COMBATING COMBATING TERRORISM TERRORISM FINANCING - - FINANCING - - PowerPoint PPT Presentation

COMBATING COMBATING TERRORISM TERRORISM FINANCING FINANCING -

• THE PHILIPPINE EXPERIENCE

THE PHILIPPINE EXPERIENCE

Presented by Presented by

• Atty. Vicente S. Aquino
• Atty. Vicente S. Aquino

Executive Director, Anti Executive Director, Anti-

• Money Laundering Council Secretariat

Money Laundering Council Secretariat and and Assistant Governor, Assistant Governor, Bangko Bangko Sentral Sentral ng ng Pilipinas Pilipinas

for the for the

Special Meeting of the UN Counter Special Meeting of the UN Counter-

• Terrorism

Terrorism Com m ittee w ith Mem ber States and relevant Com m ittee w ith Mem ber States and relevant I nternational and Regional Organizations I nternational and Regional Organizations

20 November 2012 20 November 2012 United Nations Headquarters, North Lawn Building, Conference Roo United Nations Headquarters, North Lawn Building, Conference Room 2 m 2 New York City, New York, U.S.A. New York City, New York, U.S.A.

KNOW ALL MEN (AND WOMEN) BY KNOW ALL MEN (AND WOMEN) BY THESE PRESENTS: THESE PRESENTS:

WHAT THE PHILIPPINES HAS DONE. WHAT THE PHILIPPINES HAS DONE.

• a State Party to various international instrum ents

against terrorism and its financing, including the 1 9 9 9 I nternational Convention for the Suppression of the Financing of Terrorism ( the TF Convention) .

• signed the TF Convention on 1 6 Novem ber 2 0 0 1 and

ratified the sam e on 1 4 October 2 0 0 3 .

SOVEREI GN STATE Action

The AMLA’s salient features:

• criminalizes money laundering and related offenses, i.e.

failure to report suspicious transactions, breach of confidentiality, etc.

• identifies the predicate crimes including acts of terrorism.
• created the AMLC, the government’s financial intelligence

unit and lead agency in implementing the AMLA. The AMLC is a member of the Egmont Group.

LEGI SLATI VE Action

• passed the Anti-Money Laundering Act of 2 0 0 1 ( the

AMLA) , w hich cam e into force on 1 7 October 2 0 0 1 and w as am ended on 2 3 March 2 0 0 3 and further am ended on 6 July 2 0 1 2 .

• empowers the AMLC to:

i. inquire ex parte into bank deposits and investments, including related accounts, linked to money laundering or its predicate crimes, including terrorism and terrorism financing. No court order is required where the predicate crime involved is kidnapping for ransom, a narcotics offense, hijacking, destructive arson, murder, terrorism and conspiracy to commit terrorism.

• ii. initiate freeze ex parte of property or funds related to

predicate crimes, including acts of terrorism.

• iii. initiate civil (non-criminal conviction-based) forfeiture
• f property or funds related to money laundering and

its predicate crimes, including acts of terrorism.

iv. take action on requests of foreign States for assistance in tracking down, freezing, restraining and seizing assets alleged to be proceeds of a predicate crime, including acts of terrorism. iv.a. cooperate with the National Government and/ or take appropriate action in respect

• f

conventions, resolutions and other directives

• f

the UN, the UNSC and other international

• rganizations, of which the Philippines is a

member (Rule 13.9.2, AMLA-RIRRs). v. enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the Philippine government, including government-owned and -controlled corporations in the implementation

• f the AMLA, which may include the use of its

personnel, facilities and resources.

• passed the Hum an Security Act of 2 0 0 7 ( the HSA) ,

w hich cam e into force on 1 5 July 2 0 0 7 . The HSA’s salient features:

• criminalizes

terrorism and related

• ffenses,

i.e., conspiracy to commit terrorism, attempt to commit terrorism, etc.

• created the Anti-Terrorism Council, the lead agency in

implementing the HSA.

• provides for proscription of terrorist organizations,

associations or groups of persons.

• provides for the seizure, sequestration and freeze of

property or funds of (i) persons suspected of or charged in Court with terrorism or conspiracy to commit terrorism; (ii) proscribed organizations, associations or group

• f

persons; and (iii) a member

• f

such

• rganization ,association or group of persons.

• passed

the Terrorism Financing Prevention and Suppression Act of 2 0 1 2 ( TF Suppression Act) , w hich cam e into force on 5 July 2 0 1 2 . The TF Suppression Act’s salient features:

• adopts as a State policy to (i) make terrorism financing a

crime against the Filipino people, humanity, and the law of nations; (ii) recognize and adhere to international commitments to combat terrorism financing, specifically the TF convention and terrorism-related UNSCRs; and (iii) reinforce the fight against terrorism by criminalizing its financing and related offenses and by preventing and suppressing said offenses thru freezing and forfeiture of properties or funds while respecting human rights.

