Senate ratifies AMLA amendment but Guingona still worry of FATF blacklist

From the Philippine News Agency (Feb 6): Senate ratifies AMLA amendment but Guingona still worry of FATF blacklist

The Senate ratified on Wednesday the bicameral conference committee report on the disagreeing provisions of the bill strengthening further the Anti-Money Launder Law as compelled by the Paris-based Financial Action Task Force (FATF) to fight terrorism.

Senator Teofisto ‘TG’ Guingona III reported on the floor the joint explanation of the bicam on the reconciled version of the Senate Bill 3123 and House Bill 6565 which seeks to expand the list of the covered persons and entities required to report financial transactions to the Anti-Money Laundering Council (AMLC).

Guingona, chairman of the Senate panel to the bicam, said the bicam members agreed to adopt the Senate draft with some modifications including deletion of casinos, including internet casinos from the list of possible avenue to launder money.

In media interview, Guingona expressed concerns the removal of casinos and tax evasion would be used as a ground by the FATF to downgrade the Philippines from dark gray to blacklist. ”If blacklisted, our OFWs (overseas Filipino workers) will be having hard time to send money to their loved ones in the Philippines because they will be scrutinized and will be required to submit more supporting documents,” Guingona warned.

However, Guingona still hoping the FATF would still consider the country’s third AMLA amendment bill when it meets on February 18. ”On February 18 we will know whether what we have passed is enough for us to get out of the dark grey list or we’re getting out, getting upward or we go down to the blacklist,” Guingona said in media interview.

Some of the covered persons required to report financial transactions to AMLC include jewelry dealers whose transactions are in excess of P1 million; foreign exchange dealers, money changers, remittance agents, company service providers and pre-need companies.

The term “covered persons” shall exclude lawyers and accountants acting as independent legal professionals in relation to information concerning their clients or where disclosure of information would compromise clients confidences.

The proposed measure also expands the list of unlawful activities and predicate crimes to include terrorism and conspiracy to commit terrorism, financing of terrorism, bribery, frauds and illegal exactions and transactions, malversation of public funds and property and forgery and counterfeiting.

Upon determination of probable cause, the AMLC shall file with the appropriate court a verified ex parte petition for forfeiture of monetary instrument or property found to be related in any unlawful activity or money laundering offense. The reconciled version provides a person suspected of laundering money may file a motion to lift the freeze order. It also adds “no court shall issue a temporary restraining order against freeze order except from the Supreme Court.”

The crime of money laundering is punishable by imprisonment ranging from 4 to 14 years with a fine ranging from P1.5 to P3 million depending on the crimes the covered persons committed under the proposed amendment bill.

The person who knowingly participated in the commission of the money laundering will also be penalized with imprisonment ranging from 4 to 7 years and a fine corresponding to not more than 200 percent of the value of the laundered money.

With the Senate ratification of the bill, Guingona is expecting President Benigno Aquino III to sign it into law before the FATF meeting on Feb. 18. President Aquino recently signed into law two AMLA related measures, all showing the country’s commitment to comply with international standards set forth not only by the FATF, but also the directives laid down under the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, the 2001 United Nations Convention Against Transnational Organized Crime, the 2003 United Nations Convention Against Corruption, and other international standards in combating money laundering, according to Guingona.

The two laws signed by President Aquino include the Terrorism Financing Prevention and Suppression Act (R.A. No. 10168) which seeks to allow authorities to freeze terrorist funds and the Anti-Money Laundering Act (R.A. No. 10167) seeking to allow the AMLC to inquire into bank deposits based on an ex parte application and allow courts other than the Court of Appeals to issue freeze orders.

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