FATF wants RP to amend Anti-Money Laundering Law

MANILA, Philippines - The powerful Financial Action Task Force (FATF) wants the Philippines to implement amendments to the anti-money laundering law.

The FATF is an international body leading the fight against global money laundering. Its sanctions will make all financial transactions with Philippine banks a tedious process for individuals and corporations.

In a forum, Sen. Sergio R. Osmeña III said that he had filed a bill outlining the proposed amendments.

Osmeña said the FATF was not questioning the spirit of the law but rather loopholes in the implementation of the law.

“It is full of loopholes,” Osmena said in a forum held by the Chamber of Thrift Banks (CTB), the trade organization of the country’s thrift banking system.

As an example, Osmeña said that the existing law allows for the freezing of bank assets of suspected money launders for 20 days. However, it does not specifically state what will happen or can be done by the regulator after the freeze period lapses.

Osmeña said that a copy of the bill had been handed over to the Bangko Sentral ng Pilipinas (BSP) and the Anti Money Laundering Council (AMLAC).

In turn, a team is meeting with the FATF to present the bill and other measures being undertaken by the Philippines to combat money laundering.

BSP Deputy Governor Nestor Espenilla said the team meeting with the FATF is negotiating not only for the Philippines but also for other countries.

“We had a hand in getting the amendments and recommendations placed into the bill sponsored by Sen. Osmeña,” Espenilla added.

Meanwhile, Osmeña said that they were not given a timetable to make the amendments. “But I think they will not want it to take a year or two,” he added.

Getting sanctions from the FATF is nothing new to the Philippines. When the country was included in the blacklist of the international watchdog, international money transfers for business as well as remittances from overseas Filipinos became problematic, as foreign banks would impose strict measures on transactions from Philippine banks, causing delays and complications.