• criminalizes and defines terrorism financing (TF), as a

criminalizes and defines terrorism financing (TF), as a stand stand-

• alone offense* based on the TF Convention

alone offense* based on the TF Convention’ ’s Article s Article 2, No. 1 (a) and (b) and UNSC Resolution No. 1373 2, No. 1 (a) and (b) and UNSC Resolution No. 1373’ ’s No. 1 s No. 1 (a) and b. (a) and b. * penalizes TF even if the property or funds intended * penalizes TF even if the property or funds intended to finance acts of terrorism are not actually used or to finance acts of terrorism are not actually used or no crime of terrorism is actually committed. no crime of terrorism is actually committed.

• criminalizes related offenses, i.e., conspiracy to commit TF;

dealing with property or funds related to TF or acts of terrorism or belonging to designated terrorist individuals,

• rganizations, associations or groups of persons; failure to

comply with AMLC’s freeze order.

• penalizes a juridical person/ corporate body (including its

responsible officers) or alien.

• defines “property or funds” in the same manner as “funds”

is defined under the TF Convention.

• defines designated persons as:

i. any person or entity designated and/ or identified as a terrorist, one who finances terrorism, or a terrorist

• rganization or group under the applicable UNSC

Resolution, or by another jurisdiction or supra-national jurisdiction; ii. any organization, association, or group of persons proscribed pursuant to Sec. 17 of the HSA; or

• iii. any person, organization, association, or group of

persons whose funds or property are subject to seizure and sequestration under Sec. 39 of the HSA.

• makes TF and related offenses predicate crime to money

laundering.

• empowers the AMLC to:

i. investigate TF and related offenses; ii. inquire ex parte into deposits and investments with any bank or non-bank financial institution and their subsidiaries and affiliates without a court order; and iii. freeze ex parte without delay and without a court order property or funds:

• that are in any way related to TF or acts of

terrorism;

• f any person, terrorist organization, association or

group who is committing, attempting, or conspiring to commit, or participating in or facilitating TF or acts of terrorism;

• f a designated person, organization, association or

group of persons based on binding terrorism- related UNSCRs, including UNSCR 1373. iv. initiate civil forfeiture (non-criminal conviction-based)

• f property or funds found to be in any way related to

TF and related offenses.

• This shall be made in accordance with the AMLA, its

RIRRs and the Rules of Procedure promulgated by the Supreme Court. v. enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the government, including government-owned and

• controlled corporations, in undertaking CFT measures,

which may include the use of its personnel, facilities and resources.

• institutionalizes

the “aut dedere aut judicare” (Extradite or Prosecute) principle.

• allows the Philippines, at its option and subject to

reciprocity, to consider the TF Convention as a legal basis for requesting or granting extradition.

• has extraterritorial application.

• For the AMLA of 2 0 0 1 , as am ended
• Lead Agency – the AMLC, which chairs the AML/ CFT Sub-

Committee of the NALECC and the Financial Sector Liaison Committee

• Support Agencies

1. 1. Anti Anti-

• Terrorism Council

Terrorism Council 2. 2. Bangko Bangko Sentral Sentral ng ng Pilipinas Pilipinas 3. 3. Bureau of Immigration Bureau of Immigration 4. 4. Bureau of Customs Bureau of Customs 5. 5. Civil Aviation Authority of the Philippines Civil Aviation Authority of the Philippines 6. 6. Department of Finance Department of Finance 7. 7. Department of Justice Department of Justice 8. 8. Insurance Commission Insurance Commission 9. 9. Intelligence Service Armed Forces of the Philippines Intelligence Service Armed Forces of the Philippines 10.

• 10. National Bureau of Investigation

National Bureau of Investigation 11.

• 11. National Intelligence Coordinating Agency

National Intelligence Coordinating Agency 12.

• 12. Philippine Drug Enforcement Agency

Philippine Drug Enforcement Agency 13.

• 13. Philippine National Police

Philippine National Police -

• Aviation Security Group

Aviation Security Group 14.

• 14. Philippine Ports Authority

Philippine Ports Authority 15.

• 15. Securities and Exchange Commission

Securities and Exchange Commission 16.

