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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Under the Safe Harbor Provision of the Anti-Money Laundering Act (AMLA), as amended, persons who file covered or suspicious transaction reports in the regular performance of their duties and in good faith shall not be subject to any administrative, criminal, or civil proceedings.
Section 9 (c) of the AMLA provides that when reporting covered or suspicious transactions to the AMLC, covered institutions and their officers and employees shall not be deemed to have violated Republic Act No. 1405, as amended, Republic Act No. 6426, as amended, Republic Act No. 8791 and other similar laws, but are prohibited from communicating, directly or indirectly, in any manner or by any means, to any person, the fact that a covered or suspicious transaction report was made, the contents thereof, or any other information in relation thereto. In case of violation thereof, the concerned officer and employee of the covered institution shall be criminally liable. However, no administrative, criminal or civil proceedings, shall lie against any person for having made a covered or suspicious transaction report in the regular performance of his duties in good faith, whether or not such reporting results in any criminal prosecution under this Act or any other law.
What Are the Reports Covered by the Safe Harbor Provision?
The Safe Harbor Provision applies specifically to two types of reports submitted to the Anti-Money Laundering Council (AMLC):
- Covered Transaction Reports
A covered transaction is a transaction in cash or other equivalent monetary instrument involving a total amount in excess of PhP500,000.00 within one (1) banking day. For casinos, including internet and ship-based casinos, a single casino cash transaction involving an amount in excess of PhP5,000,000.00 or its equivalent in any other currency. For real estate developers and brokers, a single cash transaction involving an amount in excess of PhP7,500,000.00 or its equivalent in any other currency.
- Suspicious Transaction Reports
Suspicious transactions are transactions with covered persons, regardless of the amounts involved, where any of the following circumstances exist:
- There is no underlying legal or trade obligation, purpose, or economic justification;
- The client is not properly identified;
- The amount involved is not commensurate with the business or financial capacity of the client;
- Taking into account all known circumstance, it may be perceived that the client’s transaction is structured in order to avoid being the subject of reporting requirements under the Act;
- Any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client’s past transactions with the covered person;
- The transaction is in any way related to an unlawful activity or offense under this Act, that is about to be, is being, or has been committed; or
- Any transaction that is similar or analogous to the foregoing.
The Safe Harbor Provision is designed to encourage full and honest reporting by protecting individuals who make these reports in the regular performance of their duties and in good faith, regardless of whether the reporting results in any criminal prosecution.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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