GENERAL PRINCIPLES in (b) Any covered person who,

AMLA knowing that a covered or

suspicious transaction is
required under the AMLA to
Money laundering is be reported to the AMLC, fails
committed by: to do so.
(a) Any person who, knowing
that any monetary instrument
or property represents, “Covered Transaction”
involves, or relates to the refers to:
proceeds of any unlawful (1) A transaction in cash or
activity: other equivalent monetary
(1) transacts said monetary instrument exceeding Five
instrument or property; Hundred Thousand pesos
(PHP500,000.00).
(2) converts, transfers,
disposes of, moves, acquires, (2) A transaction with or
possesses or uses said involving jewelry dealers,
monetary instrument or dealers in precious metals
property; and

(3) conceals or disguises the dealers in precious stones in

true nature, source, location,
disposition, movement or
ownership of or rights with
respect to said monetary
instrument or property;
(4) attempts or conspires to
commit ML offenses referred
to in (1), (2), or (3) above;
cash or other equivalent
monetary instrument
exceeding One Million pesos
(Php1,000,000.00).
(3) A casino cash transaction
exceeding Five Million Pesos
(PHP5,000,000.00) or its
equivalent in other currency.

(5) aids, abets, assists in, or (4) A cash transaction with or

counsels the commission of involving real estate
the ML offenses referred to in developers or brokers
exceeding Seven Million Five
(1), (2), or (3) above; and Hundred Thousand Pesos
(6) performs or fails to (P7,500,000.00) or its
perform any act as a result of equivalent in any other
which he facilitates the currency.
offense of “Monetary Instrument or
ML referred to in items (1), Property Related to an
(2), or (3) above. Unlawful Activity” refers to:
(1) All proceeds of an unlawful
activity;
(2) All instrumentalities of an
unlawful activity, including
all moneys, expenditures,
payments, disbursements,
costs, outlays, charges,
accounts, refunds, and other
similar items for the
financing, operations, and
maintenance of any unlawful
activity;
(3) All monetary instruments
or property, including
monetary, financial or
economic means, devices,
accounts, documents, papers,
items, objects or things, used
in or having any relation to
any unlawful activity or
money
laundering, regardless of the
current owner or possessor,
and circumstances of
ownership or acquisition; and
(4) For purposes of freeze
order and bank inquiry order:
related and materially-linked
accounts.
“Suspicious Circumstance”
refers to any of the following
circumstances, the existence
of which makes a transaction
suspicious:
(1) there is no underlying
legal or trade obligation,
purpose or economic
justification;
(2) the client is not properly
identified;
(3) the amount involved is not
commensurate with the
business or financial capacity
of the client;
(4) taking into account all
known circumstances, it may
be perceived that the client’s
transaction is structured in
order to avoid being the
subject of reporting
requirements under the
AMLA;
(5) any circumstance relating
to the transaction which is
observed to deviate from the
profile of the client and/or the
client’s past transactions with
the covered person;
(6) the transaction is in any
way related to ML/TF or
related unlawful activity that
is about to be committed, is
being or has been committed;
or
(7) any transaction that is
similar, analogous or identical
to any of the foregoing, such
as the relevant transactions
in related and materially-
linked accounts.
Any unsuccessful attempt to
transact with a covered
person, the denial of which is
based on any of the foregoing
circumstances, shall likewise
be considered as suspicious
transaction.
 (d) Insurance brokers;
The following are the (e) Professional reinsurers;
covered persons under the (f) Reinsurance brokers;
AMLA:
(g) Holding companies;
(a) The following financial
institutions: (h) Holding company systems;
(1) Persons supervised and/or (i) Mutual benefit
regulated by BSP, including associations; and
their subsidiaries and (j) All other persons and their
affiliates, subsidiaries and affiliates
which are also covered supervised or regulated by
persons, supervised and/or the IC.
regulated by the BSP such as:
(3) Persons supervised or
(a) Banks; regulated by SEC, such as:
(b) Quasi-banks; (a) Securities dealers, brokers,
(c) Trust entities salesmen, investment houses,
and other similar
(d) Pawnshops;
persons managing securities
(e) Non-stock savings and or rendering services, such as
loan associations; investment agents,
(f) Other Non-bank financial advisors, or consultants;
institutions which under
special laws are subject to (b) mutual funds or open-end
investment companies, close-
BSP supervision and/or end investment
regulation;
companies or issuers, and
(g) Electronic money issuers; other similar entities; and
and
(c) other entities,
(h) Foreign exchange dealers, administering or otherwise
money changers, and dealing in commodities, or
remittance and transfer financial
companies.
