Anti-money laundering group to visit Phl

MANILA, Philippines - Paris-based Financial Action Task Force (FATF) is sending a team to the Philippines next month, zeroing in on insurance firms.

In an advisory to all insurance/reinsurance companies, intermediaries, mutual benefit associations, trusts for charitable uses and pre-need companies, Insurance Commissioner (IC) chief Emmanuel Dooc said the FATF would conduct an audit through its International Cooperative Review Group (ICRG).

The on-site visit, scheduled on May 2-3, aims to confirm that the process of implementing reforms and actions is underway to address the Philippines’ anti-money laundering/combating the financing of terrorism (AML/CFT) deficiencies previously identified.

In preparation for this audit, Dooc said the IC would have to update the lists of AMLA compliance officers for all companies it regulates.

Dooc said IC had asked the concerned parties to submit the necessary information needed for the audit last April 8.

Recently, Malacanang said it believed the Philippines could expect positive action from FATF after President Aquino signed the third and last batch of amendments that the watchdog had required the country to pass to avoid blacklisting.

Earlier reports quoted deputy presidential spokesperson Abigail Valte as saying that Republic Act 10365, or “An Act Further Strengthening the Anti-Money Laundering Act of 2001,” makes the country compliant with the United Nations Convention Against Illicit Traffic in Narcotic Drugs, UN Convention Against Transnational Organized Crime and the UN Political Declaration and Action Plan Against Money Laundering.

The new law, which expanded covered institutions and predicate crimes to money laundering, was passed before the FATF’s general assembly in Paris, France on Feb. 20-22.

During the meeting, Anti-Money Laundering Council (AMLC) officials will try to convince FATF to remove the country from the grey list of nations non-compliant to global anti-money laundering standards.

Getting blacklisted means higher costs and delays in remitting money and in other financial transactions.

Valte said the government had passed RA 10168 to prevent financing of terrorism and RA 10167 or An Act Strengthening the Anti-Money Laundering Act of 2001 allowing the AMLC to look into bank accounts of suspected money launderers without notifying them.

Earlier, Bangko Sentral ng Pilipinas (BSP) assistant governor Vicente Aquino said it would be “very difficult to predict what will happen” during the FATF meetings.

But he said he is “hopeful” that FATF will recognize the Philippines’ efforts despite some shortcomings.

Aquino, who until recently served as AMLC executive director, noted that provisions making tax evasion a predicate crime and putting casinos under AMLC scrutiny were left out in the approved bill.

Valte said the government would have to see first the evaluation of the country’s laws against money laundering and “then we’ll move forward from there.”