The two made this statement during a hearing by the Senate committee on banks headed by Sen. Ramon Magsaysay where they were informed that it is virtually impossible for Congress to meet the deadline imposed by the FATF, composed of representatives of the 31 member-countries of the Organization for Economic Development and Cooperation.
"If we will show good faith or progress, like the filing of the bill, we might be able to convince the FATF to move the deadline," Camacho told the Senate panel.
Buenaventura said that the FATF gave a Sept. 30 deadline because money laundering is not a new issue.
"It was included in the agenda of the special session together with the power bill but Congress did not act on the money laundering bill," Buenaventura recalled.
He said that FATF issued the deadline out of frustration because of the cavalier way some countries had been reacting to their call for the enactment of a law against money laundering.
The FATF has estimated some $600 billion as the amount of proceeds from crime that was concealed or disguised, given a legitimate appearance, and has avoided confiscation.
Camacho and Buenaventura spoke of dire consequences to the Philippine economy should the FATF impose sanctions on the Philippines for not enacting a law against money laundering.
"If remittance will come from a non-cooperative country, every transaction will be scrutinized. Banks may decide to drop an account, even a big one because it would be too expensive to handle, and this might make us uncompetitive," Buenaventura said.
The committee is hearing three separate bills filed by Senators Manuel Villar, Francis Pangilinan and Magsaysay. Buenaventura said they would submit to the Senate its proposed bill prepared by an inter-agency committee.
Sen. Joker Arroyo said that the Senate could not act hastily because aside from the FATF ad the banking industry, Congress is also under pressure from consumers and the Chinese community.
"To be candid about it, the Chinese community is against it," Arroyo said.
The inter-agency bill, according to Buenaventura, has a provision that could meet the fears of the Chinese community that the law against money laundering would make them more vulnerable to kidnapping.
He said that they have proposed to allow the opening of numbered accounts like in Switzerland, but with the requirement that there should be a separate file for such accounts to show that there is an identified individual behind each account.
"The verification on the existence of a definite depositor behind each account could be made without determining the balance of the account. This should ease the fears of the Chinese that the law would make them more vulnerable to kidnappings," Buenaventura explained.
He also said that the proposed law has a reporting scheme where banks are required to make an inquiry if an individual suddenly makes a very big deposit out of the ordinary, or a jump from mere P50,000 to P500,000 or P1 million per transaction.
"The banks may inquire about the suddenly big deposit and if they are not satisfied, they would make a report," Buenaventura said.