Legal basis and amendments made
- Section 1 amends Section 10 of Republic Act No. 9160 (the Anti-Money Laundering Act of 2001) to strengthen the rules on freezing monetary instruments or property.
- Section 2 amends Section 11 of Republic Act No. 9160 to strengthen the rules on AMLC authority to inquire into bank deposits.
- Section 2 expressly references Republic Act No. 1405, Republic Act No. 6426, Republic Act No. 8791, and other laws, and sets rules that operate despite them.
- Section 4 provides a repealing clause covering inconsistent laws and regulations, while preserving certain timing limits for penal provisions.
Core purpose: strengthening anti-money laundering enforcement
- Republic Act No. 10167 strengthens anti-money laundering enforcement by expanding and tightening judicial processes involving (1) freezing of monetary instruments or property and (2) authority to inquire into bank deposits and related accounts.
Freeze order: court authority and limits
- Section 10 allows the Court of Appeals to issue a freeze order upon a verified ex parte petition by the AMLC.
- The Court of Appeals may issue the freeze order only after determining that probable cause exists that the monetary instrument or property is in any way related to an unlawful activity defined in Section 3(i) of Republic Act No. 9160.
- The freeze order takes effect immediately upon issuance.
- The freeze order lasts for twenty (20) days, unless extended by the court.
- The Court of Appeals must act on the petition to freeze within twenty-four (24) hours from filing.
- If the application is filed a day before a nonworking day, the computation of the twenty-four (24) hours excludes the nonworking days.
- A person whose account has been frozen may file a motion to lift the freeze order, and the court must resolve the motion before the expiration of the twenty (20)-day original freeze order.
- Section 10 prohibits any court from issuing a temporary restraining order or a writ of injunction against any freeze order, except the Supreme Court.
AMLC inquiry into bank deposits and related accounts
- Section 11 authorizes the AMLC to inquire into or examine any particular deposit or investment, including related accounts, with any banking institution or non-bank financial institution.
- The authority is exercised upon order of any competent court based on an ex parte application in cases of violations of Republic Act No. 9160.
- The court order may issue when it is established that there is probable cause that the deposits or investments, including related accounts involved, are related to:
- an unlawful activity under Section 3(i); or
- a money laundering offense under Section 4.
- The court order requirement does not apply in cases involving activities defined in Section 3(i)(1), Section 3(i)(2), and Section 3(i)(12), including felonies or offenses of a nature similar to those mentioned in Section 3(i)(1), Section 3(i)(2), and Section 3(i)(12) punishable under the penal laws of other countries, and terrorism and conspiracy to commit terrorism under Republic Act No. 9372.
- The Court of Appeals must act on the application to inquire into or examine any deposit or investment within twenty-four (24) hours from filing.
- Bangko Sentral ng Pilipinas examination authority is recognized: in the course of a periodic or special examination, the Bangko Sentral ng Pilipinas may check compliance of a Covered institution with the requirements of the AMLA and its implementing rules and regulations.
- Related accounts are defined for Section 11 purposes as accounts whose:
- funds and sources originated from and/or are materially linked to the monetary instrument(s) or property(ies) subject of the freeze order(s).
- An ex parte court order is required before the AMLC can inquire into related accounts.
- The procedure for the ex parte application for the related accounts’ ex parte court order follows the same procedure as that for the principal account.
- The authority to inquire into or examine the main account and related accounts must comply with the requirements of Article III, Sections 2 and 3 of the 1987 Constitution, and these constitutional requirements are incorporated by reference.
Separability, repealing, and effect on prior acts
- Section 3 provides a separability clause: if any provision or its application is held void or unconstitutional, the remaining provisions continue in full force and effect.
- Section 4 provides a repealing clause: laws, decrees, executive orders, rules and regulations, or parts inconsistent with Republic Act No. 10167 are repealed, amended, or modified accordingly.
- Section 4 limits retroactive penal application: the penal provisions do not apply to acts done prior to the effectivity of the AMLA on October 17, 2001.