EDITORIAL - Seal of approval

The administration is rejoicing, with good reason, over the decision ofthe Financial Action Task Force to strike the Philippines off a list ofmoney-laundering havens. The country was among the last to be taken out ofthe FATF blacklist that originally contained 20 suspected havens of dirtymoney. Still, better late than never. The list is down to three – Myanmar, Nauru and Nigeria.

When officials are done patting each other on the back, they should focuson the equally difficult part: sustaining the reforms that persuaded the Paris-based FATF to take the Philippines out of the blacklist. For manyyears there has been an international effort to stop the flow of dirty moneythat abets corruption and funds organized crime including drug trafficking. The terrorist attacks on Sept. 11, 2001 in the United States and subsequent major attacks in Bali, Indonesia and in Spain increased the urgency of stopping terrorist financing.

The Philippines was considered among the hot spots particularly because international terrorists have been known to operate here. A brother-in-law of Osama bin Laden is believed to have used an Islamic charity in Mindanao to help finance the operations of the Abu Sayyaf and foreign Islamist militants, including those responsible for the bombing of the World Trade Center in New York a decade ago. The Philippines is also seen as a major regional transshipment point for drug trafficking. For a long time, corrupt public officials also found a safe haven for their dirty money in thePhilippine banking system.

Efforts to stop those activities have been boosted by the passage of legislation and new banking regulations that aim to stop the flow of dirtymoney. With the cooperation of the banking sector and the judiciary, progress is being made in the campaign against money laundering. There were initial fears that the clampdown could drive away banking clients and that certain measures could be used for political harassment. But so far, only those with something to hide have anything to fear from the campaign.

The FATF seal of approval must not lead to a slowdown in the campaign. FATF officials have said they will continue monitoring implementation of anti-money laundering measures in this country. The nation must stay out of the FATF blacklist, and this can be possible only through a sustained effort.