republic vs eugenio digest

8/16/2019 Republic vs Eugenio Digest

1/4

Sec. 2 of the Bank Secrecy Act itself prescribes exceptions whereby these banaccounts may be examined by any person, government ocial, bureau or oanamely when! (1) upon written permission of the depositor; (2) in cases oimpeachment; (3) the examination of bank accounts is upon order of competent court in cases of bribery or dereliction of duty of public ocials; and(4) the money deposited or invested is the subect matter of the liti!ation#ection $ of %"&" &ct 'o" 31* the &nti+,raft and -orrupt .ractices &ct* ha

been reco!ni/ed by this -ourt as constitutin! an additional exception to the rulof absolute con0dentiality* and there have been other similar reco!nitions awell"

Facts: Under the authority granted by the Resolution, the AMLC fled an application tinquire into or examine the deposits or inestments o! Alare", #rinidad, Liongson anCheng $ong be!ore the R#C o! Ma%ati, &ranch '(), presided by *udge +no Court o! Appea *ustice- .ixto Marella, *r/ #he application as doc%eted as AMLC 0o/ 123112/ #he Ma%ati R#heard the testimony o! the 4eputy 4irector o! the AMLC, Richard 4aid C/ Fun% 55, anreceied the documentary eidence o! the AMLC/6'78 #herea!ter, on 7 *uly 9112, the Ma%aR#C rendered an rder +Ma%ati R#C ban% inquiry order- granting the AMLC the authority t

inquire and examine the sub;ect ban% accounts o! Alare", #rinidad, Liongson and Chen $ong, the trial court being satisfed that there existed p8robable cause 6to8 beliee that thdeposits in arious ban% accounts, details o! hich appear in paragraph ' o! thApplication, are related to the oractices Acno the sub;ect o! criminal prosecution be!ore the .andiganbayan as attested to by th5n!ormations, ?xhibits C, 4, ?, F, and = >ursuant to the Ma%ati R#C ban% inquiry order, thC5. proceeded to inquire and examine the deposits, inestments and related eb accounto! the !our/6'@8

Meanhile, the .pecial >rosecutor o! the ce o! the mbudsman, 4ennis Billa35gnaciorote a letter dated 9 0oember 9112, requesting the AMLC to inestigate the accounts o

Alare", >5A#C, and seeral other entities inoled in the nullifed contract/ #he letteaderted to probable cause to beliee that the ban% accounts ere used in the commissioo! unla!ul actiities that ere committed a in relation to the criminal cases then pendinbe!ore the .andiganbayan/ Attached to the letter as a memorandum on hy thinestigation o! the 6accounts8 is necessary in the prosecution o! the aboe criminal casebe!ore the .andiganbayan/ 5n response to the letter o! the .pecial >rosecutor, the AMLpromulgated on 4ecember 9112 Resolution 0o/ '9' .eries o! 9112, 6'8 hich authori"ethe executie director o! the AMLC to inquire into and examine the accounts named in thletter, including one maintained by Alare" ith 4&. &an% and to other accounts in thname o! Cheng $ong ith Metroban%/ #he Resolution characteri"ed the memorandumattached to the .pecial >rosecutors letter as extensiely ;usti!6ying8 the existence o

probable cause that the ban% accounts o! the persons and entities mentioned in the letteare related to the unla!ul actiity o! iolation o! .ections (+g- and (+e- o! Rep/ Act 0o(1', as amended/

5ssue: Dhether or not the ban% accounts o! respondents can be examined/

Eeld: Any exception to the rule o! absolute confdentiality must be specifcally legislated.ection 9 o! the &an% .ecrecy Act itsel! prescribes exceptions hereby these banaccounts may be examined by any person, goernment ocial, bureau or oal namelhen: +'- upon ritten permission o! the depositor +9- in cases o! impeachment +(- thexamination o! ban% accounts is upon order o! a competent court in cases o! bribery o

'


2/4

dereliction o! duty o! public ocials and +7- the money deposited or inested is the sub;ecmatter o! the litigation/ .ection ) o! R/A/ Act 0o/ (1', the Anti3=ra!t and Corrupt >racticeAct, has been recogni"ed by this Court as constituting an additional exception to the rule oabsolute confdentiality, and there hae been other similar recognitions as e #he AMLA also proides exceptions to the &an% .ecrecy Act/ Under .ection '', the AMLmay inquire into a ban% account upon order o! any competent court in cases o! iolation othe AMLA, it haing been established that there is probable cause that the deposits oinestments are related to unla!ul actiities as defned in .ection (+i- o! the la, or

money laundering ohilippinex x x are hereby considered as o! an absolutely confdential nature/ 5ndeed, by !orce ostatute, all ban% deposits are absolutely confdential, and that nature is unaltered een bthe legislated exceptions re!erred to aboe/

"#$%B&'(

).

