THE House Committee on Ways and Means approved last Wednesday a substitute bill penalizing the bulk-cash smuggling and tightening the country’s measures against the transit of large amounts of money to and from the Philippines.
Following the approval of the proposed Anti-Bulk Foreign Currency Smuggling Act, House Committee on Ways and Means Chairman Jose Ma. Clemente “Joey” S. Salceda said the reform is urgent as bulk cash smuggling is considered a “red flag” by the Financial Action Task Force. The FATF, Salceda said, could recommend the imposition of sanctions and additional safety checks against Philippine financial institutions.
The intergovernmental watchdog publicly identifies jurisdictions that have strategic anti-money laundering and counter-terrorism financing (AML/CFT) deficiencies that present a risk to the international financial system and closely monitors their progress.
Salceda said bulk cash smuggling is a potential source of terrorist financing and is being taken advantage of by syndicated crime groups.
The lawmaker cited that about P28.6 billion was smuggled into the Philippines by four syndicates in 2019. Salceda said P50.1 billion may have been smuggled into the Philippines undetected the same year.
The solon said the measure approved by the House Committee on Ways and Means would help ease customs declaration for people accessing the country’s borders, including overseas Filipino workers.
The substitute bill identifies those required to declare the same under oath using the form prescribed by the Bureau of Customs (BOC). These are any person, agent or bailee of the person who transports, is about to transport or has transported foreign currency or foreign currency-denominated bearer monetary instruments in an amount that exceeds $10,000 or its equivalent from a place in the Philippines to a place outside the Philippines or to a place in the Philippines from a place outside the Philippines. The amount may also be determined by the Anti-Money Laundering Council (AMLC) through published circular orders.
Registration
THE bill mandates any person or entity engaged in periodic transfer of bulk currency under money service business shall register with the Bangko Sentral ng Pilipinas. The BSP, the bill said, shall furnish the BOC the list of registered persons or entities engaged in periodic transfer of bulk currency for monitoring at the ports of entry and exit and in the implementation of this proposal.
The bill said incoming passengers bringing in foreign currencies or foreign currency-denominated bearer monetary instruments in excess of $10,000 or its equivalent shall, upon request, be assisted by the Customs Officer on duty in filling the “Currencies Declaration Form” and “Customs Baggage Declaration Form.”
In cases of inadvertent non-declaration or unintentional inaccurate declaration of foreign currency or foreign currency-denominated bearer monetary instrument by an incoming passenger during verbal verification and initial physical examination, the Customs Officer on duty shall assist the incoming passenger in accomplishing the “Currencies Declaration Form” and “Customs Baggage Declaration Form.”
The measure also mandates the BOC to submit the declaration to the AMLC within 24 hours upon receipt thereof for the immediate verification of the veracity and authenticity of the documents submitted in accordance with this proposal.
Seizure
THE bill provides that upon discovery of fraud, the foreign currency or foreign currency-denominated bearer monetary instrument shall immediately be seized by the BOC pursuant to Section 1113 of Republic Act (RA) 10863 (Customs Modernization and Tariff Act).
Fraud refers to false declaration of foreign currency or bearer monetary instruments being transported with a discrepancy of more than 30 percent between the amount declared and the amount determined by a Customs Officer after examination, pursuant to RA 10863.
Under the bill, the offense of bulk foreign currency smuggling is committed when a person physically transports or transfers foreign currency or foreign currency-denominated bearer monetary instruments in an amount that exceeds $200,000 or its equivalent from a place within the Philippines to a place outside of the Philippines or from a place outside the Philippines to a place within the Philippines, unless registered as an entity engaged in periodic transfer of bulk currency. Likewise, the bill defines a smuggler as a person who evades the currency-declaration requirement under this proposal.
The measure also provides penalties, including fine, imprisonment, seizure and forfeiture against any person or conspirator who commits bulk foreign currency smuggling offense.
It added that bulk foreign currency smuggling shall be a predicate offense to money laundering as defined in the Anti-Money Laundering Act of 2001, as amended.
Rewards
MEANWHILE, the bill grants reward to persons instrumental in the apprehension of violators with a cash reward equivalent to one percent or P250,000, whichever is lower, of the total amount of seized bulk foreign currency shall be given to informers who are non-public officers and are instrumental in the seizure of the bulk foreign currency smuggled.
Also, 50 percent of all imposed and collected fines for the violation of this proposal shall proportionately be earmarked to the budget of the Bureau of Customs and the Anti-Money Laundering Council.
The committee also concurred to institutionalize an inter-agency committee on anti-bulk cash smuggling, to be composed of the BOC, AMLC, BSP, Bureau of Immigration, and the country’s airport authorities.
The BSP, the AMLC and the BOC all expressed support for the passage of the measure.
The BOC earlier said the country’s laws on undeclared foreign currencies are “not categorical, and sanctions provided are not deterrent enough” unlike in other countries like the United States where such attempts to under-declare or not declare currency is defined as bulk cash smuggling. Likewise, the BOC has said the penalties are far more severe than those provided under Philippine laws.