- Published on Saturday, 01 December 2012 20:02
- Written by Jun Vallecera / Reporter
THE British government
is working closely with regulators in the Philippines and around Asia
to help stop money-laundering and terrorist-financing activities around
the world worth as much as $1.2 trillion a year.
At this level, the
illicit flow of funds for laundering, terrorist financing and similar
endeavors equal more or less 2.7 percent of the world’s total output or
gross domestic product.
This was learned from
Gert Demmink, a Dutch national working for the time being for the
British government but whose four-day stay in the country was spent
upgrading the capacity of Philippine anti-money laundering officials to
track down, thwart and prosecute fraudsters and terrorist financiers.
Demmink is a lawyer
and forensic auditor and once worked at the Directorate of Supervision
at the Netherlands Central Bank and senior adviser to central banks in
the Netherlands IMF constituency (mainly former Soviet republics) with
regard to anti-money laundering/counterterrorism financing/corruption
and (tax) fraud. He has also advised Ukraine, Georgia, Armenia and
Bulgaria.
“The mission is not
about trying to identify weak spots. The mission is about trying to get
everybody in the region on a par with international best practices,” he
said in an interview at the Traders Hotel.
According to him, the
four days spent with the Bangko Sentral ng Pilipinas (BSP), the
Insurance Commission, the Securities and Exchange Commission and the
Anti-Money Laundering Council (AMLC) “was about raising [compliance]
standards.”
“It was not only about
having anti-money laundering legislation in place but applying that
legislation where the need is highest because there is only so much
[people and governments] can do,” he said.
He lauded the
Philippines and its officials for exhibiting deep commitments to the
goals of anti-money laundering worldwide and cited the work done by the
country’s AMLC to encourage local legislators to come up with enhanced
laws against the illicit flow of funds.
“We did not come here
with a carrot and stick. We came here with knowledge and experience. We
came here to share that knowledge and experience with the Philippines,
because the thing is we take away some knowledge and experience from the
Philippines, as well, and redistribute that in other countries,”
Demmink said.
He also said countries
under the Organization for Economic Cooperation and Development (OECD)
were impressed “with the way the BSP and the AMLC are dealing with
[proposed] legislation, how to effectively supervise financial
institutions, and to care for corruption, fraud and money-laundering
issues.”
“I would say from what I’ve seen around the world, Philippine legislation is very well set up,” Demmink said.
He said the
legislative framework on anti-money laundering is important for
countries like the Philippines seeking to improve its rank as 74th most
trusted country to do business in a field of 141 countries.
“To climb the ladder,
the Philippines must be perceived as a trustworthy country, a reliable
business partner, free from scandals and fraud and from money
laundering. Few people or countries will want to do business with a
country known as money-laundering haven or a corruption paradise. This
is not particular to the Philippines but just how it is,” he said.
He also said everyone
must strive to secure economic growth and endeavor to “rid the country
of the monster of corruption so that economic growth takes place, and
there is access to financing reaching all Filipinos and not just the
lucky few.”
He expressed optimism
the strides achieved against fraud, corruption and money laundering
should soon yield something tangible: “Tangible down the line, I would
say, will be conviction against fraudsters and money launderers. It
means the Philippines is able to grow further, making sure criminals,
indeed, no longer seek out the Philippines for their criminal
activities. We cannot completely weed them out but we can make it
extremely difficult.”
As for ongoing
attempts to introduce additional anti-money laundering measures in the
legislature, Demmink said the OECD countries making up the Financial
Action Task Force look forward to having that proposal passed into law.
“It is necessary and needs to be done,” Demmink said.
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