Anti-Money Laundering Council(AMLCS)

November 23, 2023 Dear Ms. Cortez, Thank you for your request dated Nov 02, 2023 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch. We provide the following responses for your queries: 1. AMLA policies on acquiring profit from virtual assets The AMLC does not have a policy on acquiring profit from virtual assets. Generally, the AMLC does not interfere with any person or entity's use of assets, and pursuit of business and financial transactions. The exception is when the monetary instrument or property, which may be physical or virtual, is related to money laundering, terrorism financing, and the associated unlawful activities - in which case the AMLC may investigate, and pursue asset freezing and forfeiture actions, if warranted. 2. Lifting freeze order for AMLA cases brought about by profit from virtual assets (step-by-step procedure vis-a-vis timeline) The procedure for the lifting of freeze orders shall be governed by the following: (a) A.M. No. 05-11-04-SC or the Rules of Procedure in Cases of Civil Forfeiture, Asset Preservation, and Freezing of Monetary Instrument, Property, or Proceeds Representing, Involving, or Relating to an Unlawful Activity or Money Laundering Offense Under Republic Act No. 9160, as amended; and (b) The 2021 AMLC Sanctions Guidelines, with regard to targeted financial transactions, particularly the issuance and implementation of sanctions freeze orders. For cases falling under item (a), the rule is that the respondent (i.e., the person who owns or holds the asset subject of the freeze order), upon receipt of the freeze order, may file a motion to lift the freeze order before the Court of Appeals on the following grounds: (a) The freeze order was improperly or irregularly issued or enforced; (b) Any of the material allegations in the Petition for Issuance of Freeze Order, or any of the contents of any attachment thereto, or its verification, is false; and (c) The specific asset frozen is not in any manner connected with the alleged unlawful activities as defined under Section 3(i) of Republic Act 9160, otherwise known as the Anti-Money Laundering Act of 2001, as amended. The Court of Appeals shall resolve the motion to lift the freeze order before the expiration of the freeze order. For cases falling under item (b) or those assets frozen due to the designation by the United Nations Security Council (UNSC) or the Anti-Terrorism Council (ATC), any person who is wrongfully sanctioned by the asset freezing mechanism for having a similar name as the designated individual or group may apply for the lifting of the freeze by submitting to the AMLC identification documents and other relevant documents that would show the true identity of the aggrieved party. 3. Timeline for lifting freeze order - What is the maximum period of freeze order? Are there exemptions to this maximum period? If yes, what are those exemptions and the timeline to possibly lift the freeze order? As to the timeline, freeze orders issued by the Court of Appeals shall take effect immediately and shall remain effective for a total period not exceeding six (6) months. This may be shortened if the Court of Appeals grants a motion to lift freeze order on the specific monetary instrument or property. On the other hand, sanctions freeze order issued by the AMLC in relation to targeted financial transactions, pursuant to the designations made by the UNSC or the ATC, shall be effective indefinitely until the basis for its issuance has been lifted. For any additional information on matters regarding virtual assets, you may refer to the Bangko Sentral ng Pilipinas (BSP) Circular No. 1108, S. 2021 or the Guidelines on Virtual Asset Service Providers (VASPs). Please be guided accordingly. FOI Decision Maker