derivatives based thereon,
(2) Persons supervised or valuable objects, cash
regulated by IC, such as: substitutes, and other similar
(a) Insurance companies; monetary instruments or
(b) Pre-need companies; properties, supervised or
(c) Insurance agents; regulated by the SEC.
(b) The following DNFBPs:
(1) Jewelry dealers. (a) Managing of client money,
(2) Dealers in precious securities or other assets;
metals, and dealers in (b) Management of bank,
precious stones. savings, securities or other
(3) Company service assets;
providers, which, as a (c) Organization of
business, provide any of the contributions for the creation,
following services operation or management of
to third parties: companies; and
(a) acting as a formation (d) Creation, operation or
agent of juridical persons; management of juridical
(b) acting as (or arranging for persons or arrangements, and
another person to act as) a buying and selling business
director or corporate entities.
secretary of a company, a (5) Casinos, including
partner of a partnership, or a internet-based casinos and
similar position in ship-based casinos, with
relation to other juridical respect to their casino cash
persons; transactions related to their
gaming operations.
(c) providing a registered
office; business address or The “Casino Implementing
accommodation, Rules and Regulations of
Republic Act No. 10927” shall
correspondence or
administrative address for a govern the implementation of
company, a partnership or the AMLA with regard to
any casinos, unless, otherwise
indicated therein by the
other juridical person or legal AMLC and the AGAs.
arrangement; and
(6) Real Estate Brokers and
(d) acting as (or arranging for Developers.23
another person to act as) a
nominee shareholder for (7) Offshore Gaming
Operators, as well as their
another person. service providers, supervised,
(4) Persons, including accredited or regulated by the
lawyers, accountants and Philippine Amusement and
other professionals, who Gaming Corporation
provide any of (PAGCOR) or any AGA.
the following services:
Provisional remedies under
the AMLA
“Asset Preservation Order”
(APO) refers to a provisional
remedy aimed at preserving
monetary instruments or
properties in any way related
to an unlawful activity or
money laundering offense,
during the pendency of civil
forfeiture proceedings.
“Bank Inquiry” (BI) refers to
a provisional remedy that
allows the AMLC to examine
or inquire into particular
bank accounts or investment
with a bank or non-bank
financial institution,
notwithstanding the
provisions of Republic Act No.
1405, as amended; Republic
Act No. 6426, as amended;
Republic Act No. 8791; and
other bank secrecy laws.
“Freeze Order” (FO) refers to
a provisional remedy aimed at
blocking or restraining
monetary instruments or
properties in any way related
to an unlawful activity, from
being transacted, converted,
concealed, moved or disposed
without affecting the
ownership thereof.
“Civil Forfeiture” (CF) refers
to the non-conviction-based
proceedings aimed at
forfeiting, in favor of the
government, monetary
instruments or properties
related to an unlawful activity
or money laundering offense.
FREEZE ORDER
Who may issue freeze
order?
After the amendment of R.A.
No. 9160 by R.A. 9194, it is
now the CA, upon application
ex parte by the Anti-Money
Laundering Council, and after
the determination that
probable cause exists that
any monetary instrument or
property is in any way related
to an unlawful activity, which
may issue a freeze order. (Sec.
10, RA. 9194)
Effectivity of Freeze Order:
immediately, for a period of
20 days.
NOTE: Within the 20-day
period, the CA shall conduct a
summary hearing, with notice
to the parties, to determine
whether or not to modify or
lift the freeze order, or extend
its effectivity. The total period
of the freeze order issued by
the Court of Appeals under
this provision shall not exceed
6 months. (Sec.10, RA 9160
as amended)
If there is no case filed
against a person whose
account has been frozen
within the period determined
by the Court of Appeals, not
exceeding months, the freeze
order shall be deemed ipso
facto lifted. (Sec. 10, RA 9160
as amended)
Scope of Application
The freeze order or asset
preservation order issued
under the AMLA shall be
limited only to the amount of
cash or monetary instrument
or value of property that the
court finds there is probable
cause to be considered as
proceeds of a predicate
offense, and the freeze order
or asset preservation order
shall not apply to amounts in
the same account in excess of
the amount or value of the
proceeds of the predicate
offense.
