Duterte inks amendments to Anti-Money Laundering Law to include casinos

July 19, 2017

President Rodrigo Duterte has signed into law a bill that includes casinos among the "covered persons" being monitored by the Anti-Money Laundering Council. Republic Act No. 10927 or "An Act Designating Casinos as Covered Persons Under Republic Act No. 9160, otherwise known as the 'Anti-Money Laundering Act of 2001', as Amended" was inked by Duterte on July 14, 2017. The amendment on the AMLA came after $81 million in foreign reserves were stolen last year from Bangladesh central bank and ended up in the casinos in the Philippines. Under the new law, casinos, including internet and ship-based casinos, with respect to their casino cash transactions related to their gaming operations, are now part of the "covered persons." A single casino cash transaction involving an amount in excess of P5 million or its equivalent in any other currency is now considered a "covered transaction" under the amended law. Upon a verified or ex parte petition by the AMLC and after determination that probable cause exists that any monetary instrument or property is in any way related to unlawful activity, the Court of Appeals may issue a freeze order which shall be effective immediately for a period of 20 days, RA 10927 said. Within 20-day period, the appellate court shall conduct a summary hearing with notice to the parties, to determine whether to modify or lift the freeze order, or extend its effectivity. According to the new law, the total period of the freeze order issued by the CA under this provision shall not exceed six months, without prejudice to an asset preservation order that the Regional Trial Court having jurisdiction over the appropriate anti-money laundering case or civil forfeiture case may issue on the same account depending upon the circumstances of the case, where the appellate will remand the case and its records. If there is no case filed against person whose account has been frozen within the period determined by the CA, not exceeding six months, the freeze order shall be deemed ipso factor lifted. The Act also stated that the new rule shall not apply to pending cases in the courts. In any case, the court should act on the petition to freeze within 24 hours from filing of the petition. If the application is filed a day before a nonworking day, the computation of 24-hour period shall exclude the non-working days. "The freeze order or asset preservation order issued under this Act shall be limited only to the amount of cash or monetary instrument or value of property that the court finds there is probable cause to be considered as proceeds of a predicate offense and the freeze order or asset preservation order shall not apply to amounts in the same account in excess of the amount or value of the proceeds of the predicate offense," the new law said. It said within 90 days from its effectivity, the AMLC, the Philippine Amusement and Gaming Corp. and other government regulatory agencies shall jointly promulgate the rules and regulations to implement the provision of the Act as applicable to casinos as covered institutions. The implementing rules applicable to other covered institutions shall not apply to casinos unless it is expressly so provided under the rules and regulations to implement the provisions of this Act. The Act shall take effect 15 days following its publication in the Official Gazette or in any newspaper of general circulation. (Celerina Monte/DMS)