US State Dept: Anti-money laundering efforts weak link in PHL's fight vs terrorism

From GMA News (Jun 1): US State Dept: Anti-money laundering efforts weak link in PHL's fight vs terrorism

Potential flaws in the monitoring mechanism against money laundering may be a weak link in the Philippines' efforts against terrorism, a US State Department report has indicated.

In its country report on terrorism for 2012, the State Department noted the Philippines has no single supervisory authority for entities in the nonprofit sector.

"There is no single supervisory authority responsible for entities in the non-profit sector; coordination is insufficient. Monitoring is weak due to insufficient coordination and resources of non-profit organization regulatory bodies," it said.

It noted the Philippines is a member of the Asia/Pacific Group on Money Laundering (APG), a Financial Action Task Force (FATF)-style regional body.

Last July 5, Republic Act No. 10168 went into effect to help prevent and suppress terrorism financing.

"The law made terrorist financing a stand-alone crime in line with APG/FATF recommendations and specifically authorizes the Anti-Money Laundering Council to issue an ex parte order to freeze without delay property/funds related to the financing of terrorism or acts of terrorism," the report said.

Also, it said the law allows the Anti-Money Laundering Council to "inquire into bank accounts based on an ex parte application, without the depositor’s knowledge for a limited period of time, and allows additional courts other than the Court of Appeals to issue asset freeze orders."

Under-resourced, understaffed

The State Department also pointed out the "under-resourced and understaffed law enforcement and justice system, coupled with widespread official corruption," resulted in "limited domestic investigations, unexecuted arrest warrants, few prosecutions, and lengthy trials of cases."

It cited a petition filed in 2010 by the Philippine Department of Justice with the Regional Trial Court in Basilan for the proscription of the Abu Sayyaf Group as a terrorist group and 202 identified associates as terrorists, was still pending action at end-2012.

Otherwise, the State Department said the Philippines maintained strong counter-terrorism cooperation with the US.

"The ability of terrorist groups, including the ASG, Jemaah Islamiyah (JI), and the Communist People’s Party/New People’s Army (CPP/NPA), to conduct terrorist activities inside the Philippines remained constrained," it said.

It added terrorist groups’ acts were "generally limited to criminal activities designed to generate revenue for self-sustenance, such as kidnapping for ransom or extortion."

Yet, it said members of such groups were linked to bombings against government, public, and private facilities, primarily in the central and western areas of Mindanao.

"Others were linked to extortion operations in other parts of the country," it said.

Moreover, it said the Philippine government continued to implement its 2011-2016 Internal Peace and Security Plan that seeks the transition of internal security functions from the Armed Forces of the Philippines (AFP) to the Philippine National Police (PNP).

Also, the US State Department said the Philippines coordinated with US law enforcement authorities, especially regarding US fugitives and suspected terrorists.

On the other hand, it said the Philippine government moved closer toward a peace agreement with the Moro Islamic Liberation Front (MILF) by signing a Framework Agreement on the Bangsamoro in October.

"A comprehensive peace agreement with the MILF has the potential to improve peace and security in Mindanao," it said.

The State Department also noted "limited weapons smuggling, often through the Philippines," posed an "ongoing challenge" to anti-terrorism efforts in Indonesia.

http://www.gmanetwork.com/news/story/311011/news/nation/us-state-dept-anti-money-laundering-efforts-weak-link-in-phl-s-fight-vs-terrorism