AMLC seeks swift implementation of Anti-terror law, AMLA amendments

The Anti-Money Laundering Council (AMLC) is calling for the immediate and efficient implementation of the Anti-Terrorism Act (ATA) and amending the Anti-Money Laundering law (AMLA) to avoid the country’s inclusion in an international body’s list of economies with a high-risk of dirty money and terrorist financing activities.

In a virtual press briefing, AMLC Executive Director Mel Georgie Racela said the Philippines has only until February 2021 to address deficiencies in its anti-money laundering and counter-terrorism financing system.

“The Philippines was placed under a 12-month observation period by FATF-ICRG (Financial Action Task Force-International Cooperation Review Group) [since] October 2019. This observation period was extended to Feb 2021 due to the pandemic,” Racela said.

With this, the AMC chief said the new provisions in the ATA are key to the Philippines' non-inclusion to the FATF-ICRG gray list.

These include the “designation mechanism” under Section 25, criminalization of foreign terrorists under Section 11 of the anti-terror law, as well as the financing and facilitation of travel of foreign terrorists, among others.

“Currently, the AMLC is working towards avoiding the country’s inclusion in the FATF-ICRG gray list,” Racela said.

To avoid gray listing, Racela called for “effective implementation of the ATA before the observation period ends in February 2021.”

“Amend the AMLA, with the inclusion of tax crimes as predicate crimes to money laundering; inclusion of real estate developers and brokers, who engage in buying and selling of real properties; expansion of investigative powers of the AMLC, that is, subpoena and contempt powers,” he said.

“Failure to pass and implement the amendments to the AML before February 2021 will have similar effects that is the Philippines’ inclusion in FATF-ICRG gray list,” he emphasized.

The country’s inclusion in the FATF-ICRG gray list will publicly identify the Philippines as a risk to the international financial system for having strategic deficiencies in its anti-money laundering and counter-terrorism financing framework.

“Consequently, the Philippines inclusion will result in an additional layer of scrutiny from regulators and financial institutions. Thereby, increasing the cost of doing business with Filipinos, delaying processing of transactions and blocking the country’s road to an ‘A’ credit rating,” Racela said. — DVM, GMA News