MANILA - Legislators have a 4-month window within which to strengthen the country's Anti-Money Laundering Act before the Philippines returns to an international blacklist of dirty money havens, the Bangko Sentral ng Pilipinas said.
BSP Governor Amando M. Tetangco Jr. said the Financial Action Task Force “strongly encourages” the Philippines to adopt more stringent standards in its anti-money laundering measures than are provided for in existing laws or risk consequences beginning February 2013.
“Through the efforts of the AMLC, the FATF was apprised about the current effort to legislate an amendment to our AMLA to bring the covered predicate crimes and reporting entities up to international standards. Recognizing such effort, the FATF has strongly encouraged us to adopt said standards before February 2013 and in the meantime has kept up in the grey list,” Tetangco said.
The Anti-Money Laundering Council is an inter-agency body tasked with implementing the AMLA.
The Paris-headquartered FATF's grey list includes 22 other countries that have “strategic deficiencies” in their laws against illegal flow of money and terrorist financing.
Blacklisting would increase the cost of remittance transfers, reducing the actual money OFW beneficiaries receive and their spending power.
Remittances account for 10 percent of gross domestic product, fueling consumer spending, which in turn comprises two-thirds of the Philippine economy. Philippine GDP grew 6.1 percent in the first half of this year, making the country one of Asia's fastest-growing economies.
Legislation meant to bolster the AMLA is pending before the Senate. Congress went on a recess starting October 17 just as the FATF held a three-day plenary session to assess the progress of the Philippines in strengthening its anti-money laundering rules.
Congress will resume its session on November 5.
Article Source: Joseph Villanueva, InterAksyon
