A ranking official of the Anti-Money Laundering Council has clarified that the freeze order against the bank deposits of the Communist Party of the Philippines (CPP) was actually intended for related accounts (RA), which were “opened and maintained” for the communist group.
“There are no accounts under the name of CPP/ NPA, but the FO (freeze order) covers the related accounts (RA) of said organization. RA means all accounts opened and maintained for the benefit of said organization,the identification of which the banks and other covered persons will play a very important role,” AMLC Executive Director Mel Racela.
At the same time, Racela justified the issuance of the freeze order, saying it was issued pursuant to Sec 25 of the Anti Terrorism Act of 2020 in relation to the Terrorism Financing Prevention and Suppresion Act (RA 10168).
This was after after the Anti-Terrorism Council designated the CPP/ NPA as a terror organization recently.
“These statutory provisions are intended to preemptively deprive designated terror organizations of resources to prevent possible terror attacks,” Racela said.
The ATC said in a resolution dated December 9 but only published on its website on December 21: “The ATC (Anti-Terrorism Council)…finds probable cause that the CPP/NPA committed or conspired to commit the acts defined and penalized under Section 4 of the Anti-Terror Act and hereby designates the CPP/NPA as terrorist organizations, associations or groups of persons. ”
Sections 35 and 36 of Republic Act No. 11479, or the Anti-Terrorism Act of 2020, authorized the AMLC to scrutinize the finances of organizations or groups of individuals that the ATC had labeled as terrorists.
Under the law, the AMLC could issue a 20-day freeze order on the assets of these groups and extend this to another six months upon the approval of the Court of Appeals.
The AMLC may also exercise its authority to examine the accounts related to the CPP-NPA under Republic Act No. 10168, also known as the Terrorism Financing Prevention and Suppression Act of 2012.
