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Anti-Money Laundering Law

Ronald S. Baquiano
CPA-LAWYER

RA 9160, RA 9194, RA 10167, RA 10168, RA 10365, RA

10927

 History

 First AMLA was RA 9160 September 2001

The legislation, among others, defines money

laundering as a criminal offense, prescribes penalties for
such crimes committed, and forms the foundation of a
central monitoring and implementing council called the Anti-
Money Laundering Council (AMLC). To combat money
laundering, this law imposes requirements on customer
identification, record keeping, reporting of covered and
suspicious transactions, relaxes strict bank deposit secrecy
laws, and provides for freezing/seizure/forfeiture/recovery of
dirty money/property as well as for international
cooperation.

The AMLC is comprised of three (3) members: the

Governor of the Bangko Sentral ng Pilipinas as the Chairman
and the other two (2) members are the Commissioner of the
Insurance Commission and the Chairman of the Securities
and Exchange Commission. It acts unanimously in the
discharge of its functions. AMLC is also referred to as the
country’s Financial Intelligence Unit (FIU) and is assisted by a
Secretariat, otherwise known as the AMLC Secretariat
(AMLCS), headed by an Executive Director.

The AMLA Implementing Rules and Regulations (IRR) was

also issued in 2001.

 First AMLA Amendment under RA 9194 – March 2003

 To address concerns such as the high threshold level for

covered transactions, the coverage of “covered
institutions” and the existing Bank Secrecy Law, the
amendments to the AMLA were signed into law on 7 March
2003 under Republic Act No. 9194. The amendments
included the following: a) lowering the threshold for
covered transactions from P4.0 million to P 500,000; b)
authorizing the BSP to inquire or examine any deposit or
investment with any banking institution without court
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order in the course of a periodic or special examination;

and c) removing the provision prohibiting the retroactivity
of the law.

Said amendments were given favorable consideration by

the Financial Action Task Force (FATF) and sanctions were
not imposed on the Philippines. However, the Philippines
at that time remained in the list of non-cooperative
countries and territories (NCCTs) of the FATF and the
country’s removal from the list will be determined by the
FATF after close monitoring of the implementation issues.
The Philippines was finally removed from the NCCT list of
the FATF in February 2005 due to excellent progress made
in combating money laundering and terrorist financing.

The Revised Implementing Rules and Regulations (RIRR)

on the AMLA of 2001, as amended, was approved by the
Congressional Oversight Committee on 6 August 2003 and
was implemented on 3 September 2003.

 Second AMLA Amendment under RA 10167 – June 2012

To further strengthen the country’s AML regime and

address the concerns of the FATF, second AMLA
amendment under RA 10167 was signed into law on 18
June 2012 amending for the purpose Sections 10 and 11
of the AMLA, as amended.

Section 10 relates to the “Freezing of Monetary

Instrument” wherein upon verified “ex parte” petition by
the AMLC, the Court of Appeals (CA) should act on the
petition to freeze within twenty-four (24) hours from filing
of the petition, and the freeze order shall be for a period
of twenty (20) days unless extended by the Court/CA.

Section 11 relates to the “Authority to Inquire into Bank

Deposits” wherein the AMLC is given authority to examine
bank accounts “upon order of any competent court based
on an ex parte application” which effectively expanded
the instances when no such court application is required.
Said provision simply means that the court may allow the
AMLC to look into bank deposit accounts of suspected
money launderers without notifying them. Under this
Section, the CA is directed to act on the application to
inquire into or examine any deposit or investment account
within twenty-four (24) hours from date of filing of the
application. In addition, although Section 11 of the AMLA
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reworded the authority of BSP to check the compliance in

the course of a periodic or special examination of a
covered institution with the requirements of the AMLA and
its implementing rules and regulations, the sponsoring
Senator when asked if the BSP, without court order, may
be allowed to look into specific accounts under the
proviso, Senator Guingona said that it is only to ensure
compliance with AMLA.

These two amended provisions recognized the urgency of

the issuance of the freeze order and the grant of authority
to AMLC to conduct bank inquiry within 24 hours from the
filing of the petition.

This AMLA amendment under RA 10167 resulted to favorable

action of the FATF where it decided to upgrade the country's
“dark gray” list to “gray”, which is just one notch away from
being taken out in the FATF list of nations considered non-
compliant to global AML standards.

After the passage of RA 10167, the Revised Implementing

Rules and Regulations (RIRR) was approved under AMLC
Resolution No. 84 dated 23 August 2012. BSP
disseminated said RIRR to all BSP covered institutions
under BSP Circular Letter No. CL-2012-068 dated 20
September 2012.

 Third AMLA Amendment under RA 10365 – February 2013

As continuing commitment to comply with FATF AML/CFT

standards, the third AMLA amendment under RA 10365
was passed into law on 15 February 2013 that covered the
following major amendments:

Expansion of the definition of the crime of money

laundering: AMLC can now go after persons who engage in
the conversion, transfer, movement, disposal of,
possession, use, and concealment or disguise, of the
monetary proceeds of an unlawful activity, that was
previously limited to the transaction of laundered funds
and property;

Inclusion of jewelry dealers in precious metals and stones

whose transactions are in excess of P 1,000,000 and
company service providers as defined and listed under RA
10365, are now included as “Covered Persons”;
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Increase of unlawful activities to money laundering from

14 to 34. The 20 additional crimes include trafficking in
persons, bribery, counterfeiting, fraud and other illegal
exactions, forgery, malversation, various environmental
crimes, and terrorism and its financing;

Authorize the AMLC to require the Land Registration

Authority and all its Register of Deeds to submit report to
the AMLC covering real estate transactions in excess of
P500,000.00

Issuance of freeze order by the Court is now valid for a

maximum period of six (6) months, from the previous
twenty (20) days validity under RA 10167.
Compliance with FATF International Standards

In November 2003, the Philippines’ amendments to the

AMLA were evaluated by the FATF and were found to be at
par with international standards. On 11 February 2005,
the Philippines, Cook Islands, and Indonesia were removed
from the list of NCCTs during the meeting of the FATF. After
the country’s delisting from the list of NCCT’s, the AMLC of
the Philippines was accepted as one of seven new
members of the Egmont Group, the global network of FIUs
against money laundering and terrorist financing, making
the Philippines an equal partner in the global fight against
money laundering and terrorist financing. Membership to
the Egmont Group means affording AMLC free and
unlimited access to a wealth of financial data contained in
the databases of all the FIU-members of the group. All
information exchanged by FIUs are subjected to strict
controls and safeguards to ensure it is used only in an
authorized manner, consistent with national provisions on
privacy and data protection.

