A. ANTI-MONEY LAUNDERING ACT (R.A.

9160 as amended by RA 9194)

1. POLICY OF THE LAW

Sec. 3. Declaration of Policy. It is the policy of the State that:
(a) The integrity and confidentiality of bank accounts shall be
protected and preserved;
(b) The Philippines shall not be used as a money laundering site for
the proceeds of any unlawful activity; and
(c) Consistent with its foreign policy, the Philippines shall extend
cooperation in transnational investigations and prosecutions of
persons involved in money laundering activities wherever
committed.

2. COVERED INSTITUTIONS

(a) "Covered institutions" refer to the following:

(1) Banks, offshore banking units, quasi-banks, trust entities, non-stock
savings and loan associations, pawnshops, and all other institutions
including their subsidiaries and affiliates supervised and/or regulated by
the Bangko Sentral ng Pilipinas (BSP).
A subsidiary means an entity more than fifty percent (50%) of the
outstanding voting stock of which is owned by a bank, quasi-bank, trust
entity or any other institution supervised or regulated by the BSP.
An affiliate means an entity at least twenty percent (20%) but not
exceeding fifty percent (50%) of the voting stock of which is owned by a
bank, quasi-bank, trust entity, or any other institution supervised
and/or regulated by the BSP.
(2) Insurance companies, insurance agents, insurance brokers,
professional reinsurers, reinsurance brokers, holding companies, holding
company systems and all other persons and entities supervised and/or
regulated by the Insurance Commission (IC).
An insurance company includes those entities authorized to transact
insurance business in the Philippines, whether life or non-life and
whether domestic, domestically incorporated or branch of a foreign
entity. A contract of insurance is an agreement whereby one undertakes
for a consideration to indemnify another against loss, damage or
liability arising from an unknown or contingent event. Transacting
insurance business includes making or proposing to make, as insurer,
any insurance contract, or as surety, any contract of suretyship as a
vocation and not as merely incidental to any other legitimate business
or activity of the surety, doing any kind of business specifically
recognized as constituting the doing of an insurance business within the
meaning of Presidential Decree (P. D.) No. 612, as amended, including a
reinsurance business and doing or proposing to do any business in
substance equivalent to any of the foregoing in a manner designed to
evade the provisions of P. D. No. 612, as amended.
An insurance agent includes any person who solicits or obtains
insurance on behalf of any insurance company or transmits for a person
other than himself an application for a policy or contract of insurance
to or from such company or offers or assumes to act in the negotiation
of such insurance.
An insurance broker includes any person who acts or aids in any manner
in soliciting, negotiating or procuring the making of any insurance
contract or in placing risk or taking out insurance, on behalf of an
insured other than himself.
A professional reinsurer includes any person, partnership, association or
corporation that transacts solely and exclusively reinsurance business
in the Philippines, whether domestic, domestically incorporated or a
branch of a foreign entity. A contract of reinsurance is one by which an
insurer procures a third person to insure him against loss or liability by
reason of such original insurance.
A reinsurance broker includes any person who, not being a duly
authorized agent, employee or officer of an insurer in which any
reinsurance is effected, acts or aids in any manner in negotiating
contracts of reinsurance or placing risks of effecting reinsurance, for
any insurance company authorized to do business in the Philippines.
A holding company includes any person who directly or indirectly
controls any authorized insurer.
A holding company system includes a holding company together with its