Duty of covered institution
upon receipt of notice of
the freeze order (Jan 2021
IRR)
1. Implement Freeze Order.
(a) Upon receipt of the notice
of the freeze order, the
covered person and
government agency concerned
shall immediately freeze the
monetary instrument or
property subject thereof, and
shall immediately desist from
and not allow any
transaction, withdrawal,
transfer, removal, conversion,
other movement or
concealment thereof.
(b) Interests earned during
the effectivity of the freeze
order shall be earned to the
benefit of the frozen monetary
instrument or property, and
shall be considered as fruits
of the said assets in cases the
court grants the petition for
civil forfeiture.
(c) Government agencies
concerned, shall annotate the
freeze order on the title of the
property, as may be allowed
under existing laws, or such
other mechanism that would
prevent any transaction,
withdrawal, transfer, removal,
conversion, other movement
or concealment of the
property subject of the freeze
order.
2. Freeze and Report Related
Accounts.
(a) Upon receipt of the freeze
order that directs the freezing
of related accounts, and upon
verification by the covered
person that there are
accounts related to the
monetary instrument or
property subject of the freeze
order, the covered person
shall immediately freeze these
related accounts wherever
these may be found.
(b) If the related accounts
cannot be determined within
twenty-four (24) hours from
receipt of the freeze order due
to the volume and/or
complexity of the
transactions, or any other
justifiable factors, the covered
person shall effect the
freezing of the related
accounts within a reasonable
period and shall submit a
supplemental return thereof
to the Court of Appeals and
the AMLC within twenty-four
(24) hours from the freezing of
said related accounts.
(c) Relevant transactions of
related accounts shall be
reported to the AMLC as
suspicious transactions.
3. Furnish Copy of Freeze
Order to Owner or Holder.
(a) The covered person and
government agency concerned
shall immediately furnish a
copy of the freeze order upon
the owner or holder of the
monetary instrument or
property or related accounts
subject thereof.
(b) The covered person and
government agency concerned
shall, likewise, immediately
notify the owner or holder of a
frozen related account on why
the monetary instrument or
property was considered as
such, and furnish a copy of
the freeze order, which was
used as the basis for the
freeze.
4. Submit Detailed Return.
(a) Within twenty-four (24)
hours from receipt of the
freeze order or freezing of the
related account, the covered
person and government
agency concerned shall
submit, by personal delivery,
to the Court of Appeals and to
the AMLC, a written detailed
return on the freeze order.
(b) The covered person shall
also submit to the AMLC,
through the internet, an
electronic detailed return in a
format to be prescribed by the
latter.
5. Contents of the Detailed
Return.
The detailed return on the
freeze order shall specify all
the pertinent and relevant
information, which shall
include the following:
(a) For covered persons and
government agencies,
whichever are applicable:
(1) The names of the account
holders, personal property
owners or possessors, or real
property owners or
occupants;
(2) The value of the monetary
instrument, property, or
proceeds as of the time the
assets were ordered frozen;
(3) All relevant information as
to the status and nature of
the monetary instrument,
property, or proceeds;
(4) The date and time when of the contract of lease on the
the freeze order was served; title of the owner of the land
and as
(5) The basis for the registered in the Register of
identification as related Deeds;
accounts. (5) Certificates of registration
(b) For covered persons: The for motor vehicles and heavy
account numbers and/or equipment indicating the
description of the monetary engine numbers, chassis
instrument, property, or numbers and plate numbers;
proceeds involved; (6) Certificates of numbers for
(c) For concerned government seacraft;
agencies: (7) Registration certificates for
(1) Certificates of title aircraft; or
numbers of registered real (8) Commercial invoices or
property and the volumes and notarial identification for
pages of the registration personal property capable of
books of the Register of Deeds
where the same are manual delivery.
