedures

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includingasetofcriteria forcustomers thatare likely topose low,normalorhighrisk totheiroperationsaswellas thestandards inapplying reduced,averageandenhancedduediligenceincludingasetofconditionsforthedenialofaccountopening.Thesepoliciesandproceduresshallensurethatthefinanciallyorsociallydisadvantagedarenotdeniedaccesstofinancialserviceswhileatthesametimepreventsuspicious individualsorentitiesfromopeninganaccount.

Rule9.a.9.a.EnhancedDueDiligence.EnhancedduediligenceshallbeappliedtocustomersthatareassessedbythecoveredinstitutionortheseRulesashighriskformoneylaunderingandterroristfinancing,whichenhanceddiligence,ataminimum,shouldobservethefollowingmeasures:i. Obtainseniormanagementapprovalforestablishingorcontinuing.(forexisting

customers)suchbusinessrelationships;ii. Takereasonablemeasurestoestablishthesourceofwealthandsourceoffunds;

andiii. Conductenhancedongoingmonitoringofthebusinessrelationship.Rule9.a.9.a.1.ReducedDueDiligence.Wheneverreducedduediligenceisappliedinaccordancewiththecoveredinstitutionscustomeracceptancepolicy,thefollowingrulesshallapply:a.) Forindividualcustomersclassifiedaslowrisk,acoveredinstitutionmayopenan

account under the true and full name of the account owner or owners uponpresentationofanacceptableIDonly.

b.) For corporate,partnership, and soleproprietorship entities, andother entitiessuch as banking institutions, trust entities and quasibanks authorized by theSupervisingAuthorities tooperateassuch,publicly listedcompaniessubject toregulatory disclosure requirements, government agencies including GOCCs, acovered institution may open an account under the official name of theseentitieswithonlyitem(e)ofthoserequiredunderRule9.a.5(BoardorPartnersResolution duly certified by the Corporate/Partners Secretary authorizing thesignatory to sign on behalf of the entity) obtained at the time of accountopening.

Rule 9.a.9.b. Highrisk customer. A customer from a country other than thePhilippines that is recognized as having inadequate internationally accepted antimoneylaunderingstandards,ordoesnotsufficientlyapplyregulatorysupervisionortheFinancialActionTaskForce(FATF)recommendations,orpresentsgreaterriskformoney laundering, its associated predicate offenses including corruption andterrorism financing, is considered a high risk customer and shall be subject toenhancedduediligencemeasuresunderRule9.a.9.a. InformationrelativetotheseareavailablefrompubliclyavailableinformationsuchasthewebsitesofFATF,FATFStyleRegionalBodies (FSRB) like theAsiaPacificGrouponMoneyLaunderingandthe Egmont Group, the Office of Foreign Assets Control (OFAC) of the U.S.Department of the Treasury, or other reliable third parties such as regulators or

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exchanges, which shall be a component of a covered institutions customeridentificationprocess.

Rule9.a.10.OutsourcingoftheConductofFacetoFaceContact.Subjecttotherulespromulgated for the purpose by the Supervising Authorities, a covered institution mayoutsourcetoacounterpartytheconductoftherequisitefacetofacecontact. Rule9.a.11.Thirdpartyreliance.SubjecttotherulespromulgatedforthepurposebytheSupervisingAuthorities,whereathirdpartyhasalreadyconductedtherequisitefacetofacecontactand the identification requirementson itsowncustomer inaccordancewiththeseRulesand itsownMoneyLaunderingandTerroristFinancingPreventionProgram,acovered institutionmay rely on the representation of the third party that it has alreadyundertakensaidfacetofacecontactandcustomeridentificationrequirements. Rule9.a.12.Outsourcingofthegatheringofminimuminformationand/ordocuments.SubjecttotherulespromulgatedforthepurposebytheSupervisingAuthorities,acoveredinstitutionmay outsource to a counterparty the gathering of theminimum informationand/or documents required to be obtained by these Rules provided that the ultimateresponsibilityforknowingthecustomerandforkeepingthe identificationdocumentsshallliewiththecoveredinstitution. Rule 9.a.13. Trustee, Nominee, Agent or Intermediary account. Where anytransaction is conducted by a trustee, nominee, agent or intermediary, either as anindividualorthroughafiduciaryrelationship,acorporatevehicleorpartnership,onbehalfofa trustor,principal,beneficialownerorpersononwhosebehalfa transaction isbeingconducted, covered institutions shall establish and record the true and full identity andexistence of both the (1) trustee, nominee, agent or intermediary and the (2) trustor,principal,beneficialownerorpersononwhosebehalf thetransaction isbeingconducted.Thecoveredinstitutionshalldeterminethetruenatureofthepartiescapacitiesanddutiesbyobtaining a copyof thewrittendocumentevidencing their relationship andapply thesamestandardsforassessingtheriskprofileanddeterminingthestandardofduediligencetobeappliedtoboth. Incaseitentertainsdoubtsastowhetherthetrustee,nominee,agent,orintermediaryisbeingused asadummy in circumventionofexisting laws, it shall applyenhancedduediligenceunderRule9.a.9.a. Rule 9.a.14.Where the Customer Transacts Through a Trustee,Nominee, Agent orIntermediary which is a Third Party. A covered institution may rely on the customeridentification process undertaken by a third party subject to the rules on Third PartyreliancetobepromulgatedbytheSupervisingAuthorities. Rule9.a.15.Ongoingmonitoringofcustomers,accountsandtransactions.Acoveredinstitution shall,on thebasisofmaterialityand risk,updateall identification informationand documents of existing customers required to be obtained under the AMLA, asamended,andtheseRules. A covered institution shall establish a system that will enable it to understand thenormaland reasonableaccountactivityofcustomersand todetectunusualor suspiciouspatternsofaccountactivity.Ariskandmaterialitybasedongoingmonitoringofcustomers

