Philippines AML Obligations for Accountants: The AMLA, AMLC Registration and Reporting

In the Philippines, accountants can be "covered persons" under the Anti-Money Laundering Act of 2001 (Republic Act No. 9160, the AMLA), which the Anti-Money Laundering Council (AMLC) enforces. Coverage depends on what the accountant does for clients, and there is a carve-out for professionals acting in a legal-professional role. This guide sets out what the statute, the 2018 implementing rules and the AMLC's 2021 reporting guidelines say, and what we could not confirm. It is general information, not legal advice.

When accountants are covered

Republic Act No. 10365, approved on 15 February 2013, amended the AMLA to bring certain professional service providers within its scope. Its covered-service list includes managing client money, securities or other assets; managing bank, savings or securities accounts; organising contributions for companies; and the creation, operation or management of juridical persons or arrangements and the buying and selling of business entities. A separate list covers company service providers that act as formation agents, directors or corporate secretaries for others, provide a registered office, or act as nominee shareholders.

The 2018 implementing rules of the AMLA, issued by the AMLC, repeat the approach. Rule 4, section 1 covers persons "including lawyers, accountants and other professionals" who provide those services. Republic Act No. 10365 also says the term covered persons excludes lawyers and accountants acting as independent legal professionals in relation to information concerning their clients, provided they are authorised to practise in the Philippines, and it relieves them of reporting where they are subject to professional secrecy or legal professional privilege. We have not seen an official explanation of how far that carve-out reaches for an accountant, so take advice before relying on it.

Registration with the AMLC

The AMLC's Registration and Reporting Guidelines (AMLC Regulatory Issuance No. 4, Series of 2021, approved in Resolution No. 142 of 22 June 2021) require covered persons to register with the AMLC's electronic reporting system to gain access to its reporting portal. Registration must be updated every two years and immediately after a change of compliance officer, address or contact details. The guidelines say failure to update results in deactivation of portal access, and that newly registered designated non-financial businesses and professions (DNFBPs) may receive a provisional certificate of registration valid for six months, extendable once for up to six months.

Reporting: covered and suspicious transactions

The 2021 guidelines set out the reporting clock:

• Covered transaction reports are due within five working days of the transaction. The general threshold in the 2018 rules is cash or equivalent transactions above PHP 500,000, with separate thresholds for jewellery and precious metals dealers (PHP 1,000,000) and for real estate developers or brokers (PHP 7,500,000 in the guidelines).
• Suspicious transaction reports are due promptly and no later than the next working day after the suspicion is established. The guidelines also set separate determination periods (10 or 60 calendar days) depending on how a suspicion arose.
• A transaction that is both covered and suspicious is reported as suspicious.

The guidelines require a money laundering and terrorism financing prevention program that names a compliance officer who can decide with finality whether to file a suspicious transaction report, and require controls to prevent tipping off. Reports made in good faith are protected from administrative, criminal and civil liability. For the practical sequence of spotting and escalating a suspicion, see our guide to suspicious activity reports and tipping off, which is UK-focused but explains the steps.

Customer due diligence and records

A July 2018 article by Grant Thornton Philippines, summarising the AMLC's guidelines for DNFBPs, describes customer identification and verification before a relationship starts, understanding ownership structure, verifying source of funds, and keeping records for at least five years. We did not read the retention rule in the implementing rules ourselves, so confirm it before setting your policy. Our guides on KYC and customer due diligence for accountancy practices cover the general method.

Penalties

Republic Act No. 10365, amending section 14 of the AMLA, sets imprisonment of six months to four years, or a fine of PHP 100,000 to PHP 500,000, or both, for failing to report a covered or suspicious transaction. It sets administrative sanctions of up to PHP 500,000 per violation, and heavier penalties for money laundering itself. The 2021 guidelines add that knowingly failing to report is treated as money laundering under section 4 of the AMLA, and that breach of confidentiality is an offence under section 14. Later amendments, including Republic Act No. 11521 of 2021, changed parts of the law, and the copy of that Act we could read was incomplete, so check the current penalty provisions.

What we could not confirm

• The current consolidated text of section 3 of the AMLA and the exact present wording of the accountant coverage and the professional-privilege carve-out.
• The record-keeping rule in the implementing rules.
• Whether the Philippine Institute of Certified Public Accountants or the Professional Regulation Commission has issued AML guidance for members.
• The current penalty ranges after the 2021 amendments.

Suggested next steps

These are our suggestions, not requirements. List the services you provide and mark which fall within the covered-service list. Check whether your firm is registered with the AMLC and when the registration expires. Write down the reporting chain and name the compliance officer. For context on how the Philippines' standing is assessed internationally, see our explainer on the FATF Recommendations and grey list. For team training, see our CPD courses.

Frequently asked questions

Are accountants in the Philippines covered by the AMLA?

Under the 2018 implementing rules, accountants who provide the listed services, such as managing client money or running companies for clients, are covered. Republic Act No. 10365 carves out accountants acting as independent legal professionals in relation to client information.

How fast must a suspicious transaction be reported?

The AMLC's 2021 guidelines say promptly and no later than the next working day after the suspicion is established.

Do covered persons have to register?

The 2021 guidelines require covered persons to register with the AMLC's electronic reporting system and to update the registration every two years.