Members of the House Committee on Ways and Means have created a technical working group (TWG) to prioritize and finalize the bill criminalizing bulk cash smuggling and tighten the country’s measures against the transit of large amounts of cash to and from the Philippines.
This was after House Ways and Means Committee began its first deliberation on House Bill 6516, which would penalize the unauthorized transit of large amounts of foreign currency into or out of the country.
The bill was authored by House tax panel chairman Joey Sarte Salceda, Nueva Ecija Rep. Estrellita B. Suansing, AAMBIS OWA Rep. Sharon S. Garin, Sultan Kudarat Rep. Horacio P. Suansing Jr., Muntinlupa City Rep. Rozzano Rufino B. Biazon and Marikina Rep. Stella Luz A. Quimbo.
Salceda appointed the committee’s Senior Vice Chairman Estrellita Suansing to head a TWG on the measure. Suansing would be assisted by Committee Vice Chairman Garin.
He said the TWG is to come up with a substitute bill that shall be “more compassionate and humane,” especially to overseas Filipino workers (OFWs).
According to Salceda, the reform is urgent as bulk cash smuggling is considered a “red flag” by the Financial Action Task Force, an intergovernmental watchdog which could recommend the imposition of sanctions and additional safety checks against Philippine financial institutions.
He said bulk cash smuggling is a potential source of terrorist financing and is being taken advantage of by syndicated crime groups.
“The implications of failing to enact this measure are very real. Remittance fees could get more expensive for OFWs. Our banks will have a hard time getting through other financial institutions abroad. Our international reputation will suffer immensely. The inability of Philippine banks to transact with foreign banks endangers approximately 13.18 percent of our GDP [gross domestic product],” Salceda added.
The lawmaker said that last year, about P28.6 billion was smuggled into the country by four syndicates. Salceda added 2019 is the same year that about P50.1 billion may have been smuggled into the Philippines undetected.
Under the proposal, a one-time inbound or outbound transport of P500,000 or its foreign currency equivalent will have to be reported. A “cumulation of closely-related events” would constitute “one-time,” the bill said with the aim to close possible loopholes in the current law.
The proposal seeks to criminalize bulk cash smuggling and failure to or evading to report significant transports of cash. The bill also seeks to criminalize “conspiracy to commit” bulk cash smuggling, which would cover the “escorting” services being conducted by unscrupulous police, soldiers and airport personnel.
The Bangko Sentral ng Pilipinas, Anti-Money Laundering Council (AMLC) and Bureau of Customs all expressed support for the measure; but subject to some suggested refinements. The bill ensures that the evasion of a paper trail for cash transfers is not tolerated under the law.
The measure likewise includes the Bureau of Treasury, through the Treasurer of the Philippines, in the AMLC to facilitate counterpart-to-counterpart cooperation, as many countries’ anti-money laundering efforts are spearheaded by their Secretaries or Ministers of the Treasury.
It also provides for the forfeiture in favor of the Philippines of assets related to cash smuggling.
The bill also makes “escorting” cash smugglers illegal as part of criminalization of conspiracy to smuggle cash. It also makes declarations of cash transport amount “under oath,” effectively making misdeclaration perjurious.
It mandates an AMLC representative in airports, develop a rapid-reporting mechanism between authorities and the AMLC while expanding the latter’s powers of surveillance over airports and ports.