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accounts and transactions shallbepartofa covered institutions customerduediligenceprocedures.

Rule 9.a.15.a. Unusual or suspicious patterns of account activity. A coveredinstitution shall apply enhanced due diligence under Rule 9.a.9.a on its customer if itacquires information in the course of its customer account or transactionmonitoringthat:

1. Raisesdoubtastotheaccuracyofanyinformationordocumentprovidedortheownershipoftheentity;

2. Justifies reclassification of the customer from low or normal risk to highriskpursuanttotheseRulesorbyitsowncriteria;or

3. Indicatesthatanyofthecircumstancesforthefilingofasuspicioustransactionexistssuchasbutnotlimitedtothefollowing:a.Transacting without any underlying legal or trade obligation, purpose or

economicjustification;b.Transacting an amount that is not commensurate with the business or

financialcapacityofthecustomerordeviatesfromhisprofile;c. Structuring of transactions in order to avoid being the subject of covered

transactionreporting;ord.Knowing that a customer was or is engaged or engaging in any unlawful

activityashereindefined.Whereadditional informationcannotbeobtained,orany informationordocumentprovidedisfalseorfalsified,orresultofthevalidationprocessisunsatisfactory,thecovered institution shall terminate and refrain from further conducting businessrelationshipwith the customerwithout prejudice to the reporting of a suspicioustransactiontotheAMLCwhencircumstanceswarrant.

Rule 9.a.16. Politically Exposed Persons. A Covered institution shall take reasonablemeasurestodeterminewhetheracustomerorbeneficialownerisaPEPasdefinedunderRule3.b.2hereof. Incasesofhigher riskbusiness relationshipwithsuchpersons including foreignPEPs,acoveredinstitutionshallapplytheenhancedduediligencemeasuresunderRule9.a.9.a. The requirements for all types of PEPs should also apply to family members or closeassociatesofsuchPEPs. Rule9.a.17.CorrespondentBanking.Correspondentbankingreferstoactivitiesofonebank (the correspondent bank) having direct connection or friendly service relationswithanother bank (the respondent bank). Because of the risk associated with dealing withcorrespondentaccountswhereitmayunknowinglyfacilitatethetransmission,orholdingandmanagement of proceeds of unlawful activities or funds intended to finance terroristactivities,acoveredinstitutionshalladoptpoliciesandproceduresforcorrespondentbankingactivitiesanddesignateanofficerresponsibleinensuringcompliancewiththesepoliciesandprocedures.Acoveredinstitutionmayrelyonthecustomeridentificationprocessundertakenbytherespondentbank. Insuchcase, itshallapply therulesonThirdPartyreliancetobe

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promulgatedbytheSupervisingAuthorities,treatingtherespondentbankastheThirdPartyasdefinedtherein.Inaddition,thecorrespondentbankshall:

(a) Gather sufficient informationabout the respondent institution tounderstand fullythenatureof the respondentsbusiness and todetermine frompublicly availableinformationthereputationoftheinstitutionandthequalityofsupervision,includingwhetherithasbeensubjecttomoneylaunderingorterroristfinancinginvestigationorregulatoryaction.

(b)Assess the respondent institutions antimoney laundering and terrorist financingcontrols.

(c) Obtain approval from senior management before establishing correspondentrelationships.

(d)Documenttherespectiveresponsibilitiesofbothinstitutions.(e)Withrespecttopayablethroughaccounts,besatisfiedthattherespondentbank

hasverifiedtheidentityof,andperformedongoingduediligenceon,thecustomershaving direct access accounts of the correspondent and that it is able to providerelevantcustomeridentificationdatauponrequestbythecorrespondentbank.

