RP passes money laundering bill

RP passes money laundering bill

MANILA (AFP): The Philippine Senate on Friday passed a bill outlawing money laundering in an effort to help the country escape sanctions from industrialized nations.

Senators, working all through the night, passed their version of an anti-money laundering bill shortly after midnight.

The vote was passed just hours after the House of Representatives approved their version of the anti-money laundering bill.

Both chambers are due to meet to hammer out a "reconciled version" of the bill which they hope to ratify later Friday so that President Gloria Arroyo can sign it into law before a Sept.30 deadline.

The Financial Action Task Force (FATF) -- a Paris-based anti- money laundering body set up by the Group of Seven industrialized countries -- had given the Philippines until Sept.30 to outlaw money laundering or face sanctions from its members.

Senate President Franklin Drilon said the two versions of the bill would easily be reconciled.

The bills allow for the examination of bank accounts to look for ill-gotten gains from various crimes.

Under present laws, the secrecy of bank accounts is very tight, requiring a court order to open them.

Drilon said the main difference between the Senate and the House version is in the coverage of the crimes that would justify opening of a bank account.

The House version limits the scope of crimes to graft, kidnapping and drug trafficking, and for bank accounts containing deposits of at least 5 million pesos (US$288,000).

The Senate version however also includes robbery, extortion, illegal gambling, piracy, smuggling, large-scale theft, swindling, cyber-crimes and terrorism, Drilon said.