Increase in remittance fees feared

SEVERAL foreign banks have cut ties with money transfer operators servicing overseas Filipino workers following an $81-million heist that used a Philippine bank and a remittance firm as conduits.

“A growing number of foreign banks have recently closed accounts of money transfer operators that service our OFWs,” Finance Secretary Cesar Purisima said.

“If foreign banks continue to close down more accounts, the cost of remitting money for our OFWs can double,” he added.

Purisima said amending the Anti-Money Laundering Act was “urgent” to protect the remittances of migrant Filipinos.

“Reforming AMLA will send a message to foreign banks that OFW remittances should not be confused with the dirty money an unscrupulous few have coursed through the weak spots of our system. Reforming Amla will show our OFWs that we are serious about protecting their hard-earned money,” he said.

Some $81 million worth of funds deposited by Bangladesh’s central bank in the New York Federal Reserve was reportedly stolen by computer hackers and wired to a branch of Rizal Commercial Banking Corp. in February this year.

The money was reportedly converted into pesos by remittance company Philrem Service Corp., before the money found its way to several casinos.

Purisima said the finance department is supporting the inclusion of casinos and real estate dealers in the list of covered institutions for transactional reporting.

He also reiterated the department’s support for the easing of the law on secrecy of bank deposits.

“The Department of Finance has long been vocal against the highly restrictive provisions protecting money launderers and tax evaders behind the veil of bank secrecy and thus supports relaxing it under certain circumstances,” he said.

“A resurgent economy built on good governance must be willing to constantly reform where there is room for improvement to be found. Our banking system remains strong and stable, owing to the Bangko Sentral ng Pilipinas’ even keeled hands, but we acknowledge that there are cracks in our financial institutions people of greed have used to their advantage. We ought to strengthen the regulatory regimes that govern our money flows. We need a long-term legal remedy by way of an amendment to AMLA,” Purisima added.

Anti-Money Laundering Council executive director Julia Bacay-Abad said despite the laundering of the stolen funds from the Bangladeshi central bank, the Philippines is not a hotspot for money laundering.

“The Philippines is not the single country where money laundering could happen. We’re not a haven for money laundering,” Bacay-Abad said.