MERCANTILE LAW

AMLC

1. Is the AMLC has the absolute authority to inquire into bank deposits or investments?

Ans: No. Unless upon order of a competent court

2. Is there an instance that AMLC can automatically inquire into bank deposits to any bank or non-bank financial
institutions?

Ans: Yes. Court order is not necessary if there’s probable cause that any deposits or investment relates to:

a. Kidnapping for ransom

b. Comprehensive Dangerous Drugs Act of 2002

c. Hijacking

d. Destructive arson

e. Murder

f. Terrorism and conspiracy to commit terrorism

3. What court may AMLC apply for a bank inquiry order?

Ans: Court of Appeals shall act on the application within 24 hours from the filing thereof.

4. What is meant by related accounts under this code?

Ans: Refer to accounts, the funds and sources of which originated from and/or are materially linked to the
monetary instruments or property of the subject account

5. Is it allowed to apply for a freeze order against a bank account?

Ans: Yes. Provided that there is a probable cause that an unlawful activity as defined under this code has
committed.

6. Who may apply freeze orders of account?

Ans: The AMLC after determination of probable cause.

7. What court has the authority to issue freeze order of bank deposits?

Ans: Court of appeals upon a verified petition by the AMLC

8. How many days does the freeze order may be effective?

Ans: 20 days but shall not exceed 6 months

9. What will happen if after 6 months there’s no case that is filed against the depositor?

Ans: The freeze order shall be deemed ipso facto lifted

10. What if the accounts cannot be immediately determine by the covered person/institution?

Ans: Shall effect the freezing of related accounts within a reasonable period and shall submit thereof a
supplemental return to CA and AMLC within 24 hours.

11. What will happen if after the freeze order, the AMLC found that the deposits, monetary instruments or
property is related to any unlawful activity?

Ans: AMLC shall file with appropriate court, through Solicitor General, a verified ex parte petition for forfeiture.
The AMLC may inquire into or examine any particular deposit or investment with any banking institution or non-
bank financial institution upon order of any competent court in cases of violation of the Anti-Money Laundering
Act.

The law says:

Notwithstanding the provisions of Republic Act No. 1405 (The Bank Secrecy Law), as amended; Republic Act No.
6426 (Foreign Currency Deposit Act of the Philippines), as amended; Republic Act No. 8791 (The General Banking
Law of 2000), and other laws, the AMLC may inquire into or examine any particular deposit or investment with
any banking institution or non-bank financial institution upon order of any competent court in cases of violation
of Anti-Money Laundering Act when it has been established that there is probable cause that the deposits or
investments involved are in any way related to a money laundering offense.

The authority to inquire into or examine the main account and the related accounts shall comply with the
requirements of Article III, Sections 2 and 3 of the 1987 Constitution, which are hereby incorporated by
reference.

Article III – Bill of Rights provides:

Section 2. The right of the people to be secure in their persons, houses, papers, and effects against unreasonable
searches and seizures of whatever nature and for any purpose shall be inviolable, and no search warrant or
warrant of arrest shall issue except upon probable cause to be determined personally by the judge after
examination under oath or affirmation of the complainant and the witnesses he may produce, and particularly
describing the place to be searched and the persons or things to be seized.

Section 3. (1) The privacy of communication and correspondence shall be inviolable except upon lawful order of
the court, or when public safety or order requires otherwise, as prescribed by law.

(2) Any evidence obtained in violation of this or the preceding section shall be inadmissible for any purpose in
any proceeding.

Thus, AMLC may inquire into or examine any particular deposit or investment with any banking institution or
non-bank financial. However, it must have an order from a competent court before it can proceed to such
inquiry or examination.