The government is renewing its push for the absolute lifting of the bank secrecy in the country in connection with tax evasion cases and other nefarious activities, amid the entry of millions worth of foreign currencies in the country which are suspected to be part of money laundering schemes.
Tony Lambino, Department of Finance (DOF) assistant secretary, said in a briefing in Malacanang the government wants to find out where the “massive amounts” are being used.
“We would like to maybe propose that again, that we lift absolute bank secrecy in the Philippines in cases of tax fraud or other nefarious activities so we can truly trace it, and if there are strong suspicions, we can open the bank accounts,” he said.
Lambino said the lifting of the bank secrecy was originally included in the Tax Reform for Acceleration and Inclusion bill but was removed during the Congress deliberations and no longer restored when the law was passed.
The DOF again introduced the lifting of the bank secrecy in the draft bill for the tax amnesty but was also removed in the Congressional deliberations.
“We will work with Congress to ask that these tools (bank secrecy) be included in our arsenal for addressing these challenges in these problems,” Lambino said.
The government discovered suspected money laundering activities involving the “Rodriguez” and “Chinese” groups last year that involved some $370 million or P18.74 billion.
The DOF on Tuesday said that the government will “vigorously investigate” the flow of foreign currency worth millions of dollars into the country suspected to be part of a money laundering scheme.
Carlos Dominguez, DOF secretary, told reporters he was able to discuss with President Duterte the issue on suspected money laundering of several groups since last year, during a Cabinet meeting Monday night.
“He confirmed the recommendation to have the Bureau of Customs (BOC) and Anti-Money Laundering Council (AMLC) vigorously investigate, enhance monitoring (of inflow of foreign currency in the country),” Dominguez said.
“(He also wants) to certify as urgent pending bills affecting the Anti-Money Laundering Act, and the lifting of the Bank Secrecy Law in cases of predicate crime such as money laundering and tax evasion,” he added.
Rey Leonardo Guerrero, BOC commissioner, said in his report to Dominguez that the Rodriguez group had declared Excellent Forex Inc. as its recipient of the money, which entered the country from July 17, 2019 to January this year, while the Chinese group brought in its stash from December 17, 2019 to January.
He added the BOC learned that the couriers of the money are paid between P12,000 and P50,000 per flight.
He said these couriers travel almost twice or thrice a week and carry about one to two pieces of luggage, and are able to escape detection because they are escorted by members of the Philippine National Police, Armed Forces of the Philippines, or the airport police department at the Manila International Airport Authority.
The BOC thus recommended the creation of an interagency body to keep tabs on the inflow of foreign currency into the country and propose measures to deter the use of these funds for illegal activities.
