Terrorism Ficing Prevention Act 2012

Core definitions and covered terms

Section 3(a) defines Anti-Money Laundering Council (AMLC) as the council created under Republic Act No. 9160, otherwise known as the “Anti-Money Laundering Act of 2001,” as amended.
Section 3(b) defines Anti-Terrorism Council (ATC) as the council created under Republic Act No. 9372, otherwise known as the “Human Security Act of 2007.”
Section 3(c) defines covered institutions as having the same meaning as defined under the Anti-Money Laundering Act (AMLA), as amended.
Section 3(d) defines dealing, with regard to property or funds to include receiving, acquiring, transacting, representing, concealing, disposing or converting, transferring or moving, using as security, or providing financial services, including related services.
Section 3(e) defines designated persons as including:
- Section 3(e)(1) any person or entity designated and/or identified as a terrorist, one who finances terrorism, or a terrorist organization or group under the applicable United Nations Security Council Resolution or by another jurisdiction or supranational jurisdiction;
- Section 3(e)(2) organizations, associations, or groups proscribed pursuant to Section 17 of Republic Act No. 9372; and
- Section 3(e)(3) persons, organizations, associations, or groups whose funds or property, based on probable cause, are subject to seizure and sequestration under Section 39 of Republic Act No. 9372.
Section 3(f) defines forfeiture as a court order transferring in favor of the government, after due process, ownership of property or funds representing, involving, or relating to financing of terrorism as defined in Section 4 or an offense under Sections 5, 6, 7, 8, or 9.
Section 3(g) defines freeze as blocking or restraining specific property or funds from being transacted, converted, concealed, moved, or disposed without affecting ownership.
Section 3(h) defines property or funds to include financial assets and property of every kind, tangible or intangible, movable or immovable, however acquired, and legal documents or instruments in any form including electronic or digital instruments evidencing title to or interest in such funds or assets—specifically including bank credits, travellers cheques, bank cheques, money orders, shares, securities, bonds, drafts, letters of credit, and any interest, dividends, or other income on or value accruing from such funds or assets.
Section 3(i) defines terrorist to include any natural person who commits, attempts, or conspires to commit terrorist acts; participates as principal or accomplice; organizes or directs others; or contributes intentionally with the aim of furthering the terrorist act or with knowledge of the group’s intent.
Section 3(j) defines terrorist acts to include:
- Section 3(j)(1) acts violating Section 3 or Section 4 of the Human Security Act of 2007;
- Section 3(j)(2) acts intended to cause death or serious bodily injury to a civilian or to any person not taking an active part in hostilities in an armed conflict, when the purpose is to intimidate a population or compel a government or international organization to do or abstain from doing any act; and
- Section 3(j)(3) acts constituting offenses under specified treaties where the Republic of the Philippines is a State Party, including conventions and protocols dated 16 December 1970, 23 September 1971, 14 December 1973, 17 December 1979, 3 March 1980, 24 February 1988, 10 March 1988, and 15 December 1997, covering unlawful seizure of aircraft, safety of civil aviation, internationally protected persons, taking of hostages, nuclear material protection, violence at airports, maritime navigation safety, and fixed platforms safety.
Section 3(k) defines terrorist organization, association or a group of persons to include any entity owned or controlled by terrorists or terrorist groups that commits or attempts terrorist acts; participates as accomplice; organizes or directs; or contributes intentionally (aiming to further the terrorist act) or with knowledge of the intent of the group.

Crime of financing terrorism

Section 4 provides that any person who, directly or indirectly, willfully and without lawful excuse possesses, provides, collects, uses, or makes available property or funds or financial services or other related services by any means, with unlawful and willful intention that they be used or with knowledge that they are to be used—in full or in part—to:
- Section 4(a) carry out or facilitate any terrorist act; or
- Section 4(b) by a terrorist organization, association, or group; or
- Section 4(c) by an individual terrorist,
  commits the crime of financing of terrorism.
Section 4 imposes the penalty of reclusion temporal in its maximum period to reclusion perpetua and a fine of not less than PHP 500,000.00 nor more than PHP 1,000,000.00.
Section 4 provides that organizing or directing others to commit financing of terrorism is punishable with the same penalty.
Section 4 allows knowledge or intent to be established by direct evidence or inferred from the attendant circumstances.
Section 4 provides that actual use of the funds to carry out a crime under Section 3(j) is not necessary for the act to constitute the crime under the Act.
Section 4 covers financing of terrorism committed through property or funds “or makes available” property or funds “or financial service or other related services,” including by any means, whether the act is direct or indirect.

