THE Department of Finance has endorsed to Congress the passage of a measure seeking to amend laws, including the Bank Deposit Secrecy Law, to bolster the government’s campaign against tax evasion.
The proposal was jointly prepared by the Anti-Money Laundering Council and the Bangko Sentral ng Pilipinas to strengthen the country’s Anti-Money Laundering Act.
The amendments sought to the Amla as part of the government’s response to the recommendations of the Financial Action Task Force, a global standard setting body for anti-money laundering and terrorist financing, to treat tax evasion as a predicate offense in money-laundering cases.
The FATF called on governments to treat tax evasion as a predicate offense in money-laundering cases so that it will fall under the category of an international crime that may be investigated by the International Criminal Police Organization, also known as Interpol.
The need to amend the Amla has been made more urgent by recent financial controversies that have exploited the perceived weakness in the country’s tax and financial systems, including the Bangladesh Bank heist involving casinos in the Philippines.
The DoF seeks to replicate the prevailing policy in Singapore where tax evasion is considered a predicate crime to money-laundering cases.
In a related development, the National Bureau of Investigation and the Interpol has begun to investigate Singaporean businesswoman Kwek Siang Ling, alias Wendy Kwek, owner of the Singaporean firm Real Centre Consultants Pte. Ltd. for money laundering and tax evasion.
The investigation stemmed frpom a complaint filed by Philippine company Sunland Development Corp. which claims to have paid her 15% in sales commissions although she only reported commissions of 5% in Singapore purportedly to evade payment of taxes.
Sunland has asked the Singapore embassy to facilitate the refund to Sinagporean buyers who were affected by the dispute between Sunland and Kwek.