controlled insurers and controlled persons.
(3) (i) Securities dealers, brokers, salesmen, associated persons of
brokers or dealers, investment houses, investment agents and
consultants, trading advisors, and other entities managing securities or
rendering similar services, (ii) mutual funds or open-end investment
companies, close-end investment companies, common trust funds, pre-
need companies or issuers and other similar entities; (iii) foreign
exchange corporations, money changers, money payment, remittance,
and transfer companies and other similar entities, and (iv) other entities
administering or otherwise dealing in currency, commodities or
financial derivatives based thereon, valuable objects, cash substitutes
and other similar monetary instruments or property supervised and/or
regulated by the Securities and Exchange Commission (SEC).
A securities broker includes a person engaged in the business of buying
and selling securities for the account of others.
A securities dealer includes any person who buys and sells securities for
his/her account in the ordinary course of business.
A securities salesman includes a natural person, employed as such or as
an agent, by a dealer, issuer or broker to buy and sell securities.
An associated person of a broker or dealer includes an employee thereof
who directly exercises control of supervisory authority, but does not
include a salesman, or an agent or a person whose functions are solely
clerical or ministerial.
An investment house includes an enterprise which engages or purports
to engage, whether regularly or on an isolated basis, in the underwriting
of securities of another person or enterprise, including securities of the
Government and its instrumentalities.
A mutual fund or an open-end investment company includes an
investment company which is offering for sale or has outstanding, any
redeemable security of which it is the issuer.
A closed-end investment company includes an investment company
other than open-end investment company.
A common trust fund includes a fund maintained by an entity
authorized to perform trust functions under a written and formally
established plan, exclusively for the collective investment and
reinvestment of certain money representing participation in the plan
received by it in its capacity as trustee, for the purpose of
administration, holding or management of such funds and/or properties
for the use, benefit or advantage of the trustor or of others known as
beneficiaries.
A pre-need company or issuer includes any corporation supervised
and/or regulated by the SEC and is authorized or licensed to sell or offer
for sale pre-need plans.
A foreign exchange corporation includes any enterprise which engages
or purports to engage, whether regularly or on an isolated basis, in the
sale and purchase of foreign currency notes and such other foreign-
currency denominated non-bank deposit transactions as may be
authorized under its articles of incorporation.
An investment agent or consultant or trading advisor includes any
person who is engaged in the business of advising others as to the value
of any security and the advisability of trading in any security or in the
business of issuing reports or making analysis of capital markets.
However, in case the issuance of reports or the rendering of the analysis
of capital markets is solely incidental to the conduct of the business or
profession of banks, trust companies, journalists, reporters, columnists,
editors, lawyers, accountants, teachers, and publishers of newspapers
and business or financial publications of general and regular circulation,
including their employees, they shall not be deemed to be investment
agents or consultants or trade advisors within the contemplation of the
AMLA and these Rules.
 A money changer includes any person in the business of buying or
selling foreign currency notes.
A money payment, remittance and transfer company includes any
person offering to pay, remit or transfer or transmit money on behalf of
any person to another person.

