FATF may blacklist Phl anew if...

MANILA, Philippines - The Financial Action Task Force (FATF) might put the Philippines back in the blacklist if Congress fails to approve amendments to the Anti-Money Laundering Act (AMLA) by next week.

Sen. Teofisto Guingona III cited a letter written by Gordon Hook, executive director of the Asia Pacific Group on Money Laundering, regarding the urgency of the passage of Senate Bill 3123, the second of two bills amending the AMLA.

Guingona said the bill should be approved by next week when the FATF holds plenary session in Paris, France where a review of the Philippines’ compliance with its requirements on anti-money laundering would most likely be conducted.

The letter, dated Sept. 26 and addressed to the chairman of the Anti-Money Laundering Council (AMLC) and Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr., noted that if the Philippines has not taken sufficient action to implement the remaining components of its action plan, specifically the last AMLA amendment bill, the FATF would most likely move the Philippines to its blacklist.

In an earlier letter sent by the president of the FATF Bjorn Aamo to Tetangco last July 12, he reminded the Philippine government to work on addressing its deficiencies in anti-money laundering and combating the financing of terrorism, including the expansion of the coverage of reporting entities.

“The FATF will discuss any progress made by the Philippines at the next FATF meetings on 15-19 October 2012 in Paris. The FATF therefore encourages your jurisdiction to continue implementing anti-money laundering/combatting terrorist financing reforms that meet international standards and to fully implement its action plan including the remaining amendment to the AML Act,” Aamo said.

Guingona believes that the FATF would look upon the Philippines positively if Congress passes the bill next week.

“I think that would be enough signal to the FATF for substantial compliance,” Guingona said.

The Senate is making all efforts to speed up deliberations on the bill, including a briefing given by the AMLC to senators about the measure so that their concerns could be addressed.

Tetangco, the Securities and Exchange Commission chair, and the Insurance Commission head, along with other key officials such as Internal Revenue Commissioner Kim Henares, attended yesterday’s meeting with the senators.

Apart from Guingona, the senators present were Senate President Juan Ponce Enrile, Majority Leader Vicente Sotto III, Sergio Osmeña III, Panfilo Lacson and Franklin Drilon.

Guingona said one of the sticky points of the bill – inclusion of tax evasion as a predicate crime in the AMLA – was addressed during the meeting.

Sotto said that he was the one who suggested that tax evasion should only be included if it is related to other predicate crimes under the law.

He said that this arose from the concerns of the other senators about the provision on tax evasion possibly being used as a tool for harassment.