registered; Prohibition against issuance
(2) Registration in the Primary of freeze orders against
Entry Book and candidates for an electoral
corresponding Registration office during election period
Book in the Register of Deeds No assets shall be frozen to
for unregistered real property; the prejudice of a candidate
(3) Registration with the for an electoral office during
Register of Deeds of the an election period. (Rule 10.6,
enabling or master deed for a Revised IRR of RA 9160 as
amended)
condominium project,
declaration of restrictions AUTHORITY TO INQUIRE
relating to such condominium INTO BANK DEPOSITS
(amended A.M. No. 21-03-
project, certificate of title 05-CA Eff. May 15, 2021)
conveying a condominium
and notice of assessment The AMLC may inquire into or
upon any condominium; examine any particular
deposit or investment,
(4) Tax declarations for including related accounts,
improvements built on land with any banking institution
owned by a different party, or non-bank financial
together with the annotation
institution upon order of any
competent court based on an
ex parte application when it
has been established that
there is probable cause that
the deposits or investments,
including related accounts
involved, are related to an
unlawful
activity as defined in Section
3 (i) or a money laundering
offense under Section 4.
NOTE: The bank inquiry order
is not violative of the right to
due process. R.A. 9160
provides safeguards before
bank inquiry order is issued,
ensuring adherence to the
general state policy of
preserving the absolutely
confidential nature of
Philippine bank accounts.
(Subido Pagente Certeza
Mendoza and Binay Law
Offices vs CA, G.R. No.
216914, December 6, 2016)
PROCEDURE on Bank
Inquiry
1. Ex-parte application by
the AMLC verified and
accompanied by a sworn
certification of non-forum
shopping personally signed
by an authorized official of
the AMLC - Party to File
Application: The Republic,
represented by the AMLC,
through the OSG before the
CA , when it has been
established that there is
probable cause that the
deposits or investments
involved, including related
accounts, are in any way
related to an unlawful activity
or a money laundering offense
Venue - The ex parte
application shall be filed with
the Court of Appeals in
Manila in cases where the
authority to inquire into or
examine any particular
deposit or investment,
including related 1accounts,
involve a mix of banks with
the Main office in Manila or
Luzon and local banks which
do not have offices in Luzon.
In cases where two or more
local banks (without offices in
Luzon are involved), but one
or some have offices in the
Visayas while the others are
based in Mindanao, the
application shall be filed with
the CA station where the
main office of the local bank
is located.
Application Contents:
(a) The account number, or
any other specific description
of the deposit or investment
accounts sought to be
inquired into or examined,
the owner or holder of the
deposit or investment
accounts, the address of such
owner or holder, the name of
the banking institution or
non-bank financial institution
where such account is the period of time; investment
maintained, and their account within a specific
location, if known; period of time;
(b) The grounds relied upon (d) Forbid the banking
for the grant of an authority institution or non-bank
to inquire into or examine, financial institution, or any of
the deposit or investment its directors, officers, and
account; and employees, from disclosing,
(c) The supporting evidence divulging, or communicating,
showing the existence of directly or indirectly, or in
probable cause any manner, to the owners or
holders of accounts inquired
2. Determination of into, or to any other person,
probable cause by the CA - the fact that said inquired
All members of the division of into or accounts are being
the court to which the examined, with warning that
assigned justice belongs shall any violation thereof
resolve the ex parte constitutes contempt of court;
application within twenty-four and
(24) hours from 3receipt
thereof. (e) Direct the OSG to inform
the court of the institution of
Contents of the Bank a civil forfeiture proceedings
Inquiry Order – within five (5) calendar days
(a) Issued in the name of the from its filing.
Republic, represented by the Bank Inquiry Order
AMLC; Effectivity:
(b) Describe with particularity (a) Effectivity - A bank inquiry
the deposit or investment order shall be effective for a
account sought to be inquired period of one hundred twenty
into or examined, as well as (120) calendar days, reckoned
the names of the account from the date of receipt by the
owners/holders; Anti-Money Laundering
(c) Direct the concerned Council.
banking institution or non- (b) Extension On motion of
bank financial institution to the Anti-Money Laundering
allow the AMLC, or its Council and before the
authorized personnel full expiration of the one hundred
access to all information, twenty (120)-calendar day
documents, and subject period, the court may, for
deposit or objects relating to good cause, extend the
effectivity of the bank inquiry
order for a period not
exceeding one hundred
twenty (120) calendar days.
