AMLC chief confident Philippines to avoid sanctions from dirty money laundering

MANILA, Philippines — The Philippines is likely to avoid sanctions from global watchdog Financial Action Task Force (FATF) with the passage of the anti-terror bill, the Anti-Money Laundering Council said.

AMLC chairman and Bangko Sentral ng Pilipinas Governor Benjamin Diokno said President Duterte is likely to sign the Anti-Terrorism Act of 2020, which will keep the Philippines off the gray list of the Paris-based FATF.

“I’m very positive that we will not be put on the gray list. As I said, I think we have complied with one of the most important requirements for the review of the anti-money laundering compliance,” Diokno told reporters.

“I am confident that it [anti-terror] law will be signed into law by the President, so that will help us comply with some of the requirements,” Diokno added.

AMLC earlier warned the Philippines would be included in the gray list if it failed to pass the proposed Anti-Terror Bill which will replace Republic Act 9372 or the Human Security Act (HSA) of 2007 within the 12-month observation period granted by the Asia Pacific Group (APG) on Money Laundering last October.

The STAR earlier reported the country’s observation period has been extended to February next year due to the COVID-19 pandemic and the AMLC is required to submit a comprehensive report on the progress in implementing the recommended actions after a review in April.

FATF will decide in June 2021 instead of February 2021 whether or not the Philippines will be included in the watchdog’s gray list.

Inclusion in the gray list will result in an additional layer of scrutiny from regulators and financial institutions resulting to higher cost of doing business and delay in processing.

This may also deal a big blow to the country’s quest to secure an A credit rating from debt watchers.

The Philippines was blacklisted by the FATF in 2000 for failing to address “dirty” money issues.

The country was subsequently removed from the blacklist in February 2005. It narrowly avoided being placed on blacklist in 2012 as it criminalized terrorist financing and pursued quicker freezing of suspect accounts.

The proposed bill clearly defines terrorists as those who engage in acts intended to cause death or serious bodily injury to any person, or endangers a person’s life; acts intended to cause extensive damage or destruction to government or public facilities, public places, or private properties; acts intended to cause extensive interference with, damage, or destruction to critical infrastructures; develops, manufactures, possesses, acquires, transports, supplies, or uses weapons, explosives, or biological, nuclear, radiological, or chemical weapons; and releases dangerous substances or causes fires, floods, or explosions.

AMLC clarified terrorism does not include advocacy, protest, dissent, stoppage of work, industrial or mass action, and other similar exercises of civil and political rights, which are not intended to cause death or serious physical harm to a person, to endanger a person’s life, or to create a serious risk to public safety.