IMF pushes changes to bank secrecy law

MANILA, Philippines — The International Monetary Fund (IMF) is urging the Philippines to further strengthen its campaign against money laundering and terrorist financing through amendments to the bank secrecy law.

The IMF said the signing of Republic Act 10927 amending RA 9160 or the Anti-Money Laundering Act of 2001 (AMLA) by President Duterte last July placing casinos among the covered entities could be complemented by the changes to the bank secrecy law.

 “Notwithstanding this notable progress, the anti-money laundering and the combatting the financing of terrorism framework could be strengthened further by amending the bank secrecy law and making tax evasion a predicate crime,” the IMF said.

The executive board of the IMF completed its Article IV consultation with the Philippines late last month.

Anti-Money Laundering Council chairman and Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. led the signing of the casino implementing rules and regulations of RA 10927.

Other signatories were Securities and Exchange Commission chair Teresita Herbosa, Insurance Commission chief Dennis Funa, AMLC executive director Mel Georgie Racela, PAGCOR chair and chief executive officer Andrea Domingo, Cagayan Economic Zone Authority director Arturo Bautista, and Aurora Economic Zone and Freeport Authority president Israel Maducdoc.

As early as 2008, in the mutual evaluation of the Philippines, the Asia-Pacific Group of Financial Intelligence Units found the country’s anti-money laundering policy deficient for  failing to include casinos within the AMLA. 

Espenilla said the amendment to include casinos in the list of covered entities strengthened the government’s anti-money laundering campaign.

“It plugs a critical gap in our legal framework. It will significantly strengthen our ability to prevent the entry of illicit money into our economy,” he said.

Money launderers used casinos in the Philippines to clean up dirty money stolen by hackers from the Bangladesh Bank in February last year. 

A total of $81 million in dirty money stolen from the Bangladesh Bank’s account in the US entered the country via various fake deposit accounts at the Rizal Commercial Banking Corp. (RCBC).