US receives copy of RP launder law

The United States government cited yesterday the Philippines for enacting an anti-money laundering law which it described as an "important step" to respond to international concerns about the prevalence of money laundering in the country.

"We welcome the passage of anti-money laundering legislation by the Philippines," the US Treasury Department said in a letter to President Arroyo.

"We look forward to the Financial Action Task Force (FATF)’s expeditious assessment of this law," the letter said.

Presidential Spokesman Rigoberto Tiglao said the government has yet to receive official communications from the multilateral FATF based in Paris regarding the enactment of the new law, Republic Act 9160.

President Arroyo signed RA 9160 into law over the weekend, beating by a photo-finish a deadline set by the FATF for the country to come up with its own anti-money laundering law or face international sanctions, specifically from the so-called Group of Eight led by the US.

Tiglao said a copy of RA 9160 was transmitted to the FATF headquarters in Paris and Hong Kong shortly after it was enacted.

"We are still awaiting official response from the FATF," Tiglao told reporters at Malacañang.

Tiglao expressed confidence that the new law would meet the standards set by the FATF.

Critics have noted that RA 9160 appeared to be toothless in curbing money laundering in the country.

Tiglao expressed belief that the FATF’s silence on the enactment of the anti-money laundering law could be an indication that the Paris-based body was satisfied with it.

"The Department of Finance and the Bangko Sentral feel that this is a good law. This is the first time that a particular suspected bank deposit can be frozen almost immediately," Tiglao said.

The FATF would have imposed sanctions on the Philippines if Congress failed to pass the measure by the Sept. 30 deadline. — Marichu Villanueva