`The recent AMLA amendments under RA 10167 and RA

10365 are testament of the Philippine’s serious
commitment to further strengthen the country’s AML
regime and to address the weaknesses noted by the FATF
in the Philippine’s legal framework with regard to AML.
Passage of these laws were officially recognized and
favorably considered by the FATF that are now in
substantial compliance with its AML/CFT international
standards. Thus, FATF in its February 2013 plenary
meeting, shielded the Philippines from being blacklisted
again.
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Other AML Initiatives Undertaken by BSP to Further

Strengthen the Country’s AML Regime

Since 2000, the BSP continued to firmly undertake several

initiatives on how to safeguard the Philippine banking
system through constant reshaping of existing AML
preventive measures and implementation of appropriate
policies at par with global standards such as the following
initiatives.

1. Creation of the Anti-Money Laundering Specialist Group

(AMLSG) within the Supervision and Examination Sector
(SES)

The AMLSG was created on 13 December 2007 under MB

Resolution No. 1443 to address the need for technical
expertise in the supervision of AML activities of banks and
non-bank financial institutions (NBFIs) under the
supervision and regulation of the BSP. The Group became
fully operational in November 2008 and currently has 34
authorized plantilla positions. It is under the direct
supervision of the Managing Director, Supervision and
Examination Subsector I, SES.

AMLSG aims to be BSP's core unit of highly competent,

dynamic and ethical professionals who work to ensure
financial institutions (FIs) adopt and maintain adequate
and effective policies, systems and procedures that
prevent them from being used to support the laundering
of proceeds from any unlawful activity. AMLSG is tasked to
develop relevant guidelines and regulations to support
and guide the AML efforts of financial institutions
supervised by the BSP, ensure the effective
implementation of said policies through examination
services and technical assistance to the SES and enhance
the related technical skills of the SES human resource pool
through training. In addition, AMLSG shall perform off-site
monitoring to identify those FIs whose operations present
an elevated risk of money laundering activities. AMLSG
works closely with the AMLC Secretariat and various
banking and non-bank industry associations under the
regulatory ambit of the BSP to foster domestic
cooperation.

Since 2008, AMLSG has conducted several AML onsite

examinations, particularly commercial banks due to their
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significant assets size and complex banking activities. The

Group was also principally involved in the crafting of AML
rules and regulations, such as the issuance of Circular 706
dated 5 January 2011 and the adoption on 2 March 2012
of the AML Risk Rating System, discussed below.

2. Issuance of a consolidated AML regulations under BSP

Circular No. 706 dated 5 January 2012, otherwise known as
the Updated AML Rules and Regulations (UARR)

UARR was issued for the purpose of consolidating all existing

BSP circulars, circular letters and other issuances related to
AML. Likewise, it enhances the implementation of the
existing AML legal framework to better conform with
international standards as well as address the deficiencies
noted by the joint team of assessors from the World Bank
and Asia Pacific Group on Money Laundering during the
mutual evaluation of the country in 2008.

The UARR applies to all covered institutions supervised and

regulated by the BSP including Banks, Offshore banking
units, quasi banks, trust entities, non-stock savings and loan
associations, pawnshops, foreign exchange dealers, money
changers and remittance agents, electronic money issuers
including their subsidiaries and affiliates wherever they may
be located.

In addition to the usual provisions on customer

identification/KYC, covered and suspicious transaction
reporting and record keeping and retention requirements
that are found in the AMLA-RIRR, the UARR emphasizes the
incorporation of a sound risk management system to ensure
that risks associated with money laundering and terrorist
financing are identified, assessed, monitored, mitigated and
controlled by covered institutions. A sound risk management
system includes adequate and active Board and Senior
Management oversight, acceptable policies and procedures
embodied in a Money Laundering and Terrorist Financing
Prevention Program (MLPP), appropriate monitoring and
Management Information System and comprehensive
internal controls and audit.

UARR encourages covered institutions to formulate a risk-

based and tiered customer acceptance and retention
policies, adoption of a criteria for assessing customers as
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low, normal and high risk and standards for applying

reduced, average and enhanced due diligence. It also
mandates observance of extreme caution and vigilance in
dealing with high risk customers such as shell companies.

The UARR also strongly supports the Financial Inclusion

advocacy promoted by the BSP. For instance, it allows a) the
outsourcing of the conduct of face-to-face contact as well as
the gathering of the KYC documents and information to
establish the identity of a customer; b) acceptance of one (1)
valid ID for the conduct of financial transactions, listing for
this purpose a wide variety of acceptable IDs and the
utilization of the covered institution’s own technology to take
the photo of their customers in case the ID presented is non-
photo-bearing such as TIN, barangay and DSWD certification;
and c) the third-party reliance is likewise introduced in the
UARR to avoid duplication of customer identification
processes so that covered institutions may refocus their
resources to better serve and address the needs of
customers. This principle allows a covered institution such as
a Bank to rely on the KYC conducted by another covered
institution.

UARR further provides that any violations of existing

provisions thereof shall constitute a major violation, that
may subject the bank, its directors, officers and staff to
enforcement actions such as monetary and non-monetary
penalties. The enforcement actions shall may be imposed on
the basis of the overall assessment of a covered institution’s
AML compliance system, and if found to be grossly
inadequate, such may be considered as unsafe and unsound
banking practice that may warrant initiation of prompt
corrective action.

3. Adoption of AML Risk Rating System (ARRS)

A necessary consequence of a risk-based approach to

supervision is the development of a risk-focused examination
process that is complemented by the adoption of an AML
Risk Rating System (ARRS) approved under MB Resolution
No. 362 dated 2 March 2012 and disseminated to all BSP
covered institutions under Memorandum to All Banks No.
2012-017 dated 4 April 2012.

ARRS is an internal rating system to be used by BSP to

understand whether the risk management policies and
practices as well as internal controls of Banks and NBFIs to
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prevent money laundering and terrorist financing are in

place, well disseminated and effectively implemented. ARRS
is an effective supervisory tool that undertakes to ensure
that all covered institutions as defined under Circular No.
706 are assessed in a comprehensive and uniform manner,
and that supervisory attention is appropriately focused on
entities exhibiting inefficiencies in Board of Directors and
Senior Management oversight and monitoring, inadequacies
in their AML framework, weaknesses in internal controls and
audit and defective implementation of internal policies and
procedures.

