FAILURE to pass the controversial Anti-Terrorism Bill (ATB) will put the Philippines in the Financial Action Task Force’s (FATF) gray list, which would, in turn, echo negative effects on certain sectors in the economy, the Anti-Money Laundering Council (AMLC) said, as an international labor group joined the ranks of those objecting to it.
Over the weekend, the AMLC issued a statement, saying the highly controversial anti-terrorism bill has direct effects on the local economy due to its provisions to curb financial terrorism. The provisions on financial terrorism were in adherence to the international standards set by FATF.
“If any or all of the proposed amendments are not passed and not implemented within the observation period, the country will be included in the FATF gray list, which will publicly identify the Philippines as a risk to the international financial system for having strategic deficiencies in its AML/CTF framework,” AMLC said.
“The pandemic is already adversely affecting our economy. It would be prudent to mitigate other risks and avoid problems gray-listing would further bring to our economy,” AMLC added.
The FATF is an intergovernmental organization founded to develop and promote policies to protect the global financial system against money laundering, terrorism financing, and the proliferation financing of weapons of mass destruction.
Inadequacies
AMLC said FATF’s recent evaluations of the Philippines pointed to inadequacies in local laws on implementing United Nations Security Council Resolutions recommendations, particularly in the country’s anti-money laundering and counter-terrorism financing (AML/CTF) system.
The Philippines was then placed under a 12-month observation period by the FATF in October 2019, following the country’s evaluation. However, in view of the general pause in the review process due to the coronavirus disease (Covid-19) pandemic, this 12-month observation period will now end in February 2021, instead of October 2020.
Under this 12-month observation period, the Philippines must address the recommended actions to avoid being included in the international ogranization’s grey list. Jurisdictions in the grey list are subject to increased monitoring due to strategic differences.
““Consequently, the Philippines’ inclusion in the gray list will result to an additional layer of scrutiny from regulators and financial institutions, thereby increasing the cost of doing business; delaying the processing of transactions; and blocking the country’s road to an ‘A’ credit rating,” AMLC said.
According to FATF’s data, 18 countries are currently on their grey list. These are Albania, The Bahamas, Barbados, Botswana, Cambodia, Ghana, Iceland, Jamaica, Mauritius, Mongolia, Myanmar, Nicaragua, Pakistan, Panama, Syria, Uganda, Yemen and Zimbabwe.
“This observation period is the last opportunity for the Philippine competent authorities to address identified deficiencies in the mutual evaluation report [MER] to avoid gray-listing,” AMLC said. “But it is not enough to just pass these amendments into law, since the Philippines is being assessed both on technical and effectiveness compliance. The country must also demonstrate effective implementation of these amendments before the observation period ends in February 2021.”
“With the early passage of the ATA [Anti-Terrorism Act], the Philippines will be given a very good opportunity to implement the same and demonstrate progress in fulfilling our international commitments. So we hope that the same attention and commitment would be given to amendments to the AMLA, as amended, so that the country may finally avoid inclusion in the FATF gray list,” AMLC further said.
The FATF recommendations, according to AMLC, include provisions on the designation of terrorist individuals and groups, implementation of financial sanctions, evidentiary standards of “probable cause” when making designations; and criminality provisions for foreign terrorist fighters and the financing of the travel of terrorists.
As such, AMLC said the following sections are non-negotiables to the bill, which means that they should be passed as is for the Philippines to avoid being included in FATF’s grey list: (1) Sec. 3(b) on the definition of a designated person; (2) Sec. 11 (a, b, and c) on the unlawful acts of foreign terrorists; (3) Sec. 25 on the designation of terrorist individuals, groups of persons, organizations, or associations; (4) Sec. 34 on the AMLC’s authority to investigate, inquire into, and examine bank deposits; (5) Sec. 35 on the AMLC’s authority to freeze; (6) Sec. 37 on safe harbor for any person acting on good faith when implementing targeted financial sanctions; and (7) Sec. 45(i) on the function of the Anti-Terrorism Council to take action on relevant resolutions.
Labor, human rights
The government’s fight against terrorism need not negate protecting trade union and human rights.
This was the statement of the International Trade Union Confederation (ITUC) as it joined the growing condemnation of the ATA of 2020, which is now with President Duterte for his signature.
Last Friday, ITUC Secretary General Sharan Burrow and ITUC-Asia Pacific head Shoya Yoshida sent a letter to Duterte urging him to veto the measure.
Both labor leaders were “extremely concerned” that the measure could “shrink and stifle civic space and rights at work placing workers, trade union activists, and other human rights actors and defenders.”
They noted this is contrary to the provision of international law as well as the International Convention 87 on Freedom of Association and the UN International Conventions on Civil and Political Rights (UN ICCPR).
They particularly cited the broadened definition of terrorism, which includes any damage to public facility, private property, and infrastructure; criminalization of expression of support to alleged terrorists; transfer of suspected terrorists to a foreign nation without court approval; denying a suspected terrorist from a warrant-based arrest; and the removal of compensation for people, who were wrongfully charged as terrorists.
“Mr. President, we have mentioned a few of these illegal and unreasonable anti-terror provisions in the Bills (Senate Bill 1083 and House Bill 6875) which violate international standards,” Burrow and Yoshida said.
“You have an obligation to guarantee the enjoyment of the right to organize, in law and practice, under the atmosphere of respect for human rights and civil liberties,” they added.
ITUC represents 200 million workers from 163 countries and territories. Its local affiliates groups include the Federation of Free Workers (FFW), Kilusang Mayo Uno (KMU), Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) and Trade Union Congress of the Philippines (TUCP).
With a report by Samuel P. Medenilla
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