“ “ Combating the Financing of Combating the Financing of Terrorism: The Philippine Terrorism: The Philippine Experience and Perspectives” Experience and Perspectives” National Seminar on Formulating Prevention and National Seminar on Formulating Prevention and Suppression of the Financing of Terrorism Act: Suppression of the Financing of Terrorism Act: Perspectives from International and Thai Law Perspectives from International and Thai Law Enforcement and Prosecution Enforcement and Prosecution Bangkok, Thailand Bangkok, Thailand 27 July 2012 27 July 2012 JULIA C. BACAY-ABAD JULIA C. BACAY-ABAD Deputy Director Deputy Director Anti-Money Laundering Council Anti-Money Laundering Council Philippines Philippines
Transcript
““Combating the Financing of Combating the Financing of Terrorism: The Philippine Terrorism: The Philippine
Experience and Perspectives”Experience and Perspectives”
National Seminar on Formulating National Seminar on Formulating Prevention and Suppression of the Prevention and Suppression of the
Financing of Terrorism Act: Perspectives Financing of Terrorism Act: Perspectives from International and Thai Law from International and Thai Law
Enforcement and ProsecutionEnforcement and ProsecutionBangkok, ThailandBangkok, Thailand
27 July 201227 July 2012
JULIA C. BACAY-ABADJULIA C. BACAY-ABAD Deputy Director Deputy Director
I. Introduction: Challenges faced by the Philippines from 2008 to I. Introduction: Challenges faced by the Philippines from 2008 to 20122012
a. 2008 Mutual Evaluation/Assessment by World Bank and a. 2008 Mutual Evaluation/Assessment by World Bank and APGAPG
b. FATF Public Statement on the Philippines (October 2010 –b. FATF Public Statement on the Philippines (October 2010 –
February 2012)February 2012)
c. Legislative Actions Taken Towards Criminalization of TFc. Legislative Actions Taken Towards Criminalization of TF
II. Republic Act No. 10168II. Republic Act No. 10168
a. Salient Featuresa. Salient Features
b. Definition of TF and other Punishable Actsb. Definition of TF and other Punishable Acts
c. Powers of the AMLC under R.A. 10168c. Powers of the AMLC under R.A. 10168
d. Freeze Order under R.A. 10168d. Freeze Order under R.A. 10168
e. Extra-Territorial Application of R.A. 10168e. Extra-Territorial Application of R.A. 10168
III. Success Stories: Freezing & Forfeiture of Terrorism-related III. Success Stories: Freezing & Forfeiture of Terrorism-related AssetsAssets
a. International Islamic Relief Organization (IIRO)a. International Islamic Relief Organization (IIRO)
b. Rajah Solaiman Movement (RSM)b. Rajah Solaiman Movement (RSM)
IV. Present ChallengesIV. Present Challenges
Past ChallengesPast Challenges
22 Sept – 6 October 2008 - 22 Sept – 6 October 2008 - Philippines’ Philippines’ AML/CFT Regime underwent mutual AML/CFT Regime underwent mutual evaluation/assessment jointly by the evaluation/assessment jointly by the World Bank and APG.World Bank and APG.
8 July 2009 – 8 July 2009 – Mutual Evaluation Report Mutual Evaluation Report on the Philippines was adopted by on the Philippines was adopted by the APG in its Plenary Meeting, with the APG in its Plenary Meeting, with 1313** partially compliant (PC)/non- partially compliant (PC)/non-compliant (NC) ratings.compliant (NC) ratings.
(*Out of 16 Key & Core FATF Recommendations)(*Out of 16 Key & Core FATF Recommendations)
Past ChallengesPast Challenges
As a result, the FATF’s International As a result, the FATF’s International Cooperation Review Group (ICRG) Cooperation Review Group (ICRG) conducted a conducted a prima facie prima facie review of review of the Philippines’ AML/CFT Regime the Philippines’ AML/CFT Regime and placed the Philippines in a and placed the Philippines in a “pool of vulnerable” jurisdictions, “pool of vulnerable” jurisdictions, along with Pakistan, Sri Lanka, along with Pakistan, Sri Lanka, Myanmar, Nepal, Bangladesh and Myanmar, Nepal, Bangladesh and Vietnam, among others.Vietnam, among others.
