The Anti-Money Laundering Council (AMLC) has released the implementing rules and regulations (IRR) of the newly enacted law criminalizing terrorist financing activities. The IRR for Republic Act (RA) No. 10168 or “The Terrorist Financing Prevention and Suppression Act of 2012” takes effect 15 days after its publication in a national daily and in the Official Gazette. The STARpublished the IRR yesterday. Bank examination procedures as well as rules and exemptions on freezing of bank deposits were among the salient features of the law spelled out in the IRR.
The law empowers the AMLC to freeze bank accounts ex parte or without a court order or the need to notify the depositor concerned. Once the IRR becomes effective, AMLC executive director Vicente Aquino said banks and non-bank financial institutions “must report” any transactions involving property or funds with possible terror links.
“Also, failure on the part of covered institutions, including banks and relevant government agencies, to comply with the AMLC’s freeze order is a criminal offense under the law,” Aquino explained in a text message. The IRR said AMLC may examine bank accounts “upon determination of probable cause” from a relevant court. Suspected accounts may be frozen for a maximum of 20 days by AMLC even without informing the account holders. This could be extended up to six months upon order of the Court of Appeals (CA), the IRR stated.
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