• 16. Other members of the AML/ CFT Sub

Other members of the AML/ CFT Sub-

• Committee

Committee

I MPLEMENTI NG AGENCI ES

• For the HSA of 2 0 0 7
• Lead Agency - the Anti-Terrorism Council
• Composition

1. Executive Secretary – Chairperson 2. Secretary of Justice – Vice-Chairperson 3. Secretary of Foreign Affairs - Member 4. Secretary of National Defense - Member 5. Secretary of the Interior and Local Government - Member 6. Secretary of Finance - Member 7. National Security Advisor – Member Secretariat – National Intelligence Coordinating Agency (NICA)

• Support Agencies

1. Anti-Money Laundering Council 2. Bureau of Immigration 3. Department of Transportation and Communications 4. Intelligence Service Armed Forces of the Philippines 5. National Bureau of Investigation 6. Office of Civil Defense 7. Philippine Center on Transnational Crime 8. Philippine National Police intelligence and investigative elements

• For the TF Suppression Act of 2 0 1 2
• Lead Agency - the Anti-Money Laundering Council
• Support Agencies (same as those for the AMLA’s implementation)

• filed a proscription action against the Abu

Sayyaf Group. The case is now pending before the Regional Trial Court of Isabela City, Basilan.

• prepared a bill amending the HSA of 2007 and

is currently looking for a legislator-sponsor.

• filed a terrorism case entitled “P/ P vs. Jun

Guevarra, Abu Basir, and Khenny Mamogkat” which is now pending before the Regional Trial Court of Pasig, Metro Manila.

ATC Action

• promulgated the Revised IRRs of the AMLA (took effect on

15 September 2012) and the Implementing Rules and Regulations of the TF Suppression Act (took effect on 26 August 2012).

• issued Resolution No. 59 dated 1 June 2005, directing all

covered institutions to report as suspicious, any transaction that is related to actual or potential TF.

• issued Resolution Nos. TF-01 dated 19 September 2012

and TF-02 dated 08 October 2012, directing banks and

• ther covered institutions as well as relevant government

agencies to freeze without delay the property or funds of those individuals and entities named in the UN sanctions lists.

AMLC Action

• published on 03 and 13 October 2012, in a newspaper of

general circulation and posted on its website the UNSC sanctions lists and their updates, together with the AMLC Resolutions directing banks and other covered institutions as well as relevant government agencies to freeze without delay the property or funds of those individuals and entities named in the lists.

• Will continue to post in its website updates and changes in

the UN anctions lists immediately upon receipt thereof from the UNSC Committees concerned.

AMLC Action

1 . Rajah Solaim an ( “Return to I slam ”) Movem ent case

• bank deposits
• 4 -storey building ( safehouse) in Quezon City, Metro Manila
• 7 -hectare parcel of land ( training ground)

– freezing ( 7 January 2 0 0 8 )

• civil forfeiture [ filing] ( 2 3 January 2 0 0 9 )
• civil forfeiture [ decision] ( 1 4 January 2 0 1 1 )

2 . I nternational I slam ic Relief Organization ( I I RO) – Manila Branch case

• bank deposits
• freezing ( 2 7 Novem ber 2 0 0 6 )
• civil forfeiture [ filing] ( 2 8 May 2 0 0 7 )
• civil forfeiture [ decision] ( 2 7 February 2 0 0 8 )

3 . Abu Sayyaf Group case

• bank deposits
• inter-agency coordination and international cooperation

SUCCESS STORI ES

CHALLENGES/ OPPORTUNI TI ES

• HSA’s Proscription Process
• requires prior notice to the persons to be designated/ w ill flush
• ut terrorist organizations’ leaders and m em bers.
• does not cover terrorist individuals.

REMEDI ES

• The TF Suppression Act of 2 0 1 2
• covers terrorist individuals.
• covers and defines designated persons.
• w ill expedite investigative, freeze and forfeiture actions.
• HSA
• HSA to be am ended. HSA am endatory bill already being

discussed w ith potential legislator-sponsors.

CHALLENGES/ OPPORTUNI TI ES/ REMEDI ES

KNOW ALL MEN (AND WOMEN) BY KNOW ALL MEN (AND WOMEN) BY THESE PRESENTS PART II: THESE PRESENTS PART II:

THE PHILIPPINES, AS A MEMBER THE PHILIPPINES, AS A MEMBER-

• STATE, IS

STATE, IS FIRMLY COMMITTED TO CONTINUE ITS FULL FIRMLY COMMITTED TO CONTINUE ITS FULL ENGAGEMENT WITH THE INTERNATIONAL ENGAGEMENT WITH THE INTERNATIONAL COMMUNITY IN THE GLOBAL WAR ON COMMUNITY IN THE GLOBAL WAR ON TERRORISM AND ITS FINANCING BY TERRORISM AND ITS FINANCING BY IMPLEMENTING RELEVANT INTERNATIONAL IMPLEMENTING RELEVANT INTERNATIONAL INSTRUMENTS INCLUDING APPLICABLE INSTRUMENTS INCLUDING APPLICABLE UNSCRs UNSCRs. .

Paraphrasing Edmund Burke Paraphrasing Edmund Burke’ ’s famous s famous statement: statement:

“ “ For terrorism and its financing For terrorism and its financing to trium ph in this w orld is to trium ph in this w orld is that good m en and good that good m en and good w om en do NOTHI NG. w om en do NOTHI NG.” ”

Thank you Thank you… …