AMLC warned vs using law as tool for harassment

06/18/2007

Opposition Sen. Panfilo Lacson yesterday issued a stern warning to the Anti-Money Laundering Council (AMLC) on its move to freeze some P1.21 billion in accounts with alleged suspicious transactions last month, saying this could be used by the government as a possible tool for political harassment.

Lacson, one of the principal authors of the law that created the AMLC, Republic Act 9160 also known as the Anti-Money Laundering Act of 2001, assailed the move made by AMLC based on suspicion that the funds may have come from illegal sources.

“Although the AMLC has the power to do that, may I remind them of the provision in the law that safeguards it against being used as a tool for political

persecution during or after the election period,” he said, citing section 16 of the said law stating “no case for money laundering may be filed against and no assets shall be frozen, attached or forfeited to the prejudice of a candidate for an electoral office during an election period.”

“I advise (AMLC executive director) Mr. (Vicente) Aquino to review the law and take the necessary steps to correct this mistake of freezing these accounts,” Lacson said, noting the current situation was precisely in the minds of legislators when they crafted the AMLA.

“Aside from being possibly used by the government as a tool for political harassment, it is quite understandable for transactions to exceed the P500,000 threshold during an election period due to the campaign funding requirements of candidates,” Lacson said.

Citing an example, he said if a candidate for a national position would have to send funding for his campaign projects in Mindanao, that would exceed the threshold, and when AMLC freezes the account used, “imagine the negative setback and implication it would create for that candidate, especially if he is from the opposition.”

Instead, Lacson advised Aquino to concentrate on the investigation of accounts reported suspicious outside the election period.

“If he does that correctly, I am sure they will net the real money launderers,” Lacson pointed out.

Aquino over the weekend said over 8,000 suspicious transactions were reported to the council by financial institutions and banks last month, when the senatorial and local elections were held.

The AMLC said it is investigating persons involved in the transfer of huge sums of money.

After freezing a fund, the council subjects the owner to a probe and files the appropriate charges if needed.

Transactions are considered as “suspicious” if a bank client fails to identify himself properly, and if the sums involved are not commensurate with the client’s financial capacity.

Under the AMLA, transactions are considered “suspicious” if it involves the movement of at least P500,000 within a banking day. Banks and other financial entities are mandated to report these transactions to the council for appropriate investigation.

Aquino said the increase in suspicious transactions may have been sparked by the huge funding requirement of candidates during the last May 14 elections. Angie M. Rosales

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