Past ChallengesPast Challenges
June – Sept 2010 - June – Sept 2010 - ICRG conducted a ICRG conducted a targeted review of the Philippines targeted review of the Philippines and laid down an Action Plan, and laid down an Action Plan, requiring it to enact, on or before requiring it to enact, on or before 31 December 201131 December 2011, a law , a law amending the AMLA and another amending the AMLA and another law law criminalizing TFcriminalizing TF..
Past ChallengesPast Challenges
5 July 2010 - 5 July 2010 - House Bill (HB) No. House Bill (HB) No. 0753 entitled “An Act Defining 0753 entitled “An Act Defining Terrorist Financing and Providing Terrorist Financing and Providing Penalties Therefor” was filed with Penalties Therefor” was filed with the House of Representatives the House of Representatives (lower house).(lower house).
4 August 2010 – 4 August 2010 – a second bill (HB a second bill (HB No. 2158) was filed with the lower No. 2158) was filed with the lower house.house.
Past ChallengesPast Challenges
October 2010 - October 2010 - Philippines was placed Philippines was placed in the “Grey List” by the Financial in the “Grey List” by the Financial Action Task Force (FATF); identified Action Task Force (FATF); identified to be among the jurisdictions which to be among the jurisdictions which have strategic AML/CFT deficiencies, have strategic AML/CFT deficiencies, and was required to, among others:and was required to, among others:
(2) Implement adequate procedures to (2) Implement adequate procedures to identify and freeze terrorist assets and identify and freeze terrorist assets and confiscate funds related to money confiscate funds related to money laundering. laundering.
Past ChallengesPast Challenges
February 2011/June 2011 – February 2011/June 2011 – Philippines Philippines remained in the FATF’s Public remained in the FATF’s Public Statement, with a warning that if Statement, with a warning that if the Action Plan remains unheeded, the Action Plan remains unheeded, the FATF will call upon its members the FATF will call upon its members to take countermeasures against to take countermeasures against the Philippines (“blacklisting”).the Philippines (“blacklisting”).
3 August 2011 – 3 August 2011 – Substitute bill (HB Substitute bill (HB No. 5015) was filed with the lower No. 5015) was filed with the lower house. house.
Past ChallengesPast Challenges
27 October 2011 - 27 October 2011 - the the President of the President of the Philippines certified Philippines certified HB No. 5015 as HB No. 5015 as “urgent”.“urgent”.
Past ChallengesPast Challenges
7 Feb. 2012 – 7 Feb. 2012 – The The Lower House (House Lower House (House of Representatives) of Representatives) approved HB No. approved HB No. 5015 5015
Past ChallengesPast Challenges
Meanwhile…Meanwhile…
7 Feb. 2011 – 7 Feb. 2011 – The Upper House The Upper House (Senate) filed Senate Bill (SB) No. (Senate) filed Senate Bill (SB) No. 2676 entitled “An Act Defining 2676 entitled “An Act Defining Terrorist Financing as a Crime and Terrorist Financing as a Crime and Providing Penalties Therefor”Providing Penalties Therefor”
16 Feb. 2012 – 16 Feb. 2012 – Substitute bill was Substitute bill was filed with the Senate (SB No. 3127)filed with the Senate (SB No. 3127)
Past ChallengesPast Challenges
December 2011 – May 2012 - December 2011 – May 2012 - Impeachment trial Impeachment trial conducted by the Senate conducted by the Senate against the Supreme Court against the Supreme Court Chief Justice; Chief Justice;
- greatly hampered - greatly hampered Senate’s deliberation on Senate’s deliberation on SB No. 3127.SB No. 3127.
Past ChallengesPast Challenges
Feb. 2012 – Feb. 2012 – FATF downgraded FATF downgraded the Philippines from “Grey the Philippines from “Grey List” to the “Dark Grey List” List” to the “Dark Grey List” for failure to enact the AMLA for failure to enact the AMLA Amendments and TF Law;Amendments and TF Law;
- possibility of being - possibility of being “blacklisted”; deadline until “blacklisted”; deadline until June 2012June 2012
Past ChallengesPast Challenges
5 June 2012 - 5 June 2012 - the President of the the President of the Philippines certified SB No. Philippines certified SB No. 3127 as “urgent”.3127 as “urgent”.
