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Philstar.com - The Filipino Global Community HEADLINE NEWS FATF cracks down on cash movements By Des Ferriols The Philippine Star 10/25/2004 The Paris-based Financial Action Task Force (FATF) against money laundering has passed a new measure requiring countries to crack down on the movement of cash across borders. The measure came in the wake of the scandal involving Armed Forces of the Philippines (AFP) Maj. Gen. Carlos Garcia, whose two sons were apprehended by US Customs personnel for failure to declare $100,000 in cash as they entered the US through Los Angeles in December last year. Officials said they expected the Philippines' Anti-Money Laundering Council (AMLC) to use the Garcia case as an example in persuading Congress to pass new legislative measures that would strengthen the Anti-Money Laundering Act (AMLA). Meeting for its October plenary session, the FATF passed a measure known as Special Recommendation IX calling on countries to stop cross-border movements of currency and monetary instruments related to terrorist financing and money laundering. The FATF said countries should confiscate such funds while sharing information on the movement of illicit cash related to terrorist financing or money laundering. "We want to put an end to cash smuggling used to fund terrorism and criminal activities," said FATF president Jean-Louis Fort. "We're going to make it tougher to move terrorist money across borders and make it harder for terrorists to operate." According to Fort, the FATF would now require countries to institute measures to detect the physical cross-border transportation of currency and bearer-negotiable financial instruments. This would include a declaration system or other disclosure obligation. The FATF's Recommendation IX also required countries to ensure that their competent authorities have the legal muscle to stop or restrain currency or bearer-negotiable instruments that are suspected to be related to terrorist financing or money laundering, or that are falsely declared or disclosed. "Countries should ensure that effective, proportionate and dissuasive sanctions are available to deal with persons who make false declaration(s) or disclosure(s)," the FATF said. "In cases where the currency or bearer negotiable instruments are related to terrorist financing or money laundering, countries should also adopt measures, including legislative ones consistent with Recommendation III and Special Recommendation III, which would enable the confiscation of such currency or instruments." During the meeting, the FATF announced that it was withdrawing the counter-measures against Myanmar and Nauru, as these countries have now introduced new measures to remedy anti-money laundering deficiencies. The FATF said Myanmar enacted rules for the Mutual Assistance in Criminal Matters Law on Oct. 14, while the rich island nation of Nauru has taken several significant steps to ensure that offshore banks previously licensed in Nauru no longer exist and no longer conduct banking activity there. However, both countries will remain on the list of non-cooperative countries and territories (NCCTs) until they address the remaining deficiencies and adequately implement the necessary laws, the FATF said. Fort also said the FATF welcomed the additional progress made by the Cook Islands, Indonesia and the Philippines, confirming that the task force planned to visit these countries to confirm the effective implementation of their reforms. The current list of NCCT countries includes: The Cook Islands, Indonesia, Myanmar, Nauru, Nigeria and the Philippines. The FATF said these countries would be delisted after working towards ensuring that they were implementing effective anti-money laundering/counter-terrorist financing systems. -- ----------------- R. A. Hettinga <mailto: [EMAIL PROTECTED]> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'
