Money laundering is like trying to hide or clean dirty money. Imagine if someone got money from doing something bad, like selling stolen goods. Instead of keeping that money where it can be easily seen as bad, they try to make it look like it came from good things. They might do this by putting the money in a bank or using it to buy things, making it seem like it was earned honestly. In the end, they want to use that money freely without anyone knowing it was obtained in a wrong way.

AMLA (RA 9160)

Under Philippine law, particularly Republic Act No. 9160, also known as the Anti-Money Laundering Act (AMLA), money laundering is defined as any act or process that involves the following:

  1. Conversion or Transfer: Engaging in acts that convert or transfer property that is derived from an illegal activity.
  2. Concealment: Hiding the true nature, source, location, disposition, or movement of such property.
  3. Acquisition or Use: Acquiring, using, or possessing property that is derived from illegal activities, knowing that it is the result of said activities.

The law aims to prevent money laundering, which is a way of making illegal money appear legal, thereby undermining the integrity of the financial system.