IMPLEMENTING RULES AND REGULATIONS REPUBLIC ACT NO. 9160 ANTI-MONEY LAUNDERING ACT OF 2001

Rule 9.3.e. Safe Harbor Provisions.-No administrative, criminal or civil proceedings shall lie against any covered institutor, their personnel, directors or officers or any person for having made a covered transaction report or a suspicious transaction report in the regular performance of his duties and in good faith, whether or not such reporting results in any criminal prosecution under this Act or any other Philippine law.

RULE 10 Authority to Freeze Accounts

Rule 10.1. When a Freeze Order may be Issued by the AMLC.-Rule 10.1 .a. The AMLC is authorized under Sections 7(6) and 10 of the AMLA to freeze any account or any monetary instrument or property subject thereof, irrespective of the amount or value involved, upon determination that probable cuse exists that the same is in any way related to any unlawful activity and/or money laundering offense. The AMLC may issue a freeze order on any account or any monetary instrument or property subject thereof prior to the institution, or in the course of, the criminal proceedings involving the unlawful activity and/or money laundering offense to which said account, monetary instrument or property is any way related.

Rule 10.1.b. The freeze order on such account shall be effective immediately for a period not exceeding fifteen (15) days.

Rule 10.2 Definition of Probable Cause.-Probable cause includes such facts and circumstances which would lead a reasonably discreet, prudent or cautious man to believe that an unlawful activity and/or a money laundering offense is about to be, is being or has been committed and that the account or any monetary instrument or property subject thereof sought to be frozen is in any way related to said unlawful activity and/or money laundering offense.

Rule 10.3. Remedy when AMLC is Unable to Secure Addresses of Account Owners Holders.-If, after exercising diligence in obtaining the addresses of the owners or holders of the accounts sought to be frozen, the AMLC is not able to secure said addresses, and there is extreme urgency necessitating the immediate issuance of the freeze orders, the covered institution concerned shall, upon request of the AMLC, supply the needed addresses based on their updated records. If, notwithstanding this procedure, the needed addresses cannot be obtained, service of the freeze order on the owners or holders of the subject accounts shall be deemed made upon notice by the bank on them that their accounts have been frozen in accordance with the order of the AMLC.

Rule 10.4. Procedure for Service of Freeze Order and Duty of Covered Institution upon Receipt Thereof.-Rule 10.4.a. The AMLC shall serve notice of the freeze order upon the covered institution concerned and the owner or holder bf the account, simultaneously with the issuance thereof.

Rule 10.4.b. Upon receipt of the notice of the freeze order, the covered institution concerned shall immediately freeze the account and the monetary instrument or property subject thereof.

Rule 10.4.c.. Within twenty-four (24) hours from receipt of the freeze order, the covered institution concerned shall submit to the AMLC, by personal delivery, a detailed written return on the freeze order, specifying the account number, name of the account owner or holder, the balance of the account as of the time it was frozen, and the time when the freeze thereon was effectuated.

Rule 10.4.d. The return shall likewise include the information on the web of subsequent accounts whose funds originate from the account(s) subject to the freeze order(s).

Rule 1O.4.e. Considering the intricate and diverse web of related and interlocking accounts that any person may open or create in the different covered institutions, their branches and/or other units, the AMLC may order the freezing, not only of the accounts in the names of the reported account owner(s)/holder(s), or accounts under the account numbers indicated in the freeze orders and/or resolution of the AMLC directing the issuance thereof, but also all other subsequent accounts whose funds originate from the accounts(s) subject to the freeze order(s).

Rule 10.5. Notice to Account Owner/Holder.-The owner/holder of the account or depositor so notified shall have a non-extendible period of seventy-two (72) hours upon receipt of the notice to explain why the freeze order should be lifted. Such explanation shall be in writing and verified. Failure of the owner or holder of the account to file such verified explanation shall be deemed a waiver of his right to question the freeze order.

Rule 10.6. Filing and Service of Pleadings.- Rule 1O.6.a. When to file.-In computing any period
of time prescribed or allowed by these Rules, if the last day of the period falls on a Saturday, a Sunday or a legal holiday, the time shall not run until the next working day.

Rule 1O.6.b. Personal Service. -Service of pleadings shall be made by delivering personally a copy to the party/ies involved or his/their counsel, or by leaving it in his office with his clerk or with a person having charge thereof. If no person is found in his office, or his office is not known, or he has no office, then by leaving the copy, between the hours of eight in the morning and six in the evening, at the party's or counsel's residence, if known, with a person of sufficient age and discretion then residing therein.

Rule 10.7. Procedure for Determination of whether Freeze Order should be Lifted.-The AMLC shall have seventy-two (72) hours to dispose of the depositor's explanation. If it fails to act within seventy- two (72) hours from receipt of the depositor's explanation, the freeze order shall automatically be dissolved. However, the covered institution shall not lift the effects of the freeze order without securing official confirmation from the AMLC. Before the fifteen (15)- day period expires, the AMLC may apply in court for an extension of said period. Upon the timely filling of such application and pending the decision of the court to extend the period, said period shall be suspended and the freeze order shall remain effective.

Rule 10.8. Violation of Procedures -Any violation of any of the foregoing procedures shall constitute an unsafe and unsound business practice that may justify administrative sanctions to be imposed by supervising authorities on the covered institutions under their respective jurisdictions.

Rule 10.9. Prohibition against Issuance of Temporary Restraining Orders.-No court shall issue a temporary restraining order or writ of injunction against any freeze order issued by the AMLC or any court order extending period of effectivity of the freeze order except the Court of Appeals or the Supreme Court.

Rule 10.10. Prohibition against Issuance of Freeze Orders against Candidates for an Electoral Office during Election Period.-No assets shall be frozen to the prejudice of a candidate for an electoral office during an election period.

RULE 11 Authority to Inquire into Bank Deposits

Rule 11.1. Authority to Inquire into Bank Deposits.-Notwithstanding the provisions of Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791, 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 this 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.

Rule 11.2. The AMLC may be file the application for authority to inquire into or examine any particular deposit or investment of any banking institution or non- bank financial institution in court, regardless of the amount involved, prior to the institution or in the course of, the criminal proceedings involving the unlawful activity and/or money laundering offense to which said bank deposit or investment is in any way related. For purposes of this Rule, probable cause includes such facts and circumstances which would lead to a reasonably discreet, prudent or cautious man to believe that an unlawful activity and/or money laundering offense is about to be, is being or has been committed and that the bank deposit or investment sought to be inquired into or examined is in any way related to said unlawful activity and/or money laundering offense.

Rule 11.2.a. Pursuant to Section 7 (2) of the AMLA, the AMLC may issue orders addressed to the BSP or the covered institution to determine the true identity of the owner of any monetary instrument or property subject of a covered transaction report or request for assistance from a foreign State, or believe by the Council, on the basis of substantial evidence, to be, in whole or in part, wherever located, representing, involving, or related to, directly or indirectly, in any manner or by any means, the proceeds of an unlawful activity.

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