US embassy cable - 05MANILA5483

C O N F I D E N T I A L MANILA 005483 
 
SIPDIS 
 
E.O. 12958: DECL: 11/25/2015 
TAGS: EFIN, PTER, RP 
SUBJECT: CASH COURIERS IN THE PHILIPPINES 
 
REF: TREASURY 1346 (11/01/05) 
 
Classified By: ECONCOUNSELOR ROBERT LUDAN.  REASONS 1.4 (b) and (d) 
 
1.  (SBU)  Embassy appreciates efforts to coordinate and 
address the issue of cash couriers as a critical element in 
thwarting money laundering and potential terrorist financing. 
 We agree with the strategic picture presented in reftel and 
concur that it contains the major elements of a draft 
strategy.  While bulk cash smuggling in the Philippines is 
rampant, the authorities are taking steps to combat it, and 
actively seek USG technical assistance in human and 
institutional capacity-building and training to identify, 
investigate, and curtail abuses. 
 
2.  (U)  Although there is no limit on the amount of foreign 
currency an individual or entity can bring into or take out 
of the country, any amount in excess of $10,000 equivalent 
must be declared upon arrival or departure.  The Philippines 
limits the amount of domestic currency that can be brought 
into or taken out of the country at 10,000 pesos (about 
$200).  Amounts over that need the approval of the Central 
Bank, which is difficult to obtain. 
 
3.  (SBU)  The requirement to declare foreign currency upon 
arrival and departure and the restriction on bringing in or 
taking out pesos is well-publicized at Manila's international 
airport (NAIA).  There are signs posted throughout the 
terminal reminding travelers that they must declare foreign 
currency above $10,000 and cannot transport more than 10,000 
pesos.  The airport recently revised the immigration cards 
that inbound and outbound travelers must complete and sign to 
clarify the rules governing currency declaration.  The 
airport has also posted large public notices on currency 
border controls as part of a recent government initiative in 
coordination with the U.S. Embassy. 
 
4.  (C)  The signs at NAIA in Manila could be more 
prominently displayed.  Other international gateways to the 
Philippines, including the airports in Cebu, Mindanao, and 
northern Luzon, do not have signs publicizing currency 
restrictions for arriving and departing passengers.  Customs 
officials in these cities have not focused on the problem of 
cash smuggling.  As a result, charter flights coming into and 
out of these destinations may be shielding a significant 
number of cash couriers. 
 
5.  (C)  There is systematic abuse of the currency 
declaration requirements, and the volume of unreported cash 
coming into the Philippines is extraordinary.  The total 
amount of funds declared by the only three foreign banks 
repatriating cash to their regional or home headquarters is 
over 100 times the value of U.S. dollars declared by incoming 
passengers and institutions.  The Bureau of Customs (BOC) is 
aware that currency smuggling is a problem and is actively 
pursuing USG support to combat it.  The BOC has a 
well-deserved reputation for corruption, however, and may be 
colluding with some of these cash smugglers.  BOC officials 
have undergone some training already to help them learn to 
identify cash couriers but would appreciate additional 
capacity building in the areas of bulk cash identification 
and outbound passenger search techniques. 
 
6.  (SBU)  The Anti-Money Laundering Council (AMLC), the 
country's financial intelligence unit with investigative and 
prosecutorial authority for money laundering, is well aware 
of FATF Special Recommendation IX.  USG officials stationed 
in Manila and visiting the country engage AMLC on a regular 
basis.  AMLC is actively coordinating with the Philippine 
National Police (PNP), the BOC, the Bureau of Immigration, 
the airport authorities, and other GRP agencies to share 
intelligence about cash smuggling.  Embassy expects the 
signing of a draft MOU between AMLC and the BOC soon covering 
information exchange and operational cooperation.  The USG 
has a number of programs of technical support and training 
assistance with AMLC, as well as with the aviation security 
unit of the PNP, the Manila International Airport Authority, 
and the Bureau of Customs.  The GRP is looking forward to a 
special training program that will be conducted with the help 
of DHS/ICE on bulk cash smuggling early next spring. 
Jones