Even critics acknowledge that the law will enable investigators to detect the most flagrant cases of money laundering. Estrada, who became president in 1998, is a case in point. In his impeachment trial in the Senate, prosecutors asserted that Estrada had laundered more than US$8 million in proceeds from illegal gambling rings through various bank accounts. While backed by testimony from people involved in the scheme, the case against the former president was weakened because the banks did not release records of deposits made by Estrada or his associates. Only when one bank, Equitable PCI, allowed a clerk to testify about the president's use of an account under a fictitious name did the extent of his chicanery become evident.
Officials said that under the new law the deposits into that account could have been easily traced. "It would have been labeled as a suspicious transaction because the identification on the account was not complete," de Zuniga said. "That would be a red flag under an anti-money-laundering program."
Estrada's impeachment trial was suspended, but his criminal trial on charges of plunder began here Oct. 1.
Despite its origins in domestic corruption, the new law may get its first test in the US-led campaign against terrorism. On Sept. 24, the Bush administration froze the assets of 27 organizations suspected of terrorism. Among those was a Philippine Muslim rebel group, the Abu Sayyaf.
Officials have acknowledged that they have little clue where the group's assets are. But the law gives them fresh tools. They said it was likely that terrorists would open accounts under aliases, or in the names of spouses. By having access to deposit records, the police have a better chance of tracking the money.
"If it comes through banks, there are several trigger points," de Zuniga said. "From the moment it enters the country, it can be flagged. Even if it is broken down into smaller amounts, it can be flagged."
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