What is the Anti Money Laundering Council (AMLC)?

The Anti-Money Laundering Council (AMLC) is the primary authority in the Philippines responsible for enforcing the Anti-Money Laundering Act (AMLA) of 2001. The AMLC was established under the AMLA, also known as Republic Act No. 9160. The AMLC works to protect the Philippine financial system by preventing, detecting, and investigating money laundering and terrorism financing activities.

The council operates under the guidance of the Bangko Sentral ng Pilipinas (BSP) and consists of the BSP Governor, the Insurance Commissioner, and the Securities and Exchange Commission (SEC) Chairperson as members.

Let’s get into what is AMLC? The job of the AMLC is to receive and review covered transactions and suspicious transactions reported by financial institutions. It can oversee investigations and take legal action against people or organizations performing illegal financial moves. The Council closely cooperates with local and foreign police forces to manage cross-border financial crimes.

In simple AMLC meaning, it strengthens transparency and accountability in the Philippines’ financial sector, mainly by enforcing strict rules, cooperating on intelligence, and regularly monitoring.

Registration Requirement for Covered Persons

Those persons and entities that are determined as covered persons (CPs) under the Anti-Money Laundering Act (AMLA) must submit registrations to the Anti-Money Laundering Council (AMLC). CPs include banks, insurance companies, securities dealers, and some non-financial businesses and professions like casinos, jewelry dealers, and real estate brokers, among others.

Completing registration on AMLC portal is compulsory for AML obligated businesses in the Philippines.  Registration is required to gain access to the online system for filing the transactions report, as well as fulfiiling other regulatory requirements. Lack of registration could lead to penalties for non-compliance or restriction in the implementation of reporting obligations as required by the AMLA.

Through various necessary operations, the Anti-Money Laundering Council works to defend the financial system and identify illegal transactions. It performs important duties to help protect the financial system as follows:

Monitoring and Investigating Financial Transactions

The council oversees the AML-obligated institutions to detect money laundering and other related crime signs by monitoring large or irregular financial movements. The council studies reports submitted to it by financial organizations about suspected illegal actions and starts official investigations.

Enforcing Anti-Money Laundering Laws

AMLA gives powers to AMLC to enforce those rules to protect the Philippines.

It requires AML-obligated organizations to track financial movements, scrutinize the past transactional behavior of their customers, and notify authorities about suspected behavior. Here, AMLC helps financial agencies stop money laundering and fight terrorism before these crimes affect the economy.

International Cooperation

Money laundering crosses national borders since criminals use different locations for their illegal operations.

As the Philippines’ Financial Intelligence Unit (FIU), the AMLC cooperates with foreign FIUs and international bodies to support the global fight against money laundering and terrorist financing. Through its membership in the Egmont Group and coordination with entities aligned with the Financial Action Task Force (FATF), the AMLC facilitates the exchange of financial intelligence and best practices across jurisdictions. Such international collaboration enhances cross-border investigations, such as acting on intelligence, tracking of proceeds of illicit money, and recovery of proceeds of financial criminal activities.

Training and Capacity Building

As a top agency, the council supports financial institutions and other stakeholders by training them on AML compliance while offering them technical assistance. It assists institutions in protecting the financial system by enabling them to detect illicit activities and comply with AML requirements.

Asset Seizure and Forfeiture

Upon identifying assets linked to money laundering or terrorism financing, the AMLC may independently freeze them and subsequently file the necessary petitions with the appropriate court to pursue their seizure or forfeiture. The forfeiture should only be made by the courts in due process of law. When a court order is issued, the latter must be followed and enforced by the law enforcement agencies and the identified asset. Where appropriate, recovered assets may be returned to the public treasury or rightful owners.

AMLC’s Strategic Mandate Against Illicit Financial Flows

The council plays a crucial role in the fight against financial crime, working tirelessly and without interruption. If left unchecked, the financial system could be used by money launderers, terrorists, and other criminals who are seeking to use the system to hide illicit money.

That is why the Anti-Money Laundering Council (AMLC) plays an important role in warning against this. It helps fight and solve financial crimes and keeps perpetrators accountable.

It is tasked with regulatory functions aimed at ensuring that financial institutions comply with the law and guaranteeing high standards of transparency and accountability.

In this, preventing crime is important and maintains the stability of the financial system as a whole. The council effectively regulates and monitors financial institutions to avoid the risks of money laundering and other similar illicit financial activities.

Conclusion

As a center for financial intelligence, the AMLC transforms basic information into actionable insights that help investigators and courts take effective action. In addition to collecting data through reports, the council uses advanced systems to detect hidden activities that may require attention. Criminal operations can be swiftly disrupted through asset freezing orders issued without prior notice.

When the council issues guidelines, case typologies, and red-flag indicators, it becomes easier for institutions to comply with regulations. By balancing enforcement and guidance, the AMLC ensures that the country’s anti-financial crime policies align with evolving global standards and emerging threats.

Complying with AML laws assures that their financial transactions are secure and their money won’t be used for illegal purposes.