Zarate questions AMLC’s authority to freeze funds of groups linked to terrorism

MANILA, Philippines — Bayan Muna party-list Rep. Carlos Zarate questioned on Friday the constitutionality of the Anti-Money Laundering Council’s (AMLC) authority to issue a freeze order on the property or funds that are being linked to the financing of terrorism, without notifying the concerned persons or groups.

During plenary deliberations on the proposed budget of the AMLC for 2021, Zarate said this provision of the law can be used against legitimate groups that are being linked to terrorism or are being red-tagged.

He also noted that Section 1, Article 3 of the 1987 Constitution states that no person should be deprived of life, liberty, or property without due process of law.

“Yet here we are in this particular law, we have Section 11 that allows the council to freeze the bank accounts of suspected person ex parte for 20 days, and before the expiration of the 20 day period they can even petition the Court of Appeals to extend that for another six months without even a notice to the persons whose accounts or property [are involved]. Is that a violation of the clear mandate of the constitution?” he said.

He was referring to Section 11 of the Republic Act No. 10168 or the Act Defining the Crime of Financing of Terrorism, which reads:

“The AMLC, either upon its own initiative or at the request of the Anti-Terrorism Council, is hereby authorized to issue an ex parte order to freeze without delay: (a) property or funds that are in any way related to the financing of terrorism or acts of terrorism; or (b) property or funds of any person, group of persons, a terrorist organization, or association, in relation to whom there is probable cause to believe that they are committing or attempting or conspiring to commit, or participating in or facilitating the commission of financing of terrorism or acts of terrorism as defined herein.”

The same section also states that the freeze order should be effective for a period not exceeding 20 days. It likewise reads that upon a petition filed by the AMLC before the expiration of the period, the effectivity of the freeze order may be extended for up to six months upon the order of the Court of Appeals, provided that the 20-day period shall be tolled upon the filing of a petition to extend the effectivity of the freeze order.

In response, Albay Rep. Joey Salceda, sponsor of the proposed budget of the AMLC, pointed out that terrorism in itself is a threat to the life, liberty, and property of Filipinos. He assured that there are competent bodies that establish probable cause if such threats exist.

“The issue there, is there is one, a competent authority, second, there is a probable cause, and that probable cause has to be empirically established,” he said.

Zarate explained he raised the issue as it should be given a closer look and review.

“I can understand probably the initial date of application where a 20-day period is given by the law, but to extend this to another six months without notification to the involved persons, I think it already runs counter to the provisions of the Constitution,” he added.

He also cited “peculiarities and particularities of what is happening now in our country,” citing the red-tagging being made against the Makabayan bloc at the House of Representatives and even civil society organizations. He said such a provision can be easily weaponized by the government against dissent.

He added that the six-month freeze for accounts and properties of non-government organizations being linked to terrorism will largely cripple its legitimate operations.

Section 11 of RA No. 10168, said Zarate, is likewise vague.

“Considering that provision, specifically Section 11, is to this representation, vague because it did not mention there that in the extension for six months, at least those who are involved or accused of engaging in terrorist financing, it should be clearly stated here that within that six month period not only upon the initiative of ALMC, they can also contest it,” he added.

Salceda then said that the freeze order for 20 days or six months should be automatically lifted if it is not extended.

“Given the fallibility of human beings managing our institutions, the courses of remedy for individuals who may be caused harm especially under Section 1 [in Article 3] of our constitution, I think it is properly the domain of Congress to offer such remedies,” he said.

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