The Anti-Money Laundering Act of 2001 (aka Republic Act No. 9160) Simplified

The Anti-Money Laundering Act of 2001, also known as Republic Act No. 9160, is a Philippine law enacted to combat money laundering. It aims to protect and preserve the integrity of the Philippine financial system, and ensure that the country does not become a money laundering site for the proceeds of unlawful activities. It also authorizes the Anti-Money Laundering Council (AMLC) to investigate Covered Institutions, analyze transactions, and recommend prosecution or sanctions.

The Covered institutions include PAWNSHOPS and as a Covered Institution, you are mandated to comply with the requirements set forth by the AMLC. 

These include, but are not limited to:

1. Conducting Customer Due Diligence (CDD) — This involves establishing and verifying the identity of your clients and beneficial owners, understanding the nature and purpose of the business relationship, and conducting ongoing monitoring.

2. Performing Background Checks — You are expected to conduct appropriate background checks on clients and customers prior to the establishment of a business relationship. This is to ensure that your organization is not inadvertently facilitating money laundering or terrorist financing activities.

3. Reporting Obligations — You are required to submit Covered and Suspicious Transaction Reports (CTRs/STRs) for transactions above a certain threshold (e.g., over PHP 500,000 within one banking day) or transactions that appear to have no legal purpose or seem intended to avoid reporting thresholds, to the AMLC within the prescribed period,

4. Record-Keeping — You must retain records of transactions and customer information for at least five (5) years, as required by law. 

Other Covered Institutions including banks, insurance companies, securities dealers, remittance centers, and other financial institutions, and certain non-financial businesses like law firms, real estate dealers, jewelry businesses, casinos, and others, are also mandated to do the same.

Failure to comply with these obligations may subject your organization to administrative, civil, or criminal liabilities. Individuals or institutions that violate AMLA may face fines, imprisonment, and revocation of licenses or accreditations.

Should you need assistance or clarification regarding your compliance responsibilities, we encourage you to refer to the AMLC’s official website or contact their office directly. We also recommend coordinating with your designated Compliance Officer to ensure that all internal systems and controls are aligned with AMLC regulations.