BOTH the House of Representatives and the Senate passed on the same day Wednesday the bicam version of the latest amendments to the Anti-Money Laundering Act (AMLA). Filipino masses, poor as they are, cannot help but feel detached from this measure about big money, not knowing that it directly impacts their lives, too.
Money laundering is abhorrent because it abets crimes and criminals, and funds from illegal and illicit sources travel one step at a time in a series of financial transactions until the money is “laundered” and becomes clean, a legitimate part of the financial system. Laundering funds, too, is the lifeblood of drug trafficking, international terrorism, arms trade, prostitution, gambling and other reprehensible human activities.
Sen. Grace Poe reported to the plenary the bicameral conference committee report that reflected the meeting of the minds of the senators and representatives, reconciling Senate Bill 1945 and House Bill 7904 in the process. Poe said the congressmen “readily accepted” the Senate’s provision to include transactions of Philippine offshore gaming operators (POGOs) and service providers exceeding P500,000 under the AMLA’s coverage.
‘The approval of this bicam report is very timely because in two weeks, the period set by the Paris-based anti-money laundering body for the Philippines to impose stricter regulations against dirty money will lapse.’
The bicam also adopted the House’s proposal to also cover real estate brokers and developers involved in single cash transactions involving an amount in excess of P7.5 million.
They also agreed to retain the current P500,000 threshold in the law on the reportorial mandate of the Land Registration Authority on real estate transactions.
The bicam panel also agreed that the tax crime covered by the amendments shall be limited only to tax evasion as provided under the National Internal Revenue Code as amended. The Senate’s proposed threshold of P25 million for tax violations was accepted by the House members.
In the House of Representatives, Speaker Lord Allan Velasco was ecstatic that the amendments which introduces some more teeth in the provisions of Republic Act 9160 or the Anti-Money Laundering Act (AMLA) of 2001 would help the Philippines avoid being included in the gray list of the Financial Action Task Force (FATF) International Cooperation Review Group.
The approval of this bicam report is very timely because in two weeks, the period set by the Paris-based anti-money laundering body for the Philippines to impose stricter regulations against dirty money will lapse. Velasco said he is glad that the bill is now just one step away from becoming a law, adding that the nation cannot afford to be in the gray list as it would further hurt the economy already struggling from the devastating effects of the COVID-19 pandemic. Inclusion in the FATF gray list would mean more stringent layers of scrutiny from regulators and financial institutions, delayed processing of transactions and blocking the country’s objective of having an “A” rating. The bottom line is it will prejudice the Filipino business sector and thousands of our overseas Filipino workers who will shoulder increased costs of financial transactions, including remittances.
The smooth legislative action on the AMLA can be credited to Senator Poe, the whole Senate, and the House. It is an example of how good legislation can be achieved with the coordination and cooperation of both chambers of Congress.
