Rules on property seizure in AMLA cases set by SC

Courts can now issue orders allowing the seizure for preservation of pieces of property, real or personal, which are suspectedly acquired in violation of the Anti-Money Laundering Act even prior to the filing of criminal charges against their owners who allegedly violated the law.

Under the “Rule on Asset Preservation, Seizure, and Forfeiture in Anti-Money Laundering Cases” issued by the Supreme Court, the government, through the Anti-Money Laundering Council, may ask the court to issue an order for the provisional asset preservation for a period of 20 calendar days.

After determining probable cause, the court can issue an order to prevent and forbid any transaction, withdrawal, deposit, transfer, removal, conversion, concealment or other disposition of the property sought to be preserved.

However, the rule provides that the “real estate property ordered preserved shall not be physically seized before a final order of forfeiture, nor shall its owners and occupants be evicted or deprived of its use and enjoyment.”

It also states that “when the property preserved is perishable or is disproportionately expensive to keep or store, it may be released from preservation upon deposit of an equivalent cash bond or sold in public auction, the proceeds of which shall be deposited with the clerk of court to be disposed of according to the final judgment of the court.”

A bond to discharge the asset preservation order may be required by the court.

The rule applies to all criminal actions before any court involving crimes or offenses defined as “unlawful activity” or “money laundering offenses” under AMLA.

Prior to the approval of the rule, the SC said there were no clear-cut rules regarding the forfeiture or preservation of property that is the subject of an unlawful activity or money laundering.