Correspondent banking customers presenting greater risk, including shell companies,shallbesubjecttoenhancedduediligenceunderRule9.a.9.a. Rule9.a.18. Wire/FundTransfers. Becauseof the riskassociatedwithdealingwithwire/fund transfers, where a covered institution may unknowingly transmit proceeds ofunlawfulactivitiesorfundsintendedtofinanceterroristactivities, itshallestablishpoliciesand procedures designed to prevent it from being utilized for that purpose which shallinclude,butnotlimitedto,thefollowing:

(a) The beneficiary institution shall not accept instructions to payout wire/fundtransfers to noncustomer beneficiary, unless it has conducted the necessarycustomerduediligence toestablish the trueand full identityandexistenceofsaidbeneficiary. Should the originator and beneficiary be the same person, thebeneficiary institutionmay rely on the customer due diligence conducted by theoriginatinginstitutionsubjecttotherulesonThirdPartyreliancetobepromulgatedby theSupervisingAuthorities, treating theoriginating institutionasThirdPartyashereindefined;

(b)Theoriginating institutionshallnotacceptinstructionstowire/fundtransferfromanoncustomer originator, unless it has conducted the necessary customer duediligencetoestablishthetrueandfullidentityandexistenceofsaidoriginator;

(c) Incrossborderwire/fundtransfers,iftheoriginatorisahighriskcustomerashereindescribed, the beneficiary institution shall conduct enhanced due diligence underRule 9.a.9.a on the beneficiary and the originator. Where additional informationcannotbeobtained,oranyinformationordocumentprovidedisfalseorfalsified,orresult of the validation process is unsatisfactory, the beneficiary institution shallrefusetoeffectthewire/fundtransfersorthepayoutoffundswithoutprejudicetothereportingofasuspicioustransactiontotheAMLCwhencircumstanceswarrant;

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(d)Wheneverpossible,manually initiated fund transfer (MIFT) instructionsshouldnotbetheprimarydeliverymethod.Everyeffortshallbemadetoprovideclientwithanelectronic banking solution. However, where MIFT is utilized, the SupervisingAuthoritiesshallissuepertinentrulesonvalidationprocedures;

(e) Crossborderanddomesticwire/fundtransfersandrelatedmessagenotexceedingathresholdamounttobedeterminedbytheSupervisingAuthoritiesoritsequivalentinforeigncurrencyshallincludeaccurateandmeaningfuloriginatorandbeneficiaryinformation. The following information shall remainwith the transfer or relatedmessagethroughthepaymentchain:

1. thenameoftheoriginator;2. thenameofthebeneficiary;and3. an account number of the originator and beneficiary, or in its absence, a unique

transactionreferencenumber. Forcrossborderanddomesticwire/fund transfersand relatedmessageamounting tosaid threshold amount to be determined by the Supervising Authorities or more or itsequivalent in foreigncurrency, the following informationaccompanyingallqualifyingwiretransfersshouldalwayscontain:

1. thenameoftheoriginator;2. the originator account number where such an account is used to process the

transaction;3. the originators address, or national identity number, or customer identification

number,ordateandplaceofbirth;4. thenameofthebeneficiary;and5. the beneficiary account number where such an account is used to process the

transaction.(f) Shouldanywire/fundtransferamountingtothethresholdamounttobedetermined

by the Supervising Authorities or more or its equivalent in foreign currency beunaccompanied by the required originator and beneficiary information, thebeneficiaryinstitutionshallexertalleffortstoestablishthetrueandfullidentityandexistenceof theoriginatorbyrequiringadditional information fromtheoriginatinginstitutionorintermediaryinstitution.Itshalllikewiseapplyenhancedduediligenceunder Rule 9.a.9.a to establish the true and full identity and existence of thebeneficiary. Whereadditional informationcannotbeobtained,orany informationor document provided is false or falsified, or result of the validation process isunsatisfactory, the beneficiary institution shall refuse to effect the wire/fundtransferor thepayoutof fundswithoutprejudice to the reportingofasuspicioustransactiontotheAMLCwhencircumstanceswarrant.

Rule 9.a.19. Shell Company/Shell Bank. A covered institution shall undertakebusiness/banking relationship with a shell company with extreme caution and always applyenhancedduediligenceunderRule9.a.9.a. NoshellbankshallbeallowedtooperateorbeestablishedinthePhilippines.Acoveredinstitution shall refuse to enter into,or continue, correspondentbanking relationshipwith