(c) A bank inquiry order shall
have the same effect as that
of a freeze order under
Section 2d, Rule VI of the
2009 Internal Rules of the
Court of Appeals.
Service of Bank Inquiry
Order Copies - shall be
served exclusively and
personally on the AMLC and
the OSG not later than
twenty-four (24) hours from
its promulgation.
Duty of Banking Institution
or Non-Bank
Financial Institution Upon
Receipt of the Inquiry Order
- The AMLC, or any of its
authorized personnel, shall
provide the concerned
banking institution or non-
bank financial institution
with a copy of the bank
inquiry order. Upon receipt of
the of the bank inquiry order,
the banking institution or
non-bank financial institution
shall give the AMLC, or any of
its authorized personnel, full
and immediate access to all
information, documents, and
objects pertaining to the said
deposit or investment
accounts being inquired into.
Confidentiality of the Bank
Inquiry Order - No officer or
employee of the concerned
banking institution or non-
bank financial institution
shall, at any time, disclose,
divulge or communicate to
the owner or holder of the
accounts being examined, or
to any other person, directly
or indirectly, in any manner
or by any means, the fact that
the CA issued a bank inquiry
order, its contents and receipt
by the banks, except to those
authorized by the court. Any
violation shall constitute
contempt of court.
Supplemental Ex Parte
Application - Whenever
(a) there are deposits or
investment accounts that are
discovered in the course of
the inquiry or examination, or
(b) occurrences or events that
happened after the date of the
filing of the previous ex parte
application, the AMLC may
file a supplemental ex parte
application with the Court of
Appeals which shall act
thereon in accordance with
Section 10 hereof.
Remedy from a Resolution
Denying an Ex Parte
Application for Bank
Inquiry - can only be
reviewed through a Petition
for Certiorari to the SC under
Rule 65.
Leading case: The exception
of court order in cases
involving unlawful activities
was pronounced in Subido
Pagente Certeza Mendoza and
Binay Law Offices vs CA, G.R.
No. 216914, December 6,
2016
Claim on Forfeited Assets
Where the court has issued
an order of forfeiture of the
monetary instrument or
property in a criminal
prosecution for any money
laundering offense under
Section 4 of the AMLA, the
offender or any other person
claiming an interest therein
may apply, by verified
petition, for a declaration that
the same legitimately belongs
to him, and for segregation or
exclusion of the monetary
instrument or property
corresponding thereto.
The verified petition shall be
filed with the court which
rendered the judgment of
conviction and order of
forfeiture within 15 days from
the date of the order of
forfeiture, in default of which
the said order shall become
final and executory. This
provision shall apply in both
civil and criminal forfeitures.
(Rule 12.3, Revised IRR of RA
9160 as amended)
ASSET PRESERVATION
ORDER (amended A.M. No.
21-03-05-CA Eff. May 15,
2021)
Ex parte issuance of
Provisional Asset
Preservation Order. At any
time after the filing of the
criminal information alleging
asset forfeiture as provided in
Section 4 of this Rule, or in
case where the information
has not yet been filed but
properties have been seized
by virtue a of a search
warrant or a warrantless
arrest as provided in Section
16 of this
Rule, the prosecution may file
a verified motion for the
issuance of an asset
preservation order against a
specific property. Upon
determination by the court
that probable cause exists
that the specific property
alleged in the motion is the
subject of the crime or
offense, the proceeds or fruits
of the crime or offense, or any
property used as the means of
committing a crime or offense
charged, the court may issue
an ex parte provisional asset
preservation order effective
immediately, forbidding any
transaction, withdrawal,
deposit, transfer, removal,
conversion, concealment or
other disposition of the
specific property. Such order
shall be effective for a period
of twenty (20) calendar days
from the respective dates of
service on the accused or any
person acting in his or her
behalf, or the person in
possession of the property of
the accused, or in whose
name the property of the
accused is registered, and
upon each covered person or
government agency.
In the event that a modified or lifted, or an asset
provisional asset
preservation order (PAPO) is
to be implemented by a
covered person or government
agency, the service of said
order shall be effected first on
said covered persons or
government agency 2prior to
the accused or person in
possession of the property of
the accused, or in whose
name the property of the
accused is registered.
