By Jun Vallecera
Reporter
THE monetary authorities have bowed to pressure from the United States, which previously declared the left-leaning New People's Army a terror organization.
Accounts maintained by nongovernment organizations suspected or known to deal with the NPA are closely watched and scrutinized.
Industry sources would not reveal which NGOs have fallen under this category, only that banks were told of harsh regulatory sanctions for failure to exercise caution.
Documents show 16 special transactions/circumstances have been classified by the Antimoney Laundering Council as immediately suspicious, for which banks are directed to exercise extra diligence whenever any one of them comes up.
Regulations mandate banks to be especially wary of transactions of individuals, companies and NGOs "suspected as being used to pay or receive funds from revolutionary taxes."
NPA spokesman Gregorio "Ka Roger" Rosal has repeatedly denied the revolutionary organization was bent on sowing terror and said it must neither be treated nor classified a terror group.
Ka Roger admits to communist aims and using revolutionary tactics to effect social change but claims to abhor terror altogether.
Nevertheless, regulations mandate banks to report immediately whenever transactions of individuals, companies or NGOs affiliated or related to people suspected of being connected to a terrorist group or any group advocating the violent overthrow of the government are detected.
Banks were told to be especially wary of NGOs that do not appear to have expenses normally related to relief or humanitarian efforts.
Lack of NGO proof of donors from the country of origin should also immediately alert banks on the nature of the transaction.
Regulations mandate that the pattern and size of the financial transactions, as well as the stated purpose and activity of the NGO must match; otherwise banks must exercise caution and report the matter.
Business Mirror
October 30, 2006
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