Respecting Obligations under Valid Contracts Despite Frozen Accounts
The Philippine government has clarified that obligations under valid contracts entered into before accounts or other assets were frozen will still be respected.
Clarification from the Anti-Money Laundering Council (AMLC)
According to a recent statement from the AMLC, individuals whose property or funds have been frozen may withdraw an amount necessary to shoulder basic and necessary expenses, including those covered by authorized dealings, by filing a verified petition before the Court of Appeals or the AMLC.
Combating Terrorism Financing and Money Laundering
The government has stepped up its efforts to combat terrorism financing and money laundering, including freezing accounts and assets linked to designated individuals and entities. This is in accordance with the Terrorism Financing Prevention and Suppression Act (TFPSA) and the Strategic Trade Management Act (STMA).
Penalties for Non-Compliance
Violating the prohibition on dealing with property or funds of designated persons under TFPSA is punishable by imprisonment and a fine of up to one million pesos. Similarly, failure to comply with a freeze order is punishable by imprisonment and a fine of up to five hundred thousand pesos.
Under STMA, violation of the trade in strategic goods is punishable by imprisonment and a fine of up to five million pesos, as well as administrative penalties such as the limitation, revocation, or annulment of any authorization or registration. Non-compliance with anti-money laundering laws can also result in administrative sanctions, including fines, suspension, or revocation of licenses and registrations.
Registration Requirements for Strategic Goods Trade
For those seeking to engage in the trade of strategic goods, registration with and obtaining an authorization from the Strategic Trade Management Office (STMO) is mandatory. Individual licenses are also required in certain instances involving trade in unlisted goods.
Regulatory Bodies
The government has established several regulatory bodies to implement its anti-terrorism and anti-money laundering laws, including:
- Anti-Terrorism Council-Program Management Center (ATC-PMC)
- Anti-Money Laundering Council (AMLC)
- Department of Trade and Industry’s Strategic Trade Management Office (STMO)
Contact Information
Those seeking more information on the regulations and obligations under these laws can contact the following agencies:
- ATC-PMC: Room 472 Mabini Hall, J.P. Laurel St., San Miguel, Manila; Tel. (+63) 2 4851 /4860/4858; Fax: (+63) 2 87361008
- AMLC Secretariat: 5/F EDPC Building, Bangko Sentral ng Pilipinas Complex, Mabini corner Vito Cruz Streets, Malate, Manila 1004; Tel. (+63) 2 8708-7701
- STMO: 3F Tara Building, 389 Sen. Gil Puyat Avenue, Makati City; Mobile: (+63) 917 8566 596; Phone: (632) 8529-3282 / 8529-3280; Email: stmoinfo@dti.gov.ph
Important Note
It is important to note that the information contained in this article is intended as a guide only, and it is not a substitute for appropriate legal advice. Those seeking to engage in trade or other activities subject to these regulations are advised to consult with qualified professionals to ensure compliance with all applicable laws and regulations.