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Day 2

Money Laundering - an illegal activity that makes large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding,

3 steps of laundering process

Placement the initial stage of the money laundering process, where illegal funds are introduced into the legitimate financial system. This is achieved through a variety of methods, including deposits, wire transfers, or other means.

riskiest stage because large amounts of cash attract attention and banks are required to report high value transactions.

Layering is where illicit money is blended with legitimate money, or placed in constant motion, from one account to another. Layering often involves generating many different transactions so that the cash disappears and becomes laundered.

convert/ spread the money in order to clean the money.

Integration stage entails the purchase to assets, properties, generated from the transactions of the illegal funds.

is termed the integration stage. It is at the integration stage where the money is returned to the criminal from what seem to be legitimate sources.

ex.

kidnapping ransom drug trafficking plunder Robbery and extortion piracy smuggling gambling

AMLA Republic Act no. 9160 (2001) Anti Money Laundering Act

covered transaction 500k Navigating through the financial corridors of AMLA, a "covered transaction" is distinctly characterized as any transaction involving the movement of funds exceeding PHP 500,000 within a single banking day.

suspicious transaction Defined as any transaction involving amounts exceeding PHP 500,000 within a single banking day, covered transactions encompass a broad spectrum of financial activities, each subject to rigorous scrutiny under the AMLA.

KYC policy ( know your customer) ensure only legitimately and bona fide customer are accepted> verify the identity of customers using reliable and independent documentation

not needed to ask