SC bars AMLC from examining bank accounts of personalities in Piatco mess

MANILA, Philippines – The Supreme Court has barred the government from examining the bank accounts of former government officials and private individuals involved in the construction of the Ninoy Aquino International Airport Terminal III (NAIA-3) without prior consultation to the owners of the accounts. In a five-page resolution, the SC’s Special Second Division dismissed the Anti-Money Laundering Council’s motion for reconsideration on the high court’s previous ruling that bank inquiry orders cannot be issued unless the owners of the accounts are duly notified and given a chance to contest the issuance. In its February 14, 2008 ruling, the SC said that issuing bank orders without notifying the parties involved is violative of the Anti-Money Laundering Act (AMLA). The SC likewise ruled that the Manila and regional trial court did not commit a grave abuse of discretion in deferring an order that grants the AMLC the authority to examine a web of bank accounts allegedly used to facilitate corruption in the NAIA-3 project. The AMLC is represented by the Office of the Solicitor General (OSG). NAIA-3 Project mess The said accounts included that of former Transportation and Communications Secretary Pantaleon Alvarez and the accounts of Cheng Yong, president of NAIA-3 contractor, Philippine International Air Terminal Corp. (Piatco). The AMLC likewise sought to investigate the accounts of Piatco consultant Alfredo Liongson and Lilia Cheng, wife of Yong, who sought to enjoin the Manila and Makati regional trial courts from allowing the AMLC to implement their bank inquiry orders. Mrs. Cheng jointly owns a conjugal bank account at Citibank that is covered by the Makati RTC inquiry order, and two conjugal bank accounts with Metrobank that are covered by the Manila RTC bank inquiry order. The AMLC had sought to inquire into their accounts based on the findings that amounts were transferred from a Hong Kong bank account owned by Jetstream Pacific Ltd. to bank accounts in the Philippines maintained by Liongson and Yong. The AMLC had earlier filed before the Makati RTC an application to inquire into the accounts of the accused without notifying them, but the Makati RTC deferred the implementation of its 2006 order granting the AMLC an ex-parte inquiry into the accounts. In its latest ruling, the SC dismissed the AMLC’s contention that the bank inquiry order is similar to a search warrant, which can be issued ex-parte or without notice to the other party. The tribunal said that the AMLC failed to challenge the SC’s acknowledgement that the secrecy of the bank deposits is covered by Republic Act 1405 or the Bank Secrecy Act. The SC said RA 1405 established a statutory right to privacy with respect to the confidentiality of bank deposits in the country. Motion for Reconsideration Last March, the OSG asked the SC to reverse its February 14, 2008 decision, arguing that the tribunal’s ruling might not sit well with other countries. Solicitor General Agnes Devanadera said that the requirement of “notice and hearing” in an application for an order of inquiry will deny the AMLC the right to exercise its authority to inquire into or examine bank deposits or investments that are related to an unlawful activity. Devanadera said the SC’s decision could undermine the AMLC’s mandate to go after perpetrators of money laundering operations in the country. If the decision would not be reversed, Devanadera said the country would face serious repercussions in its financial transactions with other countries as it runs counter the standards set by the Financial Action Task Force (FATF), which include the ability to identify and trace the properties subject of the money laundering inquiry with expediency. - GMANews.TV