Notable Legislations and Techniques for the Investigation and Prosecution of Corruption

and Money Laundering Cases: From the Perspective of the Philippines’

Office of the Ombudsman

A presentation for the APEC Workshop, re: Designing Best Models on Prosecuting Corruption and Money Laundering

Cases Using Financial Flow Tracking Techniques and Investigative Intelligence for Effective Conviction and Asset

Recovery to Promote Regional Economic IntegrationSantiago, Chile

June 11-13, 2013

Office of the OmbudsmanSection 5, Article XI, 1987 Philippine Constitution

Creating an independent Office of the Ombudsman

Section 12, Article XI, 1987 Philippine Constitution

To act promptly on all complaints filed in any form or manner against public officials and employees

Republic Act 6770

The Ombudsman Act of 1989

Rationale for the Mandate of the Office of the OmbudsmanSection 1, Article XI of the 1987 Philippine

Constitution

“Public Office is a public trust. Public officers and employees must at all times be

accountable to the people, serve them with utmost responsibility, integrity, loyalty, and

efficiency, act with patriotism and justice and lead modest lives”

Philippine Anti-Corruption/ Anti Money Laundering Laws

Revised Penal Code (Crimes Committed by

Public Officers)

•Direct , Indirect and Qualified Bribery

•Malversation of Public Funds or Property and Technical Malversation

•Frauds and Illegal Exactions and Transactions

Republic Act (RA) 3019

(Anti-Graft and Corrupt

Practices Act)

• Sec 3(e)- Causing undue injury to any party, including the Government

• Sec 3(g)- Entering into a contract grossly or manifestly disadvantageous to the Government

• Sec 7 – Public disclosure and annual assets, liabilities and networth

Philippine Anti-Corruption/ Anti Money Laundering LawsRA 6713 (Code of Conduct and

Ethical Standards for

Public Officials and

Employees)

• Required the annual filing of the Sworn Statement of Assets, Liabilities and Networth of all public officials and employees

RA 7080 (Anti Plunder Act)

• Amassing ill-gotten wealth in an aggregate amount of Php50 Million through series of criminal acts

• Life imprisonment with perpetual disqualification to hold public office

Philippine Anti-Corruption/ Anti Money Laundering Laws

RA 1379 (Forfeiture

of Unlawfully Acquired Property)

Section 2:Whenever any public officer or

employee has acquired during his incumbency an amount of property which is manifestly out of proportion to his salary as such public officer or employee and to his lawful income and the income from legitimately acquired property, said property shall be presumed prima facie to have been unlawfully acquired

Philippine Anti-Corruption/ Anti Money Laundering Laws

Republic Act Republic Act No. 9160 No. 9160 (Anti-Money (Anti-Money Laundering Laundering Act of 2001)Act of 2001)•Effective 17

October 2001

Republic Act No. 9194• Effective 23

March 2003

Revised Implementing Rules and Regulations• Effective

7 September 2003

Philippine Anti-Corruption/ Anti Money Laundering Laws

R.A. No. 10167 (Act to Further Strengthen the AMLA, amending Sections 10 and 11 of R.A. 9160)

• -took effect on July 6, 2012

Revised IRRs September 15, 2012

RA 10168 (The

Terrorism Financing Prevention

and Suppression Act of 2012“)

Approved: 18 June 2012

R.A. No. 10365 (Act to Further Strengthening the Anti-Money Laundering Law, Amending for the Purpose R.A. No. 9160) •Signed into law on February 15, 2013

Fact-finding Investigation

Sec. 15 (1), RA 6770• Investigate and prosecute

on its own or on complaint by any person, any act or omission or any public officer or employee, office or agency, when such act or omission appears to be illegal, improper or inefficient

Section 15(5), RA 6770• Request any government

agency for assistance and information necessary in the discharge of its responsibilities, and examine, if necessary, pertinent records and documents

Best Practices (LSC cases)

Subpoena Duces Tecum and/or

Subpoena Ad

Testificandum

Covert Operations

Use of information Technology

Collaboration with other

agencies (i.e. COA,

AMLC, etc.)

Best Practices… cont.

File complaints for violation of criminal and

administrative laws

Concurrent filing of

complaint for forfeiture of ill-gotten wealth

Legal Challenges

Legislative

Jurisprudential

Confidentiality of local and foreign currency deposits (RA 1405 and RA6426)

Affirms the confidentiality of bank deposits including trust accounts except in certain cases

Exemptions on Confidentiality of Bank DepositsOn Local Currency Deposits

Upon written permission of the depositor;

In cases of impeachment;

Upon order of a competent court in cases of bribery or dereliction of duty of public officials;

Exemptions on Confidentiality of Bank DepositsOn Local Currency Deposits... cont.

In cases where the money deposited or invested is the subject matter of the litigation; orUpon order of any competent court in cases of violation of the AMLA, it having been established that there is probable cause that the deposits or investments are related to unlawful activities as defined in the law, or a money laundering offense

Exemptions on Confidentiality of Bank Deposits

On Foreign Currency Deposit

upon the written permission of the depositor

Statistics of Corruption and Money Laundering Cases Handled (as of May 2013)

Violation of RA 1379Complaint: 369 Filed in Court: 39

Violation of RA 7080 (Plunder)Complaint: 77 Filed in Court: 17

Violation of AMLA, as amendedComplaint: 6 Filed in Court: 3

Source: Central Records Div. Office of the Ombudsman

EpilogueWith the rapid advance in technology,

easier and faster international and local travel, corruption and money

laundering cases are difficult to investigate and prosecute. However,

authorities in the Philippines are continuously innovating and adopting best approaches to curb these kinds

of menaces in the society.

Thank You!

Atty. Ronald Allan D. RamosAtty. John Zernan T. SambajonField Investigation Office (FIO)

Office of the OmbudsmanRepublic of the Philippines