House OKs stronger anti-money laundering law

MANILA, Philippines - The House of Representatives has approved on second reading a bill that seeks to strengthen the Anti-Money Laundering Law (AMLA).

Speaker Feliciano Belmonte Jr., Majority Leader Neptali Gonzales II and Minority Leader Danilo Suarez are the principal authors of House Bill 6565, a consolidation of several measures seeking changes in the law against the laundering or hiding of funds generated from illegal activities in the country or abroad.

The approved measure expands the list of institutions required to monitor and report suspicious transactions to the Anti-Money Laundering Council. The approved measure also has an expanded list of covered unlawful activities.

But before the House passed the bill, Suarez introduced an amendment that watered down the measure. He removed casinos, real estate agents and dealers in precious metals and stones from the expanded list of covered institutions and individuals.

The country is amending its AMLA upon recommendation of the Financial Action Task Force (FATF), an international watchdog against money laundering.

The FATF blacklisted the Philippines in June 2000 for being “non-cooperative” in the global campaign against money laundering. This prompted Congress to enact Republic Act 9160 or the Anti-Money Laundering Act of 2001.

Blacklisting means that inbound and outbound money transfers, including remittances from millions of overseas Filipino workers, would be closely scrutinized to determine if such funds are laundered or being readied for laundering.

Belmonte and Gonzales said their consolidated bill conforms to new international standards in the fight against money laundering set forth by the FATF and the United Nations.

“This bill serves to reinforce our country’s anti-money laundering legislative measures. It ultimately addresses noted deficiencies in its legal framework with regard to anti-money laundering,” they said in the bill’s explanatory note.

“There is indeed an urgency to put more teeth to the country’s anti-money laundering law, not only to make the Philippines compliant with international standards but to protect its financial integrity and economic development,” they said.

Included in the expanded list of covered institutions and individuals are banks, insurance companies, investment houses, foreign exchange dealers, and persons and entities dealing in the remittance, payment and transfer of funds.

Also covered are pre-need companies, casinos, managers of funds and securities, and arrangers and managers of companies and buyout deals.