US against Philippines’ AML rules

An official report establishes that the anti money laundering rules in the Philippines are not ideal.

Philippines.- The US State Department released a new report where it talks about Philippines’ Anti Money Laundering (AML) Act. The United States believes that the Asian country should easy its secrecy provisions in order to let investigators do their job.

The US details that five locations in the country are jurisdictions of primary concern: “The most pressing AML deficiency is the continuing non-inclusion of casino operators and other DNFPBs designated non-financial businesses and professions as covered entities. Legislation to correct this deficiency has been languishing for many years.”

A year ago, the Philippine Anti Money Laundering Council (AMLC) said that it was determined to include casinos operating in the business and facilities governed by the anti-money laundering law. The American State Department also said that bank secrecy rules in the Philippines are among the world’s strictest, which only fuels the fact that it’s difficult for investigators to access records and do their job.

“This makes it difficult for the country’s AMLC to perform its basic financial analytical functions and inhibits the ability of law enforcement to proactively pursue money laundering cases in the absence of a link to a specific predicate crime,” the report said. “The continuing lack of prosecutions and convictions is not surprising since only 49 cases have been filed since the AMLC began operating in October 2001,” it concluded.