A copy of the provisional asset
preservation order shall also
be furnished by the court to
the Anti-Money Laundering
Council within five (5)
calendar days from issuance
thereof.
Summary hearing. The court
shall schedule a hearing at a
date and time within the
twenty (20)-calendar day
period at which the accused
or any person acting in his or
her behalf, or the person in
possession of the property of
the accused, or in whose
name the property of the
accused is registered, or the
covered person or government
agency may, for good cause,
show why the provisional
asset preservation order
should be modified or lifted.
The court shall determine
within the same period
whether the provisional asset
preservation order should be
preservation order should be
issued, which shall be valid
during the entire duration of
the proceedings.
A copy of the asset
preservation order shall also
be furnished by the court to
the AMLC within five (5)
calendar days from issuance
thereof.
Issuance, form, and content
of asset preservation order.
(a) issue in the name of the
People of the Philippines;
(b) state the name of the
court, the case number and
title, and the subject order;
and
(c) require the AMLC or any of
its deputized officers to serve
a copy of the order upon the
accused or any person acting
in his or her behalf, or the
person in possession of the
property of the accused, or in
whose name the property of
the accused is registered, and
upon the covered persons or
government agencies, as the
case may be.
Service and enforcement of
asset preservation order. -
The PAPO or asset
preservation order shall be
served by the AMLC or any of
its deputized officers on the
accused or any person acting
in his or her behalf, the
person in possession of the
property of the accused, or
the person whose name the
property of the accused is
registered, and on the covered
persons or government
agencies, as the case may be,
in accordance with Section 5,
Rule 13 of the Rules of Civil
Procedure, as amended. The
provisional asset preservation
order or asset preservation
order shall be enforceable
anywhere in the Philippines.
Duties of a covered person
and government agency
upon receipt of
preservation order. Upon
receipt of a provisional asset
preservation order or an asset
preservation order, the
covered person or government
agency, as the case may be,
shall immediately preserve
the property in accordance
with the order of the court.
Report of the Anti-Money
Laundering Council or its
deputized officer, covered
person or government
agency. Within twentyfour
(24) hours from receipt of a
provisional asset preservation
order or an asset preservation
order, the AMLC or any of its
deputized officers who served
the order and the covered
person or government agency
shall submit by personal
delivery to the court which
issued the order a detailed
written return specifying all
the relevant information on
the asset preserved, which
include but is not limited to
the following:
(a) For a covered person: The
account numbers for financial
accounts or description of
monetary instrument,
property, or proceeds
involved;
(b) For a government agency:
(1) Certificates of title
numbers of registered real
property and the volumes and
pages of the registration
a books of the Register of Deeds
where the same are
registered;
(2) Registration in the Primary
Entry Book and
corresponding
Registration Book in the
Register of Deeds for
unregistered real property;
(3) Registration with the
Register of Deeds of the
enabling master deed for a
condominium project,
certificate of title conveying a
condominium and notice of
assessment upon any
condominium;
(4) Tax declarations for
improvements built on land
owned by a different party,
together with the annotation
of the contract of lease on the
title of the owner of the land
as registered in the Register of
Deeds;
(5) Certificates of registration
for motor vehicles and heavy
equipment indicating the
engine numbers, chassis
numbers and plate numbers;
(6) Certificates of numbers for
seacraft; (7) Registration
certificates for aircraft;
(8) Commercial invoices or
notarial identification for
personal property capable of
manual delivery, whichever
are applicable; or
(9) Any document evidencing
ownership of the subject
property, as well as control or
possession thereof; (c) The
names of account holders,
personal property owners or
possessors, or real property
owners or occupants; (d) The
prevailing value of the
property at the time the
assets were ordered seized
and preserved; (e) All relevant
information as to the nature
of the property; and (f) The
date and time when the
provisional asset preservation
order or asset preservation
order was served.
Grounds for discharge of an
asset preservation order. -
The accused or any person
acting in his or her behalf, the
person in possession of the
property of the accused, or
the person in whose name the
property of the accused is
registered, whose real or
personal property has been
preserved pursuant to an
asset preservation order, may,
within five (5) calendar days
from receipt of the asset
preservation order, file a
motion, comment, or
opposition, as the case may
be, raising the grounds for its
discharge. If in case the
property belongs to a third-
party not charged with a
crime or offense, he or she is
given ten (10) calendar days
from knowledge that his or
her property is subject to a
preservation order within
which to file a motion,
comment, or opposition, as
the case may be, raising the
grounds for discharge.
