US Treasury worried over non-inclusion of gamekeepers in anti-dirty money law

MANILA, Philippines - The Philippines’ failure to include casino gamekeepers in the ambit of the anti-dirty money law has troubled the US Department of the Treasury, the Anti-Money Laundering Council (AMLC) said. Washington’s concern was expressed ahead of an annual review by global watchdogs on Manila’s efforts to stem money laundering. "Casino is a serious concern of the US Treasury," AMLC Executive Director Vicente S. Aquino told lawmakers last Friday during his presentation on a joint report conducted by the World Bank and Australia-based Asia-Pacific Group (APG) on Money Laundering. The joint report found that the Philippines has yet to have a law defining terrorist financing as a crime. It also recommended increased monitoring of remittance centers and nonprofit organizations that could be potential money laundering routes. Mr. Aquino said the World Bank and APG did not consider casinos as a nonprofit organization. Casinos neither fall within the regulatory ambit of the central bank, the Securities and Exchange Commission (SEC), and the Insurance Commission, putting a question on how these institutions should be classified. Republic Act 9160, or the Anti-Money Laundering Act of 2001, covers only banks and non-bank financial institutions both from the government and private sector. "Casinos are not considered covered institutions under the AMLA. A covered institution is defined as supervised and regulated by any of the three regulators: BSP (Bangko Sentral ng Pilipinas), SEC (Security and Exchange Commission) and IC (Insurance Commission)," Mr. Aquino, a lawyer, said. The AMLC last year asked Malacañang to issue an executive order that will require the Philippine Amusement and Gaming Corp. (Pagcor) to subscribe to the requirements of the anti-dirty money law, including requiring customers to identify themselves. The Office of the President, however, has turned down the AMLC proposal and instead "responded by advising us to refer the matter to Congress by way of legislative amendment to the AMLA", Mr. Aquino said. SEC Chairman Fe B. Barin said that while Pagcor is a registered corporation, the AMLA failed to include it in the list of covered institutions. Lawmakers, meanwhile, could not make up their minds on whether to amend the AMLA, with Senator Edgardo J. Angara, Jr., chairman of the congressional oversight committee on anti-money laundering, saying the issue will need "legal study." "This [casino] is a very rich fertile source of money laundering," Mr. Angara said. Makati Rep. Teodoro L. Locsin, Jr. said he is willing to file a bill seeking AMLA’s revision, but pointed out that the AMLC has to make its recommendation. "Let the AMLC initiate the action because they’re the one’s applying the law," Mr. Angara said. An evaluation team from Washington, consisting of legal and financial experts from the World Bank and APG, is scheduled to visit in September to assess compliance with the revised standards of the Financial Action Task Force (FATF). FATF is a Paris-based global watchdog that monitors countries’ efforts to stem the cross-border flow of dirty money. US Department of the Treasury, which ensures the safety and security of the US and international financial system, works with these watchdogs and implements economic sanctions. — Maria Eloisa I. Calderon, BusinessWorld