Terrorism Financing Prevention and Suppression Act of 2012

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AN ACT DEFINING THE CRIME OF FINANCING OF TERRORISM, PROVIDING

PENALTIES THEREFOR, AND FOR OTHER PURPOSES

SECTION 1. Short Title. — This Act shall be known as "The Terrorism

Financing Prevention and Suppression Act of 2012".

SECTION 2. Declaration of Policy. — It is the policy of the State to protect

life, liberty, and property from acts of terrorism and to condemn terrorism and those

who support and finance it and to recognize it as inimical and dangerous to national

security and the welfare of the people, and to make the financing of terrorism a crime

against the Filipino people, against humanity, and against the law of nations.

The State, likewise, recognizes and adheres to international commitments to

combat the financing of terrorism, specifically to the International Convention for the

Suppression of the Financing of Terrorism, as well as other binding terrorism-related

resolutions of the United Nations Security Council pursuant to Chapter 7 of the Charter

of the United Nations (UN).

Toward this end, the State shall reinforce its fight against terrorism by

criminalizing the financing of terrorism and related offenses, and by preventing and

suppressing the commission of said offenses through freezing and forfeiture of

properties or funds while protecting human rights.

SECTION 3. Definition of Terms. — As used in this Act:

(a) Anti-Money Laundering Council (AMLC) refers to the Council created

by virtue of Republic Act No. 9160, as amended, otherwise known as

the "Anti-Money Laundering Act of 2001, as amended".

(b) Anti-Terrorism Council (ATC) refers to the Council created by, virtue

of Republic Act No. 9372, otherwise known as the "Human Security

Act of 2007". 

(c) Covered institutions refer to or shall have the same meaning as

defined under the Anti-Money Laundering Act (AMLA), as amended.

(d) Dealing, with regard to property or funds refers to receipt, acquisition,

transacting, representing, concealing, disposing or converting,

transferring or moving, use as security of or providing financial services.

(e) Designated persons refers to:

(1) any person or entity designated and/or identified as a terrorist,

one who finances terrorism, or a terrorist organization or group

under the applicable United Nations Security Council Resolution

or by another jurisdiction or supranational jurisdiction;

(2) any organization, association, or group of persons proscribed pursuant to Section 17 of the Human Security Act of 2007; or

(3) any person, organization, association, or group of persons

whose funds or property, based on probable cause are subject

to seizure and sequestration under Section 39 of the Human

Security Act of 2007.

(f) Forfeiture refers to a court order transferring in favor of the

government, after due process, ownership of property or funds

representing, involving, or relating to financing of terrorism as defined

in Section 4 or an offense under Sections 5, 6, 7, 8, or 9 of this Act.

(g) Freeze refers to the blocking or restraining of specific property or

funds from being transacted, converted, concealed, moved or

disposed without affecting the ownership thereof.

(h) Property or funds refer to financial assets, property of every kind,

whether tangible or intangible, movable or immovable, however

acquired, and legal documents or instruments in any form, including

electronic or digital, evidencing title to, or interest in, such funds or

other assets, including, but not limited to, bank credits, travellers

cheques, bank cheques, money orders, shares, securities, bonds,

drafts, or letters of credit, and any interest, dividends or other income

on or value accruing from or generated by such funds or other assets.

(i) Terrorist refers to any natural person who: (1) commits, or attempts,

or conspires to commit terrorist acts by any means, directly or

indirectly, unlawfully and willfully; (2) participates, as a principal or as

an accomplice, in terrorist acts; (3) organizes or directs others to

commit terrorist acts; or (4) contributes to the commission of terrorist

acts by a group of persons acting with a common purpose where the

contribution is made intentionally and with the aim of furthering the

terrorist act or with the knowledge of the intention of the group to

commit a terrorist act.

(j) Terrorist acts refer to the following:

(1) Any act in violation of Section 3 or Section 4 of the Human Security Act of 2007;

(2) Any other act intended to cause death or serious bodily injury

to a civilian, or to any other person not taking an active part in

the hostilities in a situation of armed conflict, when the purpose

of such act, by its nature or context, is to intimidate a

population, or to compel a government or an international

organization to do or to abstain from doing any act;

(3) Any act which constitutes an offense under this Act, that is

within the scope of any of the following treaties of which the

Republic of the Philippines is a State party:

(a) Convention for the Suppression of Unlawful Seizure of

Aircraft, done at the Hague on 16 December 1970;

(b) Convention for the Suppression of Unlawful Acts against

the Safety of Civil Aviation, done at Montreal on 23

September 1971;

(c) Convention on the Prevention and Punishment of

Crimes against Internationally Protected Persons,

including Diplomatic Agents, adopted by the General

Assembly of the United Nations on 14 December 1973;

