Still a dirty money haven

Now that the Philippines, after missing its deadline, finally managed to get out of the gray list of countries under tighter monitoring by the Financial Action Task Force or FATF, the global dirty money watchdog may want to take a look at one of the biggest financial laundromats in this country: campaign finance.

- ANA MARIE PAMINTUAN

Pressure from the Paris-based anti-money laundering FATF compelled the government, among other things, to tighten supervision of casino junkets and strengthen its framework for combating terrorism financing. The complete ban on Philippine offshore gaming operations and the local POGO copycat IGL or internet gaming licensee also helped.

While Philippine officials are patting themselves on the back, several nongovernment organizations are lamenting that the exit from the gray list was achieved partly at their expense, with their assets frozen and restrictions imposed for being classified as supporters of terrorist groups.

Several of these NGOs have been linked by government security officials to the Communist Party of the Philippines and New People's Army. The CPP and NPA are designated as terrorist organizations not only in the Philippines but also in the United States and the European Union.

The exit from the FATF gray list means the country is seen to have made significant progress in strengthening measures against money laundering and financing of terrorism.

Officials have stressed that exiting the list does not mean money laundering has been eliminated. Which is just as well, since Filipinos will laugh if told that the exit means the country is no longer a money laundering haven.

Some quarters are even hoping that the FATF will also exert pressure on the government for the passage of legislation for genuine campaign finance reforms and easing of bank secrecy laws.