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How does the law define money laundering?

Section 4 of Republic Act (RA) 10365, otherwise known as the "Anti-Money Laundering Act of 2001", defines money laundering offenses as follows:


"SEC. 4. Money Laundering Offense. – Money laundering is committed by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity:


"(a) transacts said monetary instrument or property;

"(b) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or property;

"(c) conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said monetary instrument or property;

"(d) attempts or conspires to commit money laundering offenses referred to in paragraphs (a), (b) or (c);

"(e) aids, abets, assists in or counsels the commission of the money laundering offenses referred to in paragraphs (a), (b) or (c) above; and

"(f) performs or fails to perform any act as a result of which he facilitates the offense of money laundering referred to in paragraphs (a), (b) or (c) above.


"Money laundering is also committed by any covered person who, knowing that a covered or suspicious transaction is required under this Act to be reported to the Anti-Money Laundering Council (AMLC), fails to do so."


Pertinent to the foregoing, the separate opinion of Associate Justice Amy Lazaro-Javier in the recent case of Lingad vs. People (GR 224945, Oct. 11, 2022), an En banc decision of the Supreme Court, is illuminating regarding the permutation of the definition of money laundering, thus:


"The definition in the amended Section 4 of RA 10365 is the prevailing definition of Money Laundering to date.


"Note the permutations of the definition of money laundering in Section 4:

"any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity

"(a) transacts said monetary instrument or property;

"(b) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or property;

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"(c) conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said monetary instrument or property;"


Applying the foregoing, the prevailing definition of money laundering is the act of transacting a monetary instrument or property; or the conversion, transfer, disposal of, moving, acquiring, possessing or use of said monetary instrument, or property; or the concealment or disguise of the true nature, source, location, disposition, movement, or ownership of or rights with respect to said monetary instrument or property — by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity.


In addition, money laundering is also defined as the failure to report to the Anti-Money Laundering Council of any covered person who, knowing that a covered or suspicious transaction is required under the anti-money laundering Act to be reported.


Source: Manila Times

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