Give AMLA ‘more teeth’ or face international sanctions — Imee Marcos

MANILA, Philippines — Give the country’s Anti-money Laundering Act (AMLA) “more teeth” or risk facing international sanctions.

Senator Imee Marcos issued this warning as the Philippines is in the middle of a 12-month observation period set by the world’s anti-money laundering body, the Paris-based Financial Action Task Force (FATF).

Marcos, chair of the Senate economic affairs committee, noted that the Philippines has six months left to amend AMLA or risk facing international sanctions which she said will dampen confidence in the country’s business environment and political stability.

“Pagdating ng Oktubre, dapat may karagdagang ngipin na ang AMLA at baka mabansagan na naman tayong ‘non-cooperative country’ o kaya ‘high-risk jurisdiction,’ gaya nang nangyari noong 2001 bago maisabatas ang AMLA,” Marcos said in a statement Sunday.

(When October comes, our AMLA should be given more teeth or we will once again be called ‘non-cooperative country’ or a ‘high-risk jurisdiction’ just like what happened before AMLA was enacted into law).

READ: AMLC: P14-billion Pogo transactions suspicious

This after entry of billions of pesos worth of foreign currency in recent months has revived concerns about laundered money being used to set up illegal businesses for gambling, human trafficking, prostitution, and illegal drug dealing, and funding anti-government and terrorist activities.

READ: Over P32B foreign money brought into PH in just 6 months — Gordon

Marcos said she is drafting a bill in which possible amendments include giving AMLA “more teeth” to investigate suspicious transactions without being hindered by restraining orders from the lower courts, to add real estate developers and brokers to the list of persons covered by the law, and to consider tax crimes and violations of the Strategic Trade Management Act (RA 10697), or the law against the proliferation of weapons of mass destruction and their financing, as predicate offenses to money laundering.

If the Philippines fails to pass the scrutiny of the FATF and is marked as a threat to the international financial system, banking sanctions may again be imposed on  remittances from overseas Filipino workers and slow down their crucial contribution to the country’s foreign currency reserves, according to Marcos.

She said foreign countries may also impose stricter and longer due diligence checks on Philippine companies, affecting the ease of doing business.

“The additional costs that will be incurred from stricter business requirements may also force banks to apply higher interest rates, which in turn will raise production costs for local businesses, making both of them less competitive,” she added.