Law Summary
Declaration of Policy
- State's policy to protect life, liberty, and property from terrorism.
- Financing of terrorism is recognized as a crime against the Filipino people, humanity, and international law.
- Adherence to international commitments, including UN Security Council resolutions.
- Reinforcement of state mechanisms to criminalize, prevent, and suppress financing of terrorism.
- Incorporation of freezing and forfeiture of property measures with human rights protection.
Definition of Terms
- AMLC: Anti-Money Laundering Council created under RA 9160.
- ATC: Anti-Terrorism Council under RA 9372.
- Covered institutions defined under the Anti-Money Laundering Act.
- Dealing: includes receipt, acquisition, transfer, use as security, and financial services related to property or funds.
- Designated persons: individuals or groups designated as terrorists or financiers under UN resolutions or the Human Security Act.
- Forfeiture: court-ordered transfer of ownership of property related to terrorism financing.
- Freeze: blocking of property/funds transactions without affecting ownership.
- Property/funds encompass tangible and intangible financial assets and documents evidencing ownership.
- Terrorist: natural persons committing, conspiring, or supporting terrorist acts.
- Terrorist acts defined broadly, including those under Human Security Act and various international conventions.
- Terrorist organizations: entities owned or controlled by terrorists committing or supporting terrorist acts.
Financing of Terrorism
- Crime occurs when a person willfully, without lawful excuse, provides or uses property or funds for terrorist acts.
- Includes financing by terrorist individuals or organizations.
- Penalties: reclusion temporal (max) to reclusion perpetua and fines between Php 500,000 to Php 1,000,000.
- Organizing others to commit financing also punishable.
- Knowledge or intent can be inferred from circumstances.
- Actual use of funds for terrorism is not required to constitute the crime.
Attempt or Conspiracy
- Attempting financing or dealing with designated funds penalized by penalty two degrees lower than the actual crime.
- Conspiracy penalized with the same penalty as the crime.
- Conspiracy defined as agreement by two or more persons to commit the offense.
Accomplice Liability
- Cooperating in financing of terrorism execution results in penalty one degree lower than the conspirator.
Accessory Liability
- After the fact, profiting from, concealing effects, or aiding escape results in penalty two degrees lower than principals.
Prohibition on Dealing with Designated Persons' Property or Funds
- Dealing knowingly or with reasonable grounds with property or funds owned or controlled by designated persons is punishable.
- Penalty: reclusion temporal (max) to reclusion perpetua and fines Php 500,000 to Php 1,000,000.
Offense by Juridical Person or Alien
- Responsible officers liable for corporate offenses.
- Court may suspend or revoke business license of offending juridical person.
- Aliens subject to penalties and deportation post sentence.
Authority to Investigate
- AMLC authorized to investigate properties and persons suspected of financing terrorism.
- AMLC may request assistance from government agencies.
- AMLC can examine deposits and investments without court order notwithstanding bank secrecy laws.
Authority to Freeze
- AMLC may issue ex parte freeze orders on property or funds related to terrorism financing for up to 20 days.
- Extensions up to 6 months by Court of Appeals possible.
- Freeze orders related to UN Security Council resolutions remain effective until lifted.
- Aggrieved parties may petition for judicial determination within 20 days.
- Properties found related to terrorism financing in the Philippines are subject to civil forfeiture.
Investigative Exceptions
- AMLC may defer freeze orders for specific investigative or prosecutorial purposes.
Humanitarian Exemptions
- Persons with frozen assets may withdraw reasonable amounts for family needs, medical needs, and legal counsel.
PAO Appropriation
- Use of PAO funds for legal assistance to charged persons is not a violation and exempt from liability.
Publication of Designation
- DFA and ATC to publish lists of designated persons and organizations.
- Electronic versions and procedural information for delisting and exemptions to be made public.
Duty of Covered Institutions
- Covered institutions must preserve assets upon freeze order and notify owners.
- Noncompliance penalized with imprisonment (6 months to 4 years) and fines Php 100,000 to Php 500,000.
- AMLC may impose administrative sanctions.
Predicate Offense to Money Laundering
- Terrorism financing and related offenses are predicate offenses to money laundering under RA 9160.
Civil Forfeiture
- Follows procedures under the Anti-Money Laundering Act and Supreme Court rules.
Extra-Territorial Application
- Applies to offenses committed outside the Philippines by Filipinos, on Filipino ships or airships, Philippine diplomatic premises, or against Filipino citizens where relevant.
- Aliens not extradited are subject to Philippine prosecution.
Extradition
- Philippines may use the International Convention for the Suppression of the Financing of Terrorism as basis for extradition requests.
Applicability of the Revised Penal Code
- Provisions of Book I of the Revised Penal Code apply suppletorily.
Implementing Rules and Regulations
- AMLC to promulgate implementing rules within 30 days covering designation, delisting, procedures, evidence, inter-agency coordination, penalties, etc.
Separability Clause
- If any provision is invalid, remaining provisions continue in effect.
Repealing Clause
- Inconsistent laws, decrees, rules, or issuances are repealed or modified.
Effectivity Clause
- Act takes effect 15 days after complete publication in official gazette or two newspapers of general circulation.