QuestionsQuestions (Republic Act No. 11521)
The policy is to protect and preserve the integrity and confidentiality of bank accounts and ensure the Philippines is not used as a money laundering site; to extend cooperation in transnational investigations and prosecutions; and to implement targeted financial sanctions related to proliferation of weapons of mass destruction, terrorism, and financing of terrorism pursuant to relevant UN Security Council resolutions.
Covered persons include real estate developers and brokers, and offshore gaming operations and their service providers supervised/accredited/regu1ated by PAGCOR or any government agency.
Covered transactions are cash/other equivalent monetary instruments in excess of P500,000 within one banking day. For casino cash transactions (covered persons under Section 3(a)(8)), a single casino cash transaction in excess of P5,000,000. For real estate developers/brokers (as shown in the excerpt), a single cash transaction in excess of P7,500,000 or its equivalent in other currency.
Suspicious transactions are those with covered persons regardless of amount where any enumerated circumstance exists, such as no underlying legal/trade obligation or economic justification; improper client identification; amount not commensurate with client capacity; structuring to avoid reporting; deviation from client profile/past transactions; relation to an unlawful activity; or transactions similar/analogous to the foregoing.
Unlawful activity includes specified acts/omissions and predicate offenses. The excerpt highlights inclusion of (among others) fraudulent practices and violations under RA 8799 (Securities Regulation Code); violations of Section 9(a)(3) of RA 10697 (Strategic Trade Management Act) related to WMD and its financing; and tax crimes under NIRC Section 254 where deficiency basic tax exceeds P25,000,000 per taxable year with probable cause finding, plus fraud/willful misrepresentation/malicious intent; and felonies/offenses of similar nature punishable under penal laws of other countries.
An offshore gaming operator is an entity offering online games of chance or sporting events via the internet using network/software, directly or through local service providers. Service providers are duly constituted business corporations that provide components of offshore gaming operations to offshore gaming operators.
A real estate developer is any natural/juridical person engaged in developing real estate projects for its account and offering them for sale or lease. A real estate broker is a duly registered and licensed natural person who, for professional fee or other valuable consideration, acts as an agent to offer/advertise/solicit/list/promote/mediate/negotiate or effect meeting of minds in real estate transactions.
Targeted financial sanctions are asset freezing and prohibitions to prevent funds/assets from being made available for the benefit of designated individuals/entities pursuant to UN Security Council resolutions and designation processes. Proliferation financing occurs when a person makes available an asset/provides a financial service/conducts a transaction and knows, or is reckless as to whether, it is intended to facilitate proliferation of WMD in relation to UNSC Resolutions 1718 (2006) and 2231 (2015).
The AMLC is empowered to implement targeted financial sanctions including ex parte freeze without delay against all funds and assets owned/controlled directly or indirectly by designated individuals/entities under UNSC Resolutions 1718 and 2231 and successor/binding resolutions.
It requires the AMLC and its Secretariat to securely protect and not reveal any information obtained/processed by reason of their office, and the prohibition applies even after separation. It also mandates rules on information exchange, dissemination, security, confidentiality, storage, and access.
No court shall issue a temporary restraining order or writ of injunction against any freeze order except the Supreme Court (under Section 10(a)). For asset preservation orders, Section 12(d) states no TRO or writ of injunction except the Court of Appeals or the Supreme Court.
For implementing targeted financial sanctions related to WMD/proliferation financing, the AMLC may issue ex parte an order to freeze without delay. The freeze is effective until the basis is lifted. The aggrieved party may file within 20 days from issuance a petition with the Court of Appeals to determine the basis of the freeze, under the principle of effective judicial protection.
Within the period of freeze, the person whose property/funds are frozen may withdraw sums reasonably needed for monthly family needs and sustenance, including counsel’s services and family medical needs.
The order is limited only to the amount of cash/monetary instrument or the value of property that the court finds there is probable cause to be proceeds of a predicate offense. It does not apply to amounts in the same account exceeding the proceeds amount/value.
It adds that a person convicted for a violation under Section 9(c) or Section 8-A faces imprisonment of 3 to 8 years and a fine from P500,000 to P1,000,000. If the offender is a public official/employee, he additionally suffers perpetual or temporary absolute disqualification, depending on circumstances. If the breach is published/reported by media, specified media officers (reporter, writer, president, publisher, manager, editor-in-chief) are liable.
It states the AMLC cannot participate in BIR operations, but may coordinate with the BIR in investigations relating to violations of Section 254 of the NIRC as a predicate offense to money laundering.
The AMLC must issue the necessary rules and regulations within 90 days from the effectivity of the Act.