Draft bill relaxing bank secrecy law out soon

The Anti-Money Laundering Council (AMLC) will finalize next week a draft bill aimed at relaxing the country’s strict bank secrecy law to combat money laundering.

AMLC member and Insurance Commissioner Emmanuel F. Dooc yesterday said President Aquino was willing to certify the bill as urgent. He, however, admitted there might no longer be material time to pass the bill before the change in the administration by the middle of the year.

Dooc said AMLC met Wednesday night, during which they went through the draft bill. “We should liberalize or relax the bank secrecy law because now it is clear that it is a deterrent or obstacle to address money laundering offences,” he said, pointing out the senators’ frustration on key personalities invoking the law amid investigation of the $81 million stolen from Bangladesh’s central bank that ended up in the Philippine financial system and casinos.

All AMLC members—including its chair, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr., and Securities and Exchange Commission Chair Teresita J. Herbosa—were amenable to relaxing the bank secrecy law, although Dooc said he was pushing for its total lifting.

“Now there’s a sense of urgency to review laws with regards money laundering. We need to combat money laundering and terrorist financing because if the international community will not perceive us as doing our homework and we fail to combat the pernicious crime, the entire country will suffer,” Dooc said. “Our financial system is at stake,” he added.

According to Dooc, AMLC will send a copy of the draft bill to the Senate blue ribbon committee, which is currently investigating the money laundering issue.

Dooc said chances to have this bill passed during the 16th Congress might be slim. “Some are saying this should be addressed by the 17th Congress. We hope the leadership of the next Congress will be sympathetic to our efforts.”

AMLC was also eyeing to shorten the reporting period for covered and suspicious transactions from 10 days at present to five days, as mandated under the Anti-Money Laundering Act, Dooc said. “Faster reporting is now doable given modern communications technology,” he pointed out.

Dooc said AMLC was likewise seeking the strengthening of its authority to freeze dubious bank accounts, such as by having the power to impose a cease and desist order.

To further shed light on the money laundering activity, Dooc said AMLC was working with the Chinese embassy and the Chinese government’s police attaché, as reports showed that Chinese hackers stole the money from the Federal Reserve Bank of New York.

“We also sought the assistance of the FBI [Federal Bureau of Investigation] on this matter,” Dooc added.