OFWs stand to suffer if AMLA is not amended -- Poe

Senator Grace Poe on Thursday said that overseas Filipino workers would be the most affected should the Philippine government fail to strengthen its anti-money laundering measures.

Poe, chairperson of the Senate committee on banks, financial institutions and currencies, issued a statement as she reiterated the need to amend the Anti-Money Laundering Act (AMLA) and prevent the Philippines from being grey-listed in the global financial community.

"This will impact on our OFWs, who are the nation’s breadwinners. Sending money to their families could entail higher fees and difficulties,” Poe said in a statement.

In her sponsorship Wednesday of Senate Bill No. 1945 seeking to amend the AMLA, Poe said member-countries of the European Union could impose an "enhanced due diligence" on Filipino nationals and businesses that would transact within their jurisdiction, and could result in additional paperwork, higher interest rates and processing fees.

"Ang pinaghirapang pera na nakalaan sana para sa panggastos ng kanilang pamilya ay mapupunta na lamang sa mas mataas na remittance fee (Their hard-earned money that they set aside for their families will only be used for higher remittance fees)," she warned.

Poe pointed out that OFW remittances have helped boost the Philippine economy, especially during times of crises.

Citing data from the Bangko Sentral ng Pilipinas, personal remittance from OFWs reached $33.5 billion in 2019, which was 3.9 percent higher than the previous year.

Aside from higher fees for OFWs, Poe said the Philippines would likely incur a “reputational risk” that could affect investor and lender confidence.

“We can only imagine the domino effect that this would trigger on all of our local industries," she said.

Plenary debates on Senate Bill No. 1945 is set to begin Monday, December 14.

Under the bill, real estate developers and brokers engaged in a single cash transaction of in excess of P5 million will be included as covered persons; as well as Philippine offshore gaming operators and service providers.

The bill also includes the commission of tax crimes and violation of the Strategic Trade Management Act, which relates to the proliferation of weapons of mass destruction and its financing, as predicate offenses to money laundering.

Likewise, the measure seeks to strengthen the Anti-Money Laundering Council by enhancing its investigative powers, authorizing it to impose targeted financial sanctions on proliferation financing; and to preserve, manage or dispose assets and stop the issuance of injunctive relief against freeze orders and forfeiture proceedings.