1. Does Philippines have a sanctions regime in place?
2. Does Philippines implement UN sanctions?
Yes. In 2012, the Anti-Money Laundering Council (“AMLC”) issued two freeze orders targeting persons and organizations under the United Nations Security Council (“UNSC”) Al-Qaeda Sanctions List and Taliban Sanctions List (“Consolidated Lists”). The freeze orders cover not only those issued at the time of their issuance but also those contained in subsequent updates, modifications and amendments to the UNSC’s Consolidated Lists.
3. Does Philippines implement an autonomous sanctions regime?
4. What is the nature of the sanctions regime in Philippines?
The Philippines imposes financial sanctions in relation to terrorism financing. The relevant laws are Republic Act No. 11479 or the Anti-Terrorism Act of 2020 (“ATA”) and Republic Act No. 10168 or the Terrorism Financing Prevention and Suppression Act of 2012 (“TFPSA”). Under both statutes, the AMLC is authorized to freeze property or funds in any way related to financing of terrorism. The AMLC may issue a freeze order on its own initiative or on request of the Anti-Terrorism Council (“ATC”), and the freeze order shall be effective for not more than 20 days, but is extendible for up to 6 months upon court order. Furthermore, the TFPSA contains a prohibition against dealing with property or funds of known terrorists and organizations. “Dealing with” funds or property covers receipt, acquisition, transacting, representing, concealing, disposing or converting, transferring or moving, and using as security of or providing financial services. The Philippines also controls the trade of strategic goods to prevent the proliferation of weapons of mass destruction (“WMD”). Pursuant to Republic Act No. 10697 or the Strategic Trade Management Act (“STMA”), the government maintains a National Strategic Goods List (“NSGL”) that sets out the strategic goods subject to authorization for export, import, re-export, reassignment, transit, and transshipment. End-use controls may also be imposed on strategic goods that are not in the NSGL (“unlisted goods”). One end-use control is the requirement of a license for the trade in unlisted goods with, or the provision of technical assistance to, a person or purchasing country that is subject to an international sanction or an arms embargo imposed by a binding resolution of the UNSC.
5. Does Philippines maintain a list of sanctioned individuals and entities?
Yes. The Philippines maintains a list of terrorist individuals and organizations (“designated persons”) pursuant to the ATA. Under the ATA, the ATC automatically adopts the UNSC Consolidated Lists of identified terrorists. The ATC may also designate individuals or organizations as terrorists upon a finding of probable cause that the such individuals or organizations commit, attempt to commit, or conspire to commit acts of terrorism. The government has announced that it will publish the list of persons designated by the ATC. The TFPSA also mandates the Department of Foreign Affairs (“DFA”) to publish a list of designated persons under the UNSC Consolidated Lists. This list of designated persons is available on the DFA’s website: https://dfa.gov.ph/dfa-news/statements-and-advisoriesupdate/21397-adv-16042019 The AMLC makes available the Consolidated Lists and regular updates thereto on its website, accessible through the following links: http://www.amlc.gov.ph/un-sanctions-list/al-qaeda http://www.amlc.gov.ph/un-sanctions-list/taliban The government also maintains a list of individuals on whom a hold departure order has been imposed.
6. Are there any other lists related to sanctions?
Under the STMA, the NSGL is maintained by the National Security Council-Strategic Trade Management Committee (“NSC-STMCom”). The NSGL comprises three annexes: Military Goods (Annex 1), Dual Use Goods (Annex 2), and Nationally Controlled Goods (Annex 3). Annex 1 of the NSGL is available at: https://dtiwebfiles.s3-ap-southeast-1.amazonaws.com/STMO/Policies/Annex%20I/NSGL%20Annex%201.pdf Annex 2 of the NSGL is available at: https://dtiwebfiles.s3-ap-southeast-1.amazonaws.com/STMO/Policies/Annex%20II/NSGL%20Annex%202.pdf The Strategic Trade Management Office (“STMO”), a bureau under the Department of Trade and Industry (“DTI”), also adopted the UNSC Consolidated Lists of Individuals and Entities as the STMO’s List of Prohibited End-Users. All persons who engage or intend to engage in the trade of strategic and/or unlisted goods are prohibited from engaging in any trade with individuals and entities in the List of Prohibited End-Users. The STMO makes available the Consolidated Lists and regular updates thereto on its website: https://www.dti.gov.ph/negosyo/strategic-trade-management/
7. Does Philippines have a licensing or authorization system in place?
Yes. Under the TFPSA, transactions characterized as “authorized dealings” are exempt from freeze orders issued by the AMLC. Authorized dealings include: (i) payments falling under humanitarian exemptions (funds or property reasonably necessary for monthly family needs and sustenance including the services of counsel and family medical needs); (ii) payments necessary to satisfy a judicial, administrative or arbitral judgment rendered or lien encumbered, prior to the date of designation or listing of the designated persons; and (iii) payments of (a) interest or other earnings due on frozen deposit accounts or other assets (but the interest or other earnings due thereon shall similarly be frozen once received); or (b) obligations under a valid contract entered into before the accounts or other assets were frozen by reason of the account holder’s designation. The person whose property or funds have been frozen may withdraw an amount to shoulder basic and necessary expenses, including those covered by authorized dealings, by filing a verified petition before the Court of Appeals or the AMLC. Under the STMA, persons who intend to engage in the trade of strategic goods under the NSGL must register with and obtain an authorization from the STMO. Individual licenses are also required in certain instances involving trade in unlisted goods.
8. What are the consequences for a breach of sanctions in Philippines?
Violating the prohibition on dealing with property or funds of designated persons under the TFPSA is punishable by imprisonment and a fine of up to one million pesos. Property or funds found in any way related to financing of terrorism shall also be subject to civil forfeiture. Under the TFPSA, failure of a responsible officer or other person to comply with a freeze order is punishable by imprisonment and a fine of up to five hundred thousand pesos, without prejudice to the administrative sanctions that the AMLC may impose on the erring covered institution. Violation of the STMA is also punishable by imprisonment and a fine of up to five million pesos, as well as administrative penalties such as the limitation, revocation, or annulment of any authorization or registration. The strategic goods subject of the offense shall also be forfeited in favor of the government. The inclusion of a non-stock corporation in the Consolidated Lists is also a ground for revocation of its certificate of incorporation by the Securities and Exchange Commission.
9. Who are the relevant regulators in the Philippines and what are their contact details?
The ATC is the government agency responsible for implementing the ATA and designating individuals and organizations as terrorists. ANTI-TERRORISM COUNCIL-PROGRAM MANAGEMENT CENTER (ATC-PMC) Rm. 472 Mabini Hall, J.P. Laurel St., San Miguel, Manila
T. 4851 /4860/ 4858 F: 87361008
The AMLC is the government agency responsible for investigating the financing of terrorism and issuing freeze orders. ANTI-MONEY LAUNDERING COUNCIL SECRETARIAT 5/F EDPC Building Bangko Sentral ng Pilipinas Complex Mabini corner Vito Cruz Streets, Malate Manila, Philippines 1004
T: (+63) 2 8708 7701
The DTI’s STMO is the executive and technical agency of the national government responsible for the establishment of the management systems for the trade in strategic goods. STRATEGIC TRADE MANAGEMENT OFFICE 3F Tara Building, 389 Sen. Gil Puyat Avenue, Makati City Metro Manila, Philippines Mobile: (+63) 917.8566.596 Phone: (632) 8529.3282 / (632) 8529.3280 E: firstname.lastname@example.org
For Registration and Authorization concerns: email@example.com
For Compliance concerns: firstname.lastname@example.org
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