SEC fears PH return to dirty money ‘gray’ list

THE CHIEF of the Securities and Exchange Commission fears that the Philippines may slip back to the “gray” list of the Paris-based Financial Action Task Force (FATF) on money laundering due to a regulatory loophole that spares casinos from tight monitoring.

This comes on the heels of reports that some $100-million worth of dirty money had flowed through the banking system and eventually laundered in local casinos.

“We’re bound by confidentiality under the law and we can neither confirm nor deny what’s the meat of their investigation. But I guess I can admit that an investigation has been conducted,” SEC chair Teresita Herbosa told reporters Tuesday night during the induction of the new officers of the Economic Journalists Association of the Philippines (EJAP).

In most places , Herbosa – who co-chairs the Anti-Money Laundering Council (AMLC) – said casinos were already covered by local money laundering rules.

“We’re one of the few countries which have not included casinos as covered (entities required to report)..and if we’re not able to do that, of course, the international anti-money laundering group – the Financial Action Task Force – again might put us in the gray list,” Herbosa said.

FATF is an inter-governmental body developing and promoting policies to combat money laundering and terrorist financing.

Three years ago, the Philippines was already in such gray list, prompting the Philippines to pass new amendments to the anti-money laundering law. “Unfortunately, the casinos were excluded at the last minute. Of course, the international action task force is asking us again (on) what’s the status of the planned coverage of casinos,” she said.

Asked if the Philippines was subjected to any deadline to pass new amendments to the framework on dirty money, Herbosa said: “Maybe by June, because we already have warnings.”

“With this case, it really shows what are the consequences. .. so we could see how they use casinos for evil purposes,” Herbosa said.

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Did you know: Anti-Money Laundering Council