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IMF wants tax evasion included in AMLA



THE Philippines should add tax evasion among the crimes covered by its law against money laundering, according to the International Monetary Fund (IMF).

“Tax evasion should be added to the list of predicate crimes,” the IMF said in its report dated Feb. 6.

Customer due diligence for politically exposed persons and risk-based supervision of the gaming sector should also be intensified, it added.

Quirino Rep. Junie E. Cua said a technical working group of the House of Representatives Committee on Banks, which he heads, has been tweaking the Anti-Money Laundering Act (AMLA).

“It is one of the priorities of the government to enable us to achieve grade A rating, so that’s very important,” he said in an interview on Tuesday.

Mr. Cua filed House Bill 6174 to include tax crimes and violation of the Strategic Trade Management Act as predicate offenses to money laundering.

The bill also wants to include real-estate agents as covered persons that will be monitored by the Anti-Money Laundering Council (AMLC).

The congressman said his committee would address IMF concerns about tax evasion, saying it is “one of the areas where we need to improve.”

Mr. Cua said there is a long list of crimes that fall under tax evasion, some serious and some not so serious.

“We’re looking into that as well. But we need to be very careful with these things because we do not want also abuses to be committed,” he said.

The lawmaker said his committee was “fast-tracking” the measure “without sacrificing thorough and exhaustive consultations with stakeholders.”

These changes are needed so the country could avoid being gray-listed by the Financial Action Task Force (FATF), Mr. Cua said.

“This is about the international effort to curb the laundering of money resulting from terrorism, the funding or financing terrorism,” he added.

He also said they would look at the offshore gaming industry to ensure it does not become a dirty money haven.

“We don’t want it to become a venue for money laundering as well, and we want to be very cautious about these Philippine Offshore Gaming Operators,” he said.

The country’s law against money laundering was passed in September 2001 and was first amended in 2003 to address concerns about the high threshold level for covered transactions, the coverage of institutions and bank secrecy.

Lawmakers lowered the threshold for covered transactions to P500,000 from P4 million, empowered the central bank to examine deposits or investments with any banking institutions without a court order during a periodic or special examination, and allowed the law to be applied retroactively.

Congress again amended the law in 2012 by allowing the issuance of a freeze order and empowered the AMLC to conduct a bank inquiry within 24 hours after filing a court action.

The FATF upgraded the country to a “gray list” from a “dark gray” list as a result, just a notch away from being taken out of a watchlist of noncompliant nations.

The following year, lawmakers again changed the law by increasing the number of illegal activities related to money laundering to 34 from 14.

These included human trafficking, bribery, counterfeiting, fraud and other illegal exactions, forgery, malversation, various environmental crimes, and terrorism and its financing.

The law needs to be improved further so the Philippines won’t be included in the FATF list of areas with serious deficiencies in combating terrorist financing, the IMF said.

Meanwhile, Senator Francis N. Pangilinan filed a bill repealing a 65-year-old law that guarantees deposit secrecy.

His Senate Bill 634 or the proposed Deposits Disclosure Act will allow scrutiny of all deposits for possible tax evasion, money laundering and corruption, among other financial crimes.

This will cover all deposits, regardless of currency denomination, issued by banks and nonbank financial institutions.

“It is necessary and timely to lift all pertinent laws on the secrecy of bank deposits to ensure rightful declaration of taxes and efficient revenue collection,” Mr. Pangilinan said in the bill’s explanatory note.

“Through this measure, the government will be able to effectively combat domestic and global tax evasion, money laundering and other financial crimes, and corruption,” he added.

Once the bill becomes law, banks must disclose and report deposit account information. Violators will be fined at least P200,000 or jailed for at least three years or both. — Genshen L. Espedido and Charmaine A. Tadalan

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People Are Rushing to Buy 100-Ounce Bars of Gold



People Are Rushing to Buy 100-Ounce Bars of Gold(Bloomberg) — There are few corners of the global financial market that have been upended as spectacularly, or as oddly, by the coronavirus pandemic as gold trading.Not only are prices swinging in an erratic fashion — surging one moment and crashing the next — that is undermining the metal’s vaunted status as a haven in times of crisis, but unprecedented logistical disruptions have also kicked off a frantic hunt for actual bars of gold.At the center of it all are a small band of traders who for years had cashed in on what had always been a sure-fire bet: shorting gold in the futures market. Usually, they’d ride the trade out till the end of the contract when they’d have a couple of options to get out without marking much, if any, loss.But the virus, and the global economic collapse that it’s sparking, have created such extreme price distortions that those easy-exit options disappeared on them. Which means that they suddenly faced the threat of having to deliver actual gold bars to the buyers of the contract upon maturity.It’s at this point that things get really bad for the short-sellers.To make good on maturing contracts, they’d have to move actual gold from various locations. But with the virus shutting down air travel across the globe, procuring a flight to transport the metal became nearly impossible.If they somehow managed to get a flight, there was another major problem. Futures contracts in New York are based on 100-ounce bullion bars. The gold that’s rushed in from abroad is almost always a different size.The short-seller needs to pay a refiner to re-melt the gold and re-pour it into the required bar shape in order for it to be delivered to the contract buyer. But once again, the virus intervenes: Several refiners, including three of the world’s biggest in Switzerland, have shut down operations.Signs of distress picked up on Friday, March 20, when the cost to swap New York futures and spot physical gold in London — the world’s biggest market — rose to about $2. Typically, this trade cost almost nothing. After the close of the next session on Monday, that premium had jumped further to $6.75.When traders in Asia entered Tuesday morning, there weren’t many sellers or offers, and suddenly they were scrambling to buy whatever gold they could get their hands on. By the time London came in, most of the market was squeezed and nobody wanted to sell.“I realized it was going to be an extremely volatile day,” Tai Wong, the head of metals derivatives trading at BMO Capital Markets in New York, said of Tuesday. “We watched this panic develop literally over the course of 12 hours. Having seen enough market dislocations, you recognize that the frenzy wasn’t likely to last, but at the same time you also don’t know how long it would extend.”By the time the panic finally subsided Tuesday night, major investors and decades-old veterans were reeling. At the peak of the carnage, potential total losses were estimated at as much as $1 billion, according to market participants. That’s even though the people involved in the trade represented less than 4% of total open interest — or the amount of outstanding contracts.Traders in need of physical metal went as far as to cold-call holders of gold bars in hopes that they’re in possession of exchange-approved metal. Some investors paid massive fees to have the remaining operating refineries to mint new gold bars, according to people with knowledge of the matter.The spread between April and June futures contracts on Tuesday jumped to $20 an ounce, meaning it cost that much more to buy metal for April than it did for two months later. That signaled more near-term demand for bullion and the need to soon have physical supply in hand.By the end of the week, though, the situation had flipped. The June contract cost almost $30 more than the April contract, suggesting that traders appetite for physical gold has subsided for now.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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What to watch on Disney+ while social distancing during the coronavirus pandemic