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them. Itshall likewiseguardagainstestablishingrelationswith foreign financial institutionsthatpermittheiraccountstobeusedbyshellbanks. Rule 9.a.20. Foreign ExchangeDealers,MoneyChangers andRemittanceAgents Acoveredinstitutionshallrequiretheircustomerswhichareforeignexchangedealers,moneychangersandremittanceagentstosubmitacopyofthecertificateofregistrationissuedtothembytheBSPaspartoftheircustomeridentificationrequirement.SuchcustomersshallbesubjecttoenhancedduediligenceunderRule9.a.9.a.Rule9.b.RecordKeepingRequirements. Rule9.b.1.RecordKeeping:KindsofRecordsandPeriodforRetention.Allrecordsofall transactions of covered institutions shall bemaintained and safely stored for five (5)years from thedatesof transactions.Said recordsand filesshallcontain the fulland trueidentityoftheownersorholdersoftheaccounts involved inthecoveredtransactionsandall other customer identification documents. Covered institutions shall undertake thenecessary adequate securitymeasures to ensure the confidentiality of such records andfiles.Covered institutions shallprepare andmaintaindocumentation, in accordancewiththe aforementioned client identification requirements, on their customer accounts,relationshipsandtransactionssuchthatanyaccount,relationshiportransactioncanbesoreconstructedastoenabletheAMLC,and/orthecourtstoestablishanaudittrailformoneylaundering.Coveredinstitutionsshalllikewisekeeptheelectroniccopiesofallcoveredandsuspicioustransactionreportsforatleastfive(5)yearsfromthedatesofsubmissiontotheAMLC. Rule9.b.2.ExistingandNewAccountsandNewTransactions. Allrecordsofexistingandnewaccountsandofnewtransactionsshallbemaintainedandsafelystoredforfive(5)yearsfromOctober17,2001orfromthedatesoftheaccountsortransactions,whicheverislater. Rule9.b.3.ClosedAccounts.Withrespecttoclosedaccounts,therecordsoncustomeridentification, account files and business correspondence shall be preserved and safelystoredforatleastfive(5)yearsfromthedateswhentheywereclosed. Rule9.b.4.RetentionofRecordsWhereaCaseofMoneyLaundering,CivilForfeitureorUnderlyingUnlawfulActivity,HasBeen Filed in Court. If amoney laundering, civilforfeitureortheunderlyingunlawfulactivitycasebasedonorpertainingtoanyrecordkeptbythecovered institutionconcernedhasbeenfiled incourt,saidrecordmustberetainedand safelykeptbeyond theperiodstipulated in the three (3) immediatelyprecedingsubRules,asthecasemaybe,untilitisconfirmedthatthecasehasbeenresolved,decidedorterminatedwithfinalitybythecourt.

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Rule9.b.5. FormofRecords.Recordsshallberetainedasoriginals insuchformsasareadmissible incourtpursuant toexisting lawsand theapplicablerulespromulgatedbytheSupremeCourt.Rule9.c.ReportingofCoveredandSuspiciousTransactions. Rule 9.c.1. Period ofReporting Covered Transactions and Suspicious Transactions. Covered institutions shall report to the AMLC all covered transactions and suspicioustransactionswithin five (5)workingdays fromoccurrence thereof,unless the supervisingauthorityconcernedprescribesalongerperiodnotexceedingten(10)workingdays. Shouldatransactionbedeterminedtobebothacoveredandasuspicioustransaction,thecoveredinstitutionshallreportthesameasasuspicioustransaction. Rule 9.c.2. Covered and Suspicious Transaction Report Forms. The CoveredTransactionReport(CTR)andtheSuspiciousTransactionReport(STR)shallbeintheformsprescribedbytheAMLC. Covered transactionreportsandsuspicious transaction reportsshallbesubmitted inasecuredmannertotheAMLCinelectronicform. Rule9.c.3.ExemptionfromBankSecrecyLaws.WhenreportingcoveredorsuspicioustransactionstotheAMLC,coveredinstitutionsandtheirofficersandemployees,shallnotbedeemedtohaveviolatedR.A.No.1405,asamended,R.A.No.6426,asamended,R.A.No.8791andothersimilar laws,butareprohibitedfromcommunicating,directlyor indirectly,in any manner or by any means, to any person the fact that a covered or suspicioustransaction reportwasmade, the contents thereof, or any other information in relationthereto. In caseof violation thereof, the concernedofficerandemployeeof the coveredinstitutionshallbecriminallyliable. Rule 9.c.4. Confidentiality Provisions. When reporting covered transactions orsuspicioustransactionstotheAMLC,coveredinstitutionsandtheirofficersandemployees,areprohibitedfromcommunicating,directlyor indirectly, inanymannerorbyanymeans,toanyperson,entity, themedia, the fact thatacoveredor suspicious transaction reportwasmade,thecontentsthereof,oranyotherinformation inrelationthereto.Neithermaysuchreportingbepublishedoraired inanymannerorformbythemassmedia,electronicmail, or other similar devices. In case of violation thereof, the concerned officer, andemployee,ofthecoveredinstitution,ormediashallbeheldcriminallyliable. Rule 9.c.5. SafeHarbor Provisions. No administrative, criminal or civil proceedingsshall lieagainstanyperson forhavingmadea covered transaction reportora suspicioustransactionreportintheregularperformanceofhisdutiesandingoodfaith,whetherornotsuchreportingresultsinanycriminalprosecutionunderthisActoranyotherPhilippinelaw.

