Securities and Exchange Commission chairman Teresita Herbosa called on Congress to further strengthen the country’s Anti-Money Laundering Act amid reports that $81 million have been laundered in the Philippines.
Herbosa in an interview at the sidelines of the Apec Financial Infrastructure Development meeting cited the need to expand the coverage of reporting institutions and ensure that the Anti Money Laundering Council had powers to conduct investigations on the perpetrators.
Herbosa said AMLC should now push for the inclusion of casinos and as well as art in the coverage of AMLA.
“We need to strengthen the law. Money laundering can only be stopped if everyone in the world cooperates. It’s a global effort to eradicate money laundering, we have to catch up with people doing that activity, and while we are doing that, we need to strengthen the laws of each country to conform to best practices,” Herbosa said.
She said the recent reports should be a “good stimulus” to prompt legislators to strengthen the AMLA, like adding certain groups or individuals, such as casinos, to the covered institutions
“I’m sure they’ll be considered for the next round of amendments. [The recent reports on money laundering] is a very good stimulus for everyone to seriously consider who should, or should not be considered,” said Herbosa.
Herbosa is confident the government would be able to recover the $81-million money reportedly stolen by hackers from Bangladesh and the Federal Reserve Bank of New York and those been traced to Philippine banks and casinos.
“I’m sure somehow, some of it will be recovered. I am an optimistic person and I believe in the rule of law,” Herbosa said.
Bangladeshç—´ government, meanwhile, lashed out at the central bank in a rare public split as tensions escalate after hackers stole about $101 million from its foreign reserves.
Finance Minister Abul Maal Abdul Muhithvowed to take action against Bangladesh Bank after it failed to inform the government immediately when the funds went missing from an account with the Federal Reserve Bank of New York last month. Other transfers totaling $850 million were blocked, according to the central bank.
“Bangladesh Bank has the audacity not to inform me,” Muhith told reporters in Dhaka on Sunday. “I am very unhappy about it. The handling of the matter by Bangladesh Bank is very incompetent.”
Subhankar Saha, a spokesman for Bangladesh Bank, declined to comment on Muhith’s remarks when reached by phone on Monday.
The cyber heist has rattled authorities from Bangladesh to the Philippines, where much of the stolen money ended up. Both governments are cooperating on investigations as they look to figure out how to prevent a similar theft in the future.
Bangladesh Bank is investigating eight officials who carry out foreign exchange transactions by rotation, according to a Finance Ministry official who asked not to be identified because he痴 not authorized to speak about the probe. Some of the officials found the central bank痴 computer systems inoperative on Feb. 5, a day after the theft, but didn稚 immediately inform their supervisors, the official said.
