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Philippines a 'major' dirty money country due to drugs, crime, US says

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2017/news/03/06/030617_pdea.jpg"/><figcaption><div class="embed-desc">Philippine Drug Enforcement Agency agents stand on guard near confiscated illegal drugs before destroying them through thermal decomposition in Trece Martires, Cavite on February 16, 2017. <cite>Romeo Ranoco, Reuters</cite></div></figcaption></figure></div>MANILA - The US State Department has tagged the Philippines as a &quot;major&quot; country for money-laundering as illegal drug rings and crime syndicates take advantage of loopholes in banking laws.Casinos are of &quot;especially critical concern&quot; after $81 million that was stolen from Bangladesh&#x27;s foreign reserves last year ended up in casino accounts that are excluded from anti-money laundering laws, the department said.&quot;Sophisticated transnational organized crime and drug trafficking organizations use the Philippines as a drug transit country,&quot; according to the State Department&#x27;s 2017<a href="https://www.state.gov/documents/organization/268024.pdf"> International Narcotics Control Strategy Report</a>.&quot;Criminal groups use the Philippine banking system, commercial enterprises, and particularly casinos, to transfer drug and other illicit proceeds from the Philippines to offshore accounts,&quot; it said.<ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/nation/03/20/16/bangladesh-heist-exposes-ph-dirty-money-secrets">READ: Bangladesh heist exposes PH dirty money secrets </a></li></ul>The report also flagged &quot;insufficient cooperation&quot; between law enforcement agencies and the Anti-Money Laundering Council and the lack of &quot;clear legal jurisdiction&quot; of the Bangko Sentral ng Pilipinas over money service businesses.President Rodrigo Duterte, who is leading a relentless anti-drug crackdown, has repeatedly <a href="http://news.abs-cbn.com/news/12/22/16/duterte-warns-bsp-execs-resign-or-be-treated-as-drug-addict">criticized monetary authorities</a> for slowing his campaign.Strict bank secrecy laws, the State Department said, &quot;make it difficult for the AMLC to perform its basic financial analytical functions and inhibits the ability of law enforcement to proactively pursue money laundering cases in the absence of a link to a specific predicate crime.&quot;A &quot;predicate crime&quot; is a requirement before the dirty money watchdog can look into a suspicious account. The law identifies 14 such offenses including illegal drugs, plunder and kidnapping for ransom.&quot;While the Philippines has made progress in enacting legislation and issuing regulations, limited human and financial resources constrain tighter monitoring and enforcement,&quot; the State Department said.

The US State Department has tagged the Philippines as a "major" country for money-laundering as illegal drug rings and crime syndicates take advantage of loopholes in banking laws.

The US State Department has tagged the Philippines as a "major" country for money-laundering as illegal drug rings and crime syndicates take advantage of loopholes in banking laws.