3. OBLIGATIONS OF COVERED INSTITUTIONS

PREVENTIVE MEASURES

Rule 9. Preventive Measures. -

A. Customer Due Diligence. - Covered persons shall establish and

record the true identity of their clients based on official documents, as
defined under Rule 3.M of this RIRR. They shall maintain a system of
verifying the true identity of their clients based on reliable,
independent source, documents, data, or information. In case of
corporate clients, covered persons are required to maintain a system
of verifying their legal existence and organizational structure, as well
as the authority and identification of all persons purporting to act on
their behalf. Covered persons shall establish appropriate systems and
methods, and adequate internal controls, compliant with the AMLA,
this RIRR, other AMLC issuances, the guidelines issued by the
Supervising Authorities, and internationally accepted anti-money
laundering standards, for verifying and recording the true and full
identity of their customers.

4. COVERED TRANSACTIONS
Covered transaction refers to:

1. A transaction in cash or other equivalent monetary instrument

exceeding Five Hundred Thousand pesos (Php500,000.00)

2. A transaction exceeding One Million pesos (Php1,000,000.00) in cases

of jewelry dealers, dealers in precious metals and dealers in precious
stones.

5. SUSPICIOUS TRANSACTIONS
 H. Suspicious Transaction refers to a transaction, regardless of amount,
where any of the following circumstances exists:

1. there is no underlying legal or trade obligation, purpose or economic

justification;

2. the client is not properly identified;

3. the amount involved is not commensurate with the business or

financial capacity of the client;

4. taking into account all known circumstances, it may be perceived that

the clients transaction is structured in order to avoid being the subject of
reporting requirements under the AMLA;

5. any circumstance relating to the transaction which is observed to

deviate from the profile of the client and/or the clients past transactions
with the covered person;

6. the transaction is in any way related to an unlawful activity or any

money laundering activity or offense that is about to be committed, is
being or has been committed; or

7. any transaction that is similar, analogous or identical to any of the

foregoing.

6. WHEN IS MONEY LAUNDERING COMMITTED

Rule 4. Money Laundering. - Money laundering is committed by:

A. Any person who, knowing that any monetary instrument or property

represents, involves, or relates to the proceeds of any unlawful activity:

1. transacts said monetary instrument or property;

2. converts, transfers, disposes of, moves, acquires, possesses or uses said

monetary instrument or property;

3. conceals or disguises the true nature, source, location, disposition,

movement or ownership of or rights with respect to said monetary instrument
or property;

4. attempts or conspires to commit money laundering offenses referred to

in (1), (2), or (3) above;

5. aids, abets, assists in, or counsels the commission of the money

laundering offenses referred to in (1), (2), or (3) above; and

6. performs or fails to perform any act as a result of which he facilitates

the offense of money laundering referred to in (1), (2), or (3) above.
7. UNLAWFUL ACTIVITIES OR PREDICATE CRIMES
T. Unlawful Activity refers to any act or omission, or series or
combination thereof, involving or having direct relation, to the following:

1. Kidnapping for Ransom under Article 267 of Act No. 3815,

otherwise known as the Revised Penal Code, as amended;

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

9165, otherwise known as the Comprehensive Dangerous Drugs Act of
2002;

3. Section 3 paragraphs b, c, e, g, h and i of Republic Act No. 3019, as

amended, otherwise known as the Anti-Graft and Corrupt Practices
Act;

4. Plunder under Republic Act No. 7080, as amended;

5. Robbery and Extortion under Articles 294, 295, 296, 299, 300,
301 and 302 of the Revised Penal Code, as amended;

6. Jueteng and Masiao punished as illegal gambling under

Presidential Decree No. 1602;

7. Piracy on the High Seas under the Revised Penal Code, as

amended, and Presidential Decree No. 532:

8. Qualified Theft under Article 310 of the Revised Penal Code, as

amended;

9. Swindling under Article 315 and Other Forms of Swindling under

Article 316 of the Revised Penal Code, as amended:

10. Smuggling under Republic Act No. 455, and Republic Act No.
1937, as amended, otherwise known as the Tariff and Customs Code of
the Philippines;

11. Violations under Republic Act No. 8792, otherwise known as the
Electronic Commerce Act of 2000;

12. Hijacking and other violations under Republic Act No. 6235,
otherwise known as the Anti-Hijacking Law; Destructive Arson; and
Murder, as defined under the Revised Penal Code, as amended;
13. Terrorism and Conspiracy to Commit Terrorism as defined and
penalized under Sections 3 and 4 of Republic Act No. 9372;

14. Financing of Terrorism under Section 4 and offenses punishable

under Sections 5, 6, 7 and 8 of Republic Act No. 10168, otherwise
known as the Terrorism Financing Prevention and Suppression Act of
2012;

15. Bribery under Articles 210, 211 and 211-A of the Revised Penal
Code, as amended, and Corruption of Public Officers under Article 212
of the Revised Penal Code, as amended;

16. Frauds and Illegal Exactions and Transactions under Articles

213, 214, 215 and 216 of the Revised Penal Code, as amended;

17. Malversation of Public Funds and Property under Articles 217

and 222 of the Revised Penal Code, as amended;

18. Forgeries and Counterfeiting under Articles 163, 166, 167, 168,
169 and 176 of the Revised Penal Code, as amended;

19. Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise

known as the Anti-Trafficking in Persons Act of 2003, as amended;