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RULE10AuthoritytoFilePetitionsforFreezeOrder

Rule10.a.Freezingofanymonetaryinstrumentorproperty.(1)UponverifiedexpartepetitionbytheAMLCandafterdeterminationthatprobable

causeexiststhatanymonetary instrumentorproperty is inanywayrelatedtoanyunlawfulactivityasdefinedinRule3.hhereofortoamoneylaunderingoffense,theCourtofAppealsmayissueafreezeorderonsaidmonetaryinstrumentorpropertywhichshallbeeffectiveimmediately.

(2) TheRuleofProcedureinCasesofCivilForfeiture,AssetPreservation,andFreezingofMonetary Instrument,Property,orProceedsrepresenting, Involving,orRelating toanUnlawfulActivityorMoneyLaunderingOffenseunderRepublicActNo.9160,AsAmended (A.M.No. 051104SC) shall govern the proceedings in all petitions forfreezeorderinstitutedpursuanttoR.A.No.9160,asamended.

(3) Considering the intricate and diverse web of related and interlocking accountspertainingtothemonetaryinstrumentsorpropertiesthatanypersonmaycreateinthedifferentcoveredinstitutions,theirbranchesand/orotherunits,theAMLCmayfileapetitionwiththeCourtofAppealsforthefreezingofthemonetaryinstrumentsor properties in the names of the reported owners/holders and monetaryinstruments or properties named in the Petition of the AMLC including relatedaccountsasdefinedunderRule3.e.3oftheseRules.

(3) Thefreezeordershallbeeffectivefortwenty(20)daysunlessextendedbytheCourtofAppealsuponmotionbytheAMLC.

(4) TheCourtshallactonthepetitiontofreezewithintwentyfour(24)hoursfromfilingof the petition. If the petition is filed a day before a nonworking day, thecomputationofthetwentyfour(24)hourperiodshallexcludethenonworkingdays.

(5)Apersonwhoseaccounthasbeenfrozenmay fileamotionto liftthe freezeorderand thecourtmust resolve thismotionbefore theexpirationof the twenty (20)dayoriginalfreezeorder.

(6)Nocourtshallissueatemporaryrestrainingorderorawritofinjunctionagainstanyfreezeorder,excepttheSupremeCourt.

Rule 10.b. Definition of Probable Cause. Probable cause includes such facts andcircumstanceswhichwould leadareasonablydiscreet,prudentorcautiousmantobelievethatanunlawfulactivityand/oramoney launderingoffense isabouttobe,isbeingorhasbeencommittedandthattheaccountoranymonetaryinstrumentorpropertysoughttobefrozenisinanywayrelatedtosaidunlawfulactivityand/ormoneylaunderingoffense.

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Rule10.c.DutyofCoveredInstitutionsuponreceiptthereof. Rule 10.c.1. Upon receipt of the notice of the freeze order, the covered institutionconcerned shall immediately freeze the monetary instrument or property and relatedaccountssubjectthereof. Rule 10.c.2. The covered institution shall likewise immediately furnish a copy of thenotice of the freeze order upon the owner or holder of the monetary instrument orpropertyorrelatedaccountssubjectthereof. Rule10.c.3.Withintwentyfour(24)hoursfromreceiptofthefreezeorder,thecoveredinstitution concerned shall submit to the Court of Appeals and the AMLC, by personaldelivery, a detailed written return on the freeze order, specifying all the pertinent andrelevantinformationwhichshallincludethefollowing: (a)theaccountnumbers; (b)thenamesoftheaccountownersorholders; (c)theamountofthemonetaryinstrument,propertyorrelatedaccountsasofthetimetheywerefrozen; (d)allrelevantinformationastothenatureofthemonetaryinstrumentorproperty; (e)any informationon the relatedaccountspertaining to themonetary instrumentorproperty subjectofthefreezeorder;and (f) thetimewhenthefreezethereontookeffect.Rule 10.d. Upon receipt of the freeze order issued by the Court of Appeals and uponverificationbythecoveredinstitutionthattherelatedaccountsoriginatedfromand/orarematerially linked to themonetary instrumentorpropertysubjectof the freezeorder, thecoveredinstitutionshallfreezetheserelatedaccountswhereverthesemaybefound.ThereturnofthecoveredinstitutionasrequiredunderRule10.c.3shallincludethefactofsuch freezing and an explanation as to the grounds for the identification of the relatedaccounts.Iftherelatedaccountscannotbedeterminedwithintwentyfour(24)hoursfromreceiptofthe freeze order due to the volume and/or complexity of the transactions or any otherjustifiablefactor(s),thecoveredinstitutionshalleffectthefreezingoftherelatedaccounts,monetary instruments and properties as soon as practicable and shall submit asupplementalreturnthereoftotheCourtofAppealsandtheAMLCwithintwentyfour(24)hoursfromthefreezingofsaidrelatedaccounts,monetaryinstrumentsandproperties.