*%+# #%#-'.". -. /0123, /1 4#B"%A"5 2667

4A(8S!A!ter the Agan / >5A#Cr u l i ng , a se r i e s o ! i n e s t i ga t i ons c onc e r n i ng t he a ar d o ! t he 0A 5A ( co n t r a c t s t o > 5 A # C e r e u n d e r t a % e n b y t h e mbudsman and theCompliance and 5nestigation .ta< +GC5.H- o! the Anti3Money Laundering Council+GAMLCH-/ #he .= rote AMLC requesting AMLCIs assistance Ginobta in in g m ore e iden ce to c ompl ete ly reeal thef nanc ia l t ra il o! cor

upt ion surround ing the 0A5A (>ro;ect,H and also noting that the Republic aspresentlyde !e nd i n g i t se l ! i n t o i n t e r na t i on a l a r b i t r a t i o nc ases / #he C. cond uc te d an in te ll igence da tabase search on the fnancial transactions o! certainindiidualsinoled in the aard, including Alare" +Chairman o! t h e > r e 3J u a l i f c a t i on & i ds an d A a r d s #e c hn i c a l Comm it te e- / & y t his t im e, Al are" had already beencharged by the mbudsman ith iolation o! .ection (+*-o! theAnti =ra!t and Corrupt >ractices Act/'

9


3/4

#he searchreealed that Alare" maintained ) ban% accounts ith @diractices Act/9 #he MAKA#5 R#Crendered an rder granting the AMLC the authoritytoinq ui re a nd exa min e t he sub ;ec t b an % a cco un ts o! Alare"et al/5n response to a letter o! .pecial >rosecutor Billa35gnacio,AMLC issued a Resolut ion author i"ing its ?xecutie4irecto r to inquireinto and examine the accounts o! Alare", >5A#C, and seeral other entitiesinoled inthe nullifed contract/ AMLC fled an application be!orethe MA05LA R#C

to inquire into the accounts alleged as' .ec/ (/ Corrupt practices o! public ocers/3 5n addition to acts oromissions o! public ocers already penali"ed by existing la,the!olloing shall constitute corrupt practices o! any public ocer andare hereby declaredto be unla!ul:+;- Knoingly approing or granting any license, permit, priilegeor beneftin !aor o! any person not qualifed !or or not legallyentitled to such license,permit, priilege or adantage, or o! amere representatie or dummy o! one ho inot so qualifed orentitled/9

+e- Ca us ing an y un due in ;ur y to an y p ar ty , inc lu din g th e=oernment, orgiing any priate party any unarrantedbenefts,a d a n t a g e o r p r e ! e r e n c e i n t h e d i s c h a r g e o ! h i s o c i a l admnistratie or ;udicial !unctions through mani!est partiality,eident bad !aith or grossinexcusable negligence/ #his proisionshall apply to o cers and employeeso! o ces or goernmentcorporations charged ith the grant o! licenses or permits orotherconcessions/

haing been used to !acilitate corruption in the 0A5A ( >ro;ect/ #heex parte

application as granted and theMA05LA R#C issued a ban% inquiry order/Alare" allegedthat he !ortuitously learned o! the ban%inquiry order, hich as issued !olloing anex parteapplication, and he argued that nothing in the Anti3Money Laundering Act+GAMLAH- authori"ed the AMLC tosee% the au thor ity to inqu ire in to ban% ac countsex parte/A!te r se era l mot io ns , man i !e st at ion s, ord er s an dresolutions the caseent up to the .C/ Alare"et al/Isposition:

(


4/4

#he AMLA, being a substantie penal statute, has noretroactie e

republic vs eugenio digest

Documents