For this purpose, the motion,
comment or opposition shall:
(a) identify the specific
property sought to be
discharged; (b) state the
accused or third party's
interest in such property; and
(c) be subscribed under oath.
The following grounds for the
discharge of the asset
preservation order may be
raised:
(a) The order was improperly
or irregularly issued or
enforced; (b) Any of the
material allegations in the
motion, or any of the contents
of any attachment to the
motion thereto, or its
verification, is false;
(c) The property is not owned
by the accused; and 5(d) The
specific personal or real
property ordered preserved is
not in any manner connected
with the alleged unlawful
activity as defined in Section
3(i) of R.A. No. 9160, as
amended.
A bond to discharge the asset
preservation order, whether
from the accused or a third-
party not charged with a
crime or offense, may be
required at the discretion of
the court, the amount of
which shall be determined by
the court based on the unique
circumstances in each case.
The court shall resolve the
motion and the corresponding
comment or opposition within
ten (10) calendar days from
the time the motion is
submitted for resolution.
Guidelines in serving an
asset preservation order on
perishable property,
including property
disproportionately
expensive to keep. When the
property preserved is
perishable and liable to
deteriorate in value and price
by reason of delay in its
disposition, or is
disproportionately expensive
to keep or store, the following
guidelines are to be strictly
followed:
(a) The prosecution may file a
verified motion praying for the
release of the property to the
accused or any person acting
in his or her behalf, the
person in possession of the
property of the accused, or
the person in whose name the
property of the accused is
registered, provided that the
person deposits a cash bond
equivalent to the value of the
property as may be
determined by the court. If
the person refuses to pay the
cash bond, the court shall
order the sale of the property
at public auction. The person
shall be given a period of ten
(10) calendar days from
receipt of the verified motion
within which to file a
comment or objection thereto.
(b) The court shall resolve the
motion and corresponding
opposition within ten (10)
calendar days from the time
the motion is submitted for
resolution.
(c) Should the court order the
conduct of a public auction,
the sale shall be conducted
under the auspices of the
clerk of court in the following
manner:
(1) Written notice must be
given, before the sale, by
posting the date, time, and
place of the sale in three (3)
public places, preferably in
conspicuous areas of the
municipal or city hall, post
office and public market in
the municipality or city where
the property is located and
where the sale is to take
place, for such time as may
be reasonable, considering
the character and condition of
the property; and 6
(2) The proceeds shall be
deposited with the clerk of
court to be disposed of
according to the final
judgment of the court.
Guidelines in serving an
asset preservation order on
real estate property. When
real estate property is ordered
preserved, the following
guidelines are to be strictly
followed: (a) The preservation
order shall be annotated in
the certificate of title of the
real property, or any other
public document evidencing
ownership of such property;
(b) Real property shall not be
physically seized before a final
order of forfeiture;
(c) The owners and occupants
of the real property shall not
be evicted from, or otherwise
deprived of the use and
enjoyment of, the said real
property that is the subject of
a pending forfeiture action;
and (d) Notice of the asset
preservation order shall be
served in accordance with
Section 8 of this Rule on the
accused or any person acting
in his or her behalf, the
occupants of the real property
of the accused, or the person
in whose name the property
of the accused is/are
registered.
(e) The court shall also cause
the posting of a copy of the
asset preservation order in a
conspicuous place on the real
property.
Designation of receiver. -
Upon verified motion filed by
the prosecution, the court
may order any person in
control or possession of the
preserved property to turn
over the same to a receiver
appointed by the court under
such terms and conditions as
the court may deem proper in
the following instances:
(a) When it appears that such
property or fund is in danger
of being lost, removed or
materially injured; (b) When it
appears that the property is
in danger of being wasted or
dissipated or materially
injured; (c) After judgment, to
preserve the property during
the pendency of an appeal, or
to dispose of it according to
the judgment or to aid
execution when the execution
has been returned unsatisfied
or the judgment obligor
refuses to apply his property
in satisfaction of the
judgment, or otherwise to
carry the judgment into effect;
and 7(d) Whenever in other
cases it appears that the
appointment of a receiver is
the most convenient and
feasible means of
administering or disposing of
the property in litigation.
