Monday, December 3, 2012

Expert lauds PHL commitment to anti-money laundering goals



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.

No comments:


OTHER LINKS