P10 B laundered in Philippine in 2 years

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) has reported P10.2 billion worth of funds laundered in the country in 2015 and 2016, the results of the Second National Risk Assessment (NRA) on Money Laundering and Terrorist Financing report show.

The NRA evaluated the overall threat and effectiveness of the country’s anti-money laundering and mechanism for combating the financing of terrorism.

After considering the proceeds generated by select predicate crimes, money laundering trends and techniques, the prevalence of sectoral threats and external threats, the national money laundering threat is assessed to be high.

Threats arising from predicate crimes such as tax evasion; smuggling; copy infringement or intellectual property law violations; illegal manufacture and possession of firearms, ammunition and explosives; environmental crimes; investment fraud and estafa; violations of the dangerous drugs law; plunder and graft were also rated high.

Other activities like web-related trafficking of persons and kidnapping for ransom were given a medium rating in terms of money laundering and terrorist financing, but qualified theft, arson, carnapping, robbery and extortion, murder were given a low rating.

In terms of sectors, banks were given a high rating as the AMLC investigated money laundering cases involving P5.7 billion covering 1,500 bank accounts in 21 universal and commercial banks, four thrift banks and six rural banks.

Similarly, based on 141 requests for information from counterpart financial intelligence units (FIUs) and 12 Mutual Legal Assistance Treaty (MLAT) requests from foreign jurisdictions, over P500 billion were allegedly coursed through bank accounts.

The report also gave a high rating for money service businesses, including remittance agencies. Foreign exchange dealers have also been used in the laundering of criminal proceeds.

But AMLC said that designated non-financial businesses and professions – including dealers of precious stones and metals, and lawyers and accountants who are largely unregulated – pose a high threat on money laundering and terrorist financing.

The report said about P3.8 billion of stolen funds ended up in two casinos and with one junket operator, while P55 million worth of real estate properties are currently subject to forfeiture cases.

In terms of non-profit organizations, AMLC said 21 NGOs were used as dummies to funnel P420 million in government funds in favor of criminals.

The Securities and Exchange Commission, on the other hand, investigated 743 cases including one pyramiding scheme where 41 accounts in eight broker-dealers were involved in market price manipulation involving P200 million.

In its 40 recommendations, the Financial Action Task Force requires countries to identify and assess money laundering or terrorist financing risks, and to take action in mitigating these risks.

Policies were introduced to address the susceptibility of the banking, money service business, and casino sectors.

The Bangko Sentral ng Pilipinas issued Circular No. 942 imposing stricter entry controls for money service businesses.

President Duterte also signed Republic Act 10927, designating casinos as covered under Republic Act 9160 or the Anti-Money Laundering Act of 2001.