Decision of acquittal to
include release of
properties.
Upon acquittal of the
accused, and if the evidence
duly support it, the court
shall include in its decision
the lifting of any asset
preservation order on the
property of the accused, and
the release of any property
seized by virtue of a search
warrant or valid warrantless
search and seizure in
custodia legis, and of any
proceeds deposited with the
clerk of court.
Seizure of properties. -
Property that is the subject of
an unlawful activity or money
laundering offense, the
proceeds or fruits of a crime
or offense, or used as the
means of committing a crime
or offense, seized by virtue of
a search warrant or
warrantless arrest, shall be
disposed of in accordance
with the Rules on Criminal
Procedure.
However, if the seized
properties are in danger of
dissipation, destruction or
deterioration, the prosecution
may apply before the court
that issued the search
warrant for an ex parte PAPO,
while if the properties are
seized by virtue of a
warrantless arrest, the
application may be filed
before the designated court
having jurisdiction over the
place where the arrest and
seizure occurred.
If after the issuance of an ex
parte PAPO, a criminal
information is consequently
filed, the records of the search
warrant including the records
of the proceedings in the
issuance of the ex parte
PAPO, shall be consolidated
with the records of the
criminal case where the
information is filed. For
warrantless arrest cases, the
records of the proceedings in
the issuance of an ex parte executed a Sinumpaang
PAPO shall be consolidated Salaysay exposing JLN
with the records of the Corporation’s illegal
criminal case where the business practice. The
information is filed. In both AMLC filed before the CA an
cases, the consolidations ex parte application praying
shall be effected through the for the issuance of an order
issuance of a subpoena duces to authorize it to inquire
tecum, unless the court into the bank accounts of
which issued the ex parte those charged in the
PAPO is the same court where informations, Senators
the information is filed. Ramon Revilla III, Juan
FORFEITURE ORDER: Ponce Enrile, and Jinggoy
Decision of conviction to Estrada. The CA allowed a
include asset forfeiture of supplemental bank inquiry
property with proof during on other persons who were
trial. - The court shall revealed to be connected to
include in its decision the the earlier examined
forfeiture of the property of accounts. The Republic filed
the convicted person proven a verified petition for civil
during trial of the case for the forfeiture against Ng before
unlawful activity or money the RTC. The Republic
laundering offense to be the prayed for the issuance of a
subject of the crime or Provisional Asset
offense, the proceeds or fruits Preservation Order (PAPO)
of the crime or offense, or any against Ng, alleging that
property used as the means of there is a strong and
committing the crime or convincing evidence
offense. concerning the involvement
Articles which are not subject of his subject account in
of lawful commerce shall be the pork barrel scam. The
subject to forfeiture and Republic also prayed for the
destruction. issuance of an Asset
Preservation Order (APO) to
BAR Q: A number of prevent funds from being
employees of JLN removed, transferred,
Corporation owned and concealed, or disposed. The
managed by Napoles and RTC, on September 19,
her family, claimed, 2016, denied the prayer and
witnessed and some even
granted Ng’s motion to lift
the PAPO. On May 29,
2017, the Republic filed a
Petition for Certiorari
before the CA, which the CA
denied. The main question
now is whether or not the
Republic
properly availed the remedy
of petitioner for certiorari
under Rule 65.
A: YES. The Court rules on
the argument raised by Ng
that the Orders dated
September 19, 2016 and May
29, 2017 attained finality
when the Republic filed a
petition for certiorari instead
of an appeal
before the CA. The Court
explained that the remedy
against an interlocutory order
is not an appeal, but a special
civil action for certiorari
under Rule 65 to prevent
multiple appeals in a single
action that
would unnecessarily cause
delay during the trial of the
case. A final judgment is
appealable while an
interlocutory order is not.
Hence, the Orders dated
September 19, 2016 and May
29, 2017 of the RTC have not
attained finality because the
Republic availed itself of the
correct remedy before the CA.
(Republic v. Ng., G.R. No.
239047, 16 June 2021)