March 12, 2011, 4:11pm

http://www.mb.com.ph/articles/308965/sec-supports-amendments-amlc-act

MANILA, Philippines —  The Securities and Exchange Commission (SEC) threw Saturday its support for proposed amendments to the weak Anti-Money Laundering Council (AMLC) Act of 2001 ‘’to provide a clear signal to the international community of the Philippines’ firm commitment to fight money laundering and terrorist financing.’’

Fe Barin, SEC chairperson, submitted the SEC’s position paper to the Senate sub-committee on Anti-Money Laundering Amendments supporting Senate Bill 2484 of Sen. Sergio Osmena III seeking to strengthen the Anti-Money Laundering Act which would be critical to a strong and effective anti-money laundering regime.

The committee chaired by Sen. Teofisto L. Guingona III hearing proposals to amend the AMLC Act complements the public inquiries by the Senate Blue Ribbon committee also chaired by Guingona on widespread corruption at the Armed Forces of the Philippines (AFP).

During the Senate Blue Ribbon committee hearings, it was revealed that ranking officers had skimmed hundreds of millions in AFP funds or retiring AFP chiefs of staffs were given tens of millions of pesos as ‘’pabaon’’ (retirement send off) by AFP finance officers or few millions annually for personal and office expenditures.

Guingona said the current AMLC act mandates AMLC officials to first inform the bank depositor that it would look into his or her bank account before anti-money laundering officials could look into these questionable bank accounts, allowing the depositor to withdraw his or her money.

Osmena stressed that money laundering has adversely affected the social, political and economic landscape of the world and is constantly exploiting the vulnerabilities and weaknesses of every nation.

“All jurisdictions must, therefore, endeavor to cope with the ever changing environment in order to be effective in the right against money laundering. They have to comply with the international anti-money laundering standards to enhance their capabilities and must engage fully in both domestic and international cooperation,’’ he added.

In particular, the SEC asked that the AMLC must be granted the power to freeze funds and other assets in compliance with binding conventions, directives and resolutions of the United Nations, other relevant UN offices and committees against terrorism or terrorist financing.

The SEC also asked Congress to allow ex parte application for bank inquiry and give the AMLC flexibility in the imposition of administrative sanctions.

The Meycauayan Jewelry Industry Association Inc. supported the bill, saying the current AMLC Act is limited in scope.