'It's up to Congress to amend launder law'

MANILA, Philippines – Malacañang said yesterday it would be up to Congress to amend the Anti-Money Laundering Law and give it more teeth in curbing various crimes in the country, including the illegal numbers game jueteng.

“But again, that is within the province of the legislative branch. We in the executive cannot do anything about it. This is again an investigation in aid of legislation. So, it will be up to the Senate Blue Ribbon committee to propose legislation if they find the present law defective,” presidential spokesman Edwin Lacierda said in a press briefing.

The Anti-Money Laundering Council (AMLC) has admitted that it was helpless in going after big-time illegal gambling operators since no criminal cases have been filed.

AMLC secretariat officer Richard David Funk II said efforts to go after the bank accounts of suspected jueteng and masiao operators were difficult as law enforcement agencies failed to file criminal cases against them.

Funk said the government missed a chance to prosecute suspected jueteng operators on money laundering charges five years ago after it failed to file a single criminal case against the suspects.

He said his office had built up cases for suspected jueteng lords who were implicated in a House of Representatives investigation in 2005.

He said money laundering cases were set to be filed but were stalled after government failed to file a single case against the suspects.

“The AMLC is mandated to investigate the money laundering aspect of a predicate crime. We did the case buildup but we had to wait for the precise time and moment for the existence of probable cause. None were forthcoming because no cases were filed except against the two individuals,” he said, referring to former Pampanga congressman Juan Miguel Arroyo and Negros Occidental Rep. Ignacio Arroyo, both accused of receiving jueteng payola.

Funk proposed several amendments to the existing Anti-Money Laundering Act to help the government investigate money-laundering activities.

These include allowing the AMLC to investigate bank deposits of suspected jueteng lords without informing the account owner as well as allowing lawyers to report suspicious transactions of their clients.

He said aside from lawyers, dealers of artworks would also be allowed to report suspicious transactions to the AMLC.

Funk said a Supreme Court ruling required the organization to first secure a court order and inform the account owner before having access to an account.

“This could stop the investigation since the account owner could just file a case to stop it,” he said.

Although Senate President Juan Ponce Enrile argued that the AMLC has the power to file a case and prove the existence of probable cause without police help, Funk said their hands were tied by the SC ruling.

He said money laundering is not a separate crime by itself but a derivative offense stemming from an illegal activity such as illegal gambling.

For money laundering to occur, he said there must first be a predicate crime that would lead to illegal proceeds, which in turn is laundered.

Funk said the filing of criminal charges against the suspects was important since it would prove the existence of the predicate crime, which led to money laundering activities.

He added that the AMLC could freeze assets of suspected jueteng lords once money-laundering charges were filed against them.

Funk made the revelation during the second hearing of the Senate on the proliferation of jueteng.

PCSO eyes guidelines for STL

Meanwhile, the Philippine Charity Sweepstakes Office (PCSO) said it will come out with a new set of guidelines next week on the operation of small-town lottery (STL) to address allegations that the game was being used as front for jueteng operations.

PCSO chair Margarita Juico said the new guidelines were the result of the agency’s dialogues with different representatives from the police and other stakeholders.

One of the things to be included in the new set of guidelines will be the security measures on the distribution of prizes.

She said these guidelines will include the sharing of income between the local operators and the national government.

Juico also hinted at bringing the level of operations from the provinces to the cities or districts because it would be easier to monitor such operation if it covers a smaller area.

She expressed hope that the new guidelines will address the problem of under-remittance of income and make STL a viable alternative to jueteng, which was supposed to be the objective when it was introduced in 2006.

Juico also belied reports that PCSO executive Romulo Quinones has been relieved of his post following allegations that he has been receiving payoffs from STL franchise owners who were suspected of operating jueteng.

She said Quinones, who heads the PCSO’s Special Projects Department, remains in his post although the oversight function on STL operations has been transferred to another office, the Online Lottery Section, to remove doubts pending investigation on the allegations against Quinones.

She said she has talked with the National Bureau of Investigation to look into the allegations of payoffs involving PCSO officials and would only take appropriate action after the investigation. – With Reinir Padua