ALBAY 2nd District Representative Joey Salceda is pushing for the enactment of laws against bulk cash smuggling and the relaxation of stringent bank secrecy regulations to further strengthen the country’s financial transparency and security. His call comes in light of the recent removal of the Philippines from the Financial Action Task Force (FATF) gray list.
Salceda emphasized that these reforms are necessary to enable the Philippines to implement automatic exchange of financial information with other tax jurisdictions. He noted that such measures would help identify and prosecute tax evaders both in the country and abroad.
In March 2020, Salceda introduced House Bill No. 6516, known as the Anti-Bulk Cash Smuggling Act, which aims to criminalize the transportation of large sums of undeclared foreign currency into or out of the Philippines. The proposed legislation includes penalties such as imprisonment ranging from seven to fourteen years for those found guilty of violations. According to Salceda, unregulated bulk cash smuggling poses significant national security risks and could weaken the integrity of the country’s financial institutions.
Beyond smuggling concerns, Salceda is also advocating for reforms to the country’s bank secrecy laws. He argues that the existing stringent regulations hinder the effective monitoring and prosecution of financial crimes, including money laundering and tax evasion. He pointed out that a lack of transparency in the banking system prevents regulatory authorities from accessing critical financial data, allowing illicit activities to go undetected.
The FATF had previously placed the Philippines on its gray list, subjecting the country to increased monitoring due to deficiencies in its efforts to combat money laundering and terrorist financing. However, as of February 2025, the international watchdog announced the country’s removal from the list, citing significant progress in addressing these concerns.
The removal is expected to bolster the Philippine financial system’s credibility, potentially lowering remittance costs for Overseas Filipino Workers (OFWs) and boosting investor confidence. However, Salceda insists that continued reforms are essential to ensure the Philippines does not become a safe haven for illicit financial activities. He remains steadfast in his advocacy for legislative action to align the country’s financial policies with global standards.
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