AMLC hails win against Napoles in money laundering case

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) hailed a major legal victory as Manila Regional Trial Court Branch 24 convicted Janet Napoles of money laundering, in relation to the Priority Development Assistance Fund (PDAF) scam.

The decision, dated July 12, sentenced Napoles to seven to 14 years in prison and imposed a fine of P16 million. The case was initiated by a complaint filed by the AMLC with the Department of Justice in 2013.

AMLC executive director Matthew David said the conviction underscored the government’s commitment to pursue justice in cases of large-scale corruption.

“Napoles’ conviction is a significant victory in the government’s fight against corruption. It serves as a powerful reminder that the AMLC, in collaboration with the other government agencies, is committed to prosecuting individuals involved in the plunder of public funds,” he said.

Despite the pending resolution of her plunder case, the court found Napoles guilty of money laundering.

The court said a final conviction for a predicate crime is not necessary to secure a conviction for money laundering. What is essential is to prove that the money or property came from an unlawful activity.

In this case, the court concluded that there was sufficient evidence beyond reasonable doubt that millions of pesos of ill-gotten wealth from public funds were accumulated through the PDAF scam.

The PDAF scam, also known as the pork barrel scam, was one of the largest corruption scandals in the Philippine history, involving the misuse of billions of pesos in government funds.

The PDAF was a discretionary fund allocated to members of Congress, intended to finance community projects and local development initiatives.

But instead of being used for legitimate purposes, the funds were diverted to fake non-governmental organizations and pocketed by corrupt politicians, government officials and private individuals.

The AMLC said it remains steadfast in its efforts to combat money laundering, aiming to restore public confidence in the integrity of the financial system while ensuring that justice is delivered in cases of corruption and fraud.

The Financial Action Task Force (FATF) placed the Philippines on its gray list in June 2021 due to concerns over deficiencies in the country’s measures against money laundering and terrorism financing.

In its June update, the FATF retained the Philippines on its gray list for the third straight year as the country has yet to adequately address the gaps in its regime.

The country still has to address three more action items to exit the gray list.