Poe warns about the Anti-Money Laundering Act

Sen. Grace Poe warned on Thursday that Filipino workers abroad are likely to be affected if the Philippines is placed on the so-called gray list for failing to strengthen its Anti-Money Laundering Act. “This will affect our OFWs, who are the breadwinners of the nation. Sending money to their families could mean higher fees and hardships, ”said Poe, chairman of the Senate committee on banks, financial institutions and currencies. According to the Financial Action Task Force, a country or jurisdiction included in its gray list means “that it has committed to quickly resolve the strategic deficiencies identified within the agreed time frames and is subject to further follow-up.” “The Asia Pacific Group on Money Laundering urges us to act immediately, as a form of national economic emergency, due to the serious economic costs of non-compliance,” Poe said in his speech sponsorship of the Senate Bill 1945. under Committee Report 149 on Proposed Amendments to the 2001 Anti-Money Laundering Act. Without passing the necessary amendments to the law, the senator said, the Joint Asia Pacific Group could place the Philippines on the so-called “gray list.” Along with countries like Albania, Pakistan, Panama, Syria, Uganda, and Zimbabwe. “Being on this list is a very strong signal to market participants and regulators globally. It has implications that we must avoid as much as we can, especially during times of a global pandemic, ”Poe said. The “enhanced due diligence” that will be imposed on the Philippines could translate into a higher cost of remittances for the millions of OFWs who send money to their families. Money sent home by overseas Filipinos has helped keep the economy afloat, especially in times of crisis. In 2019, the central bank said that OFW remittances reached $ 33.5 billion or 3.9 percent more than the previous year. Being under strict scrutiny, Filipino citizens and businesses that transact with AP-JG members could also face additional costs, paperwork, higher interest rates, and processing fees. The Philippines is also likely to incur “reputational risk” that will undoubtedly result in reduced confidence from investors and lenders. “We can only imagine the ripple effect this would unleash across all of our local industries. All of these things will be a major setback in our efforts to achieve an “A” credit rating by 2022. This is a scenario that we have to move away from, ”Poe said. Under the proposal, developers and brokers who conduct a single cash transaction of more than P5 million will be included as covered persons. The bill noted that real estate activities are widely used as a front for money laundering and terrorist financing around the world. “To clarify the coverage of Internet-based casinos, we also expressly specify the coverage of overseas gaming operators and their service providers,” Poe said. The bill also now includes the commission of tax crimes and the violation of the Law of Strategic Commercial Management, which is related to the proliferation of weapons of mass destruction and their financing as predicate offenses for money laundering.