Moments after President Aquino signed “An Act To Further Strengthen The Anti-Money Laundering Law,” the new law providing sharper fangs on similar enactments, to wit: the Republic Act 9160 of the Anti-Money Laundering Act of 2001 and RA 9194, the superceding law that had the former revoked, Budget Secretary Florencio Abad claimed that the country has rid itself of an old stigma as the best place to hide wealth from unknown, even illegal sources.
Aquino’s top budget manager said the new anti-money laundering law was equipped with stipulations guaranteeing the privacy of individuals or groups from whom or to whom suspiciously huge funds come from or are bound to land, but without compromising the integrity of the Philippine banking and fund transfer systems and always promoting the national interest.
“Through this measure, the Aquino administration can strengthen Republic Act 9160, or the ‘Anti-Money Laundering Act (AMLA) of 2001’ by restoring the Anti-Money Laundering Council’s authority to freeze assets allegedly proceeding from criminal activity. The newly signed law also reinstitutes the rewards-and-incentives system that was originally in place under RA 9160—but which was later revoked by RA 9194—as well as expands the scope of crimes identified in the AMLA, among others.
Even in the face of a potential blacklisting of the Philippines by the Financial Action Task Force, which had long been pressing Philippine government to enact amendments to what they described as a harmless anti-money laundering law, Abad could still afford to cite the signing of the revitalized law by a President who has been preoccupied in pinning down detained former President Gloria Macapagal Arroyo and her known allies, such as impeached Chief Justice Renato Corona.
“We applaud President Benigno S. Aquino III for signing the bill ‘An Act To Further Strengthen The Anti-Money Laundering Law.’ The enactment of this bill into law is a triumph for the Administration and the Filipino public, as it strengthens the government’s campaign for greater accountability and transparency in fiscal transactions and, ultimately, in the bureaucracy,” the DBM chief said.
Abad went on to predict that the 2012 version of the anti-money laundering law would significantly contribute to the development of a conducive trade environment for job-generating investments.
“Besides its positive impact on the Aquino administration’s drive for improved governance, the implications of these changes are likewise immense for the country’s economic growth. Policy reform efforts such as this will help lower the Philippines’ investment risk profile in the international community and, consequently, create a better environment for trade and job-generating businesses.”
Aquino also signed another bill required to keep the Philippines from being blacklisted by the FATF, which saw the Philippines coddling not just loot from organized crime groups but also blood-tainted financing of terrorist groups.
In a statement Monday, presidential spokesperson Edwin Lacierda claimed the “An Act To Further Strengthen The Anti-Money Laundering Law” and “The Terrorism Financing Prevention And Suppression Act of 2012” were laws taking the country a “major step forward in enhancing transparency and accountability. These qualify as two out of three reforms needed for the country’s compliance with the international standards set by the Financial Action Task Force.”
The Palace mouthpiece added that the Philippine government has furnished the FATF a scanned copy of the twin enactments.
Anti-Money Laundering Council executive director Vic Aquino is still in Rome to attend the FATF meeting.
An Act To Further Strengthen The Anti-Money Laundering Law allows the Anti-Money Laundering Council to pry into bank deposits based on an ex parte application or without informing, in this case, the bank account holders.
The Terrorism Financing Prevention and Suppression Act allows authorities to freeze suspected terrorist funds and inquire into bank accounts even without a court order.
AMLC’s Aquino had earlier warned thst the Philippines would face drastic countermeasures or sanctions if it makes it to the FATF blacklist.
“The people [who] will be hit hard or hit hardest are our overseas Filipino workers and their families because these sanctions would result in delayed and costly remittances, high intermediation costs and other charges and these will not also be good for the banking sector,” he said.