House to strengthen anti-money launder law

MANILA, Philippines –  The House of Representatives is set to strengthen the Anti-Money Laundering Act (AMLA) of 2001 to make it more effective in curbing illegal activities and the hiding of funds by criminals.

The committee on banks and financial institutions chaired by Leyte Rep. Sergio Apostol has consolidated two bills proposing several AMLA amendments, which the proponents said would “add more teeth to the law.”

Next week, the committee will present the consolidated version of Bill 698, authored by Cagayan de Oro City Rep. Rufus Rodriguez and his brother Maximo, who represents the party-list group Abante Mindanao, and Bill 3323, introduced by Paranaque Rep. Roilo Golez.

The two measures are seeking similar amendments in AMLA.

The unified version expands the list of crimes covered by the law and whose perpetrators’ bank accounts and other assets could be inquired into and frozen.

The present law lists 14 “predicate crimes,” including plunder, kidnapping for ransom, drug trafficking, illegal gambling, violation of the anti-graft law, robbery and extortion, piracy, smuggling, hijacking, and piracy.

The other crimes that are proposed to be covered by the law include terrorism and conspiracy to commit terrorism, financing of terrorism, bribery, frauds and illegal exactions and transactions, misappropriation of public funds, forgeries and counterfeiting, human trafficking, and illegal firearms trading.

The list of “covered institutions” would also be expanded. These institutions are entities such as banks, brokerage houses and insurance companies that are required to report to the Anti-Money Laundering Council (AMLC) transactions that they suspect have to do with any of the predicate crimes.

Foreign exchange companies, money changers and remittance centers would be included in the reporting requirement.

Also to be covered are casinos, including online gaming entities, real estate agents, dealers in precious metals and stones, and trust companies.

The consolidated version broadens the definition of the crime of money laundering as well.

It defines it as “a crime whereby the proceeds of an unlawful activity...are transacted, converted, transferred, disposed of, moved, acquired, possessed, used, concealed or disguised.”

All persons involved in this process, including those who acquire, use or hide proceeds from a predicate crime could be charged with violating the anti-money laundering law.

Those who fail to report such proceeds to the AMLC could also open themselves to charges.

The merged version empowers the AMLC to issue a freeze order “to implement binding conventions, directives or resolutions of the United Nations, its Security Council and other relevant UN offices and committees against terrorism or terrorist financing.”

 In all other instances, the council has to petition the Court of Appeals for a freeze order as the present law requires.

The consolidated version also authorizes the AMLC to impose sanctions, including fines, warning or reprimand, on covered institutions and their personnel who violate its directives.

The fine would not be more than P500,000 per violation.