A national security risk

Duterte, the PNP and the AFP disburse billions of pesos in audit free intelligence funds. Yet, they seem to know nothing about rampant money laundering happening here that has serious national security implications. No one even followed up declarations made by the dollar couriers at the Bureau of Customs.

Money laundering is an international crime, specially in this age of terrorism. Many countries have been working together under the FATF, or the Financial Action Task Force, to make sure illicit money cannot be circulated freely to benefit criminals and terrorists.

Our loose regulations that exempted casinos from the jurisdiction of our Anti Money Laundering Council or AMLC once caused us to be placed on a gray list of non-compliant countries. Congress had to amend our anti-money laundering law to ensure our compliance with international standards.

Being on the watchlist makes it more difficult for our OFWs to send remittances, the lifeblood of our economy. Local businesses also cannot freely transact foreign exchange with international partners.

We may be put back on the gray list because of our inability or unwillingness to stop a highly suspicious huge flow of hard cash from abroad passing through NAIA. There is either a flaw in our regulations or our regulators are being bought, or most likely both.

Our rules say that if you are bringing in forex of more than $10,000 or equivalent in other currencies, you have to declare it. Customs is supposed to count it. If the actual count matches the declared amount, the money is allowed in. If not, Customs must confiscate the whole amount.

The owner of the money is supposed to declare why the money is being brought in. But the declaration is not under oath. The owner can say “for investment” and that’s the end of it. That’s looser than if you send the forex through the banking system.

Indeed, it is ridiculous. If you transact something as low as P500,000 in a bank, chances are AMLC will be informed. If you bring $4 million in cash in a suitcase through NAIA, declare it, you are home free.

According to BSP Governor Ben Diokno, there is a protocol that requires Customs to coordinate with AMLC and the intelligence community for possible money laundering or terrorism financing. But as Sen. Dick Gordon revealed in his privilege speech, that’s not happening.

Sen. Gordon gave a narration that is simply worrisome. Here are snippets from Sen. Gordon’s speech based on the Senate’s transcript of stenographic notes.

“If we look at some of the money that has come in, that is nakabalot, nasa maleta, we can see the maleta, punong-puno ng dollars…

“Starting Dec. 17, 2019, $2 million came in under a certain Mr. Kei. Let us just call him “Mr. Kei.”

“On Dec. 27, 2019, Mr. Kei again came out with $4 million.

“On Jan. 3, or about six days or seven days later, he came with $4.10 million. Cash iyan na ipinapasok.

“On Jan. 6, $2 million was brought in.

“On Jan. 8, ang pumasok ay $3.50 million.

“On Jan. 21, $3 million.

“On Jan. 28, $3 million. And we can see the list goes on.

“Having said that, makikita natin, ang dami-daming pumapasok na pera. One guy has come in and 47 times siyang pumasok sa ating bansa.

“We can see the various amounts coming in. Kai Lung Choi, Kei Heim Chan, Sheung Neng Rony Hui, Wai Yip Leung–ang dami-dami, $4 million, $3 million, $2 million, tuloy-tuloy, kunwari investment.

“And the classic thing about this is that… pumapasok sila ng legal. Idinedeklara nila na sila ay nagpapasok ng milyon-milyon-milyon na dolyar.

“So, nakikita natin iyan si Kei Hei Lee, three transactions; si Ka Hei Lee, three transactions, at ang total niyan ay $11 million. Ito two transactions, Toi Hi Leung; two transactions, Wai Fai Leung, three transactions, $9.5 million. I can go on and on and we can see how many transactions there is…

“Mayroong Pilipino na kasama po na nagpapasok diyan… Iyang si Simon Rodriguez, nahuli in September at hindi nag-declare. So, noong bumalik siya, this time nag-declare na at pagkatapos isinama na iyong mga kapatid, mga kamag-anak.

“Iyang John Joshua Rodriguez, 40 transactions: $1.5 million, $606,000, $400,000, $900,000, $1 million; tuloy-tuloy ang lagare…

“Now, just because he declares does not mean he is not a money launderer. Siguro naman kahit na grade school student kapag sinabi na ganiyan karaming dolyar ang pumapasok, magtatanong: ‘Ano ba ang negosyo mo? Bakit ka nagpapasok ng ganiyan kalalaki? At saan napupunta iyang pera?’

“Sapagkat kung titingnan natin, a total of $447 million, or P22.69 billion, was brought in by 47 individuals including Filipinos from September 2019 to February 2020. The total amount brought in by Chinese 37 individuals was $210 million or P10.6 billion, or 46.98 percent of the total amount…

“Now, the question is: Saan napupunta ang mga pera na ito? Ang nakalagay riyan karamihan ay for casino. At siyempre kapag inilagay sa casino iyan at nanalo, ipinasok ng cash, ibabalik iyan ngayon at bibigyan sila ng certificate na nanalo sila, at puwede nilang ipasok sa banking system.

“Ibabalik na lamang nila ngayon sa source sapagkat legal na nagkaroon sila ng papel na dokumento. Mayroon din silang panglaro–halimbawa, sa mga investment.

“And this is one thing that I would like everybody to take note: the Philippines has become number two today in terms of real estate values in Manila…

“Pumapasok iyong mga POGO riyan at saka maaaring iyong perang ipinapasok diyan ay nadadala sa tinatawag nating ‘real estate,’ which is just one way of washing or laundering money…

“Having said that… it can go into other things. Can it fund a military expedition? Can it fund the Maute in Lanao Del Sur? Puwede ba silang bumili ng firearms?”

 Worse, according to the Customs chief, these people are escorted by elements from the PNP, AFP and NAIA security.

Given his intelligence funds, it is impossible that Duterte doesn’t know this is happening. This is a scandal for which the much claimed Duterte political will to clean up this stinking mess is called for. But does he want to?

Boo Chanco’s e-mail address is [email protected]. Follow him on Twitter @boochanco