Proof Beyond Reasonable Doubt Required for Money Laundering Offences
The Anti-Money Laundering Council (AMLC) emphasizes that every money laundering offence under Section 4 of the Anti-Money Laundering Act (AMLA) must be proved by evidence beyond reasonable doubt. This includes the element of knowledge that the monetary instrument or property represents, involves or relates to the proceeds of any unlawful activity.
Importance of Sufficient Evidence
The AMLC stresses the importance of gathering sufficient evidence to prove the guilt of individuals and entities accused of money laundering. The council’s power to issue orders to supervising authorities to determine the true identity of account holders and its ability to freeze bank accounts are crucial tools in the fight against money laundering.
Significant Progress Against Money Laundering
The Philippines’ efforts to combat money laundering have yielded significant results, including the conviction of a bank manager in 2006 for violating the AMLA. This marked a major milestone in the government’s campaign to stifle and impede possible money trails of crime syndicates and terrorists.
International Cooperation Key to Success
The Philippines has made significant progress in combating money laundering, thanks in part to its cooperation with international organizations such as the Financial Action Task Force (FATF). The FATF was established by the G7 Summit in 1989 to combat money laundering and terrorist financing. Despite these efforts, the Philippines still faces challenges in investigating and prosecuting money laundering cases.
Success Relies on Cooperation
- The success of anti-money laundering efforts relies heavily on the cooperation of covered institutions in reporting suspicious transactions.
- International cooperation is also crucial in sharing information and best practices to combat money laundering.
Corporate Crime Situation in the Philippines
The Bureau of Internal Revenue (BIR) has launched a program to combat tax evasion, dubbed “Run After Tax Evaders” (RATE). The program aims to prosecute high-profile tax evaders and enhance voluntary tax compliance. Since its inception, 83 tax evasion cases have been filed with the Department of Justice.
Money Laundering Remains a Significant Problem
Money laundering remains a significant problem in the Philippines. The AMLC has filed civil forfeiture cases against nine corporations, including one company that allegedly sold investment contracts to the public with promises of high returns.
Case Example: Unusual Bank Transactions
The case involved unusually large deposits and withdrawals from the company’s bank accounts, which were reported by a bank due to their unusual nature. Investigations revealed that several companies were being used as conduits for the money invested with the company.
- The Securities and Exchange Commission (SEC) found the company to be engaged in activities of selling securities without authority and directed it to cease and desist from further engaging in these activities.
- The AMLC subsequently ordered the freezing of the bank accounts of the company, its subsidiaries, and an individual linked to the case.
Ongoing Examination
Examination is still ongoing to obtain additional information on the transactions made by the account holders relating to money laundering through the bank accounts.