Financial Crime World

Court Allows Withdrawal of Frozen Funds for Basic Expenses

In a recent development, the Court of Appeals and the Anti-Money Laundering Council (AMLC) have ruled that individuals whose property or funds have been frozen due to designation as terrorist financiers can withdraw a portion of their assets to cover basic and necessary expenses.

Ruling in Line with Republic Act No. 9160

The ruling is in line with Republic Act No. 9160, also known as the Strategic Trade Management Act (STMA), which provides for the freezing of accounts and other assets of designated individuals and organizations. Under the law, such designees are prohibited from dealing with their frozen funds or properties.

Withdrawal Process

However, in a verified petition filed before the Court of Appeals or the AMLC, the affected individual can request to withdraw an amount sufficient to cover basic and necessary expenses, including those covered by authorized dealings. The withdrawal is subject to approval by the court or the AMLC, which will assess the necessity of the withdrawal and ensure that it does not compromise the investigation into terrorism financing.

Benefits of the Ruling

The move aims to alleviate the financial burden on individuals whose assets have been frozen due to designation as terrorist financiers. This allows them to continue covering basic expenses such as:

  • Food and shelter
  • Medical expenses
  • Education and other essential needs

Consequences of Violations

In related developments, the Philippines has imposed strict penalties for violations of sanctions against designated individuals and organizations. Violations can result in imprisonment and fines of up to one million pesos, as well as civil forfeiture of properties or funds found to be related to terrorism financing.

Key Agencies Involved

The Anti-Terrorism Council (ATC) is responsible for implementing the Anti-Terrorism Act (ATA) and designating individuals and organizations as terrorists. The AMLC, on the other hand, investigates the financing of terrorism and issues freeze orders.

Contact Information

For more information on sanctions in the Philippines or to seek legal advice, please contact:

  • Anti-Terrorism Council-Program Management Center
    • Address: Room 472 Mabini Hall, J.P. Laurel St., San Miguel, Manila
    • Phone: (02) 4851 / 4860 / 4858
    • Fax: (632) 8736-1008
  • Anti-Money Laundering Council Secretariat
    • Address: 5/F EDPC Building, Bangko Sentral ng Pilipinas Complex, Mabini corner Vito Cruz Streets, Malate, Manila 1004
    • Phone: (+63) 2 8708-7701
  • Strategic Trade Management Office
    • Address: 3F Tara Building, 389 Sen. Gil Puyat Avenue, Makati City, Metro Manila
    • Mobile: (+63) 917-8566-596
    • Phone: (632) 8529-3282 / 8529-3280
    • Email: stmoinfo@dti.gov.ph

Important Note

Note: This article is intended as a guide only and should not be considered as legal advice. Individuals seeking legal guidance on sanctions in the Philippines are advised to consult with a qualified lawyer or law firm.