OCTOBER 16, 2014

PD 1405 SECRECY OF BANK DEPOSITS ACT

You cannot inquire into the bank deposits of anybody as a rule.
Section 2 All deposits of whatever nature with banks or banking institutions in the
Philippines including investments or bonds issued by the Government of the
Philippines and political subdivisions, instrumentalities are hereby considered as of
absolutely confidential nature and may not be examined, inquired or looked into by
any person, government official or office EXCEPT:
1. Upon written permission of the depositor
2. In cases of impeachment
Corona Impeachment He did not want to disclose his dollar accounts. Why? he
was standing on strong legal grounds.
RA 6426 Foreign Currency Deposits Act
Section 8 all foreign currency deposits authorized under this act as well as
other foreign currency deposits are hereby declared, considered an absolutely
confidential nature and EXCEPT upon written permission of the depositor, in no
instance shall his deposit be examined, reviewed, inquired or looked into by any
person, official, bureau or office whether judicial, administrative or legislative or
any other entity whether private or public. Provided however, this foreign
currency shall be exempt from attachment, garnishment or any other lawful
order or process of the court, or any government agency.
Here, written consent is the ONLY exception.
3. In case of order of the court in cases of bribery, dereliction of duty of public
officials
But this is allegedly useless because you are supposed to be looking for ill-gotten
wealth, you can only inquire when the case is already filed in court, precisely.
How can you know na marami yung laman, ang alam mo lang marami siyang
pera. In the first place, we should be looking, investigating.
4. In cases where the money deposited or invested is the subject matter of the
litigation
But it presupposes na alam mo magkano ang laman. You know very well it is
there. But you cannot inquire!
Section 3 It shall be unlawful for any official or employee or banking institution to
disclose to any person any information concerning deposits.
This is my introduction to ANTI MONEY LAUNDERING ACT. This relaxes the
above-mentioned laws.
It is a crime whereby the proceeds of unlawful activity are transacted thereby
making them appear to have been liquidated from legitimate sources. From criminal
activities introduced into the financial system and then pag labas nyan from various
transactions, from that account transferred to another account pasok mo sa
corporation until later the money launderer will get that money clean na siya
making them appear to originate from legitimate sources.

Salient Features:
1. Criminalizes money laundering.
Before this Act, there was no law punishing money laundering.
2. Identifies predicate offenses.
All these money comes from somewhere. We are after those money kaya
tinatawag silang dirty money, because these are from criminal offenses, called
predicate offenses.
Compliance Requirements:
1. Identify _____.
Di na pwede yung ginawa ni Erap dati na Velarde Account. Must be identified
already.
2. Institutionalize the reporting of suspicious transcations.
3. Freezing accounts / forfeiture of money for ill gotten money transactions.
Elements:
1.
2.
3.
4.

Unlawful activity / predicate crimes

Monetary instrument or property
Attempt to transact
Knowledge that monetary instrument or property proceeds from the unlawful
activity

UNLAWFUL ACTIVITY /PREDICATE CRIMES

Any act or omission, series or combination of unlawful acts. Unlike Plunder na
serious or combination, dito pwede single act lang talaga. But it can also be
combination of acts. Basta it has something to do with:
1. Kidnapping with ransom
2. Drug trafficking RA 3019
3. Plunder
4. Robbery extortion
5. Qualified theft
6. Swindling
7. Smuggling
8. Arson
9. Murder
10.SEC
11.Felonies and offenses of a similar nature (trans-national offense) where
money will be introduced here and goes out somewhere in the Bahamas,etc.
12.Terrorism financing
13. (marami pa, not mentioned by sir until 34)
MONETARY INSTRUMENT OR PROPERTY
Kahit ano nalang dito. Cash, checks, notes,negotiable instruments, bonds,
acontracts of insurance, suretyship, or other similar instruments with the title
assets.
What are reportable transactions?

There are transactions in cash or other equivalent monetary instrument involving a

total money in excess of 500K within 1 day. It covers suspicious transactions and
covered transactions of covered institutions.
What are covered institutions?
These are the banks or entities required under the law to report covered and
suspicious transactions. This includes banks, all other entities, subsidiaries
affiliated, regulated by the BSP. Insurance companies, pre-need companies, all other
institutions regulated by the Insurance Commission. Securities dealers and all other
entities regulated by the SEC. Kasama ang jewelry dealers if the transaction
involves 1million or above. Including also the LRA for real estate purchases of 500K
and above. But the casinos are not included kay di musugot ang Congress.
Covered Transactions
Covered transactions in excess of 500K in 1 day, the bank is supposed to report to
the AMLA. The following day naa pud withdrawal or deposit in excess of 500K,
report ka nanaman.
Suspicious Transactions
However even if it does not exceed 500K, you are still mandated to report if it is a
suspicious transaction. It includes the following: when there is no underlying trade,
economic justification, money does not commensurate to the business of the client,
there is structuring like depositing only 400K a day, there is a pattern, or deviating
from the pattern of his financial transactions.
Whether it be covered transactions exceeding 500K or suspicious transactions not
exceeding 400K, the covered institutions are sanctioned to report to AMLA.
Who are the offenders?
1. The person who transacts or attempts to transact the money launderer
himself or herself.
2. The facilitator who assists the money launderer
3. Covered institutions that do not report to the AMLA the suspicious and the
covered transactions
How do you launder money?
1. You introduce it first to the financial system by depositing.
2. Layering, you distance yourself from that money through various
transactions.
3. Integration where it is made available to you again but its clean already.
If you have money from illegal sources, what can you do with money?
1. You spend the money, makikita yan. The point is, it will somehow be noticed.
2. You deposit it into the system.
3. You keep it para hindi makita ng government.
Freeze order
It only takes a resolution from AMLA filing ex parte petition to the CA who will issue
the freeze order after finding probable cause. It is effective for 20 days unless
extended by CA upon motion by AMLA not exceeding 6 months. During the
effectivity, AMLA can avail itself of other remedies, inquiries, forfeiture,

filing of AMLA case. Covered institutions shall not lift the freeze order without
securing the official confirmation of the AMLA.
No court may issue TRO or Writ of preliminary injunction except the SC. This is to
protect the politicians wala silang funds pang election. No asset of an electoral
candidate shall be frozen during an election period.
Civil Forfeiture
Recovery of ill gotten wealth is imprescriptible, that is civil forfeiture. There is no
need of prior conviction. AMLA, under this law, only grants civil forfeiture. It is only a
petition directed to the property. Jurisdiction over the person is not necessary.
Attachment bond
When the State litigates, it is not required to put up a bond for damages or even an
appeal bond. This is not required.
Criminal Forfeiture
There is a need of prior conviction because he amassed ill-gotten wealth.
Jurisdiction over the person is necessary.