20. Violations of Sections 78 to 79 of Chapter IV of Presidential

Decree No. 705, otherwise known as the Revised Forestry Code of the
Philippines, as amended;

21. Violations of Sections 86 to 106 of Chapter IV of Republic Act No.

8550, otherwise known as the Philippine Fisheries Code of 1998;

22. Violations of Sections 101 to 107, and 110 of Republic Act No.
7942, otherwise known as the Philippine Mining Act of 1995;

23. Violations of Section 27(c), (e), (f), (g) and (i) of Republic Act No.
9147, otherwise known as the Wildlife Resources Conservation and
Protection Act;

24. Violations of Section 7(b) of Republic Act No. 9072, otherwise

known as the National Caves and Cave Resources Management
Protection Act;
 25. Violation of Republic Act No. 6539, otherwise known as the Anti-
Carnapping Act of 2002, as amended;

26. Violation of Sections 1, 3, and 5 of Presidential Decree No. 1866,

as amended, otherwise known as the decree Codifying the Laws on
Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or
Disposition of Firearms, Ammunition or Explosives;

27. Violation of Presidential Decree No. 1612, otherwise known as the

Anti-Fencing Law;

28. Violation of Section 6 of Republic Act No. 8042, otherwise known

as the Migrant Workers and Overseas Filipinos Act of 1995, as
amended;

29. Violation of Republic Act No. 8293, otherwise known as the

Intellectual Property Code of the Philippines, as amended;

30. Violation of Section 4 of Republic Act No. 9995, otherwise known

as the Anti-Photo and Video Voyeurism Act of 2009;

31. Violation of Section 4 of Republic Act No. 9775, otherwise known

as the Anti-Child Pornography Act of 2009;

32. Violations of Sections 5, 7, 8, 9, 10 (c), (d) and (e), 11, 12 and 14 of

Republic Act No. 7610, otherwise known as the Special Protection of
Children Against Abuse, Exploitation and Discrimination;

33. Fraudulent practices and other violations under Republic Act No.
8799, otherwise known as the Securities Regulation Code of 2000;

34. Felonies or offenses of a nature similar to the aforementioned

unlawful activities that are punishable under the penal laws of other
countries.

In determining whether or not a felony or offense punishable under the

penal laws of other countries is of a similar nature, as to constitute
an unlawful activity under the AMLA, the nomenclature of said felony or
offense need not be identical to any of the unlawful activities listed
above.

8. ANTI-MONEY LAUNDERING COUNCIL

B. Anti-Money Laundering Council (AMLC) refers to the financial
intelligence unit of the Republic of the Philippines which is the government
agency tasked to implement the AMLA. (2016 REVISED IMPLEMENTING
RULES AND REGULATIONS
OF REPUBLIC ACT NO. 9160, AS AMENDED)

RULE 2

COMPOSITION AND PROCEEDINGS OF

THE ANTI-MONEY LAUNDERING COUNCIL

Section 1. Composition. The members of the Anti-Money Laundering

Council (AMLC) created under the AMLA shall be the Governor of the BSP,
the Insurance Commissioner and the Chairman of the SEC. The Governor of
the BSP shall be the Chairman.
Sec. 2. Collegiality. The AMLC is a collegial body where the Chairman and
the members of the AMLC are entitled to one (1) vote each.
Sec. 3. Unanimous Decision. The AMLC shall act unanimously in
discharging its functions as defined in the AMLA and in these Rules.
However, in the case of the incapacity, absence or disability of any member
to discharge his functions, the officer duly designated or authorized to
discharge the functions of the Governor of the BSP, the Chairman of the SEC
or the Insurance Commissioner, as the case may be, shall act in his stead in
the AMLC.

