Republic v. Bloomberry Resorts and Hotels, Inc.

G.R. No. 224112 September 02, 2020

Facts:

This case involves a petition filed by the Republic of the Philippines, represented by the Anti-
Money Laundering Council (AMLC), against Bloomberry Resorts and Hotels, Inc. (BRHI) and
Banco de Oro (BDO). The case originated from the hacking of the account of Bangladesh Bank
with the Federal Reserve Bank of New York, where US$81,000,000.00 was transferred to the
Philippine Banking System. The AMLC conducted investigations and found that the funds were
transferred to the Banco de Oro account of BRHI. The AMLC issued a freeze order on BRHI's
account, but the Court of Appeals (CA) later granted BRHI's motion to lift the freeze order.

Issue:

The main issue in this case is whether the funds in BRHI's Banco de Oro account are related to an
unlawful activity, specifically the hacking of Bangladesh Bank's account.

Ruling:

The CA ruled in favor of BRHI and lifted the freeze order on its account.

Ratio:

The CA based its ruling on the lack of evidence presented by the AMLC to establish a clear link
between the funds in BRHI's account and the hacking of Bangladesh Bank's account. The court
found that the AMLC failed to provide a clear link connecting the funds to the stolen funds from
Bangladesh Bank. The court also considered BRHI's explanation that the funds in its account were
used for its regular casino operations and were not tainted with irregularity or illegality.

Summary:

The Court of Appeals ruled in favor of BRHI and lifted the freeze order on its account. The court
found that the AMLC failed to establish a clear link between the funds in BRHI's account and the
hacking of Bangladesh Bank's account. The court also considered BRHI's explanation that the
funds in its account were used for its regular casino operations and were not tainted with
irregularity or illegality.