RP won’t seek extension of FATF deadline 

Bangko Sentral ng Pilipinas (BSP) Governor Rafael B. Buenaventura said the Philippines will not ask for an extension of the Sept. 30 deadline set by the Financial Advisory Task Force (FATF).

Instead, Buenaventura said they have initiated talks with FATF representatives to explain the steps the Philippine government has taken to "criminalize" money laundering.

"We will outline the developments over the months wherein the Philippine government especially the legislative and executive segments (will try) to put in place legislative and administrative steps to stop money laundering," the BSP Governor said.

Foremost among the concrete steps taken by the Philippine government are the legislative measures now in the hands of Congress seeking outlaw money laundering and putting in place mechanisms to prevent and penalize such activities.

The House of Representatives has already consolidated all the bills related to money laundering and the final form will be released next week. While the Senate is still consolidating the pieces of legislation, it is working for the ratification of the United Nationals Convention Against Transnational Organized Crime "to show the Philippines’ commitments to fight international crime and money laundering activities."

The BSP has issued several circulars instructing all financial institutions to put in place safeguards against money laundering.

Buenaventura admitted that the BSP circular does not have the force of law but it is one positive step towards proving the desire of the Philippine government to fight laundering.

"We are not sleeping, Congress has been working, and we are doing our jobs," he stressed.

Government has expressed doubts about its capability to meet the Sept. 30 deadline, which may result in sanctions initiated by the FATF. In turn, the recommended sanctions will result in strict investigation and scrutiny of all transactions, financial or otherwise, moving to and from the Philippines.

The influential Bankers Association of the Philippines (BAP) said FATF sanctions could result in opportunity losses amounting to a conservative P34 million daily.