EDITORIAL - Money laundering haven

As if we didn’t have enough pro-blems with security and the economy, another piece of bad news has surely dampened investor confidence in this country. Last year the Philippines was included in a list of countries that serve as havens for money laundering and tax evasion. Some of those on the list protested, noting that Switzerland was left out by the 30-nation task force that drew up the list. Others moved to get out of the list as quickly as possible by implementing reforms.

The Philippines’ efforts to be taken out of the list suffered from the scandal that erupted over allegations of corruption and money laundering involving the president of the Republic himself, Joseph Estrada. Congress, which should have passed legislation to fight money laundering, became engrossed instead in Estrada’s impeachment.

Estrada was ousted, but continuing political turmoil and midterm elections have derailed the implementation of reforms. The usual delays have slowed down efforts to prosecute Estrada on corruption charges. Last week the financial task force reported that the Bahamas, Cayman Islands, Liech-tenstein and Panama had been taken off the list. Three countries were given a Sept. 30 deadline to shape up or face sanctions: Russia, Nauru and the Philippines. Others still on the list are the Cook Islands, Dominica, Israel, Lebanon, the Marshall Islands, Niue, St. Kitts and Nevis, and St. Vincent and the Grenadines. Egypt, Guatemala, Hungary, Indonesia, Myanmar and Nigeria have been added to the list.

If the deadline is not met, possible sanctions include a warning from the United States to international companies against doing business in the Philippines. Foreign banks may also be required to get more extensive information about Philippine companies or individuals.

With investments and tourism already reeling from political instability and kidnappings, the government can’t afford to ignore this latest blot in our international standing. Malacañang and the incoming Congress must give priority to measures that would discourage money laundering. We can complain of bias in the report of the financial task force. Or we can act more decisively and move to get the Philippines off that list.