Creation of body to monitor activities of money changers urged

The Bangko Sentral ng Pilipinas (BSP) is urging the creation of a body that will monitor the activities of money changers to ensure these establishments are not being used for money laundering activities.

BSP Governor Rafael Buenaventura said that since money-changing establishments have been liberalized, there is no legitimate body that tracks down their activities.

"Our efforts is in view of anti-money laundering efforts of the Anti-Money Laundering Council tasked under the recently passed law on anti-money laundering. We want to ensure that money-changers are covered," Buenaventura said.

Buenaventura said there is no intention to impose controls on money changers, but added AMLAC wants to make sure transactions are all legitimate.

The AMLAC, along with other government agencies are looking into the reported interception of $20-million from a money changer bound for Hong Kong yesterday. The money was hand-carried and no declaration was made by the passenger who claimed he has been traveling so often and carrying large amounts of money to Hong Kong as part of his business.

"That matter will have to be looked into as a potential outlet for money laundering," Buenaventura said.

He added foreign exchange exceeding $6 million that is ferreted out of the country by investors needs the approval of the central bank.

Under existing laws, the central banks has no jurisdiction over money changers except when these are banks and quasibanks. It is the Securities and Exchange Commission which processes and approves business and registration papers of money changers but they are not authorized to monitor their business.

On the other hand, it is the local government units that approve the licenses of money changers.

"There has to be a body that has the mandate to monitor the activities of money changers and to check the legitimacy of their activities," Buenaventura said.

Congress recently passed a law on anti-money laundering, beating the Sept. 30 deadline set by the Paris-based Financial Action Task Force (FATF).

The salient points of the law include criminalizing money laundering, setting up a monitoring system for reporting of covered transactions, designation of implementing agencies, limited access to deposits as it relates to money laundered accounts and willingness to provide information and cooperation.

The timely passage of the law makes it a crime to engage in the trafficking of funds from illegal activities and is crucial for the Philippines to avoid stiff sanctions that could eventually cripple the economy. – Rocel Felix