Attempt, conspiracy, and participation levels

Section 5 penalizes any attempt to commit a crime under Section 4 or Section 8 by a penalty two degrees lower than that prescribed for commission of the same.
Section 5 penalizes any conspiracy to commit a crime under Section 4 or Section 8 by the same penalty prescribed for commission.
Section 5 provides that conspiracy exists when two (2) or more persons come to an agreement concerning the commission of the offenses and decide to commit it.
Section 6 provides that an accomplice—a person not being a principal under Article 17 of the Revised Penal Code or a conspirator as defined in Section 5, who cooperates by previous or simultaneous acts—receives a penalty one degree lower than that prescribed for the conspirator.
Section 7 provides that an accessory—a person with knowledge of the commission of financing of terrorism who did not participate as principal—commits accessory when the person takes part after commission by profiting from it or assisting principals to profit, or by concealing or destroying effects to prevent discovery, or by harboring, concealing, or assisting the escape of a principal.
Section 7 imposes accessory liability with a penalty two degrees lower than that prescribed for principals in the crime of financing of terrorism.

Prohibition: designated persons dealings

Section 8 prohibits any person, not being an accomplice under Section 6 or accessory under Section 7, from:
- Section 8(i) dealing directly or indirectly, in any way and by any means, with property or funds the person knows or has reasonable ground to believe is owned or controlled by a designated person, organization, association, or group, including funds derived or generated from such property or funds; or
- Section 8(ii) making available property or funds, or financial services or other related services, to a designated and/or identified person, organization, association, or group of persons.
Section 8 imposes the penalty of reclusion temporal in its maximum period to reclusion perpetua and a fine of not less than PHP 500,000.00 nor more than PHP 1,000,000.00.

Juridical persons, investigations, and freezing orders

Section 9 provides that if the offender is a corporation, association, partnership, or other juridical person, the penalty is imposed on responsible officers who participated in, or whose gross negligence allowed, commission, or who knowingly permitted or failed to prevent commission.
Section 9 provides that if the offender is a juridical person, the court may suspend or revoke its license.
Section 9 provides that if the offender is an alien, the alien is subject to the penalties prescribed and is deported without further proceedings after serving those penalties.
Section 10 authorizes the AMLC, either on its own initiative or at the request of the ATC, to investigate:
- Section 10(a) any property or funds related to financing of terrorism or acts of terrorism; and
- Section 10(b) property or funds of persons where there is probable cause to believe they are committing, attempting, conspiring to commit, participating in, or facilitating financing of terrorism or acts of terrorism.
Section 10 allows AMLC to enlist assistance of government branches, departments, bureaus, offices, agencies, and instrumentality including government-owned and -controlled corporations to counter terrorism financing, using AMLC personnel, facilities, and resources.
Section 10 authorizes AMLC, notwithstanding Republic Act No. 1405, Republic Act No. 6426, Republic Act No. 8791, and other laws, to inquire into or examine deposits and investments with any banking institution or non-bank financial institution and their subsidiaries and affiliates without a court order.
Section 11 authorizes the AMLC, either on its own initiative or at the request of the ATC, to issue an ex parte order to freeze without delay:
- Section 11(a) property or funds related to financing of terrorism or acts of terrorism; or
- Section 11(b) property or funds of a person, group of persons, terrorist organization, or association where there is probable cause to believe they are committing, attempting, conspiring to commit, participating in, or facilitating financing of terrorism or acts of terrorism.
Section 11 provides that a freeze order is effective for not exceeding twenty (20) days.
Section 11 provides that upon petition filed by AMLC before the expiration of the period, the freeze order may be extended up to not exceeding six (6) months by order of the Court of Appeals, and the twenty-day period is tolled upon filing of the petition to extend.
Section 11 authorizes AMLC to issue a freeze order for designated organizations, associations, groups, or individuals to comply with binding United Nations Security Council terrorism-related resolutions including Resolution No. 1373, under Article 41 of the Charter of the UN, with effectiveness until the basis for issuance is lifted.
Section 11 provides that during that freeze order’s effectivity, an aggrieved party may file with the Court of Appeals within twenty (20) days from issuance a petition to determine the basis of the freeze order under the principle of effective judicial protection.
Section 11 provides that if the property or funds subject of the freeze order under the UN-Resolution paragraph are found related to financing of terrorism or acts of terrorism committed within the Philippines, the property or funds are subject to civil forfeiture proceedings under the Act’s civil forfeiture provisions.

Freeze deferral, humanitarian withdrawals, and PAO aid

Section 12 authorizes the AMLC to defer issuance of a freeze order for as long as necessary for specific investigative/prosecutorial purposes.
Section 13 provides that a person whose property or funds were frozen under the first paragraph of Section 11 may withdraw sums that the court determines to be reasonably needed for monthly family needs and sustenance, including services of counsel and family medical needs.
Section 13 provides that a person whose property or funds were frozen under the third paragraph of Section 11 may withdraw sums that the AMLC determines to be reasonably needed for monthly family needs, including services of counsel and family medical needs.
Section 14 provides that appropriation and use of Public Attorney’s Office (PAO) funds to provide free legal assistance or services to persons charged with offenses defined and penalized in the Act does not violate the Act and exempts PAO from liability.