6 June 2012 – 6 June 2012 – the Joint Bicameral the Joint Bicameral Conference Committee of the Conference Committee of the Senate and the House of Senate and the House of Representatives approved the Representatives approved the TF Law, as well as the TF Law, as well as the Amendment to the AMLA.Amendment to the AMLA.
Past ChallengesPast Challenges
18 June 2012 - 18 June 2012 - the President the President signed the two (2) approved signed the two (2) approved Bills into law:Bills into law:
1. Republic Act No. 10167 – “An Act 1. Republic Act No. 10167 – “An Act to Further Strengthen the Anti-to Further Strengthen the Anti-Money Laundering Act (AMLA)”Money Laundering Act (AMLA)”
2. 2. Republic Act No. 10168 – Republic Act No. 10168 – “The Terrorism Financing “The Terrorism Financing Prevention and Suppression Act of Prevention and Suppression Act of 2012”2012”
Partial Relief…Partial Relief…
18-22 June 2012 - 18-22 June 2012 - FATF Plenary FATF Plenary Meeting in Rome, ItalyMeeting in Rome, Italy
- Philippines was - Philippines was upgraded to “Grey List”upgraded to “Grey List”
prevention and Suppression Act of prevention and Suppression Act of 2012”2012”
Signed into law by the Signed into law by the President on 18 June 2012President on 18 June 2012
Published in newspaper of Published in newspaper of general circulation on 21 general circulation on 21 June 2012June 2012
Took effect on 6 July 2012Took effect on 6 July 2012
Salient Features of Salient Features of R.A. 10168R.A. 10168
Criminalizes terrorist Criminalizes terrorist financing as a stand-alone financing as a stand-alone offenceoffence
Penalizes mere attempt or Penalizes mere attempt or conspiracy to commit TFconspiracy to commit TF
Criminalizes the act of Criminalizes the act of “dealing” with property or “dealing” with property or funds of designated terrorist funds of designated terrorist individuals, groups, individuals, groups, organizations and entitiesorganizations and entities
Salient Features ofSalient Features ofR.A. 10168R.A. 10168
Establishes a freezing Establishes a freezing mechanism against funds mechanism against funds related to terrorist financing or related to terrorist financing or owned by terrorist owned by terrorist organizations, groups or organizations, groups or individuals whether individuals whether designated or not;designated or not;
Extends the application of the Extends the application of the law beyond the territorial law beyond the territorial boundaries of the Philippinesboundaries of the Philippines
SEC. 4. SEC. 4. Financing of Terrorism – Financing of Terrorism – Any person who, directly or Any person who, directly or indirectly, willfully and without indirectly, willfully and without lawful excuse, lawful excuse, possessespossesses, , providesprovides, , collectscollects or or usesuses property or funds or property or funds or makes makes availableavailable property, funds or property, funds or financial service or other financial service or other related services, by any related services, by any means, with the unlawful and means, with the unlawful and willful intention willful intention that… that…
Financing of Terrorism Financing of Terrorism (cont’d)…(cont’d)…
……they should be used or with they should be used or with the the knowledgeknowledge that they are to that they are to be used, in full or in part:be used, in full or in part:
(a) To carry out or facilitate the (a) To carry out or facilitate the commission of any terrorist commission of any terrorist act;act;
(b) By a terrorist organization, (b) By a terrorist organization, association or group; orassociation or group; or
(c) By an individual terrorist…(c) By an individual terrorist…
Penalty for FTPenalty for FT
……shall suffer the penalty of shall suffer the penalty of reclusion temporal reclusion temporal in its in its maximum periodmaximum period** to to reclusion perpetuareclusion perpetua**** andand a a fine of not less than fine of not less than P500,000.00 nor more than P500,000.00 nor more than P1,000,000.00.P1,000,000.00.