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Rule10.e.ExtensionoftheFreezeOrder.Beforethetwenty(20)dayperiodofthefreezeorder issuedby theCourtofAppealsexpires, theAMLCmay fileamotionwith thesamecourt foranextensionof saidperiod.Upon the timely filingof suchmotionandpendingresolution thereof by the Court of Appeals to extend the period, said period shall bedeemed suspended and the freeze order shall remain effective. However, the coveredinstitutionshallnotlifttheeffectsofthefreezeorderwithoutsecuringofficialconfirmationfromtheAMLC.Rule10.f.ProhibitionagainstIssuanceofFreezeOrdersagainstcandidatesforanelectoralofficeduringelectionperiod.Noassetsshallbefrozentotheprejudiceofacandidateforanelectoralofficeduringanelectionperiodwithintwentyfour(24)hoursfromthefreezingofsaidrelatedaccounts,monetaryinstrumentsandproperties.

RULE11AuthoritytoInquireintoDepositsorInvestments

Rule11.a.AuthoritytoInquireintoDepositsorInvestmentswithcourtorder. RULE 11.a.1 Notwithstanding the provisions of RepublicActNo. 1405, as amended;RepublicActNo.6426,asamended;RepublicActNo.8791,andotherlaws,theAMLCmayinquire intoor examine anyparticulardepositor investment, including related accounts,with any banking institution or nonbank financial institution and their subsidiaries andaffiliatesuponorderby theCourtofAppealsbasedonanexparteapplication incasesofviolation of thisAct,when ithasbeen established that there isprobable cause that thedeposits or investments involved, including related accounts, are related to an unlawfulactivityasdefined inRule3.hhereoforamoney launderingoffenseunderRule4hereof;exceptincasesasprovidedunderRule11.b. Rule11.a.2.TheCourtofAppealsshallactontheapplicationtoinquireintoorexamineany deposit or investment with any banking institution or nonbank financial institutionwithintwentyfour(24)hoursfromfilingoftheapplication. Rule11.a.3AcourtorderexpartemustbeobtainedbeforetheAMLCcaninquireintotherelatedaccounts;provided,thattheprocedurefortheexparteapplicationforanorderofinquiryintotheprincipalaccountshallbethesamewiththatoftherelatedaccounts. Rule11.a.4.Theauthoritytoinquireintoorexaminethemainaccountandtherelatedaccounts shall complywith the requirements ofArticle III, Sections 2 and 3 of the 1987Constitution,whichareherebyincorporatedbyreference.Rule11.b.Authorityto Inquire intoBankDepositswithoutcourtorder.TheAMLCmayinquireintoorexamineanydepositorinvestmentwithanybankinginstitutionornonbankfinancial institution and their subsidiaries and affiliates without a court order in casesinvolvinganyofthefollowingunlawfulactivities:

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(1) Kidnapping forransomunderArticle267ofActNo.3815,otherwiseknownas theRevisedPenalCode,asamended;

(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act No. 9165,otherwiseknownastheComprehensiveDangerousDrugsActof2002;

(3)HijackingandotherviolationsunderRepublicActNo.6235;destructivearsonandmurder, as defined under the Revised Penal Code, as amended, including thoseperpetratedbyterroristsagainstnoncombatantpersonsandsimilartargets;and

(4) FeloniesoroffensesofanaturesimilartothosementionedinSection3(i)(1),(2)and(12)oftheAMLA,asamended,whicharepunishableunderthepenallawsofothercountries, and terrorism and conspiracy to commit terrorism as defined andpenalizedunderRepublicActNo.9372.

Rule 11.b.1. Procedure for examination without a court order. Where any of theunlawfulactivitiesenumeratedunderRule11.bisinvolved,andthereisprobablecausethatthedepositsor investmentswithanybanking institutionornonbank financial institutionandtheirsubsidiariesandaffiliatesareinanywayrelatedtoanyoftheseunlawfulactivities,theAMLCshallissuearesolutionauthorizingtheinquiryintoorexaminationofanydepositor investment with such banking institution or nonbank financial institution and theirsubsidiariesandaffiliatesconcerned. Rule 11.b.2. Duty of the banking institution or nonbank financial institution uponreceipt of the AMLC resolution. The banking institution or the nonbank financialinstitutionandtheirsubsidiariesandaffiliatesshall,immediatelyuponreceiptoftheAMLCresolution,allow theAMLCand/or itsauthorized representatives fullaccess toall recordspertainingtothedepositorinvestmentaccount.Any officer, employee, stockholder, owner, representative, agent, manager, director orofficerinchargeofanybanking institutionornonbankfinancial institutionwhopurposelyfailsorwillfullyrefusestopermittheAMLCoritsSecretariatsdulyauthorizedpersonneltoconductaninquiryintoorexaminationofanydepositorinvestmentshallbepunishedbyafineofnot less thanOneHundredThousandPhilippinePesos (PHP100,000.00)normorethan Five Hundred Thousand Philippine Pesos (PHP500,000.00). The imposition ofadministrative penalty shall be without prejudice to the filing of appropriate criminalchargesagainstsaidofficer,employee,stockholder,owner,representative,agent,manager,directororofficerinchargeofanybankinginstitutionornonbankfinancialinstitution.Rule11.c. BSPAuthority to check compliancewith theAMLA,asamended,and theseRules.ToensurecompliancewiththerequirementsoftheAMLA,asamended,andtheseRules,theBSPmay,inthecourseofaperiodicorspecialexamination,checkthecomplianceof a covered institution through generally accepted examination techniques which mayinclude account transaction sampling anduseof electronic audit software in accordance

