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 Integration Santiago, Chile June 11-13, 2013

Office of the Ombudsman Section 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 Ombudsman Section 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 Laws RA 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 No (Anti-Money Laundering Act of 2001) Effective 17 October 2001 Republic Act No Effective 23 March 2003 Revised Implementing Rules and Regulations Effective 7 September 2003

Philippine Anti-Corruption/ Anti Money Laundering Laws R.A. No (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 ( The Terrorism Financing Prevention and Suppression Act of 2012“) Approved: 18 June 2012 R.A. No (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 LegislativeJurisprudential 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 Deposits On 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 Deposits On Local Currency Deposits... cont. In cases where the money deposited or invested is the subject matter of the litigation; or Upon 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 1379 Complaint: 369 Filed in Court: 39 Violation of RA 7080 (Plunder) Complaint: 77 Filed in Court: 17 Violation of AMLA, as amended Complaint: 6 Filed in Court: 3 Source: Central Records Div. Office of the Ombudsman

Epilogue With 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. Ramos Atty. John Zernan T. Sambajon Field Investigation Office (FIO) Office of the Ombudsman Republic of the Philippines