EDITORIAL - Amend the law

A decade ago the country, blacklisted by the Paris-based Financial Action Task Force as a money-laundering haven, was compelled to pass legislation to fight the crime. But perhaps because some of those who crafted the law were themselves engaged in money laundering, and certain powerful personalities at the time were later accused of laundering ill-gotten funds, Republic Act No. 9160 provided enough loopholes for crooks to go on with business as usual.

Public officials and influential personalities weren’t the only ones who benefited from those loopholes in RA 9160 or the Anti-Money Laundering Act of 2001. RA 9160, which was further weakened in subsequent years by certain judicial acts favoring the corrupt, apparently failed to deter ranking military officers from using the banking system to pocket huge amounts that were meant for the expenses of the poorly equipped Armed Forces of the Philippines. Retired military budget officer George Rabusa has provided detailed accounts of how public funds were stashed in the personal bank accounts of the AFP brass. Former AFP comptroller Carlos Garcia accumulated huge deposits in several bank accounts, and managed to withdraw the bulk of the funds despite his indictment for plunder.

These stories of massive corruption in the AFP should prod the current Congress to finally approve amendments proposed since the Arroyo administration by the Anti-Money Laundering Council. Among other things, the AMLC has pointed out that RA 9160 does not cover bribery and corruption, malversation of public funds, carjacking, terrorism and terrorist financing, drug offenses, human trafficking, hijacking, fraud, counterfeiting, tax evasion, and violations of certain environmental laws.

The AMLC has also lost its power to initially freeze a suspect bank account, meaning if it wants to freeze the deposits of a corrupt former AFP chief, he must be notified first, thereby giving him time to close the account and transfer the funds. Apart from seeking a return of this power, the AMLC wants only the Supreme Court to have the authority to restrain the council from freezing an account.

These amendments have been proposed to Congress. The revelations of Rabusa, backed by the testimonies of budget officer Col. Antonio Ramon Lim and government auditor Heidi Mendoza, should speed up the passage of the amendments.