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with BSP Examination Procedures for AML/CFT Activities. For this purpose, it mayundertakethefollowingactivities:

1. Reviewanycustomer identificationandaccountopeningdocumentsandrecordsofexistingaccounts,includingbutnotlimitedtodeposits,investments,loans,treasury,custodianship, trust and fiduciary accounts, to determine compliance with therequisite: a) conduct of facetoface contact except as provided for under Rules9.a.10, 9.a.11 and 9.a.13 of these Rules; b) completeness and accuracy of theminimum informationanddocuments required tobeobtainedunder theseRules;and c) recordsretention period, as well as compliance with all other regulationsissuedbytheAMLCandtheBSPtoassessthatthecovered institutionhasproperlyestablishedandverifiedthetrueandfullidentityofitscustomers.

2. RequireacoveredinstitutiontoprovideBSPexaminersaccesstoelectroniccopiesofallcoveredandsuspicious transaction reports filedby thecovered institutionwiththe AMLC in order to determine accurate and complete reporting of saidtransactionstotheAMLCpursuanttotheAMLA,asamended,theseRulesandBSPissuances.

3. Review supporting transaction records anddocuments, including theelectronicormanual AML/CFT system, for purposes of ascertaining that all covered andsuspicioustransactionswerecapturedandreportedtotheAMLC,withintheperiodallowed by the AMLA, as amended, and these Rules, and to determine propermaintenanceandretentionoftransactiondocumentsandrecords.

4.Review all documents and records related to closed accounts, peso and foreigncurrency nonchecking numbered accounts, highrisk accounts, suspicioustransactionsreportedtotheAMLCandaccountswhicharethesubjectofamoneylaundering case, toensure that a covered institution isproperlymonitoring thesetypes of accounts/transactions and is complying with recordsretentionrequirements under the AMLA, as amended, these Rules and/or BSP AML/CFTregulations.

Rule 11.c.1 BSP Examination Procedures for AML/CFT Activities and Risk RatingSystem.ToensurecompliancewiththeAMLA,asamended,andtheseRules,theBSPshallpromulgate its examination procedures for AML/CFT activities and adopt a risk ratingsystem that will assess a covered institution and its subsidiaries and affiliates overallAML/CFTriskmanagementsystem. AnyfindingsoftheBSPwhichmayconstituteaviolationofanyprovisionoftheAMLA,as amended, and these Rules shall be referred to the AMLC for its appropriate action

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without prejudice to theBSP taking appropriate action against a noncomplying coveredinstitutionanditsresponsiblepersonnel.

RULE12

AuthoritytoInstituteForfeitureProceedingsRule 12.a.Authority to Institute Civil Forfeiture Proceedings. TheAMLC is authorizedunderSection7(3)oftheAMLA,asamended,toinstitutecivilforfeitureproceedingsandallotherremedialproceedingsthroughtheOfficeoftheSolicitorGeneral.Rule 12.b. Applicable Rule. The Rule of Procedure in Cases of Civil Forfeiture, AssetPreservation, and Freezing ofMonetary Instrument, Property, or Proceeds Representing,Involving,orRelatingtoanUnlawfulActivityorMoneyLaunderingOffenseunderRepublicAct No. 9160, as Amended (A.M. No. 051104SC) shall govern all civil forfeitureproceedingsinstitutedpursuanttotheAMLA,asamended.Rule12.c.ClaimonForfeitedAssets.Wherethecourthasissuedanorderofforfeitureinaproceeding institutedpursuant toSection12oftheAMLA,asamended,anyotherpersonclaiminganinterestthereinmayapply,byverifiedpetition,foradeclarationthatthesamelegitimatelybelongstohim,andforsegregationorexclusionofthemonetaryinstrumentorproperty corresponding thereto. The verified petition shall be filedwith the courtwhichrendered theorderof forfeiturewithin fifteen (15) days from the dateof finality of theorderofforfeiture,indefaultofwhichthesaidordershallbecomeexecutory.Rule12.d.PaymentinlieuofForfeiture.Wherethecourthasissuedanorderofforfeitureofthemonetary instrumentorpropertyrelatedtoanunlawfulactivityunderSection3(i)oftheAMLA,asamended,oramoneylaunderingoffenseunderSection4oftheAMLA,asamended,and said order cannot be enforced because any particularmonetary instrument or propertycannot,withduediligence,belocated,orithasbeensubstantiallyaltered,destroyed,diminishedin value or otherwise rendered worthless by any act or omission, directly or indirectly,attributable to the offender, or it has been concealed, removed, converted or otherwisetransferredtopreventthesamefrombeingfoundortoavoidforfeiturethereof,oritislocatedoutsidethePhilippinesorhasbeenplacedorbroughtoutsidethejurisdictionofthecourt,orithas been commingledwith othermonetary instruments or property belonging to either theoffenderhimselforathirdpersonorentity,therebyrenderingthesamedifficulttoidentifyorbesegregatedforpurposesofforfeiture,thecourtmay,insteadofenforcingtheorderofforfeitureofthemonetaryinstrumentorpropertyorpartthereoforinteresttherein,accordinglyordertheoffender topayanamountequal to thevalueof saidmonetary instrumentorproperty.Thisprovisionshallapplyinbothcivilandcriminalforfeiture.

