AML Regulations on Covered Transactions and Freeze Orders

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Questions and Answers

What happens if a court's order of forfeiture cannot be enforced due to the property's unavailability?

The court may order the offender to pay an amount equal to the value of the property. (correct)

The offender is exempt from all charges.

The property must be returned to the offender.

The forfeiture order is automatically void.

Which of the following conditions can lead to the ineffectiveness of a forfeiture order?

The property is sold to a third party.

The property is mistakenly identified as belonging to someone else.

The property is hidden by the offender. (correct)

The property has been judiciously maintained.

When the AMLC receives a request for assistance from a foreign state, what are its options?

The AMLC may execute the request or refuse with valid reasons. (correct)

The AMLC may refuse to execute the request without explanation.

The AMLC must execute the request without conditions.

The AMLC is required to delay the request indefinitely.

What principle should be recognized by the AMLC when handling requests from foreign states?

Mutuality and reciprocity. Signup and view all the answers

Which of the following scenarios would likely NOT lead to a court ordering payment equivalent to the value of the property?

The property is found and is in its original condition. Signup and view all the answers

What are covered institutions prohibited from doing regarding covered transaction reports?

Communicating any details about the reports to any person Signup and view all the answers

What is the maximum duration for which the AMLC's freeze order on an account can remain effective?

15 days Signup and view all the answers

What happens if an employee or officer of a covered institution shares details of a covered transaction report?

They will be criminally liable Signup and view all the answers

How long does a depositor have to explain a freeze order after receiving notice?

72 hours Signup and view all the answers

Which of the following statements is true regarding the liability for making a covered transaction report?

Liability does not apply when done in good faith Signup and view all the answers

What must the AMLC do upon receiving an explanation from a depositor regarding a freeze order?

Dispose of the explanation within 72 hours Signup and view all the answers

What is one of the powers of the AMLC when executing a request for assistance from a foreign State?

Tracking down and freezing assets Signup and view all the answers

Which statement about the communication of covered transaction reports is correct?

Direct or indirect communication about the report is prohibited Signup and view all the answers

Which document must accompany an application for an order of forfeiture in court?

An authenticated copy of a forfeiture order from a foreign court Signup and view all the answers

What laws provide protection to those reporting covered transactions in good faith?

Republic Act No. 1405, Republic Act No. 6426, and Republic Act No. 8791 Signup and view all the answers

What type of information may the AMLC request from a foreign State?

Information related to covered transactions or money laundering offenses Signup and view all the answers

Which condition must be met for the AMLC to apply for a search order in a foreign State?

Documents must be authenticated according to the foreign State's law Signup and view all the answers

What must the AMLC provide when applying for an order of forfeiture of property in a foreign State?

An authenticated copy of a forfeiture order and an affidavit of the clerk of court Signup and view all the answers

What does the AMLC need to prove when requesting to enter premises in a foreign State?

That the request includes duly authenticated documents Signup and view all the answers

What is required from a competent officer in the requesting State regarding the conviction?

Certification that the conviction and order of forfeiture are final Signup and view all the answers

What is one of the limitations on requests for mutual assistance by the AMLC?

The AMLC cannot engage in political offenses Signup and view all the answers

How many members constitute the Congressional Oversight Committee?

7 members from the Senate and 7 members from the House Signup and view all the answers

Who appoints the members from the Senate to the Oversight Committee?

The Senate President Signup and view all the answers

Under what condition may the AMLC refuse to comply with a request for assistance?

There is no existing treaty with the requesting State. Signup and view all the answers

What is one of the requirements for a request for mutual assistance from a foreign State?

Confirmation that the person has been convicted of a money laundering offense. Signup and view all the answers

What is the minimum number of minority representatives required in the Oversight Committee from the Senate?

Two Signup and view all the answers

What is the initial appropriation allocated to the Anti-Money Laundering Council (AMLC)?

Twenty-five million Philippine pesos Signup and view all the answers

Which information must be included to identify a person in the request for mutual assistance?

Sufficient particulars as to their identity. Signup and view all the answers

What happens if any provision of the Act is held to be invalid?

The other provisions remain unaffected Signup and view all the answers

What details must be specified regarding the covered institution in the request?

Sufficient particulars to identify the institution. Signup and view all the answers

Which officer is NOT permitted to authenticate documents for the request?

A clerk of court in the requesting State. Signup and view all the answers

When does this Act take effect?

Fifteen days after complete publication Signup and view all the answers

What is the purpose of the Congressional Oversight Committee?

To oversee the implementation of this Act Signup and view all the answers

Which document is required to assist in the execution of the mutual assistance request?

Particulars necessary for issuing writs or orders. Signup and view all the answers

Which of the following is NOT a part of the repealing clause?

Judicial rulings Signup and view all the answers

What must the request specify in terms of information or documents to be obtained?

The manner in which and to whom the information is produced. Signup and view all the answers

What type of seal or certification authenticates a document for the request?

An official or public seal of the requesting State's ministry. Signup and view all the answers

Study Notes

Covered Transactions Reporting

Covered institutions are required to report covered transactions to the AMLC (Anti-Money Laundering Council).
Covered institutions, their officers, employees, representatives, agents, advisors, consultants, or associates are prohibited from communicating the fact that a covered transaction report was made, its content, or any related information.
Violation of the communication restrictions carries criminal liability for the concerned individuals.
Individuals who report transactions in good faith as part of their duties are protected from administrative, criminal, or civil proceedings.

Freeze Orders

The AMLC can issue a freeze order on any deposit or similar account suspected of being related to unlawful activity.
Freeze orders are effective immediately and last for a maximum of 15 days.
The depositor is notified simultaneously with the issuance of the freeze order and has 72 hours to provide an explanation why the freeze order should be lifted.
The AMLC has 72 hours to decide on the depositor's explanation.

Forfeiture Orders

The court can issue an order of forfeiture for monetary instruments or property connected to money laundering offenses.
If the court cannot enforce the forfeiture order because the instrument or property has been substantially altered, destroyed, diminished in value, concealed, removed, converted, transferred outside the Philippines, or commingled with other assets, the court can order the convicted offender to pay an amount equal to the value of the instrument or property.

Mutual Assistance

The AMLC can cooperate with foreign states in investigating or prosecuting money laundering offenses.
The AMLC can execute requests for assistance from foreign states, including tracking down, freezing, restraining, and seizing assets, providing information, and applying for forfeiture orders.
The AMLC can also request assistance from foreign states in tracking down assets, obtaining information, entering premises, and applying for forfeiture orders.
The AMLC can refuse to comply with requests that violate the Constitution or are likely to prejudice the Philippines' national interests.

The AMLC

A Congressional Oversight Committee oversees the AMLC.
The AMLC is provided with an initial appropriation of PhP 25,000,000.00 from the national government.
Subsequent appropriations are included in the General Appropriations Act.

General

The Act takes effect 15 days after its publication in the Official Gazette or in at least two national newspapers of general circulation.
The provisions of the Act do not apply to deposits and investments made before its effectivity.

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Description

This quiz covers the essential regulations regarding covered transactions and freeze orders as mandated by the AMLC. It includes reporting requirements, communication restrictions, and the consequences of violations. Additionally, it discusses the immediate effects of freeze orders on accounts related to unlawful activities.