Press Release
June 17, 2007

LACSON TO AMLC: TAKE A GOOD SECOND LOOK AT AMLA

Senator Panfilo M. Lacson today rebuked the Anti-Money Laundering Council's move to freeze some P1.21 billion in accounts last May on suspicion that the funds came from illegal sources.

"Although the AMLC has the power to do that, may I remind them of the provision in the law that safeguards it against being used as a tool for political persecution during or after the election period," Senator Lacson, who is one of the principal authors of Republic Act 9160 otherwise known as the Anti-Money Laundering Act of 2001.

Quoting Section 16 of the said AMLA, Lacson said "no case for money laundering may be filed against and no assets shall be frozen, attached or forfeited to the prejudice of a candidate for an electoral office during an election period."

AMLC executive director Vicente Aquino over the weekend said over 8,000 suspicious transactions were reported to the council by financial institutions and banks last month, when the senatorial and local elections were held.

Under the AMLA, transactions are considered `suspicious' if it involves the movement of at least P500,000 within a banking day. Banks and other financial entities are mandated to report these transactions to the council for appropriate investigation.

Aquino said the increase in suspicious transactions may have been sparked by the huge funding requirement of candidates during the last May 14 elections.

"I advise Mr. Aquino to review the law and take the necessary steps to correct this mistake of freezing these accounts," Lacson said noting this situation was precisely in the minds of legislators when it crafted the AMLA.

"Aside from being possibly used by the government as a tool for political harassment, it is quite understandable for transactions to exceed the P500,000 threshold during an election period due to campaign funding requirements of candidates," Lacson said.

Citing an example, he said if a candidate for a national position would have to send funding for his campaign projects in Mindanao that would exceed the threshold, and the AMLC freezes the account used, "imagine the negative setback and implication it would create for that candidate, especially if he is from the opposition."

Instead, Lacson advised Aquino to concentrate on the investigation of accounts reported suspicious outside the election period. "If he does that correctly, I am sure they will net the real money launderers."

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