These OFWs are apprehensive their foreign exchange remittances to their families would be delayed or cost a lot more to process should the Philippines fail to conform with standards set by the Financial Action Task Force (FATF), the Paris-based watchdog against money laundering.
The FATF has warned that sanctions would be imposed on the Philippines, either through stricter scrutiny of all inbound transactions or through the refusal of foreign banks to transmit money to local institutions, should the country fail to strengthen the Anti-Money Laundering law by today.
Countries that subscribe to FATF standards include the US, UK, Canada, Hongkong, Singapore, Japan, and Italy, where most of the OFWs are located. Engr. Nelson Ramirez of the United Filipino Seafarers has expressed worry that it would be the families of OFWs who will be penalized should Congress fail to enact the AMLA amendments.
Mildred Yamzon of the Women in Development Foundation for instance noted that delays in remittances could force OFW families to borrow money at usurious rates just to meet their daily expenses.
And they are not mincing words in warning the legislators concerned that because of their failure to pass the amendments to the AMLA before the Feb. 12 deadline set by the FATF. The OFWS also cautioned the legislators against watering down the provisions of the AMLA amendment bills, which are necessary to convince the international banking community of the country’s resolve to crack the whip on launderers.
At least 11 senators who voted in favor of the P2-million threshold for suspicious transactions, which is way above the P500,000 recommended to meet the international standards against money laundering, were warned that they could lose the much-needed votes of the OFWs and their families in the next elections, according to Noel Josue, executive director of the Kaibigan ng OFWs.
A day before the deadline imposed by the FATF, President Arroyo signed into law Republic Act no. 9160 also known as the Anti-Money Laundering Act on Sept. 29, 2001 to serve as the centerpiece legislation to combat money-laundering in the Philippines. The AMLA aimed at criminalizing money laundering as well terrorism and terrorist financing, relaxing bank secrecy provisions, among others.
As early as June of last year, the Anti-Money Laundering Council (AMLC) created under RA 9160 together with Securities and Exchange Commission (SEC) chair Lilia Bautista represented the Philippines in its campaign to delist the Philippines from the FATF blacklist. It was during the FATF plenary meeting in Paris that the need to amend the AMLA were raised for the Philippines to be able to proceed with implementing its program against money laundering.
The AMLC has been pushing for Congress to amend the Bank Secrecy Law and the AMLA to give the Bangko Sentral ng Pilipinas the power to pry into bank accounts suspected of being used for illicit activities after some P203 million in tax payments were diverted and deposited in fictitious bank accounts.
The request is tantamount to asking for an exemption from the coverage of the Deposit Secrecy Act . As such, Congress will have to amend the latter as well as the AMLA for the Philippines to be finally removed from the FATF international blacklist of money-laundering havens.
The country can no longer afford another stain in its already tarnished image in the international community.
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