Posted on 09:57 PM, September 27, 2010

http://www.bworldonline.com/main/content.php?id=18498

CHANGES WILL be proposed to the Anti-Money Laundering Act to expand sources of information and allow the probe of bank accounts without a court order.

"The AMLC (Anti-Money Laundering Council) is working with Congress to further strengthen the [law] precisely to cover possible loopholes in the law," Richard David C. Funk II, officer-in-charge of AMLC told reporters yesterday.

He said changes include allowing lawyers to report suspicious transactions.

"The proposed amendments include mandatory reporting by lawyers of any suspicious transactions of their clients," he said.

By law, reporting entities should come from the list regulated and supervised by the following: Bangko Sentral ng Pilipinas, Insurance Commission, and Securities and Exchange Commission (SEC).

"The mere fact of incorporation does not make it [firm] a reporting institution. It must be engaged in the business of soliciting investments or selling stocks which requires secondary license from the SEC," Mr. Funk said.

He said dealers of artworks, precious metals and stones will also be included in the list.

"Our position is that dealers of artworks are included in the definition of engaging in the sale of valuable objects. It appears now in our current legislation. But we want to make it clear so we are making a separate item even in our proposed amendments that even dealers of artworks be an independent reporting entity," he said.

Mr. Funk further said AMLC is proposing that it be allowed to look into bank accounts without the need of a court order.

A Supreme Court ruling has required AMLC to first secure a court order before having access to an account.

"Unfortunately, such a requirement ties the hand of the AMLC in developing a money laundering case as the requirement to first inform the account owner of an investigation could tie it in litigation for years," Mr. Funk said.

"It, therefore, stalls, rather than expedite, its mandate to investigate money laundering."

Mr. Funk said AMLC has submitted the proposed amendments to the Speaker of the House of Representatives and Senate President.

As for reported laundering schemes through buying and selling luxury cars, real estate, as well as paintings of local artists auctioned off overseas and maintaining offshore accounts in Hong Kong and Singapore, he said charges will be filed in court after sufficient evidence has been culled.

A lawyer of a suspected illegal numbers game operator has been reported to have said that jueteng operators are laundering billions of pesos through auction of paintings abroad.

Buying and selling of luxury cars as well as real estate were also reportedly part of money laundering activities of gambling lords.