Tightening Anti-Money Laundering Regulations in the Philippines
The Philippine government has recently approved new regulations aimed at combating money laundering and terrorism financing in the country. The revised laws impose stiff penalties on individuals and corporations found guilty of violating anti-money laundering laws, strengthening the country’s anti-money laundering regime.
Penalties for Anti-Money Laundering Violations
Under the Anti-Money Laundering Act (AMLA), various offenses related to money laundering are penalized. These include:
- Failure to keep records: imprisonment from six months to one year, or a fine of up to PHP500,000
- Malicious reporting: imprisonment for six months to four years, and a fine of up to PHP500,000. The court may also suspend or revoke the license of a juridical person found guilty of this offense
Incentives and Rewards
The law provides incentives and rewards for government agencies and personnel who initiate investigations, prosecutions, and convictions related to money laundering offenses.
Monitoring Implementation
A Congressional Oversight Committee has been established to monitor the implementation of anti-money laundering regulations. This committee will ensure that the laws are enforced effectively and efficiently.
Protection from Political Harassment
The law prohibits political harassment and persecution under the guise of anti-money laundering investigations. It also provides for restitution for aggrieved parties and sets out procedures for freezing, attaching, or forfeiting assets related to money laundering offenses.
Implementing Rules and Regulations
The Bangko Sentral ng Pilipinas (BSP), Insurance Commission, and Securities and Exchange Commission have been tasked with promulgating implementing rules and regulations within 30 days of the law’s effectivity. The BSP will also receive an initial appropriation of PHP25 million to fund its anti-money laundering activities.
Aims and Expected Outcomes
The new law aims to strengthen the country’s anti-money laundering regime, prevent the misuse of financial systems for illegal purposes, and help the Philippines meet international standards on combating money laundering and terrorism financing. With these regulations in place, the government hopes to effectively combat money laundering and terrorism financing in the country.