Under the ARRS, each covered institution is assigned a

Numerical and Adjectival Composite Rating (4 as the highest
– sound; 3 – adequately sound; 2- vulneralbe; and 1 as the
lowest – grossly inadequate) based on the assessment of the
following four (4) components:

1. Component I- Efficient Board of Directors (BOD) and

Senior Management (SM) Oversight (“Management”);
2. Component II- Sound AML policies and procedures
embodied in a Money Laundering and Terrorist Financing
Prevention Program duly approved by the Board of Directors
(“MLPP”);
3. Component III- Robust internal controls and audit
(“Controls and Audit”); and
4. Component IV- Effective implementation
(“Implementation”).

Evaluation of the four (4) components takes into

consideration the covered institution’s responses to various
questions that are designed to comprehend its business
operations as well as its risk profile. The responses will be
assessed and on-site examination will confirm their veracity
and accuracy. Based on the evaluation of the existence or
non-existence of the each of the above components, BSP
covered institutions are assigned a Numerical and Adjectival
Component Rating that also ranges from 4 as the highest
and 1 as the lowest. After considering the four components,
enforcement actions proportional to the Composite Rating
are recommended to ensure that BSP covered institutions
take necessary measures to improve their risk management
policies and practices.

4. Proactive issuance of AML Regulations on Ongoing Basis

since 2000
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Aside from AML Circulars, BSP also issues on an ongoing

basis Circular-Letters since 2000 to disseminate resolutions
adopted by the AMLC covering updates of guidelines on
reporting of suspicious transactions or identifying suspected
individuals or organizations (local and international) known
to be involved in money laundering and other illegal
activities, particularly those included in the United Nations
Sanctions List.

In addition, BSP has issued several media releases and other

public advisories to disseminate certain suspicious or illegal
activities to make the public fully aware of them.

 What are the declared policies of AMLA?

Suggested Answer: Rule II (2016 Revised IRR1)

(a) Protect and preserve the integrity and

confidentiality of bank accounts, to ensure that the
Philippines shall not be used as site for unlawful
money laundering activities; and

(b) Pursue State’s foreign policy to extend

cooperation in transnational investigations and
prosecutions on money laundering activities.

AMLA seeks to prevent money-laundering activities by

providing for transparency in the Philippine financial
system.

 Supervising Authority, Meaning.

o Supervising Authority refers to the Bangko Sentral

ng Pilipinas (BSP), Securities and Exchange
Commission (SEC), Insurance Commission (IC) or
relevant regulatory bodies of the Designated Non-
Financial Businesses and Professions (DNFBP)
enumerated under Rule 3.E.4 or other government
agencies designated by law.

Note: Under RA 10365, there are now four (4) Supervising

Authorities under AMLA. These are: (1) BSP, (2) SEC, (3) IC,

1
Implementing Rules and Regulations
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(4) Relevant Regulatory Bodies of the DNFBP (e.g. PICPA 2,

IBP3 )

o Under the latest amendment of AMLA “Persons”

now refers to natural or juridical. This definition
settled the confusion about covered institutions as
defined under RA 9160.

o Covered Institutions, as defined or referred under

Sec. 3 of RA 9160 has been amended under RA
10365 ( 23 July 2012) to refer to
“(a) ‘Covered persons’4, natural or juridical,

 FOUR (4) CATEGORIES OF COVERED PERSONS

Covered Persons refers to the following:

1. Enumerate the Covered Persons Supervised or

Regulated by BSP
(a) Banks
(b) Offshore Banking Units
(c)Quasi-banks
(d) Trust entities;
(e) Non-stock savings and loan associations;
(f) Pawnshops;
(g) Foreign exchange dealers;
(h) Money changers;
(i) Money remittance or transfer companies;
(j) Electronic money issuers; and

All other persons and their subsidiaries and affiliates

supervised or regulated by the BSP.

o What is a Subsidiary? A subsidiary means an entity

more than 50% of the outstanding voting stock of
which is owned by a bank, quasi-bank, trust entity,
or any other institution being supervised and
regulated by the BSP.

o What is an Affiliate? An affiliate means an entity at

least twenty percent (20%) but not exceeding fifty
percent (50%) of the outstanding voting stock of
which is owned by a bank, quasi-bank, trust entity or

2
Phil. Institute of Certified Public Accountants for CPA’s.
3
Integrated Bar of the Philippines for lawyers
4
As of latest amendment, the term “Covered Persons” now means “Natural or
Juridical” and refers to those mentioned therein.
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any other institution being supervised and regulated

by BSP.

2. Enumerate the Covered Persons Supervised or

Regulated by the Securities and Exchange
Commission (SEC)

(a) Securities dealers, brokers, salesmen, investment

houses and other similar persons managing
securities or rendering services as investment
agent, advisor, or consultant;

(b)Mutual funds, close-end investment companies,

common trust funds, and other similar persons; and

Other entities administering or otherwise dealing in

currency, commodities or financial derivatives based
thereon, valuable objects, cash substitutes and other similar
monetary instruments or property supervised or regulated
by the SEC.

3. Enumerate the Covered Persons Supervised or

Regulated by the Insurance Commission (IC)

(a) Insurance companies, pre-need companies,

(b) Insurance agents, Insurance Brokers;
(c) Professional reinsurers; Reinsurance brokers,
(d) Holding company systems; and
(e) all other persons supervised or regulated by the IC.

4. Designated Non-Financial Businesses and

Professions (DNFBPs)

(a) Jewelry dealers in precious metals, who, as a

business, trade in precious metals;
(b) Jewelry dealers in precious stones, who, as a
business, trade in precious stones;
(c) Company service providers which, as a business,
provide any of the following services to third parties

a. Acting as a formation agent of juridical persons;

b. Acting as (or arranging for another person to act
as) a director or corporate secretary of a
company, a partner of a partnership, or a similar
position in relation to other juridical persons;
c. Providing a registered office, business address or
accommodation, correspondence or
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administrative address for a company, a

partnership or any other legal person or
arrangement; and
d. Acting as (or arranging for another person to act
as) a nominee shareholder for another person

(d) Persons including lawyers and accountants

who provide any of the following services:

a. Managing of client money, securities or other

assets;
b. Management of bank, savings or securities
accounts;
c. Organization of contributions for the creation,
operation or management of companies; and
d. Creation, operation, or management of juridical
persons or arrangements, and buying and selling
business entities.

Notwithstanding the foregoing, lawyers and accountants

who are: (1) authorized to practice their profession in the
Philippines; and (2) engaged as independent legal or
accounting professionals, in relation to information
concerning their clients, or where disclosure of information
would compromise client confidences or the attorney-client
relationship, are not covered persons.

“Independent legal or accounting professional” are lawyers

and accountants working in a private firm or as a sole
practitioner who by way of business provides purely legal,
notarial or accounting services to their clients.

