Philippines steps up campaign against money launderers

MANILA, Philippines - The government has strengthened its efforts against money launderers, particularly drug syndicates, who "wash" their illegal transactions and proceeds through banks, a senior government official said today.

The Philippine Drug Enforcement Agency (PDEA) and the Anti-Money Laundering Council (AMLC) have agreed to heighten their cooperation against drug syndicates, said PDEA Director General Undersecretary Arturo Cacdac Jr.  

"A huge percentage of laundered money comes from the production and trafficking of dangerous drugs, while banks and other regulated entities have become conduits for laundering drug money," Cacdac said, referring to the practice of suspected drug lords hiding their profits to make it appear they were acquired through legitimate means.

As the country's organization which prosecutes money-laundering offenses, the AMLC has initiated financial investigation of suspicious bank transactions of arrested drug personalities referred by the PDEA.

"When we recover bank passbooks and transaction slips containing large amounts of money during anti-illegal drug operations, we immediately forward them to the AMLC for investigation," Cacdac said.

Since 2003, 291 money laundering cases were referred by PDEA to the AMLC. As a result, assets of 53 suspected drug personalities, including local and foreign currencies, real estate and motor vehicles amounting to over P270 million ($50.85 million), were ordered freeze by the AMLC.