The House Committee on Ways and Means decided on Wednesday to reconstitute its technical working group (TWG) to come up with a “compassionate” Anti-Bulk Foreign Currency Smuggling law that will protect Overseas Filipino Workers (OFWs) and their hard-earned money.
Albay 2nd District Rep. Jose Maria Clemente “Joey” Salceda, chairman of the panel, directed Nueva Ecija 1st District Rep. Estrellita Suansing to head the TWG, and “rewrite” its version of the proposed law to consider the welfare of the OFWs as raised by Kabayan partylist Rep. Ron Salo and Muntinlupa Lone District Rep. Rozzano Rufino Biazon.
“Can you put compassion into this, just to safeguard our OFWs, because they have like what— $US 32 billion they bring in, some of them not physically, that is $US 1.5 trillion Ron Salo,” Salceda said.
He cited the need for the Suansing panel to reconcile the “policy conflict” as well as the current “state mechanisms.”
“May I just ask to reconstitute the TWG to address this,” he said. “The reality on the ground really argues for a more compassionate approach,” he pointed out.
Salo and Biazon strongly opposed Section 7 of the proposed Anti-Bulk Foreign Currency Smuggling Act presented by Suansing, because it might unnecessarily penalize ordinary citizens, particularly the OFWs.
“Let us consider the legitimacy of the source or the intention on that particular amount, hindi lang po ang failure nya to declare but also icoconsider natin as element of the crime, ano ba ang source, ano ang pinanggalingan? (Not just the failure to declare, but also let us consider as an element of the crime, what is the source? where did it come from?),” Salo said.
“Ang third element of the crime, saan po gagamitin, kasi kung mapo-prove ng tao na those are legitimate, legitimate ang source , legitimate ang purpose then there will be no crime committed. May duty to declare pero ‘yung criminal liability mawawala,” he added. (The third element of the crime, where are you going to use this? Because if it will be proven that those are legitimate, the source is legitimate, the purpose is legitimate, then there will be no crime committed. There is a duty to declare, but the criminal liability will be scrapped.)
Section 7 of the proposed Act provides that it shall be unlawful for any person who knowingly conceals more than US $10,000 or its equivalent in any foreign currency and/or foreign currency-denominated bearer monetary instruments on the person of such individual or in any conveyance, article of luggage, merchandise, or other container, and transports or transfers or attempts to transport or transfer such currency or bearer monetary instruments from a place within the Philippines to a place outside of the Philippines, or from a place outside the Philippines to a place within the Philippines with the intent to evade the currency declaration requirement or makes a false declaration as defined.
It provides that the concealment of currency on the person of any individual includes concealment in any article of clothing worn by the individual or in any luggage, backpack, or other container worn or carried by such individual.
Biazon proposed that the entire Section 7 be deleted, saying that the provision is itself a “basis” for the violation of the Anti-Money Laundering Law.
He said many OFWs will be affected by such provision if it will not be scrapped.
Salo insisted that mechanisms should be put in place to ensure the protection of ordinary Filipinos.
“The way it (proposed substitute bill) is worded now, the mere fact , wala silang other basis to prove their innocence. Pano kung later on, ‘yung pera naman yun ay malinis naman, they might be OFWs pinaghirapan naman nila yun, at dinala yun and simply declare it. Then suddenly, they will be subjected to all the criminal liabilities. Kailangan din po strengthen ang protection ng ating people,” he said. (The way it is worded now, the mere fact, they do not have other basis to prove their innocence. What if later on, the money which is brought in is clean, they might be OFWs, they are hard-earned money and they carry it and simply declare it. Then suddenly, they will be subjected to all the criminal liabilities. We need to strengthen the protection of the people.)
Aside from Suansing, among those tasked to sit at the TWG are Salo, Biazon, Baguio Lone District Rep. Mark Go and Manila Teachers partylist Rep. Virgilio Lacson and representatives of the Anti-Money Laundering Council, Bangko Sentral ng Pilipinas and Bureau of Customs.
In a statement issued late Wednesday afternoon, Salceda noted that "in 2019, P 50.1 billion may have been smuggled into the Philippines undetected,” apart from the P28.6 billion, which was smuggled into our country by four syndicates last year.
He expressed the Lower Chamber’s commitment to expeditiously act on their proposed reform measure, saying that "bulk cash smuggling is a potential source of terrorist financing and is being taken advantage of by syndicated crime groups.”
“The implications of failing to enact this measure are very real. Remittance fees could get more expensive for OFWs. Our banks will have a hard time getting through other financial institutions abroad. Our international reputation will suffer immensely. The inability of Philippine banks to transact with foreign banks endangers approximately 13.18 percent of our Gross Domestic Product,” Salceda said.
He said the government should give due attention to bulk cash smuggling, as the Financial Action Task Force considers it as a “red flag.”
According to him, as an intergovernmental watchdog, FATF could recommend the imposition of sanctions and additional safety checks against Philippine financial institutions.