Archive > No. 73 - January 2003

Anti-money laundering amendment needs to be passed
One pressing matter in Congress is the upcoming deadline for the amendments to the Anti-Money Laundering Act. The Paris-based Financial Action Task Force (FATF) had given the Philippines until 23 February 2003 to amend the Anti-Money Laundering Act so that it will comply with the international standards set by FATF. If such standards are not met, the FATF will impose countermeasures against the Philippines, such as warning non-financial sector business that transactions with entities in the country might run the risk of money laundering, thereby straining, if not cutting off, links between Philippine banks and international ones. The House Committee on Banks and Financial Intermediaries has just reported out its version, while the Senate bill is undergoing amendments.

No room for delay

During the last three months of year 2002, four priority measures were enacted: Special Purpose Vehicle Act (RA 9182), Magna Carta for Countryside and Barangay Business Enterprises (RA 9178), Free Patents Law (RA 9176), Declaring the Celebration of Eidul Fitr a National Holiday (RA 9177). Early this month, the Government Procurement Act (RA 9184) was also signed into law.

At present, however, there is still much work to be done and no room for delay. For instance, the General Appropriations Act for FY 2003 which determines how operations of the government will be financed from 1 January to 31 December 2003, is still undergoing committee-level hearings at the Senate. After the committee hearings, the budget measure still has to go through deliberations on the floor before legislators can vote on it. This measure has to be passed to allow for smooth implementation of government programs.

The Absentee Voting Act likewise entails significant changes on the electoral system since its passage will allow approximately seven million Filipino voters residing or working abroad to vote for presidential, vice-presidential, senatorial, and party-list posts. Overseas contract workers have been consistently pushing for the passage of the Act. In the meantime, legislators in the bicameral conference committee have yet to agree on the final version of the two chambers' conflicting provisions.

Other measures President Gloria Macapagal-Arroyo certified as urgent are still far from being enacted. Meanwhile, Congress has until 21 March 2003 to work on the needed legislation before it adjourns for recess starting 22 March 2003 until 13 April 2003. Expected to be enacted on or before 13 March 2003 are the Amendments to the Anti-Money Laundering Act, Farmland as Loan Collateral, Securitization Act, Dual Citizenship Act, and the Absentee Voting Law. Meanwhile, six measures are expected to be enacted by 6 June: Transco Franchise, Excise Tax on Motor Vehicles, Rationalization of the compensation for the Judiciary, Indexation of Sin Taxes, and the National Revenue Authority Act.

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