Palace likes money launder law ammended before Lenten break

MANILA, Philippines (Mar 10, 2012) - After issuing a warning that the Philippines can get blacklisted by the Financial Action Task Force (FATF) for being a haven for dirty money, President Aquino now hopes Congress would pass a stronger Anti-Money Laundering Act (AMLA) without him calling for a special session.

The ball is now in the hands of the Senate who may opt to act before the Lenten break on a bill seeking to amend the AMLA to strengthen the government’s campaign against dirty funds that the House of Representative earlier approved.

House Bill 4275 expands the definition of money laundering and the list of crimes and institutions covered by the law.

Deputy presidential spokesperson Abigail Valte said Executive Secretary Paquito Ochoa Jr. had conveyed the government’s concern to lawmakers early on.

“As to the four session days, we believe that the Senate already is aware of the concerns and that they will ensure that these measures will be passed in time,” she said.

“We are hoping that these (AMLA amendments) will be acted upon.”

No discussions have yet been made on whether a special session would be needed to ensure the passage of the amendments, Valte said.

The present law defines money laundering as a “crime whereby the proceeds of an unlawful activity... are transacted, thereby making them appear to have originated from legitimate sources.”

Under the new bill, the crime of money laundering would be committed when proceeds from an illegal activity “are transacted, converted, transferred, disposed of, moved, acquired, possessed, used, concealed or disguised, thereby making them appear to have originated from legitimate sources.”

Sen. Sergio Osmeña III, Senate committee on banks, financial institutions and currencies chairman, said the Senate could not pass all three bills by the end of May this year because of the impeachment trial of Chief Justice Renato Corona.

The proposed changes seek to punish even those who “attempt to transact, convert, transfer, dispose of, move, acquire, possess, use, conceal or disguise” such proceeds.

It would also punish anyone who “performs or fails to perform any act as a result of which he facilitates the offense of money laundering” or who fails to report to the Anti-Money Laundering Council (AMLC) any monetary instrument or property that is the product of an illegal activity.

The bill also aims to expand the list of crimes covered by the Anti-Money Laundering Law from 12 to 24.

Among the new crimes covered are terrorism, conspiracy to commit terrorism, financing of terrorism, bribery and corruption of public officers, misappropriation of public funds and property, trafficking in persons and illegal recruitment, violations of forestry and mining laws, illegal manufacture or dealing in firearms and ammunition, and violations of the anti-fencing law.

The original list of predicate crimes includes kidnapping for ransom, violations of the law against dangerous drugs, violations of the anti-graft law, robbery and extortion, illegal gambling, piracy on the high seas, swindling, smuggling, and hijacking.

Entities required to report suspicious transactions to the AMLC were increased. They would include pawnshops, money changers, remittance agencies, casinos, including Internet casinos, real estate agents, dealers in precious metals and stones, trust companies, and persons managing funds, securities and other assets for clients.

Covered institutions under the present law are banks, non-banks, insurance companies, and similar entities regulated by the Bangko Sentral ng Pilipinas, the Insurance Commission and the Securities and Exchange Commission.

The country’s law against money laundering and its enforcement are considered to be weak. No operator of jueteng and other illegal gambling activities have been charged, much less convicted, of money laundering.

The international community regards the Philippines as a haven for money launderers.

Ochoa had written Senate President Juan Ponce Enrile for the bills to be enacted by June this year when the FATF holds its next plenary.

“Countries included in the blacklist jurisdiction will be subjected to financial sanctions by the international community which would result in delayed OFWs’ remittances, higher charges and intermediation costs on financial transactions of Philippine banks and citizens and thorough scrutiny of Philippine-based transactions, among others,” he said.

In a letter to President Aquino last Feb. 21, the AMLC said the FATF has downgraded the Philippines to its list of vulnerable jurisdictions because of the failure of Congress to pass amendments to the AMLA and the terrorist financing suppression bills.

“A jurisdiction placed in the dark grey list is one that has been identified as not having made sufficient progress in addressing its remaining strategic deficiencies,” the AMLC said.

“These bills, if approved as originally submitted as House Bill No. 4275 (AMLA Amendment Bill) and House Bill No. 5015 (Terrorist Financing Suppression Bill), will substantially address our country’s AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) deficiencies.” (From Philstar.com)