BSP to fast-track IRR of anti-money laundering law
The Bangko Sentral ng Pilipinas (BSP) said it will expedite the issuance of the implementing rules and regulations (IRR) on the recently signed Republic Act No. 10927 – which placed casinos under the anti-money laundering law.
The governor of the BSP chairs the Anti-Money Laundering Council (AMLC), the country’s financial intelligence unit.
“The IRR for the new casino law will be fast-tracked and should be in place by year-end at the latest,” central bank Governor Nestor A. Espenilla Jr. yesterday said. “The IRR will be developed in coordination with casino regulators, notably Pagcor.”
Espenilla said the AMLC Secretariat which includes as members the heads of the Securities and Exchange Commission and the Insurance Commission, has been undergoing an organizational and operational overhaul for some time.
“(It’s) already in the process of building up its manpower complement in line with the expanded scope,” said Espenilla.
The casino law (“An Act Designating Casinos as Covered Persons under Republic Act No. 9160, otherwise known as the Anti Money Laundering Act of 2001” as amended) empowers the Court of Appeals to slap a 20-day freeze order on suspected transactions, and also caps casino activities up to R5 million for tagging under the law.
“This is a very welcome development,” said Espenilla. “It plugs a critical gap in our legal framework (and) will significantly strengthen our ability to prevent the entry of illicit money into our economy.”
The BSP regularly updates AMLA-related regulations and issues additional measures to enhance anti-money laundering rules. It has recently revised regulations that emphasize the importance of a strong ML/TF or money laundering/terrorist financing risk assessment, a proportionate risk-based approach, and reduction of low-risk transactions.
Specifically, the BSP refined rules on customer due diligence and will adopt a “more pragmatic definition of official document” and other independent source documents, data or information for customer identification and verification.
The central bank has been instituting stringent changes in its anti-money laundering rules in the wake of last year’s $81-million Bangladesh Bank stolen and laun-
dered money that involved a local bank.
In the Philippines, any bank transactions in excess of R500,000 is automatically reported to the AMLC based on the provisions of AMLA. This is the "covered transaction." A suspicious transaction is, regardless of amount, a transaction where there is no underlying legal or trade obligation, purpose or economic justification.
The BSP has been pursuing the full reorganization of the AMLC in efforts to strengthen the agency’s power and authority in investigating suspicious transactions, money laundering activities, and other violations of the AMLA.
In recent years the AMLC staff was increased by 65 percent or manpower of 109. Based on documents, most of these new positions are assigned to the BSP’s Office of the Governor. (LCC)