POE: STRONGER AMLA TO UP FINANCIAL SECTOR'S DEFENSE AMID PANDEMIC

Sen. Grace Poe said the committee on banks, financial institutions and currencies will act with dispatch on the amendments to the Anti-Money Laundering Act (AMLA) while ensuring thorough and transparent deliberation (Inihayag ni Sen. Grace Poe na kikilos kaagad ang committee on banks, financial institutions and currencies sa panukalang amendahan ang Anti-Money Laundering Act (AMLA) habang tinitiyak ang masinsinan at bukas na deliberasyon).

"It is imperative to have the means in law to better combat money laundering, terrorist financing and other related threats to the integrity of the financial system," said Poe, the chairperson of the Senate panel, after Malacanang certified as urgent the bill amending the AMLA ("Mahalagang magkaroon ng pamamaraan sa batas na husayan ang pagsugpo sa money laundering, terrorist financing at iba pang katulad ng banta sa integridad ng ating sistemang pinansiyal," saad ni Poe, matapos sertipikahan ng Malacañang bilang urgent ang panukalang amendahan ang AMLA).

"A healthy financial system will have the capacity to absorb the impact of events such as the COVID-19 pandemic that heavily disrupted economic activities and displaced thousands of workers from their source of living (Ang maayos na sistemang pinansiyal ay may kapasidad na kayanin ang epekto ng mga kaganapang tulad ng pandemya na nagpahirap sa ating ekonomiya at nagpasadsad sa kabuhayan ng ating mga kababayan)," Poe added.

The senator said discussions on the pending bills to amend AMLA will proceed with urgency, but without foregoing meticulousness and transparency to guarantee that the new version of the law will balance the interests of all concerned sectors (Sinabi ng senador na magpapatuloy nang mabilis pero hindi isinasantabi ang pagiging mabusisi para matiyak na balanse ang kalalabasang bagong bersiyon ng batas at may pagsasaalang-alang sa lahat ng kinauukulang sektor).

Poe's Senate Bill No. 1412 is one of the proposed measures filed seeking to further strengthen the AMLA or Republic Act No. 9160 (Isa ang Senate Bill No. 1412 ni Poe sa mga inihaing panukalang naglalayong patibayin pa ang AMLA o ang Republic Act No. 9160).

The bill, among others, proposes the following (Ilan sa mga panukala ng bill ni Poe ang mga sumusunod):

- Inclusion of real estate developers and brokers as covered persons (Pagsama sa mga real estate developer at broker bilang sakop na personalidad);

- Inclusion of tax crimes and violation of the Strategic Trade Management Act which indirectly includes proliferation of weapons of mass destruction as predicate offenses to money laundering (Pagsama sa tax crimes at paglabag sa Strategic Trade Management Act na hindi direktang ibinibilang ang paglaganap ng weapon of mass destruction bilang mga predicate offense sa money laundering);

- Enhancement of the investigative powers of the Anti-Money Laundering Council (AMLC) (Pagpapahusay sa kapangyarihang mag-imbestiga ng Anti-Money Laundering Council (AMLC));

- Authorization of the AMLC to implement "targeted financial sanctions" on proliferation financing (Awtorisasyon sa AMLC na ipatupad ang "targeted financial sanctions" sa proliferation financing);

- Prohibition on the issuance of injunctive relief against freeze orders and forfeiture proceedings (Pagpigil sa pagpapalabas ng injunctive relief laban sa freeze order at forfeiture proceedings); and

- Authorization of the AMLC to preserve, manage or dispose assets subject of asset preservation order and judgment forfeiture (Awtorisasyon ng AMLC na ipreserba, pamahalaan at ibenta ang mga asset na tinutukoy sa asset preservation order at judgment forfeiture).

The AMLC earlier warned that if the Philippines fails to pass the said amendments and demonstrate effective implementation, the country will be under the danger of being "grey-listed" (Naunang nagbabala ang AMLC na kung mabibigo ang Pilipinas na maipasa ang mga amendment at maipakita ang epektibong implementasyon, nanganganib ang bansa na maging "grey-listed").

"Grey listing" of the Philippines would mean that: (a) the European Union will impose "enhanced due diligence" (EDD) on Filipino nationals and businesses; (b) EDD will entail additional cost and paperwork; (c) there will be higher interest rates/processing fees; (d) there will be higher cost of remittance for OFWs; (e) the Philippines will incur a "reputational risk" that would result in reduced investor and lender confidence; (f) there could be a decline in the GDP growth of the Philippines; and (g) there would be a setback in our efforts to achieve an "A" credit rating before 2022; among others (Kapag nasa "grey list" ang Pilipinas, ibig sabihin nito: (a) ipatutupad ng European Union ang "enhanced due diligence" (EDD) sa mga Filipino national at negosyo; (b) Magkakaroon ng karagdagang gastos at paperwork ang EDD; (c) Magkakaroon ng mas mataas na interest rates/ processing fees; (d) magkakaroon din ng mas mataas na singil sa remittance ng mga OFW; (e) magkakaroon ang Pilipinas ng "reputational risk" na maaaring magresulta sa pagbagsak ng kumpiyansya ng imbestor at nagpapautang; (f) magkakaroon ng pagbagsak ng GDP growth ng Pilipinas; at (g) magkakaroon ng setback sa ating kakayanang makamit ang isang "A" credit rating bago sumapit ang 2022).

"The above-cited consequences of being "grey-listed" by the Financial Action Task Force (FATF) would surely have a negative impact not just on our OFWs, Filipino nationals and businesses abroad, but also on our country's economy (Yan ang maaaring mangyari kapag "grey-listed" tayo ng Financial Action Task Force (FATF) na tiyak na may negatibong epekto hindi lamang sa ating mga OFW, Filipino nationals at negosyo abroad, kundi pati na rin sa ating ekonomiya),"Poe said in her bill.

"We need to up our defenses against the evolving threats of financial crimes. A stronger AMLA will help ensure that perpetrators shall have nowhere to hide (Kailangang patindihin natin ang ating depensa laban sa tumitinding banta ng krimeng pampinansiyal. Isang malakas na AMLA ang makatutulong upang matiyak na wala nang pagtataguan ang mga sangkot)," Poe said.

The FATF has extended the deadline for its observation period from October 2020 to February 2021 due to the global crisis, saying that the pandemic made it "impossible for assessed jurisdictions and assessors alike to conduct on-site visits and in-person meetings" (Pinalawig ng FATF ang deadline ng kanilang observation period mula October 2020 hanggang February 2021 sanhi ng pandaigdigang kirisis).