Senators delay Amla amendment

A lengthy debate among senators on Monday night prevented them from approving an amendment to the Anti-Money Laundering Act (Amla) that should allow investigators to examine a suspected criminal’s bank accounts without having to inform him.

Malacañang wants the bill approved before Congress goes into sine die adjournment tomorrow (Wednesday).

Instead, the Senate passed on second reading a related Palace-certified bill that criminalizes financial support given to terrorist groups and activities.

The global-based Finance Action Task Force (FATF) wants both bills, and a third that expands the coverage of business transactions above P500,000 that need to be reported to the AMLC, including the purchase of high-end jewelry, art work and casino winnings, passed.

Senate leaders were hopeful that the contentious first measure, which intends to include an ex parte provision that allows a court to permit the Anti-Money Laundering Council (AMLC) to scrutinize a suspected launderer’s deposits without his knowledge, would be approved on second and third reading Monday.

The FATF demanded that all three bills be approved before the adjournment lest the Philippines join its blacklist.

Authorities earlier warned that inclusion in the blacklist would impose more documentary and other requirements on Filipinos who conduct  international business transactions such as overseas remittances.

However, Senate Minority Leader Alan Peter Cayetano, banks committee chairman Sergio Osmena III, ways and means committee chairman Ralph Recto and Senator Joker Arroyo took turns until late Monday night warning of possible dangers to the banking system and perceived enemies of the sitting President should the ex parte provision be  enacted.

Under existing law, suspicion that a depositor is involved in drug dealing or terrorist acts provides the AMLC with a reason to pore over his bank accounts.

When the council obtains a court permit to scrutinize a suspect’s deposits, he needs to be informed that his accounts are being scrutinized.

The ex parte provision frees the AMLC from having to inform the suspect about the examination of his deposits.

There are fears that if the ex parte provision is approved, the amended Amla may be used as an instrument to harass a Chief Executive’s political enemies.

This warning was raised, especially since the Senate as an impeachment court delivered a guilty verdict on  Chief Justice Renato Corona based on information from the AMLC.

It is widely believed that information detailing Corona’s multimillion-dollar deposits given by the AMLC and used by Ombudsman Conchita Carpio Morales in her testimony was the  damning evidence that elicited the guilty verdict.