Note: Extent and Coverage of Attorney-Client Privilege-

Attorney-Client privilege. Regalla v. Sandiganbayan 262

SCRA 123 (Sept. 20, 1996)

Generally a lawyer may not invoke the privilege and refuse

to divulge the name or identity of his client.- As matter of
public policy, a client’s name should not be shrouded in
mystery. Under this premise, the general rule in our
jurisdiction as well as in the US. is that a lawyer may not
invoke the privilege and refuse to divulge the name or
identity of his client.

Client identity is privilege where a strong probability exists

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that revealing the client’s name would implicate that client

in the very activity fro which he sought the lawyer’s advice.

Where disclosure would open the client to civil liability his

identity is privilege.

Pp v. Sandiganbayan 275 SCRA (1997)

For the application of the attorney-client privilege, the

period to be considered is the date when the privilege
communication was made by the client to the attorney in
relation to either a crime committed in the past of with
respect to a crime intended to be committed in the future.

In other words, if the client seeks his lawyer’s advice with

respect to a crime that the former has therefore committed,
he is given the protection of a virtual confessional seal
which the attorney-client privilege declares cannot be
broken by the attorney without the client’s consent. The
same privileged confidentiality, however, does not attach
with regard to a crime which a client intends to commit
thereafter or in the future and for purposes of which he
seeks the lawyer’s advise.

 Under RA 10927 (25 July 2016) covered persons

now include: Casinos, including internet and ship-based
casinos with respect to their casino cash transactions
related to their gaming operations

What is “Transaction”?

“Transaction” refers to any act establishing any right or

obligation, or giving rise to any contractual or legal
relationship between the parties thereto. It also includes
any movement of funds by any means with a covered
person.

 Covered Transactions:

The original text under Sec. 3(b) of RA 9160, "Covered

transaction" is a single, series, or combination of
transactions involving a total amount in excess of Four
million Philippine pesos (Php4,000,000.00) or an equivalent
amount in foreign currency based on the prevailing
exchange rate within five (5) consecutive banking days
except those between a covered institution and a person
who, at the time of the transaction was a properly identified
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client and the amount is commensurate with the business or

financial capacity of the client; or those with an underlying
legal or trade obligation, purpose, origin or economic
justification.

It likewise refers to a single, series or combination or

pattern of unusually large and complex transactions in
excess of Four million Philippine pesos (Php4,000,000.00)
especially cash deposits and investments having no credible
purpose or origin, underlying trade obligation or contract.

 Under RA 9194,(RA 10167, RA 10365, RA 10927) the

covered transaction amount has been reduced:

(a) Threshold amounts/transactions- Cash or other

equivalent monetary instrument in excess of
P500,000 within one banking day;

(b) A transaction exceeding One Million Pesos (P1m)

in cases of jewelry dealers, dealers precious metals
and dealers in precious stones. (DNFBP’s)

 Under RA 10927 covered transactions now include single

casino cash transactions involving an amount in excess of
Five Million Pesos ( P 5 m) or its equivalent in any other
currencies
"x x x

" (I) For purposes of covered persons under

Section 3(a)(8), the following terms are hereby
defined as follows:

"(l) 'Casino' refers to a business authorized by

the appropriate government agency to engage in
gaming operations:

"(i) 'Internet-based casino' shall refer to casinos

in which persons participate by the use of remote
communication facilities such as, but not limited to,
internet, telephone, television, radio or any other
kind of electronic Or other technology for facilitating
communication; and

"(ii) 'Ship-based casino' shall refer to casinos,

the operation of which is undertaken on board a
vessel, ship, boat or any other water-based craft
wholly or partly intended for gambling;
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"(2) 'Casino cash transaction refers to

transactions involving the receipt of cash by a casino
paid by or on behalf of a customer; or transactions
involving the payout of cash by a casino to a customer
or to any person in his/her behalf; and

"(3) 'Gaming operations' refer to the activities

or the casino offering games of chance and any
variations thereof approved by the appropriate
government authority."

 Suspicious Transactions5- transactions with covered

institutions regardless of the amount involved, where any
of the following circumstances exist:

i. No underlying legal or trade obligation,

purpose or economic justification;
ii. Client is not properly identified;
iii. Amount involved not commensurate with the
client’s business or financial capacity;
iv. Based on all known circumstances, it may be
perceived that the client’s transaction is
structured in order to avoid being subject of
reporting requirements;
v. Any circumstances relating to transaction
observed to deviate from client’s profile
and/or client’s past transactions with
covered institution;
vi. Transaction is in any way related to an
unlawful activity or offense under the Act
that is about to be, is being, or has been
committed or
vii. Similar or analogous transactions.

 What is the global standard setting body for anti-money

laundering and combating the financing of terrorism?

Suggested Answer:

Financial Action Task Force (FATF), also known by its

French name Groupe d’action financiere (GAFI), is an
intergovernmental organization founded in 1989 on the
initiative of G7 to develop policies to combat money
5
Sec. 2 of RA 9194 March 5, 2003, amending Section 3 of RA 9160
by inserting between paragraphs (b) and (c) a new paragraph
designated as (b-1) to read as follows: (1) Suspicious
Transactions.
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laundering. In 2001 the purpose expanded to act on

terrorism financing. It monitors countries progress in
implementing the FATF Recommendations by peer reviews
(mutual evaluations) of member countries. The FATF
Secretariat is housed at the headquarters of the
Organization for Economic Co-operation and Development
(OECD) in Paris.

The objectives of the FATF are to set standards and promote

effective implementation of legal , regulatory and
operational measures for combating money laundering,
terrorist financing and other related threats to the integrity
of the international financial system. The FATF is therefore
a “policy-making body” which works to generate the
necessary political will to bring about national legislative
and regulatory reforms in these areas.

 What are the Obligations of Covered Institutions?

1. Customer Identification-

 Does FATF have police powers?

Suggested Answer:

No. The FATF is an international policy-making body. It does

not take a role in law enforcement matters, investigations,
or prosecutions.

 Money Laundering- is committed by: (1. Any Person and,

2. Any Covered Person)

A. Any person who, knowing that any monetary

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

1. transacts said monetary instrument or property;

2. converts, transfers, disposes of, moves, acquires,

possesses or uses said monetary instrument or property;

3. conceals or disguises the true nature, source, location,

disposition, movement or ownership of or rights with
respect to said monetary instrument or property;

4. attempts or conspires to commit money laundering

offenses referred to in (1), (2), or (3) above;
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5. aids, abets, assists in, or counsels the commission of

the money laundering offenses referred to in (1), (2), or (3)
above; and

6. performs or fails to perform any act as a result of which

he facilitates the offense of money laundering referred to in
(1), (2), or (3) above.

B. Any covered person who, knowing that a covered

or suspicious transaction is required under the AMLA
to be reported to the AMLC, fails to do so.

