By Paolo Romero (The Philippine Star) Updated March 31, 2011 12:00 AM

 http://www.philstar.com/Article.aspx?articleId=671524&publicationSubCategoryId=63

MANILA, Philippines -  The House of Representatives has approved on third and final reading a bill strengthening the anti-money laundering law to make it compliant with international standards and a more effective tool against terror financing.

The passage of the measure came as both chambers of Congress were investigating allegations of massive corruption in the Armed Forces involving “conversion” of hundreds of millions of pesos in budgetary allocations by generals and military finance officers.

The House has wrapped up its probe on the matter while a parallel investigation in the Senate is still ongoing.

House Bill 4275, personally pushed by Speaker Feliciano Belmonte Jr., declares terrorism and terrorist financing, human trafficking, sexual exploitation of children, corruption, bribery, forgery and environmental crime as unlawful activities.

The bill, which seeks to amend Republic Act 9160 or the Anti-Money Laundering Act of 2001, was authored by Cagayan de Oro Rep. Rufus Rodriguez, Abante Mindanao party-list Rep. Maximo Rodriguez Jr., Parañaque City Rep. Roilo Golez and Leyte Rep. Sergio Apostol.

The measure revises the definition of money laundering to include conversion, transfer, disposition, movement, acquisition, possession, use, concealment or disguise of the proceeds of any unlawful activity.

“In the past, it was easy for leaders of states, businessman and other unscrupulous persons to launder their money arising from illegal activities in the absence of the anti-money laundering law,” Rodriguez said.

“Now that we have one, it is imperative to give more teeth to the law to enable the government to comply with international standards against money laundering, and to make it more difficult for money launderers to divert to the legal front money taken from illegal activities,” he said.

Now required to report their activities are casinos, real estate agents, dealers in precious metals, dealers in precious stones, and trust company service providers.

Also be restored in the proposed act, he said, is the system of rewards and incentives granted under RA 9160 which had been abolished by the amendatory act Republic Act 9194.

Golez said the bill grants the Anti-Money Laundering Council (AMLC) 25 percent of net proceeds from the recovered laundered money forfeited in favor of the government.

“Strengthening the anti-money laundering law is the country’s contribution to the global campaign against money laundering and terrorism consistent with the country’s commitment entered into with the international community,” Golez said.