Osmeña vows to name senators delaying passage of AMLA amendments

Senator Sergio Osmeña III on Monday vowed to name his colleagues who were delaying the passage of the amendments to the Anti-Money Laundering Act. The country recently missed being included on the blacklist of the intergovernmental anti-money laundering body, the Financial Action Task Force.   “I’m happy that we’re not blacklisted. But in February [the new deadline set by FATF], if they pull the same stunt, I promise you I will tell the Filipino people who they are because I think that they’re selling the country short. Lahat ng dahilan ginagamit nila,” Osmeña told reporters.   He refused to name them now because the country evaded inclusion in the blacklist.   “I would have told you if we had been blacklisted, I threatened them pero we were not blacklisted,” he said.   He said some senators always say they object to the proposals, but refuse to specify why on the floor.   “They’re always very vague. Halos lahat daw [ng amendments objectionable],” he said.   The proposal includes the addition of nine predicate offenses and 23 activities covered by AMLA but the most objectionable, Osmeña thinks, are the tax evasion and real estate transactions.   “When we were in caucus they’ll talk about tax evasion: 'Bakit nandyan yung tax evasion?' 'Bakit isasama yung real estate brokers?' And I did tell them that one of the biggest money laundering activities in this country is buying real estate,” he said.   He said big drug dealers have a technique of buying real estate properties in several parts of the country and then selling them again in a year or two.   “They’ll buy in Cebu, Davao, in Zamboanga, all over 'yan. Tapos after one year, two years ibebenta, o legal na 'yan,” he said.   He said if the real estate agents or brokers do not report transactions over $10,000, or P420,000, the Anti-Money Laundering Council (AMLC) will not be able to see the pattern.   “If it’s anybody, you and I buy, that’s only one time, it will not show a pattern, we don’t throw [around] that kind of money. Kung sila [money launderers], they have P200 million, P500 million, a billion pesos a year, syempre ayaw nila magpahalata sa city registrar.....i-spread nila 'yan,” Osmeña explained.   “If you put it all in one place, there’s somebody syempre who will notice — 'who is this guy, I never heard of him before' — na nakakabili ng napakadaming lupa all or a lot at the same time, within six months or one year. But if it’s in another place no one will know except the AMLC, if it is reported,” he added.   Osmeña said that the other senators do not want to include real estate because it would be disadvantageous to brokers and agents. But, he argued, other countries implement a similar law.   He also believes that the real estate industry will not be affected by the law.   Osmeña said that pawn brokers and art dealers should also report transactions over P420,000 to the AMLC “because art is one of the easiest way to launder." BIR records   However, Senate President Juan Ponce Enrile said in a separate interview that real estate transactions could not be used to launder money because the Bureau of Internal Revenue could always question and conduct its own investigation on such matters.   “How can you launder dirty money through real estate? Unang una they can ask, 'Where’d you get that money to get so much property' dun sa bumibili. Maski na walang money laundering, if that is a proper question for the BIR they can do it on their own without being involved with money laundering,” he said.   “A terrorist will not put his money in real estate. He will need the money to fund his terroristic activities. A jueteng lord can buy land but the BIR need not use the money laundering law to run after a real estate operator if people buying property should be checked. They have the records of every taxpayer in this country. They know their sources of income, it’s all in the financial records in their hands,” he said. Enrile also said that tax evasion is a contentious issue because it could be used as an “instrument of persecution.”   “Di naman dahil may pinoproteksyunang mga tax evader dito pero nakakatakot 'yan. Pag sinama mo yung tax evasion per se, aba’y gagamitin 'yun sa …alam mo naman sa pulitika natin dito. It’s OK with this present administration but how about the next administration? The future administrations? Di mo malalaman, it can be used as an instrument of persecution,” he said.   Enrile was happy that the Philippines did not make it in the FATF blacklist.   “I don’t think that they would really be that callous and unwise in imposing their will on a country like the Philippines trying its best to comply with its obligation under its treaty commitment, but nonetheless we operate with deliberative bodies that [are] composed of people with different notions of what is right and what’s wrong. So I’m glad that they did not blacklist us,” he said. Warning Osmeña reiterated that the Philippines would have a hard time if it were to be included in the FATF blacklist, as it is highly dependent on doing business with developed countries such America, the United Kingdom and Japan.   “We will all suffer because our banking institutions will be given a harder time. Maraming bankers diyan na magba-back out,” he said.   “So bahala itong mga pilosopo dito. You want that to happen, you better be willing to take the heat later on,” he said. — BM, GMA News