 Jurisdiction

Rule 5. Jurisdiction over Money Laundering Cases. -

A. Regional Trial Court. - The regional trial courts shall

have jurisdiction to try money laundering cases committed
by private individuals, and public officers not covered by the
jurisdiction of the Sandiganbayan.

B. Sandiganbayan. - The Sandiganbayan shall have

jurisdiction to try money laundering cases committed by
public officers under its jurisdiction, and private persons
who are in conspiracy with such public officers.

 Under what condition that the AMLC is authorized to

inquire into or examine bank deposit or investment with
any banking or non-bank financial institution and their
subsidiaries and affiliates?

Suggested Answer:

Upon order by competent court in cases of violation of

AMLA (RA 9160, as amended by RA 9194, when it is
established that there is probable cause that the deposits or
investments are related to an unlawful activity (Sec.3(i)
IRR).

Without court order in cases involving unlawful

activities of kidnapping for ransom 6, narcotics offenses7 and
hijacking8, destructive arson and murder, including those

6
Under Article 267, RPC as amended
7
Sections 4,5,6,8,9,10,11,12,13,14,15, &16 RA 9165
8
RA 6235
Page 18 of 32

perpetrated by terrorists against non-combatant persons

and similar targets.

 What court has the jurisdiction to try violation of the

AMLA?

Rule 5.1. Jurisdiction of Money Laundering Cases. - The

Regional Trial Courts shall have the jurisdiction to try all
cases on money laundering. Those committed by public
officers and private persons who are in conspiracy with
such public officers shall be under the jurisdiction of the
Sandiganbayan.

 What AMLC- refers to financial intelligence unit of the

Republic of the Philippines which is the government
agency tasked to implement the AMLA

 Enumerate the composition of AMLC.

The Anti-Money Laundering Council is composed of the

Governor of the Bangko Sentral ng Pilipinas (BSP) as
Chairman and the Commissioner of the Insurance
Commission (IC) and the Chairman of the Securities and
Exchange Commission (SEC) as members. It acts
unanimously in the discharge of its functions.

The AMLC is assisted by a Secretariat headed by an

Executive Director and consists of four (4) units; the
Compliance and Investigation Staff (CIS), the Legal
Evaluation Staff (LES), the Information Management and
Analysis Staff (IMAS) and the Administrative and Financial
Services Division (AFSD)

Sec. 7 of RA 9160.

SEC. 7. Creation of Anti-Money Laundering Council

(AMLC). – The Anti-Money Laundering Council is hereby created and
shall be composed of the Governor of the Bangko Sentral ng Pilipinas
as chairman, the Commissioner of the Insurance Commission and the
Chairman of the Securities and Exchange Commission as members.
The AMLC shall act unanimously in the discharge of its functions as
defined hereunder:

(1) to require and receive covered transaction reports from covered

institutions;

(2) to issue orders addressed to the appropriate Supervising Authority

or the covered institution to determine the true identity of the owner
of any monetary instrument or property subject of a covered
Page 19 of 32

transaction report or request for assistance from a foreign State, or

believed by the Council, on the basis of substantial evidence, to be, in
whole or in part, wherever located, representing, involving, or related
to, directly or indirectly, in any manner or by any means, the proceeds
of an unlawful activity;

(3) to institute civil forfeiture proceedings and all other remedial

proceedings through the Office of the Solicitor General;

(4) to cause the filing of complaints with the Department of Justice or

the Ombudsman for the prosecution of money laundering offenses;

(5) to initiate investigations of covered transactions, money

laundering activities and other violations of this Act; (old)

"(5) to investigate suspicious transactions and covered

transactions deemed suspicious after an investigation by
AMLC, money laundering activities, and other violations of
this Act; (RA 9194)

(6) to freeze any monetary instrument or property alleged to be

proceeds of any unlawful activity; ( This function is now vested
to the Court of Appeals [CA] under RA 9194, March 5, 2003)

Sec. 5 of RA 9194 (March 5, 2003) amended Section 7 of RA

9160.

"(6) to apply before the Court of Appeals, ex parte, for the

freezing of any monetary instrument or property alleged to
be the proceeds of any unlawful activity as defined in
Section 3(i) hereof;

(7) to implement such measures as may be necessary and justified

under this Act to counteract money laundering;

(8) to receive and take action in respect of, any request from foreign
states for assistance in their own anti-money laundering operations
provided in this Act;

(9) to develop educational programs on the pernicious effects of

money laundering, the methods and techniques used in money
laundering, the viable means of preventing money laundering and the
effective ways of prosecuting and punishing offenders; and

(10) to enlist the assistance of any branch, department, bureau, office,

agency or instrumentality of the government, including government-
owned and -controlled corporations, in undertaking any and all anti-
money laundering operations, which may include the use of its
personnel, facilities and resources for the more resolute prevention,
detection and investigation of money laundering offenses and
prosecution of offenders.
Page 20 of 32

"(11) to impose administrative sanctions for the violation of

laws, rules, regulations and orders and resolutions issued
pursuant thereto." (RA 9194)

RA 9160 as amended by RA 9194:

SEC. 6. Section 9(c) of the same Act is hereby amended to

read as follows:

"(c) Reporting of Covered and Suspicious Transactions. –

Covered institutions shall report to the AMLC all covered
transactions and suspicious transactions within five (5)
working days from occurrence thereof, unless the
Supervising Authority prescribes a longer period not
exceeding ten (10) working days.

"Should a transaction be determined to be both a covered

transaction and a suspicious transaction, the covered
institution shall be required to report the same as a
suspicious transaction.

"When reporting covered or suspicious transactions to the

AMLC, covered institutions and their officers and employees
shall not be deemed to have violated Republic Act No. 1405,
as amended, Republic Act No. 6426, as amended, Republic
Act No. 8791 and other similar laws, but are prohibited
from communicating, directly or indirectly, in any manner or
by any means, to any person, the fact that a covered or
suspicious transaction report was made, the contents
thereof, or any other information in relation thereto. In case
of violation thereof, the concerned officer and employee of
the covered institution shall be criminally liable. However,
no administrative, criminal or civil proceedings, shall lie
against any person for having made a covered or suspicious
transaction report in the regular performance of his duties
in good faith, whether or not such reporting results in any
criminal prosecution under this Act or any other law.

"When reporting covered or suspicious transactions to the

AMLC, covered institutions and their officers and employees
are prohibited from communicating directly or indirectly, in
any manner or by any means, to any person or entity, the
media, the fact that a covered or suspicious transaction
report was made, the contents thereof, or any other
information in relation thereto. Neither may such reporting
be published or aired in any manner or form by the mass
media, electronic mail, or other similar devices. In case of
violation thereof, the concerned officer and employee of the
Page 21 of 32

covered institution and media shall be held criminally

liable."

