Arroyo wants BSP supervisory powers over AMLC lifted

Former President and now Pampanga Rep. Gloria Macapagal-Arroyo has proposed the lifting of the supervisory powers of the governor of the Bangko Sentral ng Pilipinas (BSP) over the Anti-Money Laundering Council (AMLC).

In a statement, Arroyo said Section 128 of the proposed New Central Bank Act should be amended to specifically prohibit the central bank from supervising the operations of the AMLC.

"[T]o insulate the BSP officials from the actuations of AMLC, especially the political ones which may be influenced by the Council officials' loyalty to their appointing authority, the BSP should be liberated from the burden of supervising the very rigorous demands of criminal investigation such as those performed by AMLC," she said.

The proposal comes after President Rodrigo Duterte, in late December, criticized officials of the AMLC for allegedly being uncooperative with the National Bureau of Investigation (NBI) in its investigation of suspected drug lords. 

In November, Duterte also warned BSP and AMLC officials for allegedly being "hard to deal with." 

Currently chaired by BSP Governor Amando M. Tetangco, Jr., the AMLC counts as members Insurance Commissioner Dennis B. Funa and Securities and Exchange Commission (SEC) Chairperson Teresita J. Herbosa.

"The AMLC, whose officers were appointed by the previous administration, has demonstrated the potential of being used as a tool of selective justice," Arroyo said.

Arroyo noted that last elections, "grossly inaccurate information" of then-Davao City Mayor Rodrigo Duterte were "leaked out," referring to the expose of Senator Antonio Trillanes IV on the alleged questionable bank accounts of Duterte. Meanwhile, Arroyo said information of persons under investigation are now being withheld.

"Part of the problem is that although excellent in the management of the country's monetary system, career technocrats like Tetangco do not have the temperament and training to supervise criminal investigations such as those conducted by the AMLC," Arroyo said.

While Arroyo called for the lifting of the supervisory powers of the BSP Governor over the AMLC, she cleared that he or she may still serve as a member of the council.

"The proposed provision is founded on the situation of AMLC Chair and BSP Governor Tetangco, a fine career technocrat who was appointed during GMA's term and was also re-appointed by her successor," she said.

"Though Tetangco has unquestionably served the BSP itself with distinction, his supervision over the AMLC has exposed some problems. The said agency has been acting much on its own with regard to its investigations, without bothering to get specific clearances from the BSP governor," it added.

The BSP has already cleared that while the AMLC is headed by Tetangco, it is a separate entity from the council. 

Tetangco, who Duterte earlier wanted to be reappointed as governor, is already in his second term which expires in July.

Duterte reportedly earlier suggested to Finance Secretary Carlos G. Dominguez III that he would ask Congress to amend existing laws and increase the term limits on the central bank governor as a way of accommodating Tetangco for another term.

Duterte, however, backtracked last week, saying current laws prohibit Tetangco from being appointed a third term.  Responding to this, Tetangco told reporters: "Let's cross the bridge when we get there."

Tetangco was first appointed by Arroyo in 2005, and reappointed by her successor, Benigno Aquino III, in 2011. —Jon Viktor D. Cabuenas/KBK, GMA News