Fil-Chinese traders wary over some provisions of Money Laundering Act

Unconfirmed reports indicate that several businessmen identified with the Chinese-Filipino business community have expressed concern over certain provisions of Republic Act (RA) 9160 or the Anti-Money Laundering Law.

The businessmen have reportedly been calling officials of the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC), and the Insurance Commission (IC) to express concern over certain provisions, particularly the minimum amount which may be subject to scrutiny.

Under Section 3 of the law, a deposit of P4 million or its equivalent in foreign currency can be subject to investigation if it is made under suspicious circumstances.

The practice in the United States is that deposits amounting to more than $10,000 (P500,000) are automatically be reported to the appropriate authorities.

The new law further states that a bank transaction can also be subject to investigation if involves "a single, series or combination or pattern of unusually large and complex transactions in excess of P4 million especially cash deposits and investments having no credible purpose."

Chinese-Filipino businessmen are reportedly pointing out the fact that they have legitimate daily bank transactions in excess of P10 million. They also expressed fears that banks or government would look into their deposits. They are scared that during the investigation, the Bureau of Internal Revenue will be asked to participate.

Members of the Anti-Money Laundering Council (AMLC), the government body to oversee all cases of money laundering, have up to the middle of November to submit their recommendations and comments for the implementing rules and regulations (IRR). The council members are: the BSP governor, the SEC chairman, and the IC commissioner.

Meanwhile, the Bankers Association of the Philippines (BAP) warned that the country should not sink into complacency after it beat the Sept. 30 deadline set by the Financial Advisory Task Force (FATF), the international body looking into money laundering activities commissioned by the Overseas Economic Coordinating Fund (OECF).

BAP executive director Leonilo Coronel said getting the law passed is one thing, implementing it is another.

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