AsPac anti-money launder body sets visit to RP

With key legal questions still unresolved by the Supreme Court, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco said authorities are busy preparing for the on-site evaluation by the Asia-Pacific Group on Anti-Money Laundering this October.

Tetangco said the Anti-Money Laundering Council, co-chaired by the BSP and the Securities and Exchange Commission (SEC), has been conducting meetings and consultations with relevant government agencies and financial institutions.

“We want to ensure that the (APG) assessment team is provided with all the information necessary prior to the team’s forthcoming on-site mission,” Tetangco said.

According to Tetangco, AMLC has also submitted its proposed amendments to the Congressional Oversight Committee on Anti Money Laundering for its consideration.

Tetangco said the House of Representatives, under the Committee on banks and financial intermediaries chaired by Rep. Jaime C. Lopez, conducted recently a public hearing on two house bills for the amendment of specific provisions of the Anti Money Laundering Act.

The proposed amendments are contained in House Bills 3053 and HB 4784, Tetangco said.

Legislators have expressed concern earlier that the Philippines might be black-listed for legal short-comings that hamper full compliance with the international anti-money laundering standards.

Chief among the concerns are questions on the Human Securities Act as well as the pending case before the Supreme Court that essentially suspended all bank inquiries into suspicious transactions. 

The Financial Action Task Force on Anti-Money Laundering wants the Philippines to legislate a separate law on financing terrorist activities but government officials said existing laws already address this concern.

There was also concern that the decision of the Supreme Court to require prior hearing before the officials could conduct bank inquiries would erode the effectiveness of the Anti Money Laundering Council (AMLC).

In a testimony before the joint oversight committee of the Senate and the House of Representatives, the AMLC said the Human Securities Act already criminalized financing of terrorist activities.