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Senators want casinos covered by Anti-Money Laundering Act

March 16, 2016 | 9:18pm

MANILA, Philippines — Senators have stressed the need to include casinos in the coverage of the Anti-Money Laundering Act (AMLA) following the $81-million money laundering issue.

The money laundering issue involves funds allegedly hacked from the Bank of Bangladesh in the United States, and which reportedly entered the Philippine financial system. The funds were reportedly transferred to accounts of major casino players and were used to "buy chips" or "pay for casino losses."

Sen. Miriam Defensor Santiago said that the country risks becoming the world's money laundering capital if the casino sector remains outside the coverage of the AMLA.

The Philippines is currently under the "grey list" of the Financial Action Task Force (FATF), a global body that monitors and tries to prevent money laundering and terrorist financing. According to its website, the Paris-based group comes up with policy recommendations to combat "threats to the integrity of the international financial system."

The country will suffer higher financial transaction costs if it gets blacklisted by the FATF, Santiago said.

Senate President Franklin Drilon said that the next president must have strong political will to amend the AMLA and include casinos in its coverage.

Sen. Juan Edgardo "Sonny" Angara said in an interview with radio dzMM that art dealers may also be included in the AMLA if it gets amended.

"Narinig ko si chairman po ng bank and financial committee, si Senator (Serge) Osmeña, ang sabi niya pati yung mga nagbebenta ng art, yung art dealer. Iyon din ang isang paraan, although hindi daw kasing-laki yung mga halaga kung ikukumpara sa mga casino na malalaki ang halaga," Angara said.

Meanwhile, Sen. Ralph Recto said that he Senate needs to uncover the connection between the hackers and top officials of the Rizal Commercial Banking Corporation (RCBC) to resolve the $81-million heist.

"Walang duda na may napakalaking sindikato na sangkot dito. Maliwanag din na may koneksyon ang mga hackers sa bangko at kailangan natin malaman kung sino ang koneksyon nila sa RCBC," Recto said in an interview with radio dzMM on Wednesday.

Recto is one of the senators supporting the request of Rizal Commercial Banking Corp. (RCBC) branch manager Maia Santos-Deguito to testify in an executive session before the Senate blue ribbon committee. Executive sessions are held behind closed doors and matters discussed there are confidential.

"Her testimony is crucial in identifying all the characters involved in the plot and in connecting the dots to unravel the mystery behind the cyber-heist," Recto said.

Businessman William Go, who has denied owning the RCBC account at the bank branch where Deguito was manager and that was allegedly used to launder the money, has said that his signature was forged on bank documents.

“I vehemently deny these allegations and state for the record that I did not know of, consent to, or participate in the opening of these bank accounts and all the illegal transactions conducted thereon,” he said through counsel.

Go also appeared before the Senate earlier this week to deny involvement in the alleged money laundering.

RCBC has also denied involvement, with president and CEO Lorenzo Tan appearing in the Senate to "[condemn] as malicious and actionable insinuations the top management of the bank knew of and tolerated alleged money laundering activities in one branch."

The Senate blue ribbon committee is set to resume its inquiry into the $81-million money laundering issue on Thursday afternoon.

LIVE: Senate probe into $81-million laundering - Day 2