(*17 years, 4 months and 1 day to 20 years)(*17 years, 4 months and 1 day to 20 years)
(**life imprisonment)(**life imprisonment)
Other Acts punishableOther Acts punishableAct Penalty
1.Organizing or directing others to commit FT
Same penalty as FT
2. Dealing with property or funds of Designated Persons, or3. Making available funds, property or financial services to a Designated Person
Same penalty as FT
4. Conspiracy to commit TF or Conspiracy to Deal with property of Designated Persons
Same penalty as TF
5. Cooperating in the execution of FT (Accomplice)
One degree lower
6. Taking part/profiting from FT or assisting the principal to profit from the effects of the crime, or by concealing or destroying the effects of crime, or by harboring or assisting in the escape of principal (Accessory)
Two degrees lower
Powers of the Anti-Money Powers of the Anti-Money Laundering Council (AMLC) under Laundering Council (AMLC) under
R.A. 10168R.A. 10168
AMLC – Philippines’ FIU; vested with AMLC – Philippines’ FIU; vested with authority to:authority to:
1. Conduct investigation on any 1. Conduct investigation on any property or funds that are property or funds that are related to FTrelated to FT
2. Issue 2. Issue ex parte ex parte freeze order freeze order without delay against:without delay against: (a) property or (a) property or funds related to FT or acts of terrorism; (b) funds related to FT or acts of terrorism; (b) property of any person if there is probable cause property of any person if there is probable cause that the person is committing or attempting, or that the person is committing or attempting, or conspiring to commit, or participating in or conspiring to commit, or participating in or facilitating the commission of FTfacilitating the commission of FT
Powers of the Anti-Money Powers of the Anti-Money Laundering Council (AMLC) under Laundering Council (AMLC) under
R.A. 10168R.A. 10168
3. Inquire into or examine 3. Inquire into or examine bank deposits or investments bank deposits or investments without a court orderwithout a court order
4. Institute forfeiture 4. Institute forfeiture proceedings against proceedings against property or funds related to property or funds related to FTFT
Freeze Order under Freeze Order under R.A. 10168 (Sec. 11)R.A. 10168 (Sec. 11)
- Issued - Issued ex-parteex-parte by the by the AMLCAMLC
- Effective for twenty (20) - Effective for twenty (20) daysdays
- Upon petition filed with the - Upon petition filed with the Court of Appeals, may be Court of Appeals, may be extended for a maximum extended for a maximum period of six (6) monthsperiod of six (6) months
Freeze Order underFreeze Order underR.A. 10168 (Sec. 11)R.A. 10168 (Sec. 11)
- However, freeze order against - However, freeze order against property or funds of designated property or funds of designated organization, association, group organization, association, group or any individual or any individual in compliance in compliance with UNSC Resolutionswith UNSC Resolutions shall be shall be effective until the basis for effective until the basis for the issuance thereof shall the issuance thereof shall have been lifted.have been lifted.
Subject to existing treaty, including Subject to existing treaty, including the International Convention for the the International Convention for the Suppression of FT, the criminal Suppression of FT, the criminal provisions of R.A. 10168 shall apply provisions of R.A. 10168 shall apply to any person who, to any person who, although although physically outside the territorial physically outside the territorial limits of the Philippines:limits of the Philippines:
(a) commits, conspires or plots to (a) commits, conspires or plots to commit FT inside the territorial commit FT inside the territorial limits of the Philippines;limits of the Philippines;
(b) Commits FT on board Philippine (b) Commits FT on board Philippine ship or Philippine airship;ship or Philippine airship;
(c) Commits FT within any (c) Commits FT within any embassy, consulate, or diplomatic embassy, consulate, or diplomatic premises of the Philippines;premises of the Philippines;
(d) Commits FT against Philippine (d) Commits FT against Philippine citizens or persons of Philippine citizens or persons of Philippine descent, where their citizenship descent, where their citizenship or ethnicity was a factor in the or ethnicity was a factor in the commission of the crimecommission of the crime
(e) Commits FT directly against (e) Commits FT directly against the Philippine government.the Philippine government.
The provisions of the law shall The provisions of the law shall also apply to a Filipino national also apply to a Filipino national who, although outside the who, although outside the territorial jurisdiction of the territorial jurisdiction of the Philippines, commits, conspires Philippines, commits, conspires or plots to commit any of the or plots to commit any of the crimes punishable under R.A. crimes punishable under R.A. 10168.10168.
At presentAt present
The AMLC, in coordination The AMLC, in coordination with other government with other government agencies, is drafting the agencies, is drafting the Implementing Rules of R.A. Implementing Rules of R.A. 1016810168
Success StoriesSuccess Stories
Even before the Even before the effectivity of R.A. effectivity of R.A. 10168…10168…
Case 1: The International Case 1: The International Islamic Relief Organization Islamic Relief Organization
(IIRO)(IIRO) The IIRO Philippine branch was listed in The IIRO Philippine branch was listed in
the UN Security Council Resolution 1267 the UN Security Council Resolution 1267 consolidated list of persons and entities consolidated list of persons and entities affiliated with the Al Qaida, the Taliban affiliated with the Al Qaida, the Taliban and Usama Bin Laden.and Usama Bin Laden.
