The Court of Appeals (CA) has ruled that several individuals and companies failed to sufficiently prove that funds flowing through their bank accounts originated from legitimate sources, prompting the appellate court to maintain an asset preservation order tied to an ongoing civil forfeiture case involving alleged drug proceeds.

In a decision penned by Associate Justice Ronaldo Roberto Martin, the CA’s Twelfth Division affirmed the orders issued by the Manila Regional Trial Court denying motions to lift the freeze on the bank accounts of Annie Mateo Ty, Jacky Mateo Ty, Crystalline Trading and CRS Foreign Exchange.

The appellate court said the petitioners were unable to present adequate evidence showing that the funds coursing through the accounts were derived from lawful activities. 

Passing through

Authorities identified the accounts as alleged “pass-through” accounts used to move proceeds from the manufacture and trafficking of illegal drugs.

The case arose from a civil forfeiture petition filed by the Anti-Money Laundering Council, which sought to preserve the assets while the government pursues its claim that the funds are linked to unlawful drug operations.

The CA also dismissed arguments that the government had failed to prosecute the case diligently. 

The court noted that the petitioners themselves waited nearly a decade before seeking to have the asset preservation order discharged.

With the appellate court’s ruling, the freeze on the disputed bank accounts will remain in force pending the resolution of the civil forfeiture proceedings.