19/01/21

ASIA: Philippine Senate Approves Amendments to AML Law.

As published on regulationasia.com, Tuesday 19 January, 2021.

The approval comes ahead of an evaluation by the FATF, slated for February, as the Philippines seeks to avoid being gray-listed.

The Philippine Senate has approved proposed amendments to the AML Act on third and final reading, reports local media.

The approval comes ahead of an evaluation of the country’s compliance with international AML standards by the FATF (Financial Action Task Force), slated for February. The Philippines is trying to avoid being gray-listed.

Under the amendments, real estate developers and brokers, as well as offshore gaming operators and service providers, will be included as covered persons and required to make regular reports on their financial transactions.

The amendments also include the commission of tax crimes and violations of the Strategic Trade Management Act, which relates to the proliferation of weapons of mass destruction and their financing, in the list of predicate offences.

The amendments will also enhance the investigative powers of the AMLC (Anti-Money Laundering Council) through express powers of deputisation, powers to apply for search warrants, powers to obtain information on ultimate beneficial ownership, and subpoena powers.

The AMLC is also authorised to implement targeted financial sanctions on proliferation financing, and to preserve, manage or dispose assets subject of freeze, asset preservation and forfeiture orders.

The issuance of injunctive relief against such orders and related proceedings under the AMLC’s jurisdiction will be prohibited, except through the Supreme Court and the Court of Appeals.

The House of Representatives approved its own version of the AML Act amendments last December.

A bicameral meeting is scheduled for Tuesday (19 January) to reconcile conflicting provisions of the two versions.

The House bill sets the threshold for tax crimes at PHP 20 million, while the Senate bill sets it at PSP 25 million.

Both bills set the threshold for offshore gaming operators and service providers, and real estate developers and brokers, at PHP 5 million. However the Senate bill would cover all real estate transactions, not just those through developers and brokers.

Once ratified, the final version of the AML Act amendments will be sent to President Rodrigo Duterte for his signature.