REPUBLIC v. CABRINI, GREEN & ROSS, INC. (2006)

REPUBLIC v. CABRINI, GREEN & ROSS, INC. moot.
moot. It also reiterated its earlier prayer for the remand of G.R. Nos. 154522, 155554 and 155711 to
G.R. NO. 154522, 154694, 155554, 155711 MAY 5, 2006 the CA.
DOCTRINE: As the law now stands, it is solely the CA which has the authority to issue a freeze order ISSUE: Whether CA has the jurisdiction to extend the freeze orders. – YES.
as well as to extend its effectivity. It also has the exclusive jurisdiction to extend existing freeze
orders previously issued by the AMLC vis-à-vis accounts and deposits related to money- laundering RULING:
activities. The amendment by RA 9194 of RA 9160 erased any doubt on the jurisdiction of the CA over the
extension of freeze orders. As the law now stands, it is solely the CA which has the authority to issue
FACTS: a freeze order as well as to extend its effectivity. It also has the exclusive jurisdiction to extend
In the exercise of its power under Section 10 of RA 9160, the Anti-Money Laundering Council existing freeze orders previously issued by the AMLC vis-à-vis accounts and deposits related to
(AMLC) issued freeze orders against various bank accounts of respondents. The frozen bank accounts money- laundering activities.
were previously found prima facie to be related to the unlawful activities of respondents. Under RA
9160, a freeze order issued by the AMLC is effective for a period not exceeding 15 days unless WHEREFORE, G.R. No. 154694 is hereby DISMISSED for being moot while G.R. Nos. 154522,
extended “upon order of the court.” Accordingly, before the lapse of the period of effectivity of its 155554 and 155711 are REMANDED to the Court of Appeals for appropriate action. Pending
freeze orders, the AMLC filed with the CA various petitions for extension of effectivity of its freeze resolution by the Court of Appeals of these cases, the April 21, 2003 temporary restraining order is
orders. hereby MAINTAINED.
The AMLC invoked the jurisdiction of the CA in the belief that the power given to the CA to
issue a TRO or writ of injunction against any freeze order issued by the AMLC carried with it the
power to extend the effectivity of a freeze order. In other words, the AMLC interpreted the phrase
“upon order of the court” to refer to the CA. However, CA disagreed with the AMLC and dismissed
the petitions. It uniformly ruled that it was not vested by RA 9160 with the power to extend a freeze
order issued by the AMLC.
During the pendency of these petitions, or on March 3, 2003, Congress enacted RA 9194 (An Act
Amending Republic Act No. 9160, Otherwise Known as the “Anti Money Laundering Act of 2001”). It
amended Section 10 of RA 9160 as follows:
SEC. 7. Section 10 of [RA 9160] is hereby amended to read as follows:
SEC. 10. Freezing of Monetary Instrument or Property.–The Court of Appeals,
upon application ex parte by the AMLC and after determination that
probable cause exists that any monetary instrument or property is in any way
related to an unlawful activity as defined in Sec. 3(i) hereof, may issue a
freeze order which shall be effective immediately. The freeze order shall be
for a period of twenty (20) days unless extended by the court.
Section 12 of RA 9194 further provides:

SEC. 12. Transitory Provision.–Existing freeze orders issued by the AMLC shall
remain in force for a period of thirty (30) days after the effectivity of this Act,
unless extended by the Court of Appeals.
On April 3, 2003, the OSG filed a “Very Urgent Motion to Remand Cases to the Honorable Court
of Appeals (with Prayer for Issuance of Temporary Restraining Order and/or Writ of Preliminary
Injunction).” The OSG prayed for the remand of these cases to the CA pursuant to RA 9194. It also
asked for the issuance of a TRO on the ground that the freeze orders would be automatically lifted on
April 22, 2003 by operation of law and the money or deposits in the concerned bank accounts may be
taken out of the reach of law enforcement authorities. The OSG further manifested that pending in
the CA were 29 other cases involving the same issue. It requested that these cases be included in the
coverage of the TRO prayed for.
On April 21, 2003, the Court issued a TRO in these cases and in all other similar cases pending
before all courts in the Philippines. Respondents, the concerned banks, and all persons acting in their
behalf were directed to give full force and effect to existing freeze orders until further orders from
this Court. On May 5, 2003, the OSG informed the Court that on April 22, 2003 the CA issued a
resolution in CA-G.R. SP No. 69371 (the subject of G.R. No. 154694) granting the petition for
extension of freeze orders. Hence, the OSG prayed for the dismissal of G.R. No. 154694 for being

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REPUBLIC v. CABRINI, GREEN & ROSS, INC. moot.

Section 12 of RA 9194 further provides:

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