Publication and duties to comply with freeze

Section 15 requires the Department of Foreign Affairs to publish lists of designated persons for designations under Section 3(e)(1).
Section 15 requires the ATC to publish lists of designated persons for designations under Section 3(e)(2) and (3) and under Section 11.
Section 15 requires each concerned agency to ensure an electronic version of the designation list is available to the public on its respective website.
Section 15 requires each agency or authority to make available on its website information on procedures for delisting, unfreezing, and exemptions for basic, necessary or extraordinary expenses established in rules and regulations issued pursuant to the Act.
Section 16 requires covered institutions and/or relevant government agencies, upon receipt of notice of a freeze order, to immediately preserve the subject property or funds in accordance with the AMLC order.
Section 16 requires covered institutions and/or relevant government agencies to forthwith serve a copy of the notice of the freeze order upon the owner or holder.
Section 16 provides that failure by any responsible officer or other person to comply with a freeze order results in imprisonment from six (6) months to four (4) years and a fine of not less than PHP 100,000.00 nor more than PHP 500,000.00, at the discretion of the court, without prejudice to administrative sanctions that AMLC may impose on the erring covered institution.

Money laundering linkage, civil forfeiture, and procedure basis

Section 17 provides that financing of terrorism under Section 4 and offenses punishable under Sections 5, 6, and 7 are predicate offenses to money laundering under Republic Act No. 9160, and are subject to that Act’s suspicious transaction reporting requirement.
Section 18 provides that civil forfeiture proceedings for property or funds found related to financing of terrorism under Section 4 and other offenses under Sections 5, 6, and 7 follow the procedure under the Anti-Money Laundering Act (AMLA), as amended, its Revised Implementing Rules and Regulations, and the Rules of Procedure promulgated by the Supreme Court.

Jurisdiction beyond the Philippines; extradition

Section 19 provides for extra-territorial application of the criminal provisions, subject to an existing treaty including the International Convention for the Suppression of the Financing of Terrorism and any contrary law of preferential application.
Section 19 applies the criminal provisions to individual persons who commit, conspire, or plot to commit crimes defined and punished under the Act inside the territorial limits of the Philippines, even if physically outside the territorial limits at the time of commission.
Section 19 applies to individual persons who commit such crimes on board a Philippine ship or Philippine airship even if physically outside territorial limits.
Section 19 applies to individual persons who commit such crimes within an embassy, consulate, or diplomatic premises belonging to or occupied by the Philippine government in an official capacity.
Section 19 applies to individual persons who commit such crimes against Philippine citizens or persons of Philippine descent where citizenship or ethnicity was a factor in commission, even if physically outside territorial limits.
Section 19 applies to individual persons who commit such crimes directly against the Philippine government even if physically outside territorial limits.
Section 19 applies the provisions to a Filipino national who, although outside the territorial jurisdiction of the Philippines, commits, conspires, or plots to commit any crime defined and punished under the Act.
Section 19 provides that when an alien’s extradition is requested under the International Convention for the Suppression of the Financing of Terrorism and the alien is not extradited, the Republic of the Philippines shall, without exception whatsoever and whether or not the offense was committed in the Philippines, submit the case without undue delay to the Department of Justice for prosecution as if the act was committed in the Philippines, and courts of the Philippines shall have jurisdiction.
Section 20 provides that the Philippines may, at its option and subject to the principle of reciprocity, consider the International Convention for the Suppression of the Financing of Terrorism as a legal basis for requesting or granting extradition for offenses under the Act.

Penal support, implementing rules, and effectiveness

Section 21 provides that Book I of the Revised Penal Code applies suppletorily to the Act.
Section 22 requires that within thirty (30) days from the effectivity of the Act, the AMLC, in coordination with relevant government agencies, shall promulgate rules and regulations to implement the Act effectively.
Section 22 provides that the implementing rules and regulations may include designation, delisting, notification of matters of interest of persons affected by the Act, exceptions for basic, necessary and extraordinary expenses, matters of evidence, definition of probable cause, inter-agency coordination, publication of relevant information, administrative offenses and penalties, procedures and forms, and other implementation mechanisms.
Section 23 provides a separability clause: invalidity or unconstitutionality of any provision does not affect the continued force of remaining provisions not affected.
Section 24 provides a repealing clause: laws, decrees, executive orders, proclamations, rules and regulations, and other issuances or parts inconsistent with the Act are repealed or modified accordingly.
Section 25 provides that the Act takes effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Enactment details and approval

Republic Act No. 10168 was approved on June 20, 2012.
Republic Act No. 10168 took effect after fifteen (15) days from complete publication under Section 25.
The Act states it was finally passed by the Senate and the House of Representatives on June 6, 2012.
Section 1 uses the short title “Terrorism Financing Prevention and Suppression Act of 2012.”
The Act is signed by the Speaker of the House of Representatives, the President of the Senate, and the President of the Philippines.