AMLC power to probe bank accts gets boost

The Anti-Money Laundering Council (AMLC) said the ruling of the Department of Justice (DOJ) prohibiting it from deputizing other government agencies has strengthened its position as the only agency allowed to look into bank accounts.

The AMLC said yesterday that the DOJ opinion delineated the powers between AMLC and other government agencies although officials said there were also benefits from allowing other agencies to examine accounts under investigation.

AMLC executive director Vicente Aquino declined to say what incident prompted the inquiry before the DOJ but said there were instances where deputizing other government agencies would have facilitated on-going investigations.

The legal opinion was penned by Justice Secretary Raul Gonzalez who said all bank deposits are considered confidential and only the AMLC had the authority to examine these accounts.

AMLC sought DOJ’s confirmation on whether or not the act of deputizing another government agency to inquire into bank accounts was within the authority of the AMLC.

According to the DOJ, however, enlisting the assistance of other branches of the government did not mean the AMLC could deputize them and allow them access to bank deposits which was considered "absolutely confidential" under RA1405 covering local currency deposits and RA 6426 which covered foreign currency deposits.

"We’re actually happy about this ruling because it cleared up the authority of the AMLC," Aquino said. "Of course there are also benefits to allowing other government agencies to look into certain bank accounts. Imagine if the ombudsman has such powers, they will be more effective."

However, Aquino was quick to admit that the country was not ready for such free access to deposit accounts. "It’s easy to see how such a power could be abused," he said.

After being removed from the FATF blacklist, the Philippines has been removed from the monitoring list of the task force since February this year. However, the task force has revised and expanded its original recommendations which has been adapted by the Asia Pacific Group where the Philippines is a member.

The AMLC said that the regulatory net of the Anti Money Laundering Act (AMLA) should be expanded to include non-profit organizations that routinely receive donations, often from unquestioned sources.