A Freeze Order is an order issued by the Court of Appeals that blocks or restrains monetary instruments or properties in any way related to an unlawful activity from being transacted, withdrawn, deposited, transferred, removed, converted, concealed, or otherwise moved or disposed without affecting the ownership. This is in line with the state policy of our Anti-Money Laundering laws to protect and preserve the integrity of the Philippine financial system.
The Court of Appeals issues a Freeze Order only after determination that probable cause exists, such that there are facts and circumstances which would lead a reasonably discreet, prudent, or cautious man to believe that any monetary instrument or property sought to be frozen, inquired into or preserved is in any way related to any unlawful activity and/or money laundering offense.
The Court of Appeals can issue a Freeze Order, effective immediately, for a period of twenty (20) days. Before the expiration of such period the Court of Appeals will conduct a summary hearing to determine whether to or not it will modify, lift, or extend the effectivity of the Freeze Order. The total period for which a Freeze Order will remain effective cannot exceed six (6) months. However, if a Money Laundering or Civil Forfeiture case is filed as a result of the Freeze Order, it will remain effective until the Money Laundering case is terminated, or an Asset Preservation Order is issued.
The Freeze Order will be lifted after its expiration if no Money Laundering or Civil Forfeiture case is filed. However, a written confirmation from the Anti-Money Laundering Council has to be secured to ascertain if a petition for Civil Forfeiture or a Money Laundering complaint has been filed.
The person whose monetary instrument or property has been frozen can file Motion to Lift the freeze order. The Court of Appeals must resolve the Motion to Lift before the expiration of the Freeze Order. If the Freeze Order is imposed on an account of a covered person that is being used for payment of salary, rent, suppliers, and/or taxes in the ordinary course of a legitimate business, the Freeze Order may be lifted by submitting a bond or other acceptable security equal to the value of the amount or value subject of the Freeze Order.
Properties that may be the subject of a Freeze Order includes any thing or item of value, real or personal, tangible or intangible, or any interest therein, or any benefit, privilege claim, or right with respect thereto.
No asset can be the subject of a Freeze Order to the prejudice of a candidate for an electoral office during election period. Only the Supreme Court can issue a temporary restraining order or writ of injunction against any Freeze Order.
For a complete guideline on the intricacies of a Freeze Order, you can refer to “The 2018 Implementing Rules and Regulations of Republic Act No. 9160 as Amended” approved by the Anti-Money Laundering Council on 22 November 2018.
For inquiries and questions, you may send an email to abogado@palmlawoffice.com.
The views stated in this article are merely those of the author. This article is for general informational purposes only. It is not offered as a legal advice or legal opinion.
Atty. James Andrew D. Dy is a Partner at PALM Law Office. Its office is located at 2/F, MF3 Holdings Building, 138 Sct. Limbaga, Quezon City, Metro Manila, Philippines.
0917-145-7706
jdd@palmlawoffice.com
