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Subcom okays budget of govt?s financial intelligence arm

Committee Source: APPROPRIATIONS

IN RECOGNITION of the important role the Anti-Money Laundering Council (AMLC) plays in helping establish and maintain an internationally compliant and effective anti-money laundering regime in the country, the Subcommittee ?C? of the Committee on Appropriations approved the AMLC?s proposed budget for 2008 amounting to P10.2 million.

Notwithstanding the approval of the AMLC?s proposed budget as submitted, the members still agreed to push for the restoration of the council?s original budget proposal of P34.7 million when the body submits its recommendation to its mother Committee. The Subcommittee C is headed by Representative Mark Cojuangco (5th District, Pangasinan).

The AMLC, a financial intelligence unit (FIU) created by virtue of Republic Act 9160 (Anti?Money Laundering Act of 2001), is tasked to initiate investigations of covered transactions, money laundering activities and other violations of the law. It may file complaints with the Department of Justice (DOJ) or the Ombudsman for the prosecution of money laundering offenses and may also institute civil forfeiture proceedings and other remedial proceedings through the Office of the Solicitor General (OSG).

It is likewise authorized to receive and analyze financial information from banks and other covered institutions regulated by the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC) and the Insurance Commission (IC).

The council is headed by the BSP Governor with the Chairman of the SEC and the Commissioner of the Insurance Commission as members.

During the briefing given by the AMLC, Executive Director Vicente Aquino informed the Subcommittee members that the AMLC has already secured eight civil forfeiture judgments for offenses under the anti-money laundering law.

He added that the AMLC has obtained the first money-laundering conviction in the country involving a bank manager who was found guilty beyond reasonable doubt by the Regional Trial Court of Pasig City.

Aquino lamented that the P10.2 million budget recommended by the Department of Budget and Management (DBM) for the AMLC only covers the latter?s maintenance and other operating expenses (MOOE). He also said that no funding provision was included for the rent of the office space which is currently being leased by the AMLC from the BSP. ?Neither was there any funding for confidential expenses such as surveillance, intelligence and information-gathering activities, and the repair and maintenance of IT equipment and software,? he added.

He also mentioned that even with AMLC?s meager budget, it is keeping itself up to the task, which is attuned to the anti-money laundering efforts of the international community. ?In its own little way, (the AMLC) has shown the whole world that the Philippines has an agency that is an effective and equal partner of its counterparts worldwide,? Aquino stated.

After hearing the AMLC?s briefing, Rep. Hermilando Mandanas (2nd District, Batangas) proposed that to enable the AMLC augment its operational funds, the AMLC be allowed to collect registration fees from investment banks and other financial institutions which seek its assistance. He added a special provision may be inserted in the General Appropriations Act stating that amounts collected by the AMLC may be used for its operating expenses.

The lawmaker then asked the AMLC to furnish the Subcommittee with a comparative study on the annual budgets of similar financial intelligence units of other countries.

Meanwhile, Rep. Cojuangco asked the AMLC to submit a report on the total value of assets so far forfeited by the council under the anti-money laundering law in favor of the government. He said the amount will serve as the benchmark figure for the Subcommittee?s recommendation for the restoration of the original budget of AMLC.

Source: Committee Administrative Support Service, Committee Affairs Department