Senate bill to amend AMLA, give govt broader powers over bank deposits

By KIMBERLY JANE TAN, GMA News

Published June 5, 2012 5:57pm

(Updated 7:00 p.m.) The Senate on Tuesday approved on third and final reading one of the bills amending the Anti-Money Laundering Act (AMLA), giving government broader powers over bank accounts.

This means that the Anti-Money Laundering Council–the agency implementing the law–may pry into bank deposits even without the consent of account owners once the bill is enacted into law.

Voting 20-0, the Senate approved Senate Bill 3009, allowing the Anti-Money Laundering Council (AMLC) to inquire into bank deposits based on an ex parte application and allow courts other than the Court of Appeals to issue freeze orders.

This means that the AMLC–the agency implementing the law–may now pry into bank deposits even without the consent of account owners. Positive perception toward PHL banks

Senator Teofisto Guingona III, sponsor of the bill, said the approval of the bill sends a positive signal to the international financial community that the Philippines is serious in ensuring that the country’s banking system is "bolstered by safe and legal measures."

“The international community classifies the Philippines as a high risk environment when it comes to banking practices. We strongly believe that an enhanced AMLA law would contribute greatly to a more positive perception of the country’s banking system,” he said in a statement released Tuesday.

SB 3009 was certified urgent by the Malacañang.

Last March, the Palace earlier urged the Senate to approve SB 3009, along with SB 3123 and 3127, to keep the Financial Action Task Force (FATF) from putting the Philippines on its blacklist.

SB 3123 seeks to expand the list of entities required to report financial transactions to the AMLC by including casinos, dealers, pre-need companies, real estate agents, and trust and company providers, among others. SB 3127 or the Terrorism Financing Prevention and Suppression Act seeks to allow authorities to freeze terrorist funds and inquire into bank accounts even without a court order.

In an interview with reporters on Monday, Senate Majority Floor Leader Vicente Sotto III said they will not be able to approve SB 3127 yet because it was only approved on second reading on Monday and they have yet to receive a letter from the Palace certifying it as urgent.

Sotto said the Palace only certified as urgent the bill's counterpart in the House of Representatives.

The chamber can only approve on third and final reading non-priority bills three days after approval on second reading.

On the other hand, the Senate has yet to approve SB 3123 even on second reading. Aqunio to certify as urgent SB 3127

Meanwhile, President Benigno Aquino III is set to certify as urgent SB 3127 late Tuesday.

In a text message to reporters, presidential spokesperson Edwin Lacierda said Aquino will be sending his electronic signature to certify the proposed bill. The President is now in United Kingdom for a three-day official visit.

“The President will certify it as urgent tonight by way of electronic signature,” he said.

Lacierda noted that Aquino made the decision after Budget Secretary Florencio Abad apprised the President earlier Tuesday of the status of the bill and the need for it to be certified as urgent. —With a report by Amita Legaspi/VS, GMA News

Tags: phlbanks, amlc, amla, sb3009, sb3123