(d) International Convention against the Taking of

Hostages, adopted by the General Assembly of the

United Nations on 17 December 1979;

(e) Convention on the Physical Protection of Nuclear

Material, adopted at Vienna on 3 March 1980;

(f) Protocol for the Suppression of Unlawful Acts of

Violence at Airports Serving International Civil Aviation,

supplementary to the Convention for the Suppression of

Unlawful Acts against the Safety of Civil Aviation, done at

Montreal on 24 February 1988;

(g) Convention for the Suppression of Unlawful Acts against

the Safety of Maritime Navigation, done at Rome on 10 March 1988;

(h) Protocol for the Suppression of Unlawful Acts against

the Safety of Fixed Platforms located on the Continental

Shelf, done at Rome on 10 March 1988; or

(i) International Convention for the Suppression of Terrorist

Bombings, adopted by the General Assembly of the

United Nations on 15 December 1997. 

(k) Terrorist organization, association or a group of persons refers to any

entity owned or controlled by any terrorist or group of terrorists that:

(1) commits, or attempts to commit, terrorist acts by any means,

directly or indirectly, unlawfully and willfully; (2) participates as an

accomplice in terrorist acts; (3) organizes or directs others to commit

terrorist acts; or (4) contributes to the commission of terrorist acts by a

group of persons acting with common purpose of furthering the

terrorist act where the contribution is made intentionally and with the

aim of furthering the terrorist act or with the knowledge of the intention

of the group to commit a terrorist act.

SECTION 4. Financing of Terrorism. — Any person who, directly or

indirectly, willfully and without lawful excuse, possesses, provides, collects or uses

property or funds or makes available property, funds or financial service or other related

services, by any means, with the unlawful and willful intention that they should be used

or with the knowledge that they are to be used, in full or in part: (a) to carry out or

facilitate the commission of any terrorist act; (b) by a terrorist organization, association

or group; or (c) by an individual terrorist, shall be guilty of the crime of financing of

terrorism and shall suffer the penalty of reclusion temporal in its maximum period to reclusion perpetua and a fine of not less than Five hundred thousand pesos

(Php500,000.00) nor more than One million pesos (Php1,000,000.00).

Any person who organizes or directs others to commit financing of terrorism

under the immediately preceding paragraph shall likewise be guilty of an offense and

shall suffer the same penalty as herein prescribed.

For purposes of this Act, knowledge or intent may be established by direct

evidence or inferred from the attendant circumstances.

For an act to constitute a crime under this Act, it shall not be necessary that the

funds were actually used to carry out a crime referred to in Section 3 (j).

SECTION 5. Attempt or Conspiracy to Commit the Crimes of Financing of

Terrorism and Dealing with Property or Funds of Designated Persons. — Any attempt

to commit any crime under Section 4 or Section 8 under this Act shall be penalized by a

penalty two degrees lower than that prescribed for the commission of the same as

provided under this Act.

Any conspiracy to commit any crime under Section 4 or Section 8 of this Act shall

be penalized by the same penalty prescribed for the commission of such crime under

the said sections. 

There is conspiracy to commit the offenses punishable under Sections 4 and 8 of

this Act when two (2) or more persons come to an agreement concerning the

commission of such offenses and decided to commit it.

SECTION 6. Accomplice. — Any person who, not being a principal under

Article 17 of the Revised Penal Code or a conspirator as defined in Section 5 hereof,

cooperates in the execution of either the crime of financing of terrorism or conspiracy to

commit the crime of financing of terrorism by previous or simultaneous acts shall suffer

the penalty one degree lower than that prescribed for the conspirator.

SECTION 7. Accessory. — Any person who, having knowledge of the

commission of the crime of financing of terrorism but without having participated therein

as a principal, takes part subsequent to its commission, by profiting from it or by

assisting the principal or principals to profit by the effects of the crime, or by concealing

or destroying the effects of the crime in order to prevent its discovery, or by harboring,

concealing or assisting in the escape of a principal of the crime shall be guilty as an

accessory to the crime of financing of terrorism and shall be imposed a penalty two

degrees lower than that prescribed for principals in the crime of financing terrorism.

SECTION 8. Prohibition Against Dealing with Property or Funds of

Designated Persons. — Any person who, not being an accomplice under Section 6 or

accessory under Section 7 in relation to any property or fund: (i) deals directly or

indirectly, in any way and by any means, with any property or fund that he knows or has

reasonable ground to believe is owned or controlled by a designated person,

organization, association or group of persons, including funds derived or generated

from property or funds owned or controlled, directly or indirectly, by a designated

person, organization, association or group of persons; or (ii) makes available any

property or funds, or financial services or other related services to a designated and/or

identified person, organization, association, or group of persons, shall suffer the penalty

of reclusion temporal in its maximum period to reclusion perpetua and a fine of not less

than Five hundred thousand pesos (Php500,000.00) nor more than One million pesos

(Php1,000,000.00).

