RP certain to join world group of financial intelligence bodies

The Egmont Group is scheduled to take up the Philippine application for membership when it holds its plenary session in June, and officials expressed cautious optimism that the country will be accepted.

Following the country’s removal from the list of non-cooperative countries and territories (NCCTs) of the Financial Action Task Force (FATF), the Philippines is expected to be allowed next to join the Egmont Group.

The Egmont Group is a loose organization of financial intelligence agencies around the world, including the US Financial Crimes Enforcement Network (Fincen) and the Australian Transaction Reports and Analysis Center (Austrac).

If successful, the Anti Money Laundering Council (AMLC) would be inducted into the Egmont Group and get access to the organization’s extensive database of intelligence data on nefarious financial transactions.

According to AMLC executive director Vicente Aquino, Egmont was scheduled to hold its plenary session in June and the Philippine application will be taken up.

At least three FIUs have earlier agreed to sponsor the country’s membership application to Egmont, specifically Austrac, Fincen and the Financial Transaction Reports Analysis Centre of Canada (Fintrac).

Under the Egmont Group’s application procedures, an applicant country requires at least one sponsor. Fincen was originally eyed as the primary sponsor but Fintrac later volunteered to also support the Philippine application.

The Philippines formally applied for membership early last year as it also prepared to enter into bilateral cooperation with AMLC counterparts in South Korea and Australia.

The AMLC initially submitted its reply to the questionnaire from the Egmont Group in the initial stage of the AMLC’s application process.

If Fincen and Fintrac are both satisfied with the implementation of the Anti Money Laundering Program, their sponsorship would bolster the country’s Egmont application.

However, Aquino said the biggest factor was the country’s final removal from the FATF’s NCCT list, the roster of countries considered as the last bastions of money-laundering activities and continued inclusion meant increasing isolation from the international financial community.

AMLC co-chairman and Bangko Sentral ng Pilipinas Governor Rafael Buenaventura attributed the early delisting to the progress accomplished by the government agencies that work under the umbrella of the AMLC.

"Its been a long and arduous process," Buenaventura said. "But much of the credit is due to the level of cooperation given by the members of the AMLC, especially the judiciary."

Buenaventura said the FATF had been specifically concerned and apprehensive over the amendment in the Anti Money Laundering Act that removed the power of the AMLC to automatically freeze suspicious bank accounts.