RP lobbies for removal from list of money-laundering nations

As it begins to transform the Anti-Money Laundering Council (AMLC) into a full-blown financial intelligence unit, the Philippines will meet with officials of the Paris-based Financial Action Task Force (FATF) in Brisbane to lobby for its removal from the list of countries considered hotbeds of money-laundering operations.

Since its creation, the AMLC has been struggling to gain status in the international community in going after money laundering operations and other financial fraud.

AMLC’s transformation was prompted by the cold reception it received in Japan in the course of its investigation of controversial Japanese businessman Genta Ogami who allegedly defrauded here and abroad, including Japan itself.

Bangko Sentral ng Pilipinas (BSP) Governor Rafael Buenavenduta said yesterday that a Philippine delegation is scheduled to leave for Australia to present a progress report on its anti-money laundering campaign.

"The timing is good because AMLC has just won a ground-breaking victory at the Court of Appeals that effectively makes the law operational," Buenaventura said. "The CA has established jurisdiction over money laundering cases and it cuts through thick levels of bureaucracy."

According to Buenaventura, AMLC would meet with FATF officials on June 4 to 7, 2002 where they plan to make representations on the country’s compliance with FATF requirements. He said the CA decision improved the country’s chances of being delisted.

On the other hand, AMLC sources revealed that the council had requested information about Ogami who still has pending cases of securities fraud and still managed to buy the defunct Unitrust Development Bank.

According to the source, AMLC asked Japanese officials for information about Ogami but the council was rebuffled because it was not a mentor of the Egmont Group, a loose association of FIUs from different countries that cooperate to exchange information for law enforcement purposes.

The source said it attempted to reach the Japan Financial Intelligence Office (JAFIO), an FIU in Japan that became a member of the Egmont Group only in 2000. The source said the request was for more information to bolster the case against Ogami.

"They said they cannot share information because we are not a member of the Egmont Group and the AMLC is not a full-fledged FIU yet," the source explained. "And yet we’re the one being branded as uncooperative."

The Philippines has been listed as "uncooperative" by the FATF, putting the country in the blacklist of countries known for tolerating and even openly harboring money laundering activities.

According to the source, however, the AMLC could not qualify as an FIU yet until it undergoes some basic re-tooling and strengthening of its mandate and jurisdiction.

Ogami has since fled the country after his acquisition of Unitrust alerted the Bangko Sentral ng Pilipinas (BSP). Nevertheless, the source said AMLC has filed charges of bank fraud against the businessman since he could not be pinned down on charges of money laundering.