Senators question additional powers sought by AMLC
MANILA, Philippines — Three senators sought an explanation on Wednesday from the Anti-Money Laundering Council (AMLC) on the additional powers it was seeking under the proposed amendments to the Anti-Money Laundering Act of 2001, fearing that the granting of broad powers to the council could be abused.
During a Senate hearing on AMLA’s proposed amendments, Senator Imee Marcos clarified with AMLC executive director Mel Georgie Racela if he was seeking authority for the council to implement targeted financing sanctions.
“Sabi mo (You said) you are seeking authorization to implement targeted financing sanctions among which are freeze orders as indicated in the list of the UN security council. So it seems you are requesting the power to freeze,” Marcos told Racela.
Racela answered: “Yes, Senator Imee, only in regard to terrorism financing and that is already provided under the law and for targeted financial sanctions [that] the AMLC is requesting for authority to issue freeze orders.”
According to Racela, proliferation financing or the act of providing funds or financial services used for nuclear, chemical, or biological weapons in violation of laws is also not covered by the recently-passed Anti-Terrorism Act.
“I would beg to disagree but this is no time to argue. But okay, if that is the understanding, siguro mas maigi, Madame Chair, ipaliwanag nila itong additional powers para maintindihan natin at masuring maigi (maybe it is better, Madame Chair, if they will explain these additional powers that they want so we can understand and examine it better),” Marcos said in response, addressing Senator Grace Poe.
Poe, chair of the Senate Committee on Banks, Financial Institutions and Currencies that was leading the hearing, agreed with Marcos’s remarks.
“I agree. Medyo malawak talaga ‘yung kapangyahiran na ibibigay natin (We are granting broad powers),” Poe said.
AMLC is proposing the following amendments to AMLA, which it said will address the “identified strategic deficiencies in the legal framework for anti-money laundering and counter-terrorism financing in the country:
– Inclusion of real estate developers and brokers as covered persons when they are involved in transactions for their client concerning the buying and selling of the real estate
– Inclusion of violations of the Strategic Trade Management Act, which indirectly includes proliferation financing of weapons of mass destruction as predicate offenses to money laundering
– Authority of AMLC to implement targeted financial sanctions on proliferation financing
– Enhancement of the investigative powers of AMLC (use of investigative techniques, subpoena power)
– Prohibition on the issuance of injunctive relief against freeze orders and forfeiture proceedings
– Asset management and preservation of properties subject to freeze and/or civil forfeiture
For his part, Senate Minority Leader Franklin Drilon said there should be caution on granting additional powers to AMLC.
“We must be very careful here because indeed while we know that it should not be used as a haven for terrorist financing, a grant of broad powers can result in abuses. Remember, no less than President Digong (Rodrigo Duterte) himself suspected that the powers of AMLC were being used for political purposes against him. Let us not forget that,” he said.
“That only indicates the degree of care that we must exercise because a lack of confidence in the way the AMLC operates would precisely make that agency less effective,” he also said, adding that AMLC using its powers for purposes other than discovering laundered funds is a situation they do not want to happen.[ac]
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