EDITORIAL - Dirty money haven

Filipino travelers are familiar with the requirement that they must declare to Customs authorities amounts greater than $10,000 that they intend to bring into the country.

So how come two groups managed to bring in between Dec. 17, 2019 until January this year at least $370 million – about P18.7 billion – through the Ninoy Aquino International Airport? And where did the money go?

This was reported on Jan. 29 by Customs Commissioner Rey Leonardo Guerrero to the Department of Finance. Earlier this month, amid a Senate investigation, the DOF said the foreign currency was brought in by two groups. One, identified only as “Rodriguez,” managed to bring in about $200.24 million. Another, tagged only as “Chinese,” brought in $167.97 million.

Guerrero reported that the Rodriguez group had been funneling the dollars to Excellent Forex Inc. since July 17 last year. He said couriers of the foreign currency were paid from P12,000 to P50,000 per flight. The cash was usually packed in two pieces of luggage and flown in two or three times a week. The DOF report said the couriers were escorted through NAIA Customs authorities by members of the police, military and Manila International Airport Authority police.

Who carries around such large amounts of cash these days? Mostly those who want to avoid a paper trail. The dirty money, however, still needs to be laundered. And the Philippines remains deficient in laws to prevent money laundering. Senators have noted that simply placing bets in a casino can quickly wash dirty money. The crook can get P1 million worth of chips, for example, and then place bets for P1,000. Even if he loses, he can then cash in the rest of the chips. He gets a receipt for the cash and, voila, the dirty money has been washed.

Lawmakers have also continued to resist efforts to ease bank secrecy laws, which the DOF has been calling for to strengthen the campaign against tax evasion and other crimes. The involvement of cops, military personnel and airport police in protection rackets, as alleged in the course of the Senate probe, aggravates the problem and makes the country a haven for dirty money.