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RULE13MutualAssistanceamongStates

Rule13.a.Request forAssistance fromaForeignState. Wherea foreignStatemakesarequestforassistanceintheinvestigationorprosecutionofamoneylaunderingoffense,theAMLCmayexecutetherequestorrefusetoexecutethesameandinformtheforeignStateofanyvalidreasonfornotexecutingtherequestorfordelayingtheexecutionthereof.Theprinciplesofmutualityandreciprocityshall,forthispurpose,beatalltimesrecognized.Rule13.b.PowersoftheAMLCtoActonaRequestforAssistancefromaForeignState.TheAMLCmayexecutearequestforassistancefromaforeignStateby:(1)trackingdown,freezing,restrainingandseizingassetsallegedtobeproceedsofanyunlawfulactivityunderthe procedures laid down in the AMLA, as amended, and in these Rules; (2) givinginformationneededbytheforeignStatewithintheprocedures laiddown intheAMLA,asamended,and in theseRules;and (3)applying foranorderof forfeitureofanymonetaryinstrumentorpropertywiththecourt:Provided,Thatthecourtshallnotissuesuchanorderunlesstheapplication isaccompaniedbyanauthenticatedcopyoftheorderofacourt inthe requestingStateordering the forfeitureofsaidmonetary instrumentorpropertyofapersonwhohasbeenconvictedofamoneylaunderingoffenseoranunlawfulactivityintherequestingState,andacertificationoranaffidavitofacompetentofficeroftherequestingState stating that the convictionand theorderof forfeitureare finaland thatno furtherappealliesinrespectofeither.Rule13.c.ObtainingAssistance fromForeignStates. TheAMLCmaymakea request toanyforeignStateforassistancein(1)trackingdown,freezing,restrainingandseizingassetsalleged to be proceeds of any unlawful activity; (2) obtaining pertinent information anddocuments that it needs relating to anymoney laundering offense or any othermatterdirectlyor indirectly related thereto; (3) to the extent allowedby the lawof the foreignState,applyingwiththepropercourtthereinforanordertoenteranypremisesbelongingtoorinthepossessionorcontrolof,anyorallofthepersonsnamedinsaidrequest,and/orsearchanyorall suchpersonsnamed thereinand/or removeanydocument,materialorobjectnamed insaidrequest:Provided,Thatthedocumentsaccompanyingtherequest insupportoftheapplicationhavebeendulyauthenticated inaccordancewiththeapplicablelaw or regulationof the foreign State; and (4) applying for anorderof forfeitureof anymonetaryinstrumentorpropertyinthepropercourtintheforeignState:Provided,Thattherequest isaccompaniedbyanauthenticatedcopyof theorderof theRegionalTrialCourtorderingtheforfeitureofsaidmonetaryinstrumentorpropertyandanaffidavitoftheclerkofcourtstatingthattheorderofforfeitureisfinalandthatnofurtherappealliesinrespectofit.

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Rule 13.d. Limitations on Requests for Mutual Assistance. The AMLC may refuse tocomplywithanyrequestforassistancewheretheactionsoughtbytherequestcontravenesanyprovisionof theConstitutionor the execution of a request is likely to prejudice thenationalinterestofthePhilippines,unlessthereisatreatybetweenthePhilippinesandtherequesting State relating to the provision of assistance in relation to money launderingoffenses.Rule 13.e. Requirements for Requests for Mutual Assistance from Foreign States. ArequestformutualassistancefromaforeignStatemust(1)confirmthataninvestigationorprosecution isbeingcondu