Philippine FIU Seeks an End to Bank Secrecy Law
The AML Council is seeking additional powers to combat financial crime, including the lifting of the bank secrecy law, which would allow it to check all accounts regardless of transaction thresholds.
The Philippine AMLC (Anti-Money Laundering Council) is seeking additional powers to combat financial crime as part of the BSP (Bangko Sentral ng Pilipinas) larger responsibilities to ensure financial stability.
Chaired by BSP governor Benjamin Diokno, the AMLC is the FIU (Financial Intelligence Unit) of the Philippines, created in 2001 to protect the integrity and confidentiality of bank accounts, prevent the use of the country’s financial system for money laundering, and facilitate international investigation and prosecution of persons involved in money laundering activities.
According to Diokno, the AMLC is looking at the possibility of expanding its mandate in response the BSP’s new charter, which granted the central bank new supervisory powers over monetary policy, bank supervision and financial stability.
Lifting of bank secrecy for tax purposes is part of the BSP’s legislative agenda, as it would allow the AMLC to check all accounts, Diokno reportedly said on Saturday (4 May), citing the Philippines and Lebanon as the only two countries that still have this restriction in place.
The bank secrecy law is a special legislation that allows and requires banks and financial institutions to protect and keep confidential customer information from third parties even if these are government or tax authorities. A court order is required to lift bank secrecy.
“Right now, AMLC only requires reporting if transactions reach a certain threshold,” he said, adding that opening up all bank accounts to AMLC scrutiny will help to uncover financial crime.
It will also help that the amended BSP charter now allows the central bank to issue subpoenas, Diokno said.
For years multiple officials have lobbied for easing bank secrecy rules.
Notably, the Philippine SEC (Securities and Exchange Commission) has asked for an exemption from the bank secrecy law to allow it to look into bank accounts when investigating investment scams. Its inability to do so was cited as the only issue preventing it from joining IOSCO (the International Organization of Securities Commissions).
