Duterte toughens law vs money laundering

Real estate brokers, POGOs, terror financiers among targets

MANILA, Philippines — Apart from real estate brokers and agents, the government can now also go after and freeze assets of “suspicious” offshore gaming operators and designated terrorist groups under Republic Act 11521, signed into law by President Duterte on Friday.

The new law, which strengthens the 20-year-old Anti-Money Laundering Act (AMLA), expanded the list of covered persons to include real estate developers and brokers; offshore gaming operators as well as their service providers supervised, accredited or regulated by the Philippine Amusement and Gaming Corp. or any government agency.

Lawmakers adopted at the bicameral conference the Senate’s proposal that imposes financial sanctions against individuals involved in financing terror acts.

The government’s Anti-Terrorism Council – formed as part of the new Anti-Terrorism Act of 2020 – has identified groups deemed as terror organizations.

These include the Communist Party of the Philippines, New People’s Army, Islamic State in Iraq and Syria in Southeast Asia, Dawlatul Islamiyah Waliyatul Masrik, Maute Group, Islamic State East Asia, Grupong ISIS, Khilafah Islamiyah, Ansharul Khilafah, Bangsamoro Islamic Freedom Fighters-Bungos, Bangsamoro Islamic Freedom Fighters-Abubakar, Jama’atu al-Muhajirin wal Ansar fil Filibin; Daulah Islamiyah, and other Daesh-affiliated groups in the Philippines.

Under Republic Act 11521, the Anti-Money Laundering Council is empowered to “require, receive and analyze covered transactions or suspicious transaction reports from covered persons.”

The AMLC may also investigate suspicious transactions and covered transactions deemed suspicious upon its determination.

In the conduct of its investigation, AMLC is also required to apply for search and seizure order with any competent court.

Threshold

It also defined covered transactions as those made in cash or other equivalent monetary instrument involving a total amount in excess of P500,000 within one banking day; for covered persons under Section 3 (a)(8) of the law, a single casino cash transaction involving an amount of P5 million or its equivalent in any currency.

It also defined covered persons as those making single cash transactions in a day involving P 7.5 million or its equivalent in any currency.

The law also requires the government to adopt information security and confidentiality measures to safeguard information processes and deter the council’s staff from leaking or misusing information.

The AMLC is also tasked to implement financial sanctions against those who made possible the proliferation of weapons of mass destruction. Sanctions include ex-parte freeze on all funds and other assets owned and controlled directly or indirectly by individuals or entities designated by the United Nations Security Council through Resolution Nos. 1718 of 2008 and 2231 of 2015 as being involved in the trade or acquisition of arms, especially weapons of mass destruction.

By signing the law, Duterte beat the Feb.1 deadline set by the Financial Action Task Force (FATF) for implementing changes in AMLA to make it at par with global standards.

Failure to comply would have put the country in the so-called gray list, a situation that would directly affect efforts of the administration to attain “A” credit rating.

Duterte signed the measure nine days after the Senate and the House of Representatives reconciled their respective versions of the measure on Jan. 20 at a bicameral conference meeting.

Sen. Grace Poe lauded the passage of the law, saying it would ensure greater protection for remittances of overseas Filipino workers (OFWs).

Poe, principal author and sponsor of the law, said the amendments to the AMLA “are responsive to emergent risks and challenges facing our financial system and, at the same time, protective of the money of the people, including hard-earned cash of overseas Filipino workers.”

Poe earlier said the immediate enactment of the measure – as strongly advised by the Asia Pacific Group on Money Laundering – would be “a form of national economic emergency, due to the very serious economic costs” of non-compliance.

The Dangerous Drugs Board (DDB) also welcomed the signing of the law, calling it a “significant development in the campaign against illegal drugs.”

“Now that the amendment has been passed, it will greatly help in the aspects of prosecution and judicial measures of our anti-drug campaign,” DDB chairman Secretary Catalino Cuy said in a statement.

“By looking into the channels where drug traffickers funnel money for their illegal drug trading activities, we will have better chances of catching and prosecuting the big fish,” he said. – Cecille Suerte-Felipe, Emmanuel Tupas, Romina Cabrera