SECTION 9. Offense by a Juridical Person, Corporate Body or Alien. — If the

offender is a corporation, association, partnership or any juridical person, the penalty

shall be imposed upon the responsible officers, as the case may be, who participated

in, or allowed by their gross negligence, the commission of the crime or who shall have

knowingly permitted or failed to prevent its commission. If the offender is a juridical

person, the court may suspend or revoke its license. If the offender is an alien, the alien

shall, in addition to the penalties herein prescribed, be deported without further

proceedings after serving the penalties herein prescribed.

SECTION 10. Authority to Investigate Financing of Terrorism. — The AMLC,

either upon its own initiative or at the request of the ATC, is hereby authorized to

investigate: (a) any property or funds that are in any way related to financing of

terrorism or acts of terrorism; (b) property or funds of any person or persons in relation

to whom there is probable cause to believe that such person or persons are committing

or attempting or conspiring to commit, or participating in or facilitating the financing of

terrorism or acts of terrorism as defined herein.

The AMLC may also enlist the assistance of any branch, department, bureau,

office, agency or instrumentality of the government, including government-owned and -

controlled corporations in undertaking measures to counter the financing of terrorism,

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

For purposes of this section and notwithstanding the provisions of Republic Act

No. 1405, otherwise known as the "Law on Secrecy of Bank Deposits", as amended;

Republic Act No. 6426, otherwise known as the "Foreign Currency Deposit Act of the

Philippines", as amended; Republic Act No. 8791, otherwise known as "The General

Banking Law of 2000" and other laws, the AMLC is hereby authorized to inquire into or

examine deposits and investments with any banking institution or non-bank financial

institution and their subsidiaries and affiliates without a court order.

SECTION 11. Authority to Freeze. — The AMLC, either upon its own

initiative or at the request of the ATC, is hereby authorized to issue an ex parte order to

freeze without delay: (a) property or funds that are in any way related to financing of

terrorism or acts of terrorism; or (b) property or funds of any person, group of persons,

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 freeze order shall be effective for a period not exceeding twenty (20) days.

Upon a petition filed by the AMLC before the expiration of the period, the effectivity of

the freeze order may be extended up to a period not exceeding six (6) months upon

order of the Court of Appeals: Provided, That the twenty-day period shall be tolled upon

filing of a petition to extend the effectivity of the freeze order.

Notwithstanding the preceding paragraphs, the AMLC, consistent with the

Philippines' international obligations, shall be authorized to issue a freeze order with

respect to property or funds of a designated organization, association, group or any

individual to comply with binding terrorism-related Resolutions, including Resolution No.

1373, of the UN Security Council pursuant to Article 41 of the Charter of the UN. Said

freeze order shall be effective until the basis for the issuance thereof shall have been

lifted. During the effectivity of the freeze order, an aggrieved party may, within twenty

(20) days from issuance, file with the Court of Appeals a petition to determine the basis

of the freeze order according to the principle of effective judicial protection.

However, if the property or funds subject of the freeze order under the

immediately preceding paragraph are found to be in any way related to financing of

terrorism or acts of terrorism committed within the jurisdiction of the Philippines, said

property or funds shall be the subject of civil forfeiture proceedings as hereinafter provided.

SECTION 12. Exceptions for Investigative Requirements. — Notwithstanding

the immediately preceding provision, the AMLC may decide to defer the issuance of a

freeze order for as long as necessary for any specific investigative/prosecutorial

purposes.

SECTION 13. Humanitarian Exemptions. — The person whose property or

funds have been frozen under the first paragraph of Section 11 may withdraw such

sums as the court determines to be reasonably needed for monthly family needs and

sustenance including the services of counsel and the family medical needs of such

person.

The person whose property or funds have been frozen under the third paragraph

of Section 11 may withdraw such sums as the AMLC determines to be reasonably

needed for monthly family needs including the services of counsel and the family

medical needs of such person.

SECTION 14. Appropriation and Use of Funds of Public Attorney's Office

(PAO). — Any appropriation and use of funds of PAO to provide free legal assistance

or services to persons charged of the offenses defined and penalized herein shall not

be construed as a violation of this Act, thereby exempting the PAO from any liability.

SECTION 15. Publication of Designation. — The Department of Foreign

Affairs with respect to designation under Section 3 (e) (1) of this Act, and the ATC with

respect to designation under Section 3 (e) (2) and (3) and Section 11 of this Act, shall

publish a list of the designated persons to which this Act or the Human Security Act

applies. The concerned agencies shall ensure that an electronic version of the

document is made available to the public on their respective website.

