RP gets thumbs down for weak anti-money laundering bill<\/p>\n
Mynardo Macaraig, Agence France-Presse, Manila<\/p>\n
Industrialized countries have rejected amendments by the
\nPhilippines to beef up its anti-money laundering law, giving
\nManila less than a month to pass better legislation or face
\npainful sanctions.<\/p>\n
The threat by the Paris-based Financial Action Task Force
\n(FATF) came at the weekend after the country's bicameral
\nlegislature passed amendments to the Anti-Money Laundering Act
\nthat fell far short of the global group's demands.<\/p>\n
\"The FATF has taken the serious step of recommending that its
\nmembers impose additional counter-measures against the
\nPhilippines, due to the failure of the Philippines to enact
\nlegislation to address previously identified deficiencies in
\ntheir anti-money laundering regime,\" the task force said.<\/p>\n
The FATF, a global body for fighting money laundering, gave
\nManila until March 15 to pass stiffer amendments or be hit by
\ncountermeasures.<\/p>\n
In reaction to the FATF's disapproval, Central Bank of the
\nPhilippines governor Rafael Buenaventura said: \"Well, it doesn't
\ncome as a surprise.\"<\/p>\n
The government of President Gloria Arroyo had been pushing for
\nthe necessary changes to the anti-money laundering law for months
\nbut the Senate watered down the amendments in defiance of the
\nFATF.<\/p>\n
Arroyo, aware that the amendments would not pass muster, had
\ndeclined to sign the bill into law.<\/p>\n
\"We have a small window between now and when the
\ncountermeasures take effect within which we can cure (the
\nproblem),\" Buenaventura said.<\/p>\n
Failure to meet the deadline would result in sanctions that
\nwould delay financial transactions. Bankers, traders and
\ninvestors would be hit but the most seriously affected would be
\nthe seven million Filipinos working overseas who remit their
\nsalaries back home to their families.<\/p>\n
Consultancy group Accelerating Growth Investment and
\nLiberalization with Equity has estimated that families of
\noverseas workers could lose as much as 19.8 billion pesos
\n(US$366.7 million) a day due to delays in remittances if
\nsanctions are imposed.<\/p>\n
The FATF's main bone of contention is a requirement in the
\npresent law that money-laundering probers must get a court order
\nto look into suspicious bank accounts. It wants to remove the
\nneed for a court order.<\/p>\n
Twelve of the 23 senators voted against lifting the court
\norder requirement, despite pressure from the House of
\nRepresentatives.<\/p>\n
The court order requirement had made the existing anti-money
\nlaundering law largely ineffective as funds could easily be
\ntransferred out of suspect accounts before they could be opened,
\nobservers say.<\/p>\n
But the opposing senators charged that lifting it would allow
\nthe government to harass political rivals and critics by checking
\ntheir bank accounts.<\/p>\n
Senate President Franklin Drilon said the amendments could be
\nupdated if the bill is returned to a bicameral conference
\ncommittee of both Houses so the senators can revise their version
\nof the bill.<\/p>\n
\"We can do something about it but we must address the issues
\nto our colleagues in the Senate who voted against the amendment.
\nOtherwise it will be the same result,\" warned Senate banking
\ncommittee chairman Ramon Magsaysay.<\/p>\n
President Arroyo's spokesman Ignacio Bunye warned the
\nsenators: \"This is no joke. If the sanctions take effect, all the
\ntransactions of our countrymen -- and we're looking at the seven
\nmillion overseas workers -- they will be delayed.\"<\/p>\n
However Senate opposition leader Aquilino Pimentel remained
\nresistant, saying: \"It really looks like our country no longer
\nhas independence.<\/p>\n
\"We do not have the freedom to make laws that are for the good
\nof the people but must follow the FATF and the foreign agencies.<\/p>\n
\"Maybe the FATF will realize the Philippines is a democracy
\nand we cannot always follow their instructions,\" he said
\nbitterly.<\/p>",
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