RP fast-tracks money laundering law

Finance Secretary Jose Camacho said yesterday both chambers of Congress were in a "fast-track" mode to pass a law against money laundering before a September 30 deadline set by an international agency.

But Camacho refused to commit on whether the country would indeed meet the deadline by the Paris-based Financial Action Task Force (FATF). Both chambers of Congress went into a two-week recess starting yesterday.

Congressional committees can, however, conduct hearings on the anti-money laundering bills during the recess.

Camacho said the government was hoping it could avoid any sanctions imposed by the FATF.

Asked what kind of sanctions the Philippines could face, Camacho told Reuters: "We don’t want to speculate because we hope that we will be able to avoid any FATF-sponsored sanctions."

The Philippines, Russia and the tiny Pacific island nation of Nauru are on a list of nations deemed "non-cooperative" over money laundering by the FATF, an agency backed by most industrial countries.

The three countries have been told to enact appropriate laws until September 30 or face tighter scrutiny of international financial transactions.

Camacho, named as point person for the executive branch’s efforts to counter money laundering, said the government was aware the FATF had a meeting this week but the Philippines only communicated to the agency through a letter sent on Monday.

In that letter signed by Camacho and Bangko Sentral ng Pilipinas (BSP) Governor Rafael Buenaventura, the government gave an update on the progress of crucial legislation on anti-money laundering.

Camacho said the government did not negotiate for an extension of the deadline.

"We have not, in that communication, made any reference to a request for an extension. So we believe that with the progress that’s being made in both houses of Congress, we could see some positive results in the next few weeks," Camacho told reporters earlier.

The letter was "to give them...the message that our country is moving very quickly to address concerns on anti-money laundering," Camacho said.

Prior to the recess, the congressional committees were conducting hearings on the anti-money laundering bills "almost daily," Camacho said, adding the measure ranked high among the priority bills of Congress.

President Gloria Macapagal Arroyo had said what was important was to give the FATF an assurance the country was doing its best to comply with international financial standards.

"What’s more important is that the international banks see that we are moving forward, because that (September 30) is not a legal deadline," Arroyo said.

"It’s just that if they don’t see that we are moving after a certain point in time, there will be many, many more documentary requirements that they will be asking on bank transactions."

"If the bill moves forward...If they see that it is moving...then I think we will be able to convince the banks, hopefully, that they can still relax some of the requirements of their transactions," Arroyo said.

Camacho said he hopes to verbally reiterate the government’s commitment to pass the appropriate legislation to FATF representatives during Arroyo’s visit to Japan next week.

"We’re still hoping to get an appointment with the member of the financial services agency in Japan who I believe is associated with the FATF to verbally convey our message that we are moving hard to try to get our anti-money laundering law passed."

Bankers fear a sharp slowdown in transaction times and higher bank charges if the government fails to meet FATF’s deadline.