Each respective agency or authority shall ensure that information on procedures

established in rules and regulations issued pursuant to this Act for delisting, unfreezing

and exemptions for basic, necessary or extraordinary expenses shall likewise be made

available in their respective website.

SECTION 16. Duty of the Covered Institutions and/or Relevant Government

Agencies Upon Receipt of the Freeze Order. — Upon receipt of the notice of a freeze

order, the covered institutions and/or relevant government agencies shall immediately

preserve the subject property or funds in accordance with the order of the AMLC and

shall forthwith serve a copy of the notice of the freeze order upon the owner or holder of

the property or funds. Any responsible officer or other person who fails to comply with a

freeze order shall suffer the penalty of imprisonment from six (6) months to four (4)

years and a fine of not less than One hundred thousand pesos (Php100,000.00) nor

more than Five hundred thousand pesos (Php500,000.00), at the discretion of the court,

without prejudice to the administrative sanctions that the AMLC may impose on the

erring covered institution.

SECTION 17. Predicate Offense to Money Laundering. — Financing of

terrorism under Section 4 and offenses punishable under Sections 5, 6, and 7 of this

Act shall be predicate offenses to money laundering as defined in Republic Act No. 9160, otherwise known as the "Anti-Money Laundering Act of 2001", as amended, and

subject to its suspicious transaction reporting requirement.

SECTION 18. Civil Forfeiture. — The procedure for the civil forfeiture of

property or funds found to be in any way related to financing of terrorism under Section

4 and other offenses punishable under Sections 5, 6, and 7 of this Act shall be made in

accordance with the AMLA, as amended, its Revised Implementing Rules and

Regulations and the Rules of Procedure promulgated by the Supreme Court.

SECTION 19. Extra-Territorial Application of this Act. — Subject to the

provision of an existing treaty, including the International Convention for the

Suppression of the Financing of Terrorism of which the Philippines is a State Party, and

to any contrary provision of any law of preferential application, the criminal provisions of

this Act shall apply: (a) to individual persons who, although physically outside the

territorial limits of the Philippines, commit, conspire or plot to commit any of the crimes

defined and punished in this Act inside the territorial limits of the Philippines; (b) to

individual persons who, although physically outside the territorial limits of the

Philippines, commit any of the said crimes on board Philippine ship or Philippine airship;

(c) to individual persons who commit any of said crimes within any embassy, consulate,

or diplomatic premises belonging to or occupied by the Philippine government in an

official capacity; (d) to individual persons who, although physically outside the territorial

limits of the Philippines, commit said crimes against Philippine citizens or persons of

Philippine descent, where their citizenship or ethnicity was a factor in the commission of

the crime; and (e) to individual persons who, although physically outside the territorial

limits of the Philippines, commit said crimes directly against the Philippine government.

The provisions of this Act shall likewise apply to a Filipino national who, although

outside the territorial jurisdiction of the Philippines, commit, conspire or plot to commit

any of the crimes defined and punished in this Act.

In case of an alien whose extradition is requested pursuant to the International

Convention for the Suppression of the Financing of Terrorism, and that alien is not

extradited to the requesting State, the Republic of the Philippines, without exception

whatsoever and whether or not the offense was committed in the Philippines, shall

submit the case without undue delay to the Department of Justice for the purpose of

prosecution in the same manner as if the act constituting the offense had been

committed in the Philippines, in which case, the courts of the Philippines shall have

jurisdiction over the offense.

SECTION 20. Extradition. — The Philippines may, at its option, subject to the

principle of reciprocity, consider the International Convention for the Suppression of the

Financing of Terrorism as a legal basis for requesting or granting extradition in respect

of the offenses set forth under this Act.

SECTION 21. Applicability of the Revised Penal Code. — The provisions of

Book I of the Revised Penal Code shall apply suppletorily to this Act.

SECTION 22. Implementing Rules and Regulations. — Within thirty (30)

days from the effectivity of this Act, the AMLC, in coordination with relevant government

agencies, shall promulgate rules and regulations to implement effectively the provisions of this Act.

The rules and regulations to be promulgated may include, but not limited to,

designation, delisting, notification of matters of interest of persons affected by the Act, exceptions for basic, necessary and extraordinary expenses, matters of evidence,

definition of probable cause, inter-agency coordination, publication of relevant

information, administrative offenses and penalties, procedures and forms, and other

mechanisms for implementation of the Act.

SECTION 23. Separability Clause. — If, for any reason, any provision of this

Act is declared invalid or unconstitutional, the remaining provisions not affected thereby

shall continue to be in force and effect.

SECTION 24. Repealing Clause. — All laws, decrees, executive orders,

proclamations, rules and regulations, and other issuances, or parts thereof, which are

inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 25. Effectivity Clause. — This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) newspapers of general circulation. 

Approved.

Published in The Philippine Star on June 21, 2012.