WITH US FSAT VISIT

PDEA's Financial Probe Capability Seen To Improve

The Philippine Drug Enforcement Agency (PDEA) expects to improve its
financial investigation capability to address money laundering with
the visit of the Financial Systems Assessment Team (FSAT) from the
United States that analyzed the agency's existing resources used to
identify and seize the financial assets of suspected drug lords and
other drug personalities engaged in the illegal drugs trade.

Undersecretary Anselmo S. Avenido Jr., PDEA Director General, made
this observation after he and key officials of the agency met with
FSAT members Celina Realuyo, senior policy advisor, Department of
State; and Leslie Martell, special agent, Federal Bureau of
Investigation.

"As the lead agency in the intensified and revitalized national
anti-drug campaign, the PDEA needs to strengthen its capability in
identifying the financial assets of suspected drug lords. This is to
prevent them from using the proceeds of their illegal drug business to
further expand their operations. The visit of the FSAT is a most
welcome development in our fight against money laundering,'' Avenido
explained. While the PDEA has its own Financial Investigation Unit
under the Special Enforcement Service (SES), there is still much to be
done, as cited by the unit's personnel who said they needed special
training, practical exercises and equipment.

Police Senior Supt. Lina Sarmiento, director of PDEA Plans and
Operations Service, said the agency had already initiated three
activities to enhance its capability to conduct anti-money laundering
operations, namely: 1) drafting of a memorandum of agreement between
the PDEA and the Anti-Money Laundering Council (AMLC); 2) creation of
the Financial Investigation Unit under the SES; and 3) holding of a
seminar in coordination with the AMLC.

The FSAT's mission comes on the heels of the state visit of US
President George Bush to the country last Oct. 18 where he reiterated
his call on the fight against terrorism and money laundering.

There have been reports that terrorist and rebel groups in Mindanao
and other parts of the Philippines are engaged in the illegal drugs
trade like marijuana cultivation and drug trafficking. Proceeds from
the illegal activity are allegedly being laundered by these groups.

Realuyo and Martell are in the country to evaluate the government's
anti-money laundering and counter-terrorism financing regime, to
identify vulnerabilities, and to prescribe training and technical
assistance to address these weaknesses.

The FSAT will also assess the country's legal, financial and
enforcement frameworks, focusing on practices and legislation put into
place since September 11, 2001 to determine the capability of the host
country in identifying and seizing terrorist financial assets.

The FSAT also met with officials from the Bangko Sentral ng Pilipinas
(BSP), Finance, Foreign Affairs, and Justice Departments, Office of
the Solicitor General, Asian Development Bank, Bankers Association of
the Philippines, Financial Intelligence Units (FIUs), law enforcement
agencies, including the PNP and Bureau of Customs.