AMLC Sets Rules for Freezing and Unfreezing Assets Linked to Terrorist Financing

The Anti-Money Laundering Council (AMLC) has issued rules governing the freezing and unfreezing of assets linked to terrorist financing, in accordance with the Terrorism Suppression Act.

Petitions for Withdrawal of Frozen Assets

Under Rule 13, the AMLC shall act on petitions for withdrawal of frozen assets within five working days. If the petition is found to have merit, the AMLC shall notify the United Nations Security Council Sanctions Committee and seek its recommendation on the matter. In the absence of a negative recommendation from the committee within three working days, the AMLC shall grant the petition.

Withdrawal of Frozen Assets

The rules also define basic, necessary, and extraordinary expenses that can be withdrawn from frozen assets:

Basic and necessary expenses:
- Funds needed for foodstuffs
- Rent or mortgage
- Medicines and medical treatment
- Taxes
- Insurance premiums
- Public utility charges
Extraordinary expenses require prior written approval from the UN Security Council Sanctions Committee.

Liability Exemption

In a related development, Rule 14 exempts the Public Attorney’s Office (PAO) from liability when providing free legal assistance to persons charged with offenses under the Terrorism Suppression Act.

Designated Persons and Organizations

The AMLC has published a list of designated persons, organizations, associations, and groups of persons subject to sanctions under United Nations Security Council resolutions and local laws. The list includes information on:

Freeze order
Prohibition on dealing with frozen assets
Available remedies for lifting the freeze order and de-listing

Compliance with Freeze Orders

Under Rule 16, covered institutions and relevant government agencies are required to:

Preserve frozen property or funds
Serve a copy of the notice of the freeze order upon the owner or holder
Failure to comply with a freeze order can result in imprisonment and fines.

Objectives

The rules aim to strengthen the country’s efforts against terrorist financing by ensuring that assets linked to terrorism are effectively frozen and that those affected by the freeze orders have access to the necessary information and remedies.

Availability of Information

The AMLC has made available an electronic version of the list on its website, along with the Terrorism Suppression Act and these rules. The council will also adopt measures to ensure the speedy publication and dissemination of the list.

In related news, the Department of Foreign Affairs (DFA) and the Anti-Terrorism Council (ATC) are responsible for publishing a list of designated persons, organizations, associations, and groups of persons under Section 3(e)(1), (2), and (3) of the Terrorism Suppression Act.