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PRESIDENT Rodrigo Duterte has enacted a measure that tightens government regulations to ensure that the Philippines “is not used as a money laundering site for the proceeds of any illegal activity.”
Duterte signed Republic Law (RA) 11521, which introduces amendments to RA 9160 or the Anti-Money Laundering Act of 2001 (AMLA) in an attempt to prevent the country from being included in the “gray list” or countries with weak policies against money pollution.
“It is the policy of the State to protect and preserve the integrity and confidentiality of bank accounts and to ensure that the Philippines is not used as a money laundering site for the proceeds of any illegal activity,” the new law said.
“In accordance with its foreign policy, the State will provide cooperation in transnational investigations and prosecutions of persons involved in money laundering activities wherever they are committed, as well as in the implementation of specific financial sanctions related to the financing of the proliferation of weapons. of massive destruction, terrorism, ”he added.
RA 11521 lists real estate developers and brokers who are engaged in buying and selling real estate, along with Philippine overseas gambling operators and their service providers.
The new law also established the threshold for tax offenses in excess of P25 million.
It also strengthens the functions of the Anti-Money Laundering Council (AMLC) by granting it the authority to request, receive and analyze reports of covered or suspicious transactions from covered persons.
The AMLC, by law, can also investigate, issue a subpoena, and conduct searches and seizures.
It is also authorized to implement specific financial penalties in relation to the proliferation of weapons of mass destruction and their financing, as well as to preserve, manage or dispose of assets pursuant to a freezing order, an asset conservation order or a judgment of seizure.
The new law also introduces a section on information security and confidentiality.
“The AMLC and its Secretariat will securely protect the information received or processed and will not reveal, in any way, any information that they know by reason of their position. This prohibition will apply even after its separation from the AMLC ”, said the law.
Those who violate the security and confidentiality of the information can face a prison sentence of three to eight years and a fine that ranges from 500,000 to 1 million pesos.
If the offender is a public official, the person will suffer the penalty of perpetual or temporary disqualification from public office as the case may be, in addition to the prison sentence and the payment of a fine.
RA 11521, signed by the President on January 29, takes effect immediately after its publication in the Official Gazette or in a newspaper.
The Philippines only had until February to implement changes to the AMLA.
In 2000, the Philippines was gray-listed by the Paris-based Financial Action Task Force (FATF) international cooperation review group due to its inability to address dirty money issues.
Its previous inclusion on the gray list paved the way for the enactment of RA 9160 in 2001.
In February 2005, the Philippines was removed from the FATF gray list.
Going back to the gray list will merit higher costs for transactions with Philippine banks and other institutions, such as the World Bank and the International Monetary Fund.
There could be adverse effects on trade and even remittances, which involve billions of dollars sent to their families by Filipino workers abroad.
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