PDEA, AMLC beef up drive vs. drug money launderers

FILE: PDEA, AMLC VS. MONEY LAUNDERERS. Philippine Drug Enforcement Agency (PDEA) Director General Aaron N. Aquino (left) and Anti-Money Laundering Council Executive Director Atty. Mel Georgie Racela show the memorandum of agreement (MOA) they earlier signed in simple rites at the PDEA national headquarters in Quezon City on Tuesday (March 5, 2019). Under the MOA, the parties pledged to cooperate in the areas of information exchange and capacity building measures, including the exchange of studies, researches, information on current, new and emerging trends and typologies in money laundering and terrorism financing. (PNA photo by Joey O. Razon)

MANILA — The Philippine Drug Enforcement Agency (PDEA) and the Anti-Money Laundering Council (AMLC) on Tuesday signed a Memorandum of Agreement (MOA) aimed at strengthening cooperation in running after money launderers who “wash” their illicit proceeds from illegal drug activities.

PDEA Director General Aaron N. Aquino and AMLC Executive Director Mel Georgie B. Racela signed the MOA in a simple ceremony held at the PDEA National Headquarters in Quezon City.

The parties pledged to cooperate in the areas of information exchange and capacity building measures, including the exchange of studies, researches, information on current, new and emerging trends and typologies in money laundering and terrorism financing.

Joint trainings may be undertaken by PDEA and AMLC to ensure the inter-operability of their respective personnel.

Under the MOA, the parties agreed to include terrorism financing as a predicate offense and subject to the common provisions of assistance; establish a feedback mechanism, to enable parties to monitor effectiveness and improve on the information shared; designation of focal persons, to facilitate enhanced coordination and cooperation; and strict confidentiality of information shared, among others.

In general, the MOA focused more on the actual coordination process and requirements of and from each party in rendering support to combat money laundering activities in relation to illegal drugs.

“Under the agreement, both parties have expressed their desire to promote and encourage cooperation to effectively prevent, control, detect and investigate unlawful activities under Section 3 of the Anti-Money Laundering Act,” Aquino told reporters.

According to Aquino, aside from financing terrorism, laundered money comes from the production and trafficking of dangerous drugs, while banks and other regulated entities have become conduits for laundering drug money.

“Drug lords hide their profits to make it appear they were acquired through legitimate means. We need to track down their drug money trail and prevent them from using their affluence and influence to evade punishment,” he stressed.

“The efforts and resources used by PDEA in tracking down and arresting illegal drug dealers and manufacturers will definitely go for naught if we cannot freeze the assets of these criminals while they are being prosecuted,” the PDEA chief pointed out, adding, “we cannot go on arresting and filing the cases while the drug lords are freely using drug money to buy their way out of prison.”

Aquino said the PDEA may request for financial information to support an ongoing investigation on any violations of the anti-drug law and in return, AMLC may enlist the assistance of PDEA in the detection and investigation of money laundering activities and other violations of the AMLA.

PDEA and AMLC are members of the National Law Enforcement Coordinating Committee-Sub-Committee on Anti-Money Laundering and Countering the Financing of Terrorism (NALECC Sub-Committee AML/CFT), and of the Enforcement Cluster of the Inter-Agency Committee on Illegal Drugs (ICAD).

Three Financial Investigation workshops clustered in Luzon, Visayas and Mindanao were conducted, with personnel of PDEA and AMLC as participants. Likewise, three Trainings on Money Laundering and Financing of Terrorism were provided to more or less 150 Drug Enforcement Officers as part of PDEA’s capability enhancement program.

In 2018, the PDEA Anti-Money Laundering Desk (AMLD) referred 75 cases involving 102 targeted drug personalities and 64 personalities believed to be involved in illegal drug activities to AMLC for financial investigation. From 2011 to 2018, AMLC has frozen a total of PHP2.037 billion worth of assets, which include local and foreign currencies, real estate, motor vehicles and firearms, from all drug cases referred by the PDEA AMLD.

For his part, Racela said that will help PDEA by providing evidence to establish charges of drug trafficking filed against offenders.

“Kailangan magbigay sa amin ng ebidensiya na linked sila or may connection sila sa drug trafficking para ma-establish namin yungprobable cause for freezing (their accounts). Yun ang aaksiyunan namin (We need evidence that they have links or connections to drug trafficking to establish probable cause in freezing their accounts. That is what we will act upon),” Racela told reporters when sought for a comment.

AMLC is the primary government agency mandated by law to implement and enforce the AMLA, to protect the integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity.