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LAW BOC SPECIAL LAWS COMMERCIAL LAW

empowered to call on the letter of credit as (d) The charges, individually itemized, which
a security in case the commercial are paid or to be paid by such person in
transaction does not push through, or the connection with the transaction but which
applicant fails to perform his part of the are not incident to the extension of credit;
transaction. [Transfield Philippines v. (e) The total amount to be financed;
Luzon Hydro, G.R. No. 146717 (2004)] (f) The finance charge expressed in terms of
pesos and centavos;
Justification Aspect (g) The percentage that the finance bears to
A demand for payment under the credit prima the total amount to be financed expressed
facie means that the beneficiary has performed as a simple annual rate on the outstanding
his part of the underlying transaction and is unpaid balance of the obligation. [Sec. 4]
prima facie entitled to payment. The
justification is only prima facie, because the The rationale of this provision is to protect
documents tendered may be proper, while users of credit from a lack of awareness of the
there is a defect in the underlying transaction. true cost thereof, proceeding from the
experience that banks are able to conceal such
true cost by hidden charges, uncertainty of
B. TRUTH IN LENDING rates, deduction of interests from the loans
ACT amount, and the like. The law thereby seeks to
The section numbers hereinafter generally protect debtors by permitting them to fully
pertain to RA 3765 or the Truth in Lending Act, appreciate the true cost of their loan, to enable
unless otherwise indicated. them to give full consent to contract, and the
properly evaluate their options in arriving at
business decisions. [UCPB v Sps.
1. Purpose Beluso.,G.R. 159912 (2007)]
To protect its citizens from a lack of awareness In addition, the contract or document shall
of the true cost of credit to the user by assuring specify additional charges, if any, which will be
a full disclosure of such cost with a view of collected in case certain stipulations in the
preventing the uninformed use of credit to the contract are not met by the debtor. [BSP Memo
detriment of the national economy. [Sec. 2.] No. M-2008-020]

2. Obligation of Creditors to 3. Covered and Excluded

Persons to whom Credit is Transactions
Extended
Covered
A creditor shall furnish to each person to whom i. Any loan, mortgage, deed of trust,
credit is extended, prior to the consummation advance, or discount;
of the transaction, a clear statement in writing ii. Any conditional sales contract;
setting forth, to the extent applicable and in iii. Any contract to sell, or sale or contract
accordance with rules and regulations of sale of property or services, either for
prescribed by the Board, the following present or future delivery, under which
information: part or all of the price is payable
(a) The cash price or delivered price of the subsequent to the making of such sale
property or service to be acquired; or contract;
(b) The amounts, if any, to be credited as down iv. Any rental-purchase contract;
payment and/or trade in; v. Any contract or arrangement for the
(c) The difference between the amounts set hire, bailment, or leasing of property;
forth under clauses (1) and (2);

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vi. Any option, demand, lien, pledge, or Government or any agency or any political
other claim against, or for the delivery subdivision thereof.
of, property or money; 5) A final judgment hereafter rendered in any
vii. Any purchase, or other acquisition of, criminal proceeding under this Act to the
or any credit upon the security of, any effect that a defendant has willfully violated
obligation of claim arising out of any of this Act shall be prima facie evidence
the foregoing; and against such defendant in an action or
viii. Any transaction or series of proceeding brought by any other party
transactions having a similar purpose against such defendant under this Act as to
or effect. [Sec. 3(2)] all matters respecting which said judgment
would be an estoppel as between the
4. Consequences of Non- parties thereto. [Sec.6]
Compliance
C. ANTI-MONEY
1) Any creditor who in connection with any
credit transaction fails to disclose to any
LAUNDERING ACT
person any information in violation of this
Act or any regulation issued thereunder The section numbers hereinafter generally
shall be liable to such person in the amount pertain to RA 9160 or the Anti-Money
of P100 or in an amount equal to twice the Laundering Act, as amended by RA 9194 and
finance charged required by such creditor RA 10365, unless otherwise indicated.
in connection with such transaction,
whichever is the greater, except that such Money Laundering is a crime where the
liability shall not exceed P2,000 on any proceeds of an unlawful activity are transacted,
thereby making them appear to have originated
credit transaction.
a) Action to recover such penalty may be from legitimate sources.
brought by such person within one year
from the date of the occurrence of the It is governed by RA 9160, as amended by RA
violation, in any court of competent 9194 (2003), RA 10167 (2012), RA 10365
jurisdiction. (2013) and RA 10927 (2017).
b) In any action under this subsection in
which any person is entitled to a 1. Policy of the Law
recovery, the creditor shall be liable for
reasonable attorney's fees and court It is the policy of the State to:
costs as determined by the court. a. Protect and preserve the integrity and
2) Except as specified in subsection (a) of this confidentiality of bank accounts;
section, nothing contained in this Act or any b. Ensure that the Philippines shall not be
regulation contained in this Act or any used as a money laundering site for the
regulation thereunder shall affect the proceeds of any criminal activity.
validity or enforceability of any contract or
transactions. Consistent with its foreign policy, the State
3) Any person who willfully violates any shall extend cooperation in transnational
provision of this Act or any regulation investigations and prosecutions of persons
issued thereunder shall be fined by not less involved in money laundering activities
than P1,00 or more than P5,000 or whenever committed. [Sec. 2]
imprisonment for not less than 6 months,
nor more than one year or both.
4) No punishment or penalty provided by this
Act shall apply to the Philippine

