Freeze Orders on Properties Linked to Unlawful Activities Get New Guidelines

The Philippine government has recently enacted a new law aimed at enhancing its efforts against money laundering and other financial crimes. This law provides guidelines for issuing freeze orders on properties suspected of being linked to unlawful activities.

Issuance of Freeze Orders

The Anti-Money Laundering Council (AMLC) is now empowered to issue ex parte petitions for freeze orders in cases where there is probable cause to believe that a property is related to an unlawful activity. The court shall conduct a summary hearing within 20 days from the issuance of the freeze order to determine whether or not to modify, lift, or extend its effectivity.

Period of Freeze Order

The total period of the freeze order shall not exceed six months. If no case is filed against a person whose account has been frozen within this period, the freeze order shall be deemed lifted.

Asset Preservation Orders

The AMLC may issue an asset preservation order on top of the freeze order, depending on the circumstances of the case. The court must resolve any motion to lift the freeze order before its expiration.

Scope of Freeze Order and Asset Preservation Order

The scope of the freeze order or asset preservation order is limited to only the amount of cash or monetary instrument or value of property that is suspected of being proceeds of a predicate offense.

Civil Forfeiture Proceedings

The AMLC may initiate civil forfeiture proceedings to preserve assets and protect them from dissipation. The person whose property or funds have been frozen may withdraw sums reasonably needed for monthly family needs and sustenance, including services of counsel and family medical needs.

Appeal Process

In cases where the AMLC issues a freeze order without delay in connection with targeted financial sanctions related to proliferation of weapons of mass destruction and its financing, the aggrieved party may file a petition with the Court of Appeals within 20 days from issuance to determine the basis for the freeze order.

Temporary Restraining Orders and Writs of Injunction

No court shall issue a temporary restraining order or writ of injunction against any freeze order, except the Supreme Court.

Implementing Rules and Regulations

The AMLC is required to issue implementing rules and regulations within 90 days from the effectivity of the law. The law takes effect immediately after its publication in the Official Gazette or a newspaper of general circulation.

Source: Republic Act No. [insert number], approved on January 29, 2021