The complex financial crimes exposed in the investigation into the corruption behind anomalous flood control projects have prompted Senate President Pro Tempore Panfilo Ping Lacson to file a bill further strengthening the Anti-Money Laundering Council (AMLC).
Senate Bill 1557 gives the AMLC additional powers while widening the scope of covered persons and updating the list of predicate offenses to money laundering.
“Updating the AMLA to meet the requirements of the times would also prevent us from being placed in the FATF Greylist again.”
“Recent corruption issues have highlighted the complexities of financial crimes. Updating the AMLA to meet the requirements of the times would also prevent us from being placed in the FATF Greylist again,” Lacson said in his bill, noting that the Philippines will be subjected to the FATF’s fifth round of global mutual evaluations in 2027.
In privilege speeches last August and September, the veteran legislator detailed the corruption behind substandard and ghost flood control projects – and how some of those involved gambled away public funds in casinos.
Senate Bill 1557 seeks to introduce the following amendments to the Anti-Money Laundering Act:
* Designate trusts and virtual asset service providers as covered persons;
* Clarify that the threshold for jewelry dealers and dealers in precious metals and stones pertains to covered transaction reports;
* Inclusion of the respective definitions of transactional and continuing violation of any applicable law or regulation issued by the AMLC or its authorized officer;
* Update and expand the list of offenses as predicate offenses to money laundering;
* Set the threshold for conducting customer due diligence by casinos to P150,000, equivalent to the FATF-prescribed threshold of US$3,000 – with a system of verifying the true identity of their clients;
* Authorize the AMLC to issue a non-court-based subpoena instead of the current court-based one;
* Authorize the AMLC to file petitions for freeze order and civil forfeiture directly or through the Office of the Solicitor General;
* Improve the efficiency of the AMLC in conducting bank inquiries without a court order, similar to the AMLC’s current power to conduct non-court-based bank inquiries in cases related to kidnapping, illegal drug crimes, terrorism, terrorism financing, arson and murder;
* Authorize the AMLC to visit and inspect covered persons to ensure compliance with the AMLC to strengthen the AMLC’s risk-based supervision;
* Authorize the AMLC to administer oaths or affirmations in discharging its mandate;
* Strengthen AMLC’s quasi-judicial functions in handling administrative cases, to support the AMLC’s risk-based supervision;
* Authority to indemnify the AMLC or its staff against costs incurred in “harassment suits”;
* Expanding the coverage of Information Security and Confidentiality Provision against the AMLC and its staff to include all other persons to whom AMLC information was allowed to be shared, to ensure accountability to anyone who gets information from the AMLC;
* General prohibition against the issuance of injunctive relief against the discharge of AMLC’s functions, except by the Court of Appeals and Supreme Court; and
* Authority of the AMLC to suspend transactions as a preemptive measure to let the AMLC and covered persons to hold off any transaction suspected of being related to money laundering, terrorism financing, or any other unlawful activity.
The bill enhances the AMLC’s role as the country’s independent central anti-money laundering and counter-terrorism financing authority. AMLC shall function as the financial intelligence unit, specialized money laundering and terrorism financing investigation agency, and anti-money laundering and counter-terrorism financing regulator and supervisor of the Philippines.
The list of covered persons is expanded to include those buying and selling real estate; and lawyers and accountants of covered persons; online gambling operators regardless of their license classification; and virtual asset service providers.
Under the bill, the list of covered persons is expanded to include those buying and selling real estate; and lawyers and accountants of covered persons; online gambling operators regardless of their license classification; and virtual asset service providers.
Meanwhile, the list of predicate offenses covered by the AMLA is expanded to include, among others:
* Terrorism, conspiracy to commit terrorism, and providing material support to terrorists;
* Violation of the Anti-Online Sexual Abuse or Exploitation of Children, and Child Sexual Abuse or Exploitation Materials;
* Violation of the Cybercrime Prevention Act of 2012;
* Violation of the Anti-Dummy Act;
* Violation of the Anti-Agricultural Economic Sabotage Act.