 Does AMLC have the authority to freeze monetary

instrument or property upon determination of probable
cause that the said monetary instrument/property is
related to any unlawful activity defined under AMLA?

Suggested Answer:

No. Under RA 9194 (Freeze Order by CA 20 days),

which amended RA 9160 and the subsequent amendatory
laws like RA 10167 (CA Freeze Order is effective
immediately for a period of 20 days) RA 10365 it is the
Court of Appeals (CA) which has the power to issue and
extend Freeze Order. (Sec. 10 Freeze Order which shall be
effective immediately, and which shall not exceed six (6)
months. CA shall act on the petition to freeze within 24
hours from filing of the petition.

RA 9160 as amended by RA 9194, March 5, 2003:

SEC. 7. Section 10 of the same Act is hereby amended to

read as follows:

"SEC. 10. Freezing of Monetary Instrument or Property. –

The Court of Appeals, upon application ex parte by the
AMLC and after determination that probable cause exists
that any monetary instrument or property is in any way
related to an unlawful activity as defined in Section 3(i)
hereof, may issue a freeze order which shall be effective
immediately. The freeze order shall be for a period of twenty
(20) days unless extended by the court."

SEC. 8. Section 11 of the same Act is hereby amended to

read as follows:

"SEC. 11. Authority to Inquire into Bank Deposits. –

Notwithstanding the provisions of Republic Act No. 1405, as
amended, Republic Act No. 6426, as amended, Republic Act
No. 8791, and other laws, the AMLC may inquire into or
examine any particular deposit or investment including
related accounts (RA 10167, June 6, 2012) with any banking
institution or non-bank financial institution upon order of
any competent court based on an exparte application (RA
10167, June 6, 2012) in cases of violation of this Act, when
it has been established that there is probable cause that the
Page 22 of 32

deposits or investments are related to an unlawful activity

as defined in Section 3(i) hereof or a money laundering
offense under Section 4 hereof; except that no court order
shall be required in cases involving unlawful activities
defined in Sections 3(i)(1), (2) and (12). and felonies or
offenses of a nature similar to those mentioned in Section
3(i)(1), (2), and (12), which are Punishable under the penal
laws of other countries, and terrorism and conspiracy to
commit terrorism as defined and penalized under Republic
Act No. 9372."

"The Court of Appeals shall act on the application to inquire

into or examine any deposit or investment with any banking
institution or non-bank financial institution within twenty-
four (24) hours from filing of the application." (RA 10167,
June 6, 2012)

Q. Enumerate the felonies and offenses or predicate crimes

defined under Section 3 (i), as amended in which No Court
Order is required for AMLC to inquire bank deposits:

"(1) Kidnapping for ransom under Article 267 of Act

No. 3815, otherwise known as the Revised Penal
Code, as amended;

"(2) Sections 4, 5, 6, 8, 9, 10, 12, 13, 14, 15, and 16 of

Republic Act No. 9165, otherwise known as the
Comprehensive Dangerous Drugs Act of 2002;

"(12) Hijacking and other violations under Republic

Act No. 6235; destructive arson and murder, as
defined under the Revised Penal Code, as amended,
including those perpetrated by terrorists against non-
combatant persons and similar targets;

 Who has the jurisdiction to issue freeze order? For how

long?

Suggested Answer:

The Court of Appeals upon ex-parte application of

AMLC, effective for 20 days (RA 9160, as amended by RA
9194 and RA 10167), then further amended by RA 10365,
which further amended the Freeze Order to a period of six
(6) months unless extended upon application by the AMLC.
Page 23 of 32

 When is the freeze order applied?

Suggested Answer:

The Freeze Order is applied Prior to the institution or

in the course of the criminal proceedings.

 Does the freeze order cover monetary

instruments/property accounts under the name of other
persons?

Suggested Answer:

Yes, it may include other related web of accounts pertaining

to or related or sources of which originated from or related
to the account freeze.

 The latest RA 10927 (May 30, 2017)

SEC. 4. Section 10 of Republic Act No. 9160, as

amended,
is hereby further amended to read as follows:

"SEC. 10. Freezing of Monetary Instrument or

Property. - Upon a verified ex parte petition by the
AMLC and after determination that probable cause
exists that any monetary instrument or property is in
any way related to an unlawful activity as defined in
Section 3(i) hereof, the Court of Appeals may issue a
freeze order which shall be effective immediately, for a
period of twenty (20) days. Within the twenty (20)-day
period, the Court of Appeals shall conduct a summary
hearing, with notice to the parties, to determine
whether or not to modify or lift the freeze order, or
extend its effectivity. The total period of the freeze
order issued by the Court of Appeals under this
provision shall not exceed six (6) months. This is
without prejudice to an asset preservation order that
the Regional Trial Court having jurisdiction over the
appropriate anti-money laundering case or civil
forfeiture case may issue on the same account
depending upon the circumstances of the case, where
the Court of Appeals will remand the case and its
records: Provided , That if there is no case filed
against a person whose account has been frozen
Page 24 of 32

within the period determined by the Court of Appeals,

not exceeding six (6) months, the freeze order shall be
deemed ipso facto lifted: Provided, further, That this
new rule shall not apply to pending cases in the courts
. In any case, the court should act on the petition to
freeze within twenty-four (24) hours from filing of the
petition. If the application is filed a day before a
nonworking day, the computation of the twenty-four
(24)-hour period shall exclude the nonworking days.

"The freeze order or asset preservation order issued

under this Act shall be limited only to the amount of
cash or monetary instrument or value of property that
the court finds there is probable cause to be
considered as proceeds of a predicate offense, and the
freeze order or asset preservation order shall not
apply to amounts in the same account in excess of the
amount of value of the proceeds of the predicate
offense.

 How about under RA 101689, does the AMLC have the

authority to issue freeze order?

Suggested Answer:

Yes. The AMLC either upon its own initiative or at the

request of the Anti-Terrorism Council (ATC) is authorized to
issue an ex parte order to freeze without delay: (a) property
of funds that are in any way related to financing of
terrorism ; or (b) property or funds of any person, group of
persons, terrorist organization, or association, in relation to
whom there is probable cause to believe that they are
committing or attempting or conspiring to commit, or
participating in or facilitating the commission of financing
of terrorism or acts of terrorism, as defined herein.