9. B. Functions. - The functions of the AMLC are:

1. to require and receive covered or suspicious transaction reports from

covered persons;

2. to issue orders addressed to the appropriate Supervising Authority or the

covered person to determine the true identity of the owner of any monetary
instrument or property subject of a covered or suspicious transaction report,
or request for assistance from a foreign State, or believed by the AMLC, on
the basis of substantial evidence, to be, in whole or in part, wherever
located, representing, involving, or related to, directly or indirectly, in any
manner or by any means, the proceeds of any unlawful activity;

3. to institute civil forfeiture proceedings and all other remedial

proceedings through the Office of the Solicitor General;
4. to file complaints with the Department of Justice or the Office of the
Ombudsman for the prosecution of money laundering offenses and other
violations under the AMLA;

5. to investigate suspicious transactions and covered transactions deemed

suspicious after investigation by the AMLC, money laundering activities and
other violations of the AMLA;

6. to file with the Court of Appeals, ex parte, through the Office of the
Solicitor General:

a. a petition for the freezing of any monetary instrument or property that is

in any way related to an unlawful activity; or

b. an application for authority to inquire into or examine any particular

deposit or investment, including related accounts, with any banking
institution or non-bank financial institution.

7. to formulate and implement such measures as may be necessary and

justified under the AMLA to counteract money laundering.

8. to receive and take action in respect of any request from foreign states
for assistance in their own anti-money laundering operations as provided in
the AMLA.

9. to develop educational programs, including awareness campaign on the

pernicious effects, the methods and techniques used, and the viable means
of preventing money laundering and the effective ways of prosecuting and
punishing offenders;

10. to enlist the assistance of any branch, department, bureau, office,

agency or instrumentality of the government, including government-owned
and -controlled corporations, in undertaking any and all anti-money
laundering operations, which may include the use of its personnel, facilities
and resources for the more resolute prevention, detection and investigation
of money laundering offenses and prosecution of offenders.

11. to impose administrative sanctions for the violation of laws, rules,

regulations, orders, and resolutions issued pursuant thereto.
12. to require the Land Registration Authority and all its Registries of Deeds
to submit to the AMLC, reports on all real estate transactions involving an
amount in excess of Five Hundred Thousand Pesos (Php500,000.00) within
fifteen (15) days from the date of registration of the transaction, in a form to
be prescribed by the AMLC. The AMLC may also require the Land
Registration Authority and all its Registries of Deeds to submit copies of
relevant documents of all real estate transactions.

9.

10. FREEZING OF MONETARY INSTRUMENT OR PROPERTY

Sec. 3. Authority to Freeze Accounts.

(a) The AMLC is authorized under Sections 6 (6) and 10 of the AMLA to
freeze any account or any monetary instrument or property subject
thereof upon determination that probable cause exists that the same is in
any way related to any unlawful activity and/or money laundering
offense. The AMLC may freeze any account or any monetary instrument
or property subject thereof prior to the institution or in the course of, the
criminal proceedings involving the unlawful activity and/or money
laundering offense to which said account, monetary instrument or
property is any way related. For purposes of Section 10 of the AMLA and
Section 3, Rule 3 of these Rules, probable cause includes such facts and
circumstances which would lead a reasonably discreet, prudent or
cautious man to believe that an unlawful activity and/or a money
laundering offense is about to be, is being or has been committed and that
the account or any monetary instrument or property subject thereof
sought to be frozen is in any way related to said unlawful activity and/or
money laundering offense.
(b) The freeze order on such account shall be effective immediately for a
period not exceeding fifteen (15) days.
(c) The AMLC must serve notice of the freeze order upon the covered
institution concerned and the owner or holder of the deposit, investment
or similar account, simultaneously with the issuance thereof. Upon
receipt of the notice of the freeze order, the covered institution
concerned shall immediately stop, freeze, block, suspend or otherwise
place under its absolute control the account and the monetary instrument
or property subject thereof.
(d) The owner or holder of the account so notified shall have a non-
extendible period of seventy-two (72) hours upon receipt of the notice to
file a verified explanation with the AMLC why the freeze order should be
lifted. Failure of the owner or holder of the account to file such verified
explanation shall be deemed waiver of his right to question the freeze
order.
(e) The AMLC shall have seventy-two (72) hours from receipt of the
written explanation of the owner or holder of the frozen account to
resolve the same. If the AMLC fails to act within said period, the freeze
order shall automatically be dissolved. However, the covered institution
shall not lift the freeze order without securing official confirmation from
the AMLC.
(f) Before the fifteen (15)-day period expires, the AMLC may apply in court
for an extension of said period. Upon the timely filing of such application
and pending the decision of the court to extend the period, said period
shall be suspended and the freeze order shall remain effective.
(g) In case the court denies the application for extension, the freeze order
shall remain effective only for the balance of the fifteen (15)-day period.
(h) No court shall issue a temporary restraining order or writ of injunction
against any freeze order issued by the AMLC or any court order extending
period of effectivity of the freeze order except the Court of Appeals or the
Supreme Court.
(i) No assets shall be frozen to the prejudice of a candidate for an electoral
office during an election period.

