'Executive Secretary Paquito N. Ochoa, in a March 1 letter to Senate President Juan Ponce Enrile, said a downgrade to the "dark grey " category from "gray" was in fact implemented last month after Congress failed to pass two Palace-certified measures.
'"[T]he Philippines has been downgraded from the ‘grey list’ to the ‘dark grey list’ of vulnerable jurisdictions ... for the failure ... to enact into law the AMLA (Anti-Money Laundering Act) amendments bill and the Terrorist Financing Suppression bill not later than 31 December 2011," Mr. Ochoa said in the letter, a copy of which was also furnished House Speaker Feliciano R. Belmonte, Jr.
'Continued inaction -- a May 2012 deadline was cited -- before the next FATF plenary this June means "our country will be blacklisted," Mr. Ochoa added.
'Blacklisted countries are subject to financial sanctions which would result in delayed remittances, higher charges and costs for Filipinos and Philippine banks and increased scrutiny of Philippine-based transactions.
...
'The AMLC, chaired by central bank Governor Amando M. Tetangco, Jr., noted that a "dark grey" listing essentially has the same effect as being in the "grey" category -- other states are warned to be cautious in their dealings/transactions with the country.
'However, it said the downgrade also means the Philippines was given a "grace period" of up to May 2012 to enact the two bills "as originally submitted ... Otherwise, the Philippines will be downgraded to the ‘black list’ and subjected to financial sanctions by the international community...".
'The House of Representatives last Dec. 5 passed an AMLA amendment bill, criticized as watered-down as legislators removed a provision that would have allowed the AMLC to look into suspect bank accounts without notifying the owners. A version similar to the approved House bill is pending at the Senate.
'The House, meanwhile, approved the Anti-Terrorist Financing bill on Feb. 7, while the Senate’s version was formally endorsed to the plenary on Tuesday.
'Both measures were certified by Mr. Aquino as urgent on Feb. 10.'
