AMLC says submission of report legal

The Anti-Money Laundering Council (AMLC) Tuesday said its submission to the Ombudsman of certain bank transactions of Chief Justice Renato Corona was perfectly legal.

The Anti-Money Laundering Act (Amla) mandates banks to regularly and automatically submit to the AMLC reports on selected bank transactions by their clients, said the council.

Transactions that must be regularly and automatically reported by banks to the AMLC include all those that are worth at least P500,000 and those that are deemed suspicious, such as those that may be linked to illegal activities, it said.

Citing a report the AMLC sent to her, Ombudsman Conchita Carpio Morales testified on Monday at the impeachment trial of Corona that the Chief Justice kept more than $12 million in five banks where he opened 82 accounts.

She also said that on one occasion, Corona encashed $139,359.01 and purchased a manager’s check in the amount of $388,771.22 the following day.

The amounts cited by the Ombudsman were more than the P500,000 that banks must automatically report to the AMLC as required by the anti-money laundering law.

“The Amla expressly authorizes the AMLC to require and receive covered/suspicious transaction reports from covered institutions which are similarly mandated to submit the same within the period fixed by the Amla or supervising authority,” the AMLC said in a primer on the Anti-Money Laundering Act that it distributed Tuesday to the press.

The AMLC said the anti-money laundering law was not requiring it to get a court order before receiving bank-transaction reports from banks.

In the primer it submitted to the press, the council attached a copy of the SALN (statement of assets, liabilities and net worth) form that government employees fill out and submit annually.

The AMLC highlighted the waiver clause written in the form allowing the Ombudsman to obtain related data from various government agencies. In effect, the council said its submission of bank-transaction information to the Ombudsman was legal.

Sen. Teofisto Guingona III defended the AMLC, saying it did not violate bank secrecy laws when it informed Morales of the dollar transactions entered into by Corona.

Arroyo transactions, too

“You must remember, these are records already with the AMLC. These are just files sitting in the AMLC offices. It’s not like (investigators) went to the banks and demanded these records.  The reports made by the banks are required by law,” he said.

Last night, on the second day of her testimony at the impeachment trial, Morales said the AMLC had furnished the Ombudsman with information on the financial transactions of former President Gloria Macapagal-Arroyo.

“I think that on the contrary, it was they who furnished us,” Morales said when asked by Senate President Pro Tempore Jinggoy Estrada if the Ombudsman had requested assistance from the AMLC in any case filed against Arroyo in the Sandiganbayan.

Sen. Francis Escudero wondered why the AMLC provided information for 2010, 2011 and 2012 if the basis for the Ombudsman’s request was the 2010 SALN of Corona pertaining to 2009 transactions.

“The purpose of this investigation is not only for purposes of determining of whether he reported this in his SALN but for purposes of determining whether he has unexplained wealth,” Morales said.

She said it was the Senate’s call whether to summon AMLC officials to shed light on the 17-page report it had furnished the Ombudsman.

“We source this for case buildup,” she said when asked how to treat evidence gathered by AMLC on financial transactions. “We’re only investigating.” Reports from Michelle V. Remo, TJ Burgonio and Cathy Yamsuan