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Money laundering, financial fraud to undermine PH economy—IMF


Senate blue ribbon chairman Teofisto Guingona III said the perception that Filipino banks have been accommodating deposits from illegal transactions “affect investors’ perception on whether or not we have a safe banking system.

MANILA, Philippines—The International Monetary Fund’s (IMF) recent warning that money laundering and other illegal finance-related activities could undermine a country’s financial system has made it urgent for Congress to pass the second round of amendments to the Anti-Money Money Laundering Act (AMLA).

Senate blue ribbon chairman Teofisto Guingona III said the perception that Filipino banks have been accommodating deposits from illegal transactions “affect investors’ perception on whether or not we have a safe banking system.

“A weak anti-money laundering legal framework discourages legitimate banking activities and invites instead criminals who seek to make the Philippines a safe haven for their unlawfully acquired money,” he added.

The IMF, in its December 14, 2012 report, said money laundering, terrorist financing and the related predicate crimes could undermine the stability of a country’s financial system.

Illegal money would most likely remain unaccounted for and affect the government data, the IMF said.

Due to its failure to update the AMLA, the Philippines is under pressure from the Finance Action Task Force (FATF), a global agency that monitors money laundering and terrorist-financing activities.

The FATF wants the country to amend the AMLA so that transactions including the purchase of big-ticket jewelry, real estate and other purchases that can be used to disguise illegally acquired currency would be included in the list of monitored activities.

The second set of AMLA amendments proposes to expand the list of “unlawful activities” including terrorism, conspiracy to commit terrorism, bribery, frauds and illegal exaction.

It also extends the definition of money laundering as a crime where it outlaws the proceeds of illegal activities that are transacted, converted, transferred, disposed of, moved, acquired, possessed, used, concealed or disguised.

Failure by Congress to approve the second set of AMLA amendments by the first quarter of the year would find the Philippines joining the FATF’s blacklist and make it more difficult to engage in international monetary transactions such as remittances from overseas Filipino workers.

Guingona said the Senate would discuss the AMLA amendments during the resumption of Congress session on Jan. 21.

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Tags: AMLA , Banks , Congress , International Monetary Fund , Laws , Legislation , money laundering , Senate

  • bryant85

    This stern warning from the IMF Senator must not be taken with a grain of salt by the president considering that it’s bad to our growing economy. Previously, I read a couple times about this warning from IMF anent our AMLA law and it’ a pity that you legislators aren’t doing any amendment on it even though you already had a backlash from its efficacy during the Corona impeachment.

    Since it’s a hindrance to our progress Mr. senator, then don’t be callous nor be inutile but rather be enterprising for the soundness of our economy is at stake. As a public servant your country and the people must come first before your political inclinations because if it would be the latter that you embark on then you lost your stature as a public servant.

  • kalikasanipagtanggol

    Yan ang masakit na katotohanan na hanggat may korapsyon ay walang saysay ang ganansiya ng ekonomiya ng bansa dahil sa mga bulsa lang nila napupunta hindi sa taong bayan!


    “wait muna, bukas na natin pag usapan yang batas na yan. hindi ko pa na aalis ang mga dollar ko sa bangko sa pilipnas. ” TONGressman at senaTONG

  • http://www.facebook.com/billy.reyes.984 Billy Reyes

    I really admire this man, sana hindi ka lang maging senador maging Presidente pa ng Pilipinas.

    Time for change hindi puro lang taga Luzon & Manila ang maging Presidente. 
    Tagalog is really a broken culture, less nationalistic with their American music & passion,
    Manila is a shithole when you wipe it out in the Philippines Map were a better country.

  • koolkid_inthehouse

    Only corrupt Senator will delay the Anti_Money Laundering and sad to say its the senate president.

  • dprotector

    Why not just repeal the bank secrecy law? Then I think we don’t have to amend AMLA laws often.

  • TulisangDagat

    sabi ng IMF bawal daw ang jueteng ….

  • kanoy


  • http://joboni96.myopenid.com/ joboni96

    ano na namang kagaguhan ng imf

    ok yang money laundering sa amin

    papasok ang pera dito
    aasenso ekonomiya namin

    sa kahinaan ninyo
    hindi niyo mahuli mga financial criminals ninyo

    kami ang uutusan ninyong manghuli
    ano bale

    cover pa ninyo yan
    for intel gathering
    sa finances namin

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