A certain Jammal Khalifa, a brother-in-law A certain Jammal Khalifa, a brother-in-law of Usama Bin Laden, worked as the IIRO of Usama Bin Laden, worked as the IIRO Philippine branch director and maintained Philippine branch director and maintained a close relation with Wa’el Hamza a close relation with Wa’el Hamza Julaidan, a specially designated Global Julaidan, a specially designated Global terrorist.terrorist.
Case 1: IIROCase 1: IIROAugust 2006 – August 2006 – US Government US Government
requested the Philippines to check requested the Philippines to check and freeze assets of IIRO-Phil. and freeze assets of IIRO-Phil. branch branch
- - AMLC investigation AMLC investigation showed that IIRO-Phil. was the showed that IIRO-Phil. was the source of funding for the Al-Qaida source of funding for the Al-Qaida Affiliated Abu Sayyaf Group (ASG)Affiliated Abu Sayyaf Group (ASG)
November 2006 – November 2006 – the AMLC obtained a the AMLC obtained a freeze order against the bank freeze order against the bank account of IIRO-Phil branch. account of IIRO-Phil branch.
Case 1: IIROCase 1: IIRO
May 2007 - May 2007 - AMLC instituted a AMLC instituted a civil forfeiture proceedings civil forfeiture proceedings against IIRO’s bank accountagainst IIRO’s bank account
Feb. 2008 - Feb. 2008 - Order of Forfeiture Order of Forfeiture issued by the Courtissued by the Court
- - Forfeited amount Forfeited amount turned over to the National turned over to the National TreasuryTreasury
Case 2: The Rajah Solaiman Case 2: The Rajah Solaiman (“Return to Islam”) (“Return to Islam”) Movement [RSM]Movement [RSM]
The RSM is a UNSC designated The RSM is a UNSC designated terrorist group based in the terrorist group based in the Philippines and with known Philippines and with known links to the Jemaah Islamiyah links to the Jemaah Islamiyah (JI) and the Abu Sayyaf Group (JI) and the Abu Sayyaf Group (ASG).(ASG).
As early as 2002, the RSM has As early as 2002, the RSM has been receiving financial support been receiving financial support from abroad through charitable from abroad through charitable Non-Governmental Non-Governmental Organizations (NGOs).Organizations (NGOs).
Case 2: RSMCase 2: RSM
RSM was responsible for the RSM was responsible for the 2004 Super Ferry attack that 2004 Super Ferry attack that killed 116 passengers and for killed 116 passengers and for the infamous 2005 Valentine’s the infamous 2005 Valentine’s Day bombing attacks in three Day bombing attacks in three highly urbanized cities resulting highly urbanized cities resulting in the death of 16 people.in the death of 16 people.
Government operatives were Government operatives were able to capture RSM’s leader able to capture RSM’s leader and several of his menand several of his men
Case 2: RSMCase 2: RSMJune 2008 - June 2008 - US Government US Government
requested Philippines for the requested Philippines for the freezing of assets of RSMfreezing of assets of RSM
- - AMLC’s investigation AMLC’s investigation revealed bank account, seven revealed bank account, seven hectare agricultural land, & hectare agricultural land, & commercial building being used commercial building being used by members of RSMby members of RSM
July 2008 – July 2008 – Freeze Order issued Freeze Order issued against the said assetsagainst the said assets
Case 2: RSMCase 2: RSM
January 2009 – January 2009 – AMLC instituted AMLC instituted civil forfeiture proceedings civil forfeiture proceedings against RSM’s assetsagainst RSM’s assets
Feb. 2011 - Feb. 2011 - Order of Forfeiture Order of Forfeiture issued by the Court.issued by the Court.
- - AMLC is in the process AMLC is in the process of having the titles to the real of having the titles to the real properties transferred in the properties transferred in the name of the Republic of the name of the Republic of the Philippines.Philippines.
Present ChallengesPresent Challenges
Proper implementation of Proper implementation of the TF Lawthe TF Law
