MANILA, Philippines - The budget for investigation and prosecution of the Anti-Money Laundering Council (AMLC) for next year has increased even as the number of reported suspicious transactions steadily increased in the last five years.
According to the Congressional Policy and Budget Research Department (CPBRD) of the House of Representatives, which looked into the proposed allocations to the AMLC, the budget for investigation and prosecution of cases will go up by 41.9 percent or to P28.6 million after a 32.9 percent decline in 2013.
The AMLC is composed of the governor of the Bangko Sentral ng Pilipinas as chair, and the commissioner of the Insurance Commission, and the chairman of the Securities and Exchange Commission as members.
The council is assisted by a secretariat, headed by an executive director, consisting of five units including the Compliance and Investigation Group, and the Legal Evaluation Group.
Suspicious transactions reports (STRs) to the AMLC have been steadily increasing in the last five years, the CPBRD noted.
Suspicious transactions are transactions with covered institutions – regardless of the amounts involved – that have no underlying legal/trade obligation, purpose or justification.
It involves the client that is not properly identified; the amount involved is not commensurate with the business or financial capacity of the client, and the transaction is made in such a way as to avoid being the subject of reporting requirements under the Anti-Money Laundering Act (AMLA).
Transactions are suspicious when there is a deviation from the client’s profile or past transactions; and the transaction is related to an unlawful activity or offense under the AMLA.
For 2012, the AMLC received a total of 17,714 STRs, nearly double the 9,752 received in 2011. There was no immediate explanation from the council on this.
The council has recorded an average of 32 money laundering and related cases annually from 2008 to 2012. For 2012, the number of cases reached 37.
The AMLC has filed various cases, such as money laundering complaints and civil forfeiture cases, before regional trial courts (RTCs), the Department of Justice, the Office of the Ombudsman, and the Sandiganbayan.
The AMLC has also applied for inquiries before RTCs and freeze orders before the Court of Appeals.
For 2012, the total amount involved in applications for freeze orders reached P727,784,045 on cases involving peso amounts.
Applications for freeze orders on US dollar-denominated assets reached $884,958.
The AMLC did not cite examples of cases in its report to the House.