The freeze order shall be effective for a period not

exceeding twenty (20) days. Upon a petition filed by the
AMLC before the expiration of the period, the effectivity of
the freeze order may be extended up to a period not
exceeding six (6) months upon order of the Court of
Appeals: Provided, That the twenty-day period shall be
tolled upon filing of a petition to extend the effectivity of the
freeze order.

Notwithstanding the preceding paragraphs, the AMLC,

9
The Terrorism Financing Prevention and Suppression Act of 2012.
Page 25 of 32

consistent with the Philippines’ international obligations,

shall be authorized to issue a freeze order with respect to
property or funds of a designated organization, association,
group or any individual to comply with binding terrorism-
related Resolutions, including Resolution No. 1373, of the
UN Security Council pursuant to Article 41 of the Charter of
the UN. Said freeze order shall be effective until the basis
for the issuance thereof shall have been lifted. During the
effectivity of the freeze order, an aggrieved party may,
within twenty (20) days from issuance, file with the Court of
Appeals a petition to determine the basis of the freeze order
according to the principle of effective judicial protection.

However, if the property or funds subject of the freeze order

under the immediately preceding paragraph are found to be
in any way related to financing of terrorism or acts of
terrorism committed within the jurisdiction of the
Philippines, said property or funds shall be the subject of
civil forfeiture proceedings as hereinafter provided.

RA 10168, Sec. 3 (g) Freeze refers to the blocking or

restraining of specific property or funds from being
transacted, converted, concealed, moved or disposed
without affecting the ownership thereof.

 What is the meaning of “Related Accounts”?

It shall refer to accounts, the funds and sources of which

originated from and/or are materially linked to the
monetary instrument(s) or property(ies) subject of the
freeze order(s). (RA 10167, June 6, 2012)

 Mr. Sha Buo is a regular client of Banco De Yabu with just

a minimal banking transactions and a minimum balance
in his savings account. One day Mr. Sha Bu deposited P5
million in cash to his savings account.

Raphael the bank manager inquired about the personal

and business standing of Mr. Sha Buo based on his
records on file. Based on his inquiry Raphael concluded
that Mr. Sha Buo seems to have no underlying business,
trade obligations or transaction and that the amount
deposited is not commensurate with the financial
capacity of Mr. Sha Buo.
Page 26 of 32

Because of this findings and in compliance with AMLA,

Raphael reported the said transactions within five
working (5) days to the AMLC as covered and suspicious
transactions.

Catherine the secretary of Raphael saw the report made

by Raphael to the AMCL regarding the account of Mr.
Sha Buo. During lunch, Catherine told Miguel her office
mate about the said report. Miguel sends text message to
his girlfriend Angela who is a journalist about the report.
Angela writes about the said report in her column at The
Daily Intriguer.

Discuss the liability, if any, of the enumerated persons

under RA 9160, as amended by RA 9194, the Anti Money
Laundering Act of 2001.

Suggested Answers:

For reporting a covered and suspicious transaction, Raphael

in the regular performance of his duties and in good faith
will not incur any liability, administrative, criminal, or civil.
(Safe Harbor Provisions rule 9.3.e RA 9194 IRR)

Catherine, the secretary of Raphael and Miguel, as

employees and officers of the bank are prohibited from
communicating directly or indirectly in any manner or by
any means, to any person, entity, the media, the fact that a
covered or suspicious transaction report was made, the
contents thereof, or any other information in relation
thereto.

Angela is also prohibited to publish, air or in any manner or

form of mass media, electronic mail or other similar
devices. Rule 9.3d to 9.3e RA 9194

Catherine, Miguel and Angela are all criminally liable under

RA 9194 and other laws penalized under the RPC or special
laws.

 Under Ra 9194 (March 5, 2003)

SEC. 9. Section 14, paragraphs (c) and (d) of the same Act
is hereby amended to read as follows:

"(c) Malicious Reporting. Any person who, with malice, or in

bad faith, reports or files a completely unwarranted or false
Page 27 of 32

information relative to money laundering transaction

against any person shall be subject to a penalty of six (6)
months to four (4) years imprisonment and a fine of not less
than One hundred thousand Philippine pesos (Php
100,000.00) but not more than Five hundred thousand
Philippine pesos (Php 500,000.00), at the discretion of the
court: Provided, That the offender is not entitled to avail the
benefits of the Probation Law.

"If the offender is a corporation, association, partnership or

any juridical person, the penalty shall be imposed upon the
responsible officers, as the case may be, who participated
in, or allowed by their gross negligence, the commission of
the crime. If the offender is a juridical person, the court may
suspend or revoke its license. If the offender is an alien, he
shall, in addition to the penalties herein prescribed, be
deported without further proceedings after serving the
penalties herein prescribed. If the offender is a public
official or employee, he shall, in addition to the penalties
prescribed herein, suffer perpetual or temporary absolute
disqualification from office, as the case may be.

"Any public official or employee who is called upon to testify

and refuses to do the same or purposely fails to testify shall
suffer the same penalties prescribed herein.

"(d) Breach of Confidentiality. The punishment of

imprisonment ranging from three (3) to eight (8) years and
a fine of not less than Five hundred thousand Philippine
pesos (Php 500,000.00) but not more than One million
Philippine pesos (Php 1,000,000.00) shall be imposed on a
person convicted for a violation under Section 9(c). In the
case of a breach of confidentiality that is published or
reported by media, the responsible reporter, writer,
president, publisher, manager and editor-in-chief shall be
liable under this Act."

 Sec. 15 of RA 9160

“SEC. 15. System of Incentives and Rewards. – A system of

special incentives and rewards is hereby established to be given to the
appropriate government agency and its personnel that led and
initiated an investigation, prosecution and conviction of persons
involved in the offense penalized in Section 4 of this Act. “

This section was deleted by Sec. 10 of RA 9194 ( March 5,

2003)
Page 28 of 32

Q. Are government agencies or its personnel entitled to

rewards or special incentives if their assistance has led and
initiated an investigation, prosecution, and conviction of
persons involved in the offense of Money Laundering.

Suggested Answer: NO. Sec. 15 of RA 9160 has been

deleted by R A 9194.

 Court of Freezes Binay assets

May 13, 2015 issue of PDI by: Nancy C. Carvajal.

The Court of Appeals (CA) has granted a petition by the

AMLC to freeze the bank accounts of VP Jejomar Binay
totaling P600 million.

The 33-page order issued on May 11 also covered bank

accounts of Binay’s son Makati Mayor Jejomar Erwin
“Junjun” Binay Jr., his wife Elinita and his alleged dummies
Gerardo Limlingan, Eduviges Baloloy, Antonio Tiu, Lily
Hernandez Crystal, Carmelita Palo Galvan, Francisco
Balaguer Baloloy, Bernadette Cesar Portollano, Mitzi Sedillo
Margeurite Lichnock, Melissa Gay Castaneda Limlingan,
Victor Limlingna, James Lee Tiu, Pee Feng Lee, Ann Loraine
Buencamino Tiu, Frederick Duenas Baloloy, Mario Alejo
Oreta, Jose Orillaza, Daniel Subido, Man Bun Chong, Joy
Mercado and Omni General Services Inc.

The order was issued in connection with the investigation

being conducted by the Office of the Ombudsman on alleged
irregularities in the construction of the Makati Hall Building
II, purportedly overpriced at P1.3 billion, and Makati
Science High School.

In all, the court orders covers 242 banks, securities and

insurance accounts of the respondents. The P600 million
covered only accounts under Binay’s name. In all, the
transactions conducted by Binay , his family and alleged
dummies examined by AMLC totaled P 16 billion since
2008.

The court said it agreed with the AMLC that there was
“probable cause to believe that the individual and joint bank
accounts
Frozen Assets:
Page 29 of 32

Jejomar C. Binay
Jejomar Erwin S. Binay
Gerardo S. Limlingan Jr.
Edugives D. Baloloy
Ernesto S. Mercado
Greenergy Holdings Inc.
Sunchamp Real Estate Development Corp.
Earthright Holdings Inc.,
Antonio L. Chiu
Millennium Food Chains Corp.
Elenita S. Binay
Lily Hernandez Crystal
Carmelita Palo Galvan
Francisco Balaguer Baloloy
Bernadette Cezar Portollano
Mitzi Ouano Sedillo
Marguerite Lichnock
Malissa Gay Limlingan Padua
Gerardo Martin Castaneda Limlingan
James Lee Tiu
Pei Feng Tiu
Ann Loraine Buencamino Tiu
Frederick Duenas Baloloy
Jennifer V. Baloloy
Mario Alejo Oreta
Jose Orilaza
Daniel C. Subido
Man Bun Chong
Erlinda S. Chong
April Joy Pascual Mercado
Omni Security Investigation and General Services Inc.

Binay complains and alleges that the action of the AMLC is

a form of a political persecution and harassment aimed at
foiling his candidacy for the President. Comment on the
allegations and complains.

Suggested Answers:

The allegations and complains of Binay has no basis in law.

The prohibition against political harassment under Section
16 of RA 9160, which prohibits the use of AMLA for political
persecution, and harassment applies only to a candidate for
an electoral office during an election period.

Binay is not yet a candidate but a prospective candidate and

besides there is no election period yet.
Page 30 of 32

Sec. 16 of RA 9160 provides:

SEC. 16. Prohibitions Against Political Harassment. –

This Act shall not be used for political persecution or
harassment or as an instrument to hamper competition in
trade and commerce.

No case for money laundering may be filed against and no

assets shall be frozen, attached or forfeited to the prejudice
of a candidate for an electoral office during an election
period.

Q. A week before the Presidential election of May 9, 2016,

the AMLC acting on the series of expose’ by Sen. Trillanes ,
about the alleged secret bank accounts of DU30 in Ortigas,
Pasig City, allegedly containing millions of Pesos and
undetermined foreign currencies, which were not included
in his SALN, and upon findings of probable cause filed an
ex-parte application for freeze order with the Court of
Appeals. Is the ex-parte application of freeze order by the
AMLC proper?

Suggested Answers:

The application of freeze order should be denied. Under

Section 16 of RA 9160, as amended, prohibits the filing of
cases for money laundering, the freezing of assets or the
attachment and forfeiture of the same to the prejudice of a
candidate for an election during an election period.

 A criminal conviction for an unlawful activity is not a

prerequisite for the institution of a civil forfeiture
proceeding. Stated otherwise, a finding of guilt for an
unlawful activity is not an essential element of civil
forfeiture. (Republic v. Glasgow Credit and Collection
Services, Inc. and Citystate Savings Bank, Inc., G.R. No.
170281, January 18 2008.

 The contention that trust accounts are not covered by the

term "deposits," as used in R.A. 1405, by the mere fact
that they do not entail a creditor-debtor relationship
between the trustor and the bank, does not lie. An
examination of the law shows that the term "deposits"
used therein is to be understood broadly and not limited
Page 31 of 32

only to accounts, which give rise to a creditor-debtor

relationship between the depositor and the bank.

Clearly, therefore, RA1405 is broad enough to cover Trust

Account.

 The enactment of R.A. No.9160, on the other hand, is a

significant development only because it clearly manifests
that prior to its enactment, numbered accounts or
anonymous accounts were permitted banking
transactions, whether they be allowed by law or by a
mere banking regulation. To be sure, an indictment
against Estrada using this relatively recent law cannot be
maintained without violating the constitutional
prohibition on the enactment and use of ex post facto
laws.38

People v. Joseph Ejercito Estrada et al., G.R. No.

164368-69

 Sec. 11 of RA 10168 (Terrorism Financing and Prevention

and Suppression Act of 2012) in conjunction with Rule
11.a of its IRR. The AMLC either upon its own initiative
or at the request of the Anti-Terrorism Council (ATC) is
authorized to issue ex-parte , an order to freeze without
delay property /funds of any person, terrorist
organization , association or group of persons in relation
to whom there is probable cause to believe that they are
committing or attempting or conspiring to commit, or
participating in or facilitation the commission of financing
of terrorism.

The freeze order shall be effective for a period not

exceeding 20 days, may be extended to 6 months via
petition to CA before the expiration of the 20-day period.

Notwithstanding the preceding paragraphs, the AMLC,

consistent with the Philippines’ international obligations,
is authorized to issue, ex-parte , a freeze order with
respect to property or funds of designated persons,
organizations, associations or groups of persons based on
the binding terrorism-related Resolutions including
Resolution No. 1373, of the UN Security Council pursuant
to Article 41 of the UN Charter. The freeze order shall be
effective until the basis for its issuance shall have been
lifted. During the effectivity of the freeze order, the
aggrieved party may, within twenty (20) days from
Page 32 of 32

issuance , file with the CA a petition to determine the

basis of the freeze order according to the principle of
effective judicial protection.

However, if the property or funds subject of the freeze

order under the immediately preceding paragraph are
found to be in any way related to financing of terrorism
or terrorist acts committed within the jurisdiction of the
Philippines, said property or funds shall be the subject of
civil forfeiture proceedings as hereafter provided.

Under the Mistaken Identity; Safe Harbor Provision- no

administrative, criminal, or civil proceeding shall lie
against any person or entity including covered
institutions and relevant government agencies for
effecting a freeze order on the property or funds based on
mistaken identity unless there is bad faith, gross
negligence or malice.