Duterte certifies as urgent bills on aid to financial institutions, anti-money laundering

MANILA, Philippines — President Rodrigo Duterte certified as urgent measures that would aid financial institutions during the coronavirus pandemic and strengthen the anti-money laundering law.

The certifications were issued on Friday, the last day of Congress’ special session which Duterte called for. However, Congress failed to pass the two bills.

Duterte said he wants the speedy passage of Senate Bill No. 1849 or the Financial Institutions Strategic Transfer (FIST) bill which would help banks unload bad loans and assets through special purpose vehicles.

The FIST bill, which economic managers have long lobbied for, encourages financial institutions like banks to sell non-performing assets to asset management companies that specialize in the resolution of distressed assets, through fiscal incentives. 

Duterte wants the speedy passage of the measure “to strengthen financial initiatives towards national economic recovery and maintain the stability of the financial sector amidst the COVID-19 pandemic.”

The president also certified as urgent House Bill No. 6174, which seeks to amend the anti-money laundering law, “in order for the country to comply with legal standards for anti-money laundering and countering terrorism financing.”

The measure seeks to strengthen the Philippines’ anti-money laundering law so the country can avoid being grey-listed, which Rep. Junie Cua (Quirino) said would have a detrimental impact on the economy as countries would exercise increased vigilance on transactions coming from the Philippines and Filipino nationals. — Xave Gregorio with a report from Lawrence Agacoili/The STAR