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2. Covered Institutions and b) Acting as, or arranging for another

person to act as:
Their Obligations i) A director or corporate secretary of
a company
Covered Institutions ii) A partner of a partnership, or
1) Banks, non-banks, quasi–banks, trust iii) A similar position in relation to other
entities, foreign exchange dealers, juridical persons;
pawnshops, money changers, remittance c) Providing a registered office, business
and transfer companies and other similar address or accommodation,
entities and all other persons and their correspondence or administrative
subsidiaries and affiliates supervised or address for a company, a partnership
regulated by the BSP; or any other legal person or
2) Insurance companies, pre-need arrangement; and
companies and all other persons d) Acting as, or arranging for another
supervised or regulated by the Insurance person to act as, a nominee
Commission; shareholder for another person
3) Those who are: 7) Persons who provide any of the following
i) Securities dealers, brokers, services:
salesmen, investment houses and a) Managing of client money, securities or
other similar entities managing other assets;
securities or rendering services as b) Management of bank, savings or
investment agent, advisor, or securities accounts;
consultant, c) Organization of contributions for the
ii) Mutual funds, close – end creation, operation or management of
investment companies, common companies; and
trust funds, pre – need companies d) Creation, operation or management of
and other similar entities juridical persons or arrangements and
iii) Foreign exchange corporations, buying or selling business entities.
money changers, money payment, [Sec. 1]
remittance and transfer companies
e) Casinos, including internet and ship-
and other similar entities, and
based casinos, with respect to their
iv) Other entities administering or
casino cash transactions related to
otherwise dealing in currency,
their gaming operations. [Sec. 1]
commodities or financial
derivatives based thereon, The term ‘covered persons’ excludes lawyers
valuable objects, cash substitutes and accountants acting as independent legal
and other similar monetary professionals, (1) in relation to information
instruments or property supervised concerning their clients; or (2) where disclosure
or regulated by the Securities and of information would compromise client
Exchange Commission (SEC). confidences or the attorney-client relationship.
4) Jewelry dealers in precious metals, who, Provided, (1) that these lawyers and
as a business, trade in precious metals, for accountants are authorized to practice in the
transactions in excess of Php1,000,000. Philippines and (2) shall continue to be subject
5) Jewelry dealers in precious stones, who, to the provisions of their respective codes of
as a business, trade in precious stones, for conduct and/or professional responsibility or
transactions in excess of Php1,000,000. any of its amendments. [Sec. 1]
6) Company service providers which, as a
business, provide any of the following Obligations of Covered Institutions
services to third parties: a. Customer Identification
a) Acting as a formation agent of juridical b. Record Keeping
persons;

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c. Reporting of Covered and Suspicious communicating, directly or indirectly, in

Transactions any manner, to any person, entity, or the
media:
Customer Identification 1. The fact that a covered transaction
Covered institutions shall: report has or is about to be
a. Establish and record a true identity of its reported;
clients, based on official documents 2. The contents thereof;
b. Maintain a system of verifying the true 3. Any other information in relation
identity of their clients thereto; and
c. In case of corporate clients, require a b. Neither may such reporting be
system to verify: published or aired in any manner or form
1. Legal existence and organizational by the mass media, electronic mail, or other
structure; and similar devices. [Sec. 9, RA 10365]
2. Authority and identification of persons
purporting to act on their behalf In case of violation, criminal liability ensues as
against the concerned officer and employee of
Anonymous accounts, accounts under fictitious the covered person and media.
names, and all other similar accounts shall be
absolutely prohibited. Peso and foreign 3. Covered and Suspicious
currency non- checking numbered accounts
shall be allowed. The BSP may conduct annual Transactions
testing solely limited to the determination of the
existence and true identity of the owners of General Rule: A covered transaction is a
such accounts. [Sec. 9] transaction in cash or other equivalent
monetary instrument involving a total amount in
Record Keeping excess of Php 500,000 within one banking day.
All records of all transactions of covered [Sec. 3(b)]
institutions shall be maintained and safely
stored for five (5) years from the dates of Exception: for Casinos or “covered persons
transactions. under Section 3(a)(8),” a single casino
transaction involving an amount in excess of
With respect to closed accounts, the records Php 5,000,000 or its equivalent in any other
on customer identification, account files and currency.
business correspondence, shall be preserved
and safely stored for at least five (5) years Suspicious Transactions are transactions
from the dates when they were closed. with covered institutions, regardless of the
amount involved, where any of the following
Reporting of Covered and Suspicious circumstances exist:
Transactions a. There is no underlying legal or trade
General Rule: Covered institutions shall report obligation, purpose or economic
to the AMLC all covered transactions within justification;
five (5) working days from occurrence. b. The client is not properly identified;
Exception: If the Anti Money Laundering c. The amount involved is not commensurate
Council (AMLC) prescribed a longer period not with the business or financial capacity of
exceeding fifteen (15) working days. [Sec. the client;
9(c)] d. Taking into account all known
circumstances, it may be perceived that the
When reporting covered transactions to the client’s transaction is structured to avoid
AMLC: being the subject of reporting requirements
a. Covered institutions and their officers, and under this Act;
employees are prohibited from

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e. Any circumstance relating to the Unlawful activity refers to any act or omission
transaction which is observed to deviate or series or combination thereof involving or
from the profile of the client and/or the having direct relation to the following:
client’s past transactions with the covered a. Kidnapping for ransom under Article 267
institution; of Act No. 3815, otherwise known as the
f. The transaction is in any way related to an Revised Penal Code, as amended;
unlawful activity or offense under this Act b. Sections 4, 5, 6, 8, 9, 10, 12, 13, 14, 15,
that is about to be, is being or has been and 16 of RA 9165, otherwise known as the
committed. [Sec. 3(b-1)] Comprehensive Dangerous Drugs Act
of 2002;
4. Money Laundering; how c. Section 3 paragraphs B, C, E, G, H and I of
RA. 3019, as amended; otherwise known
committed; unlawful and as the Anti-Graft and Corrupt Practices
predicate crimes Act;
d. Plunder under RA 7080, as amended;
Money laundering is a crime whereby the e. Robbery and extortion under Articles
proceeds of an unlawful activity are transacted, 294, 295, 296, 299, 300, 301 and 302 of
thereby making them appear to have originated the Revised Penal Code, as amended;
from legitimate sources. f. Jueteng and Masiao punished as illegal
gambling under Presidential Decree No.
Money Laundering is committed by any 1602;
person who, knowing that any monetary g. Piracy on the high seas under the
instrument or property represents, involves, or Revised Penal Code, as amended and
relates to the proceeds of any unlawful activity: Presidential Decree No. 532;
a. Transacts said monetary instrument or h. Qualified theft under Article 310 of the
property; Revised Penal Code, as amended;
b. Converts, transfers, disposes of, moves, i. Swindling under Article 315 of the Revised
acquires, possesses or uses said monetary Penal Code, as amended;
instrument or property; j. Smuggling under RA Nos. 455 and 1937;
c. Conceals or disguises the true nature, k. Violations under RA 8792, otherwise
source, location, disposition, movement or known as the Electronic Commerce Act
ownership of or rights with respect to said of 2000;
monetary instrument or property; l. Hijacking and other violations under RA
d. Attempts or conspires to commit money 6235; destructive arson and murder, as
laundering offenses referred to in defined under the Revised Penal Code, as
paragraphs (a), (b) or (c); amended, including those perpetrated by
e. Aids, abets, assists in or counsels the terrorists against non-combatant persons
commission of the money laundering and similar targets;
offenses referred to in paragraphs (a), (b) m. Fraudulent practices and other violations
or (c) above; and under RA 8799, otherwise known as the
f. Performs or fails to perform any act as a Securities Regulation Code of 2000;
result of which he facilitates the offense of n. Felonies or offenses of a similar nature
money laundering referred to in that are punishable under the penal laws of
paragraphs (a), (b) or (c) above. other countries. [Sec. 3 (i)]

Money laundering is also committed by any RA 10365 further added the following:
covered person who, knowing that a covered a. Terrorism and conspiracy to commit
or suspicious transaction is required under this terrorism as defined and penalized under
Act to be reported to the Anti-Money Sections 3 and 4 of RA No. 9372;
Laundering Council (AMLC), fails to do so. b. Financing of terrorism under Section 4
[Sec. 4, RA 10365]. and offenses punishable under Sections 5,

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6, 7 and 8 of RA 10168, otherwise known p. Violation of Section 6 of RA 8042,

as the Terrorism Financing Prevention and otherwise known as the Migrant Workers
Suppression Act of 2012; and Overseas Filipinos Act of 1995, as
c. Bribery under Articles 210, 211 and 211-A amended by RA 10022;
of the Revised Penal Code, as amended, q. Violation of RA 8293, otherwise known as
and Corruption of Public Officers under the Intellectual Property Code of the
Article 212 of the Revised Penal Code, as Philippines;
amended; r. Violation of Section 4 of RA 9995,
d. Frauds and Illegal Exactions and otherwise known as the Anti-Photo and
Transactions under Articles 213, 214, 215 Video Voyeurism Act of 2009;
and 216 of the Revised Penal Code, as s. Violation of Section 4 of RA 9775,
amended; otherwise known as the Anti-Child
e. Malversation of Public Funds and Pornography Act of 2009;
Property under Articles 217 and 222 of the t. Violations of Sections 5, 7, 8, 9, 10(c), (d)
Revised Penal Code, as amended; and (e), 11, 12 and 14 of RA 7610,
f. Forgeries and Counterfeiting under otherwise known as the Special
Articles 163, 166, 167, 168, 169 and 176 of Protection of Children Against Abuse,
the Revised Penal Code, as amended; Exploitation and Discrimination.
g. Violations of Sections 4 to 6 of RA 9208,
otherwise known as the Anti-Trafficking 5. Anti-Money Laundering
in Persons Act of 2003;
h. Violations of Sections 78 to 79 of Chapter
Council; functions
IV, of Presidential Decree No. 705,
otherwise known as the Revised Forestry The Anti-Money Laundering Council shall be
Code of the Philippines, as amended; composed of the Governor of the Bangko
i. Violations of Sections 86 to 106 of Chapter Sentral ng Pilipinas (BSP) as chairman, and
VI, of RA 8550, otherwise known as the the Commissioner of the Insurance
Philippine Fisheries Code of 1998; Commission and the Chairman of the
j. Violations of Sections 101 to 107, and 110 Securities and Exchange Commission (SEC)
of RA 7942, otherwise known as the as members. [Sec. 7]
Philippine Mining Act of 1995;
k. Violations of Section 27(c), (e), (f), (g) and Functions
(i), of RA 9147, otherwise known as the The AMLC shall act unanimously in the
Wildlife Resources Conservation and discharge of its functions as defined
Protection Act; hereunder:
l. Violation of Section 7(b) of RA 9072, a. To require and receive covered or
otherwise known as the National Caves suspicious transaction reports from
covered institutions;
and Cave Resources Management
b. To issue orders addressed to the
Protection Act;
appropriate Supervising Authority or the
m. Violation of RA 6539, otherwise known as
covered institution to determine the true
the Anti-Carnapping Act of 2002, as
identity of the owner of any monetary
amended;
instrument or property subject of a covered
n. Violations of Sections 1, 3 and 5 of PD
transaction or suspicious transaction report
1866, as amended, otherwise known as
or request for assistance from a foreign
the decree Codifying the Laws on
State, or believed by the Council, on the
Illegal/Unlawful Possession,
basis of substantial evidence, to be, in
Manufacture, Dealing In, Acquisition or
whole or in part, wherever located,
Disposition of Firearms, Ammunition or
representing, involving, or related to,
Explosives;
directly or indirectly, in any manner or by
o. Violation of PD 1612, otherwise known as
the Anti-Fencing Law;

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any means, the proceeds of an unlawful the AMLC, reports on all real estate
activity; transactions involving an amount in excess
c. To institute civil forfeiture proceedings and of Php 500,000 within 15 days from the
all other remedial proceedings through date of registration of the transaction, in a
the Office of the Solicitor General; form to be prescribed by the AMLC. The
d. To cause the filing of complaints with the AMLC may also require the Land
Department of Justice or the Ombudsman Registration Authority and all its Registries
for the prosecution of money laundering of Deeds to submit copies of relevant
offenses; documents of all real estate transactions.
e. To investigate suspicious transactions [Sec. 7]
and covered transactions deemed
suspicious after an investigation by AMLC, 6. Safe Harbor Provision
money laundering activities, and other
violations of this Act; The Safe Harbor Provision states that no
f. To apply before the Court of Appeals, ex administrative, criminal or civil
parte, for the freezing of any monetary proceedings shall lie against any person for
instrument or property alleged to be having made a covered transaction report in
laundered, proceeds from or the regular performance of his duties and in
instrumentalities used/ intended for use in good faith, whether or not such reporting
any unlawful activity (as defined in Section results in any criminal prosecution under this
3(i) hereof); Act or any other Philippine law. [Sec. 9]
g. To implement such measures as may be
necessary and justified under this Act to Lawyers and accountants acting as
counteract money laundering; independent legal professionals are not subject
h. To receive and take action in respect of, to the reporting requirement if the relevant
any request from foreign states for information was obtained in circumstances
assistance in their own anti-money subject to professional secrecy or legal
laundering operations provided in this Act; professional privilege. [Sec. 9(c)]
i. To develop educational programs on the
pernicious effects of money laundering, the
methods and techniques used in money 7. Application for Freeze Orders
laundering, the viable means of preventing
money laundering and the effective ways of Who may apply
prosecuting and punishing offenders; Upon verified ex parte petition by the AMLC
j. To enlist the assistance of any branch, and after determination that probable cause
department, bureau, office, agency or exists that any monetary instrument or property
instrumentality of the government, is in any way related to an unlawful activity, the
including government-owned and - Court of Appeals may issue a freeze order,
controlled corporations, in undertaking any which shall be effective immediately, directing
and all anti-money laundering operations, the concerned covered persons and
which may include the use of its personnel, government agency to desist from allowing any
facilities and resources for the more transaction, withdrawal, transfer, removal,
resolute prevention, detection and conversion, concealment, or other disposition
investigation of money laundering offenses of the subject monetary instrument or property.
and prosecution of offenders; and [Rule 10(a), Revised IRR]
k. To impose administrative sanctions for
the violation of laws, rules, regulations and Effectivity
orders and resolutions issued pursuant The freeze order shall be effective
thereto; [Sec. 7] immediately and shall not exceed six (6)
l. To require the Land Registration Authority months depending upon the circumstances of
and all its Registries of Deeds to submit to the case.

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On motion of the AMLC filed before the (5) The covered person shall also submit to
expiration of the original period of the freeze the AMLC, through the internet, an
order, the court may, for good cause shown, electronic detailed return in a format to be
extend its effectivity. Upon the timely filing of prescribed by the latter. [Rule 10(e),
such motion and pending resolution by the Revised IRR]
Court of Appeals, the freeze order shall remain
effective. [Rule 10(a)(3), Revised IRR] 8. Authority to Inquire into Bank
Duties of covered institutions
Deposits
(1) Implement Freeze Order. - Upon receipt of
General Rule: The AMLC may inquire into or
the notice of the freeze order, the covered
examine any particular deposit or investment,
person and government agency concerned
including related accounts, with any banking
shall immediately freeze the monetary
institution or non-bank financial institution upon
instrument or property subject thereof, and
order of any competent court in cases of
shall immediately desist from and not allow
violation of this Act when it has been
any transaction, withdrawal, transfer,
established that there is probable cause that
removal, conversion, other movement or
the deposits or investments involved are
concealment thereof.
related:
(2) Freeze Related Accounts. - Upon receipt of
1) To an unlawful activity as defined in Sec.
the freeze order and upon verification by
3(i); or
the covered person that there are accounts
2) To any money laundering offense under
related to the monetary instrument or
Sec.4
property subject of the freeze order, the
covered person shall immediately freeze
Exception: No court order shall be required in
these related accounts wherever these
the following cases –
may be found. If the related accounts
cannot be determined within 24 hours from a. Kidnapping for ransom under Article 267 of
receipt of the freeze order due to the the RPC
volume and/or complexity of the b. Sections 4,5,7,8,9,10,12,13,14,15 and16
transactions, or any other justifiable of RA No. 9615
factors, the covered person shall effect the c. Hijacking and other violations under RA
freezing of the related accounts within a No. 6235; destructive arson and murder as
reasonable period and shall submit a defined under the RPC
supplemental return thereof to the Court of d. Felonies or offenses of a nature similar to
Appeals and the AMLC within 24 hours those mentioned in Section 3(i) (1), (2), and
from the freezing of said related accounts. (12) which are punishable under the penal
laws of other countries;
(3) Furnish Copy of Freeze Order to Owner or
e. Terrorism and conspiracy to commit
Holder. - The covered person and
terrorism as defined and penalized under
government agency concerned shall
RA No. 9372.
likewise immediately furnish a copy of the
notice of the freeze order upon the owner
or holder of the monetary instrument or Forfeiture Provisions
property or related accounts subject
thereof. Civil Forfeiture
(4) Submit Detailed Return. - Within 24 hours Upon determination by the AMLC that
from receipt of the freeze order, the probable cause exists that any monetary
covered person and government agency instrument or property is in any way related to
concerned shall submit, by personal an unlawful activity or a money laundering
delivery, to the Court of Appeals and to the offense, the AMLC shall file with the
AMLC, a written detailed return on the appropriate court (through the OSG) a
freeze order.

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verified ex parte petition for forfeiture. [Sec. Note: This provision shall apply in both civil and
12(a), as amended by RA 10365] criminal forfeiture.

Procedural rule applicable: The Rules of Payment in Lieu of Forfeiture

Court on Civil Forfeiture. Where
1) The court has issued an order of forfeiture
What is covered by the forfeiture of the monetary instrument or property
The forfeiture shall include those other subject of a money laundering offense
monetary instrument or property having an (defined under Section 4), and
equivalent value to that of the monetary 2) Said order cannot be enforced because:
instrument or property found to be related in a) Any particular monetary instrument or
any way to an unlawful activity or a money property cannot, with due diligence, be
laundering offense, when: located, or
a. with due diligence, the former cannot be b) It has been substantially altered,
located, or destroyed, diminished in value or
b. it has been substantially altered, otherwise rendered worthless by any
destroyed, diminished in value or otherwise act or omission, directly or indirectly,
rendered worthless by any act or omission, attributable to the offender, or
or c) It has been concealed, removed,
c. it has been concealed, removed, converted, or otherwise transferred to
converted, or otherwise transferred, or prevent the same from being found or
d. it is located outside the Philippines or has to avoid forfeiture thereof, or
been placed or brought outside the d) It is located outside the Philippines or
jurisdiction of the court, or has been placed or brought outside the
e. it has been commingled with other jurisdiction of the court, or
monetary instrument or property belonging e) It has been commingled with other
to either the offender himself or a third monetary instruments or property
person or entity, thereby rendering the belonging to either the offender himself
same difficult to identify or be segregated or a third person or entity, thereby
for purposes of forfeiture. [Sec. 12(a), as rendering the same difficult to identify
amended by RA 10365] or be segregated for purposes of
forfeiture
Claim on Forfeited Assets
Where the court has issued an order of Then the court may, instead of enforcing the
forfeiture of the monetary instrument or order of forfeiture of the monetary instrument
property in a criminal prosecution for any or property or part thereof or interest therein,
money laundering offense defined under accordingly order the convicted offender to
Section 4 of this Act, the offender or any other pay an amount equal to the value of said
person claiming an interest therein may apply, monetary instrument or property.
by verified petition, for a declaration that the [Sec.12(c)]
same legitimately belongs to him and for
segregation or exclusion of the monetary Note: This provision shall apply in both civil and
instrument or property corresponding thereto. criminal forfeiture.

