Anti-terror law may keep Philippines off money laundering grey list, says Diokno

The Philippines is not likely to return to the global money laundering watchlist if the controversial anti-terror bill is passed into law, a top official of the Bangko Sentral ng Pilipinas (BSP) claimed Thursday.

In a virtual briefing on Thursday, BSP Governor Benjamin Diokno expressed confidence the country will not be included in the latest "grey list" of the Financial Action Task Force (FATF).

"I think because one of the requirements is the approval of the Anti-Terror Act, I'm confident that that will be signed into law by the President," he said.

"I don't think we'll be on the grey list. I'm very positive that we will not be put on the grey list. As I said, I think we have complied with one of the most important requirements for the review of the anti-money laundering compliance," added Diokno.

The grey list consists of jurisdictions under increased monitoring by the FATF. Countries under such qualifications have committed to swiftly to resolve the identified strategic deficiencies within an agreed time frame.

To recall, the Philippines was removed from the grey list in in 2013, and averted the black list in 2012 after passing two key measures sought by the FATF.

The measures passed include waiving the requirement for the Anti-Money Laundering Council (AMLC) to inform suspected money launderers that their bank deposits are being monitored; and the criminalization of giving money to known terrorists.

For the Philippines to remain out of the grey list, Diokno said, one of the requirements is the controversial anti-terror bill.

The measure is now awaiting only the signature of President Rodrigo Duterte, after the House of Representatives approved the measure on third and final reading last week.

However, several human rights groups have expressed alarm over certain provisions of the measure

Members of the academe have also voiced their opposition to the measure, which they said would only bring additional burden to the people amid the COVID pandemic.

Business groups have also spoken out against the bill, saying that the bill poses "a clear and present danger" to human rights.

Retired Supreme Court justice Antonio Carpio warned that enacting the bill into law would "permanently" put the Philippines a situation "worse than martial law."

Carpio, National Union of Peoples' Lawyers, and the Integrated Bar of the Philippines are among those who plan to file a petition at the high court against the bill once it becomes a law.

According to Diokno, the deadline for the measure to be passed has been pushed back to the next year.

"The development here is that as a result of the pandemic, the schedule for the deadline for us to comply has been moved from fourth quarter of 2020 to second quarter of 2021," he said. — BM, GMA News