MANILA, Philippines - The Anti-Money Laundering Council (AMLC) has allayed senators’ concerns on the last amendment to the money laundering law needed to be passed in two weeks for the Philippines to avoid getting blacklisted.
“We are keeping our fingers crossed that the bill will be passed before the FATF meeting,” AMLC executive director Vicente Aquino told The STAR in a text message over the weekend.
He was pertaining to the bill which will expand the money laundering law’s coverage to include more predicate crimes and entities, such as bribery and tax evasion. The measure is pending approval on third reading at the Senate, which promised to tackle it after its break on Oct. 8.
The Philippines needs the amendment approved by Oct. 15 to avoid being blacklisted by the Paris-based Financial Action Task Force (FATF), a regional anti-money laundering organization of which the country is a member.
Being blacklisted will make it more difficult and expensive for foreign money, notably remittances from overseas Filipinos, to enter the country. FATF will discuss Philippines’ progress during its meeting from Oct. 15 to 19.
However, senators have expressed reservations on certain elements of the bill such as the inclusion of tax evasion as a predicate crime which they fear may be used as a form of political oppression.
“Also on record of debates, there were concerns on the number of predicate crimes. The senators also have concerns about the feasibility of enforcement now that individuals like dealers of precious stones will be covered,” said the bill’s sponsor, Sen. Teofisto Guingona III, in a text message.
Aquino was quick to address these, pointing out the “additional predicate crimes are among those based on international standards.”
“These belong to the minimum category of predicate offenses under the FATF requirements,” he explained.
As to the issue on tax evasion, Aquino said the AMLC is an independent government agency.
“It will never allow itself or the (law) to be used as a tool for political persecution, harassment or oppression,” he stressed.
Despite these assurances, Guingona was noncommittal as to the exact date when the vital measure would be passed. “That week,” he said, pertaining to the week when senators will hold their caucus.
The Philippines already passed two amendments to Republic Act 9160 or the Anti-Money Laundering Act in response to the FATF downgrading the country to “dark grey list” last July.
RA Nos. 10167 and 10168 - which allowed AMLC to scrutinize bank accounts without consent and criminalized terrorist financing, respectively - are now in effect following the publication of their implementing rules and regulations.