11. AUTHORITY TO INQUIRE INTO BANK DEPOSITS

Sec. 4. Authority to Inquire into Accounts.
(a) The AMLC is authorized under Section 7 (2) of the AMLA to issue
orders addressed to the appropriate Supervising Authority or any covered
institution to determine and reveal the true identity of the owner of any
monetary instrument or property subject of a covered transaction report,
or a request for assistance from a foreign State, or believed by the AMLC,
on the basis of substantial evidence, to be, in whole or in part, wherever
located, representing, involving, or related to, directly or indirectly, in
any manner or by any means, the proceeds of an unlawful activity. For
purposes of the AMLA and these Rules, substantial evidence includes such
relevant evidence as a reasonable mind might accept as adequate to
support a conclusion.
(b) In case of any violation of the AMLA involving bank deposits and
investments, the AMLC may inquire into or examine any particular
deposit or investment with any banking institution or non-bank financial
institution upon order of any competent court when the AMLC has
established that there is probable cause that the deposits or investments
involved are in any way related to any unlawful activity and/or money
laundering offense. The AMLC may file the application for authority to
inquire into or examine any particular bank deposit or investment in
court, prior to the institution or in the course of, the criminal
proceedings involving the unlawful activity and/or money laundering
offense to which said bank deposit or investment is any way related. For
purposes of Section 11 of the AMLA and Section 4, Rule 3 of these Rules,
probable cause includes such facts and circumstances which would lead a
reasonably discreet, prudent or cautious man to believe that an unlawful
activity and/or a money laundering offense is about to be, is being or has
been committed and that the bank deposit or investment sought to be
inquired into or examined is in any way related to said unlawful activity
and/or money laundering offense. Rule 11. Bank Inquiry. -

A. Bank Inquiry with Court Order. - Notwithstanding the provisions of

Republic Act No. 1405, as amended; Republic Act No. 6426, as amended;
Republic Act No. 8791, and other laws, the AMLC may inquire into or examine
any particular deposit or investment account, including related accounts,
with any banking institution or non-bank financial institution, upon order by
the Court of Appeals based on an ex parte application in cases of violation of
the AMLA when it has been established that probable cause exists that the
deposits or investments involved, including related accounts, are in any way
related to an unlawful activity or a money laundering offense.

1. Period to Resolve Application. - The Court of Appeals shall resolve the

application within twenty-four (24) hours from filing thereof.

2. Inquiry Into or Examination of Related Accounts. - A court order ex parte

must be obtained before the AMLC can inquire into the related accounts. The
procedure for the ex parte application for an order of inquiry into the
principal account shall be the same for that of the related accounts.

3. Compliance with Article III, Sections 2 and 3 of the Constitution. - The

authority to inquire into or examine the main account and the related
accounts shall comply with the requirements of Article III, Sections 2 and 3
of the 1987 Constitution.

