InterAksyon.com means BUSINESS
MANILA, Philippines - The Philippines could be automatically blacklisted anew by the Financial Action Task Force (FATF) as the Senate may not able to pass bills against money laundering and terrorist financial before the deadline this May set by the inter-government agency.
“It is not probable that we will be able to pass all three bills [required by FTAF by May, so]... we may automatically be blacklisted,” Senator Sergio “Serge” Osmena III said on Thursday. He is chairman of the banks, financial institutions and currencies committee.
The Anti-Money Laundering Council (AMLC), in a February 21 letter to President Benigno S. C. Aquino III, said the FTAF downgraded the country to “dark grey” from “grey” last month for its failure to enact amendments to the Anti-Money Laundering Act (AMLA) and Anti-Terrorist Financing bills before December 31, 2011.
A “dark grey” listing essentially has the same effect as being in the “grey” category. Other states are warned to be cautious in their financial transactions with a country in a “grey list.”
The Philippines was given until May 2012 to enact the bills, or before FTAF’s next plenary this June, or be blacklisted.
The measures are already approved on final reading at the House of Representatives, leaving it the Senate to act on these.
An AMLA bill containing the provision allowing the AMLC to look into suspect accounts without informing the account holder – which the House took down – and the Anti-Terrorist Financing bill are pending second reading approval at the Senate.
Bill expands covered institutions
Meanwhile, a similar AMLA bill expanding the covered institutions as well as predicate crimes got the banks, financial institutions and currencies committee’s approval on Thursday, paving the way for its plenary consideration.
These Malacañang-certified bills, however, still face “tough questioning” from senators and tight legislative schedules given the impeachment trial of Chief Justice Renato C. Corona.
“There are still objections to the law by some senators,” Osmeña explained, refusing to give names.
He added that work on the bills will also have to reckon with “the impeachment trial which is getting in the way of our legislative work.”
Sought for comment, AMLC chief Vicente S. Aquino said in an ambush interview: “We cannot do anything but comply, it’s in the hands of the Senate.”
Osmeña said he is “still praying and hoping” for the measures’ speedy enactment in order to save the country from financial sanctions.
Blacklisted countries are subject to financial sanctions which would result in delayed remittances, higher charges and costs for Filipinos and Philippine banks and increased scrutiny of Philippine-based transactions.
“OFW (overseas Filipino workers’) families would be hit the hardest. Imagine the cost of remitting and time it would take to send money home should we be blacklisted,” said Aquino.
InterAksyon.com means BUSINESS
BUSINESS NEWS
