Bill amending anti-money laundering law reaches Senate floor

December 10 ------ A Palace-certified bill seeking to amend the Anti-Money Laundering Act of 2001 (AMLA) was sponsored in the Senate plenary on Wednesday. Senator Grace Poe said Senate Bill No. 1945 seeks to introduce amendments that would prevent the Philippines from being "grey-listed" by the Financial Action Task Force (FATF), a global money laundering and terrorist financing watchdog.

Among the salient provisions being sought are the following:

- Inclusion of real estate developers and brokers engaged in single cash transactions over P5 million as covered persons;

- Coverage of offshore gaming operators and their service providers to prevent money laundering in internet-based casinos;

- Inclusion of tax crimes and violation of the Strategic Trade Management Act, which indirectly includes proliferation of weapons of mass destruction as predicate offenses to money laundering;

- Enhancement of the investigative powers of the Anti-Money Laundering Council (AMLC);

- Authorization of the AMLC to implement "targeted financial sanctions" on proliferation financing;

- Authorization of the AMLC to preserve, manage or dispose assets subject of asset preservation order and judgment forfeiture;

- Prohibition on the issuance of injunctive relief against freeze orders and forfeiture proceedings under AMLC's jurisdiction.

Poe warned that being grey-listed by the FATF sends a very strong signal to market participants and regulators globally. "It has implications which we must avoid as much as we can, especially during the time of a global pandemic,"' she said. "Other member-countries and the whole of the European Union will impose an 'enhanced due diligence' or EDD on Filipino nationals and businesses that transact within their channels. This will result in additional cost, paperwork, higher interest rates and processing fees for Filipinos who are doing business within the jurisdiction of EU," she added.

Senator Richard Gordon, meanwhile, said he supports strengthening the AMLA but cautioned his colleagues that they should not kowtow to the conditions being set by other countries. "Tama po kayo, talagang hindi dapat sunud-sunuran tayo," Poe said in response. "That's why when we had our committee hearing, Senators Villar, Recto, Drilon, all of us said, 'O ito ang gusto ng AMLC, ito rin ang gusto ng central bank, pero teka muna huwag naman natin pahirapan ang ating kababayan na lahat, all cash transactions for real estate negotiations have to be reported... so they made it above P5 million," she added.

The House of Representatives approved its counterpart measure on third and final reading last December 1.

Source: gmanetwork.com