4. No Prior Criminal Charge, Pendency of or Conviction Necessary. - No

prior criminal charge, pendency of or conviction for an unlawful activity or
money laundering offense is necessary for the commencement or the
resolution of an application for bank inquiry.

B. Bank Inquiry without Court Order. - The AMLC shall issue a resolution
authorizing the AMLC Secretariat to inquire into or examine any particular
deposit or investment account, including related accounts, with any banking
institution or non-bank financial institution and their subsidiaries and
affiliates when it has been established that probable cause exists that the
deposits or investments involved, including related accounts, are in any way
related to any of the following unlawful activities:
1. Kidnapping for ransom under Article 267 of Act No. 3815, otherwise
known as the Revised Penal Code, as amended;

2. Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act No.
9165, otherwise known as the Comprehensive Dangerous Drugs Act of 2002;

3. Hijacking and other violations under Republic Act No. 6235; destructive
arson and murder, as defined under the Revised Penal Code, as amended;

4. Felonies or offenses of a nature similar to those mentioned in Section

3(i) (1), (2) and (12) of the AMLA which are punishable under the penal laws of
other countries;

5. Terrorism and conspiracy to commit terrorism as defined and penalized

under Republic Act No. 9372; and

6. Financing of terrorism under Section 4 and offenses punishable under

Sections 5, 6, 7 and 8 of Republic Act No. 10168, otherwise known as the
Terrorism Financing Prevention and Suppression Act of 2012.

C. Duties of the Covered Persons Upon Receipt of Bank Inquiry Order. - The
concerned covered persons shall immediately, upon receipt of the court
order or AMLC Resolution, give the AMLC and/or its Secretariat full access to
all information, documents or objects pertaining to the deposit, investment,
account and/or transaction.

Certified true copies of the documents pertaining to deposit, investment,

account and/or transaction subject of the bank inquiry shall be submitted to
the AMLC Secretariat, within five (5) working days from receipt of the court
order or AMLC Resolution.

D. Authority of the Bangko Sentral ng Pilipinas to Inquire Into or Examine

Bank Accounts. - In the course of a periodic or special examination, the BSP
may inquire into or examine bank accounts, including customer
identification, account opening, and transaction documents, for the purpose
of checking compliance by covered persons under its supervision or
regulation with the requirements of the AMLA, this RIRR, and other AMLC
issuances.
B. FOREIGN INVESTMENTS ACT (RA NO. 7042)

1. POLICY OF THE LAW

Section 2. Declaration of Policy. - It is the policy of the State to attract, promote

and welcome productive investments from foreign individuals, partnerships,
corporations, and governments, including their political subdivisions, in activities
which significantly contribute to national industrialization and socioeconomic
development to the extent that foreign investment is allowed in such activity by the
Constitution and relevant laws. Foreign investments shall be encouraged in
enterprises that significantly expand livelihood and employment opportunities for
Filipinos; enhance economic value of farm products; promote the welfare of Filipino
consumers; expand the scope, quality and volume of exports and their access to
foreign markets; and/or transfer relevant technologies in agriculture, industry and
support services. Foreign investments shall be welcome as a supplement to
Filipino capital and technology in those enterprises serving mainly the domestic
market.

As a general rule, there are no restrictions on extent of foreign ownership of export

enterprises. In domestic market enterprises, foreigners can invest as much as one
hundred percent (100%) equity except in areas included in the negative list.
Foreign owned firms catering mainly to the domestic market shall be encouraged
to undertake measures that will gradually increase Filipino participation in their
businesses by taking in Filipino partners, electing Filipinos to the board of
directors, implementing transfer of technology to Filipinos, generating more
employment for the economy and enhancing skills of Filipino workers.

2. DEFINITION OF TERMS

A. FOREIGN INVESTMENTS

C. FINANCIAL REHABILITATION AND INSOLVENCY ACT OF 2010 (RA NO.

10142)