THE signing into law of the amended Anti-Money Laundering Act (Amla), embodying better safeguards against fraud and organized crime, will signal investors to put more money in the Philippines while helping millions of migrant workers avert stringent rules for transacting, the head of the Senate’s Banking committee said over the weekend.
The “fortified Amla,” according to Sen. Mary Grace Natividad S. Poe, “is a fresh signal to investors to put their trust and money into the financial system to help bring around the economy.”
With a more effective means for “catching fraudsters, businesses, creditors and the international community can look to the Philippines anew with renewed confidence,” Poe added.
This boost is vital in recovering from the impact of the Covid 19 pandemic, at a time “we need the resources of people willing to put in their investments to enliven our sectors, generate jobs and give our people sustainable income,” she said.
The new Amla “also sends a clear message to the world that the hard-earned money of our overseas Filipino workers go through the legitimate channels when sent to their families in the country.”
“It is only fitting to protect the remittances of our OFWs, who help keep our economy afloat,” Poe emphasized.
More teeth
WITH the new law, the Anti-Money Laundering Council (AMLC) could now go after more anomalous transactions and impose additional restrictions.
President Duterte finally signed into law last Saturday the Republic Act (RA) 11521, or the Act further Strengthening the Anti-Money Laundering Law. The law gives additional powers to the AMLC.
It amended provisions of the Anti-Money Laundering Act of 2001 so it will now cover real estate developers and offshore gaming operators accredited by the Philippine Amusement and Gaming Corp. (Pagcor).
The new law is expected to prevent the country from being “gray-listed” with the Financial Action Task Force for insufficient safeguards against money laundering transactions.
New coverage
THE law also lowered the amount of “covered transaction” the AMLC could flag from P4 million, or an equivalent amount in foreign currencies within five consecutive banking days to an amount in excess of P500,000 within one banking day.
Also now covered by AMLC jurisdiction are any amount in excess of P5 million or its equivalent currency.
Specifically for real estate brokers, the AMLC can investigate transactions involving an amount in excess of P75,000 or its equivalent currency.
RA 11521 also specified the AMLC could probe “suspicious transactions” but on the condition it applies for the necessary search and seizure order from competent court.
Account, property freeze
FOR financial transactions in relation to proliferation of weapons of mass destruction and its financing, the AMLC could impose financial sanctions including an ex parte freeze.
The freeze order or asset preservation will only be limited to the amount of cash monetary instrument or value of property that court finds there is probable cause to be considered as proceeds of a predicate offense.
The Court of Appeals (CA) will look into the said ex parte freeze from AMLC and conduct hearings within 20 days if it modify or lift the freeze order.
The freeze order from CA is capped to six months by RA 11521.
The power of the AMLC to freeze monetary instruments and property was extended from 15 days to 20 days.
Data breach
BESIDES the said powers, the new law also imposed restrictions on members of AMLC and its secretariat, barring them from revealing any information on their investigation even after their separation from the council.
Those who engage in breach of information security from AMLC could be jailed for three to eight years and fined not less than P500,000 but not more than P1 million.
If the violator is a government official, he or she could also face perpetual to temporary absolute disqualification from holding public office.
Provisions on violation of information security will also apply to media entities that publish secured information from AMLC.
RA 11521 will take effect immediately after being published in the Official Gazette or in a newspaper of general circulation.