Duterte expands AMLA to include real estate developers and brokers
On January 29, 2021, President Rodrigo Duterte has signed Republic Act (RA) 11521 that intends to strengthen the country’s anti-money laundering act (AMLA).
READ: Republic Act No. 11521
RA 11521, which takes effect on January 30, 2021, introduces amendments to RA 9160 or the Anti-Money Laundering Act of 2001 in efforts to prevent the country from being included on the “gray list” or countries with weak policies against dirty money.
READ: Amendments to Certain Provisions of the 2018 Implementing Rules and Regulations of the AMLA
The newly signed law now includes on the list of covered persons real estate developers and brokers who engage in the buying and selling of real estate properties, along with Philippine offshore gaming operators and their service providers.
This means that real estate brokers and developers are required to report single cash transactions involving an amount in excess of PhP 7.5 million or its equivalent in any other currency.
It can be recalled that in October of last year, Anti-Money Laundering Council Executive Director Atty. Mel Racela has confirmed during a Senate hearing that real estate transactions are used by criminals to launder dirty money in the Philippines. AMLC data showed real estate assets account for 22% of total assets and properties that are subject to AMLC civil forfeiture proceedings. [source]
The Philippine government has until February 2021 to implement changes and prove that its anti-money laundering reforms are effective. In 2000, the Philippines was gray-listed by the Paris-based watchdog Financial Action Task Force (FATF) – International Cooperation Review Group due to its failure to address dirty money issues. Inclusion in the FATF’s gray list could potentially delay foreign investment and make remittances from millions of Filipinos overseas, which powers domestic consumer spending, subject to stricter scrutiny and monitoring.
References:
- Philippines’ Duterte tightens anti-money laundering rules to avoid `grey list’ (Reuters)
- Duterte inks law amending AMLA (PNA)
- Duterte signs law ‘strengthening’ anti-money laundering law (The Manila Times)
- Duterte signs law strengthening anti-money laundering regulations (Business World)
- Criminals use real estate transactions in PH to wash dirty money — anti-money laundering body (CNN Philippines, Oct 29, 2020)
