Case Digest (G.R. No. 256060-61)
Facts:
In Republic of the Philippines represented by the Anti-Money Laundering Council (AMLC) vs. Bloomberry Resorts and Hotels, Inc. (Solaire) and Banco de Oro, the AMLC sought to freeze a Banco de Oro (BDO) account of Bloomberry Resorts and Hotels, Inc. (BRHI) following the February 2016 hacking of Bangladesh Bank’s account at the New York Federal Reserve, which resulted in the unauthorized transfer of US$81 million into the Philippine banking system. Initial investigations traced US$29 million of these stolen funds to BRHI’s BDO Account No. 6280225150 via a remittance company, PhilRem Service Corporation, on instructions of a certain William So Go. On March 15, 2016, the Court of Appeals (CA) issued an ex parte freeze order valid for 30 days, finding probable cause that the BDO account was related to unlawful activity under the Anti-Money Laundering Act (AMLA). BRHI, a licensed casino operator at Entertainment City, maintained that the funds were front money deposited by legitimateCase Digest (G.R. No. 256060-61)
Facts:
- Parties and Procedural Posture
- The Republic of the Philippines, represented by the Anti-Money Laundering Council (AMLC), filed a Rule 45 petition challenging the Court of Appeals (CA) Resolution of April 15, 2016, which lifted a freeze order on Bloomberry Resorts and Hotels, Inc.’s (BRHI) BDO Account No. 6280225150.
- BRHI operates Solaire Resort and Casino and is not a covered institution under the AMLA at the time of the incident. Banco de Oro (BDO) is respondent-bank.
- Origin of the Controversy
- In February 2016, Bangladesh Bank’s account with the New York Fed was hacked, resulting in unauthorized SWIFT transfers totaling US$81 million to various Philippine accounts.
- The AMLC traced US$29 million of these funds to BRHI’s BDO account via intermediary accounts (RCBC beneficiaries → William So Go → PhilRem Service Corporation → BRHI).
- Freeze Order Proceedings
- On March 15, 2016, the CA issued an ex parte freeze order over BRHI’s account for 30 days, finding probable cause under R.A. 9160 (AMLA), as amended.
- The AMLC sought extension of the freeze, while BRHI moved to lift it. On April 15, 2016, the CA granted BRHI’s motion and ordered BDO to unfreeze the account.
- Casino Operations and Transactions
- BRHI explained the frozen funds were “front money” for Chinese high-roller gambling during Chinese New Year, delivered by a junket remittance company (PhilRem) under instructions of one Ding Zhize.
- Upon media reports on February 29, 2016 linking Solaire to the hack, BRHI froze remaining player funds (≈P108 million) and barred the Ding group from play.
- Supreme Court Proceedings
- AMLC filed a Petition for Review on May 3, 2016, and secured a TRO on May 19, 2016. BDO had already unfrozen the account per CA’s order.
- Both parties filed memoranda: AMLC maintained the account held stolen funds and money is fungible; BRHI contended the case was moot (freeze orders capped at six months) and it exercised no duty under AMLA to verify front-money sources.
Issues:
- Whether the Court of Appeals erred in lifting the freeze order over BRHI’s BDO Account No. 6280225150.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)