Where filed: With the court which rendered the Mutual Assistance among States
judgment of forfeiture.
Request for Assistance from a Foreign
When filed: Within 15 days from the date of State
the finality of the order of forfeiture, in default of Where a foreign State makes a request for
which the said order shall become final and assistance in the investigation or prosecution
executory. [Sec. 12(b)] of a money laundering offense, the AMLC may

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execute the request or refuse to execute the likely to prejudice the national interest of the
same and inform the foreign State of any valid Philippines unless there is a treaty between the
reason for not executing the request or for Philippines and the requesting State relating to
delaying the execution thereof. The principles the provision of assistance in relation to money
of mutuality and reciprocity shall, for this laundering offenses. [Sec.13(d)]
purpose, be at all times recognized. [Sec.13(a),
RA 9160] Requirements for Requests for Mutual
Assistance from Foreign States
Obtaining Assistance from Foreign States A request for mutual assistance from a foreign
The AMLC may make a request to any foreign State must:
State for assistance in: (1) Confirm that an investigation or
(1) Tracking down, freezing, restraining and prosecution is being conducted in respect
seizing assets alleged to be proceeds of of a money launderer named therein or that
any unlawful activity; he has been convicted of any money
(2) Obtaining information that it needs relating laundering offense;
to any covered transaction, money (2) State the grounds on which any person is
laundering offense or any other matter being investigated or prosecuted for money
directly or indirectly related thereto; laundering or the details of his conviction;
(3) To the extent allowed by the law of the (3) Give sufficient particulars as to the identity
foreign State, applying with the proper of said person;
court therein for an order to enter any (4) Give particulars sufficient to identify any
premises belonging to or in the possession covered institution believed to have any
or control of, any or all of the persons information, document, material or object
named in said request, and/or search any which may be of assistance to the
or all such persons named therein and/or investigation or prosecution;
remove any document, material or object (5) Ask from the covered institution concerned
named in said request: Provided, That the any information, document, material or
documents accompanying the request in object which may be of assistance to the
support of the application have been duly investigation or prosecution;
authenticated in accordance with the (6) Specify the manner in which and to whom
applicable law or regulation of the foreign said information, document, material or
State; and object obtained pursuant to said request, is
(4) Applying for an order of forfeiture of any to be produced;
monetary instrument or property in the (7) Give all the particulars necessary for the
proper court in the foreign State: Provided, issuance by the court in the requested
That the request is accompanied by an State of the writs, orders or processes
authenticated copy of the order of the needed by the requesting State; and
regional trial court ordering the forfeiture of (8) Contain such other information as may
said monetary instrument or property of a assist in the execution of the request.
convicted offender and an affidavit of the [Sec.13(e)]
clerk of court stating that the conviction and
the order of forfeiture are final and that no
further appeal lies in respect of either. D. FOREIGN
[Sec.13(c)] INVESTMENTS ACT
Limitations on Request for Mutual The section numbers hereinafter generally
Assistance pertain to RA 7042 or the Foreign Investments
The AMLC may refuse to comply with any Act, as amended by RA 8179, unless otherwise
request for assistance where the action sought indicated.
by the request contravenes any provision of the
Constitution or the execution of a request is

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