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Eduardo Tan, Chief Financial Officer of the Bright Horizons Foundation, authorizes a PHP 4,500,000 disbursement to "TerraNova Medical Supplies" for disaster-relief procurement. Investigations later reveal that TerraNova Medical Supplies is controlled by a designated terrorist organization. At the time of the transfer, Eduardo was aware of credible reports that TerraNova had recently undergone ownership changes and that its parent group had ties to the terrorist organization, but he did not verify these reports or disclose them to the board. He proceeded with the payment believing TerraNova to be a legitimate supplier and that the funds would be used for relief operations. (a) Is Eduardo liable under Republic Act No. 10168? Identify the elements and the required mental state. (b) Would a good faith belief that the recipient is legitimate exonerate him? Explain. (c) If Eduardo knew there were red flags suggesting ties to terrorism but did not know for certain, would liability attach? Explain.

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Clara

Hello