Subscribe to Fortune’Outbreak newsletter for a daily roundup of stories on the coronavirus and its impact on global business.

Disney+ is rolling out in Europe just as the coronavirus has caused nations to urge citizens to stay indoors. But it has already spent months racking up subscribers in the United States, thanks to a jam-packed catalog spanning Pixar classics, the Marvel Cinematic Universe, Star Wars, National Geographic documentaries, ’90s animated cartoons, and much more.

With so many options to stream, families surfing Disney+ might find themselves understandably overwhelmed. Fortune’s here to help, breaking down the major services’ offerings into a few distinct recommendations based on whatever mood our current global crisis might have you in (all of which are completely valid). And if nothing in the Mouse’s new House strikes your fancy, here are our Netflix and Amazon Prime guides, for your continued perusing pleasure.

For a badly needed laugh:

Heath Ledger in the 1999 teen movie “10 Things I Hate About You.”
Buena Vista Pictures/Courtesy Everett Collection

10 Things I Hate About You A romantic-comedy classic you might be surprised to discover on Disney+, this ’90s touchstone featured one of the best non-clown-related performances by the late, great Heath Ledger, as the bad boy tricked into dating a smart-mouthed classmate (Julia Stiles), so that her sister (Larisa Oleynik) can get around their father’s strict dating rules and make out with the new kid (Joseph Gordon-Levitt). Twenty years later, it’s remarkable how smart and fresh its script still feels, piled high as it is with quotable one-liners and endlessly clever turns of phrase.

Meet the Robinsons A whiz-bang animated outing that heads to some surprisingly dark places—as well as a wondrously bright future of flying cars, cookie-baking grandmas, and musical gangster frogs—this 2007 effort came at a time when Disney’s animated output was seen to be running low on imagination, after a few high-profile misses. But even if that hadn’t been the case, this thoroughly hilarious and heartwarming story, not to mention its bedeviled bowler hats, would have been met with open arms.

Who Framed Roger Rabbit Pioneering and peculiar, this Robert Zemeckis–directed classic from 1988 renewed public interest in animation technology while crafting a delightfully skewed noir playground in which its mixture of animated cartoon characters and real actors could trade barbs and blows. Surprisingly, its off-kilter look holds up today; there’s something sneakily surreal yet effortless about its balancing of cartoon antics and the 1940s Hollywood sleuthing that brings private eye Eddie Valiant (Bob Hoskins) into Toontown’s heart of unlikely darkness.

Additional picks

The Emperor’s New Groove
Home Alone
The Nightmare Before Christmas

For the whole family:

Nala and Simba in the original animated “The Lion King.”

Inside Out Pixar’s most towering achievement, this 2015 animated insta-classic takes audiences inside the mind of an 11-year-old girl named Riley, introducing us to the five basic emotions responsible for informing and influencing behaviors in her everyday life. Those would be Joy (Amy Poehler), Sadness (Phyllis Smith), Anger (Lewis Black), Fear (Bill Hader), and Disgust (Mindy Kaling). Cubicle colleagues in the office of Riley’s brain, all five hover around a control console, eager to help their little human navigate the turbulence of a destabilizing move. More than just a brilliantly imagined tale and a beautifully animated family adventure, Inside Out invents a radically visual language for emotions, gently teaching it in terms children grappling with their many feelings will understand. The doors that open to deeper dialogue between children and the adults around them cannot be undervalued. Inside Out is at once an important public service and a work of true filmmaking wizardry all at once.

Sky High Too many missed this 2005 superhero comedy, but it demands revisiting in the age of the Marvel industrial complex. Refreshingly light on its feet and unironically enamored of comic-book sagas, the Mike Mitchell–directed movie split the difference between high-school comedies (especially Mean Girls and The Breakfast Club) and the save-the-world stakes found in most caped-crusader concoctions. As a result, its breezy, in-on-the-joke tone feels like more of a revelation now than it did then, amid the ongoing glut of too-big-to-fail blockbusters. And its characters—from Steven Strait’s adorably broody Warren Peace to Mary Elizabeth Winstead’s shifty upperclassman Gwen Grayson—are as memorably sub-Hughesian as ever.

The Lion King (1994) Sure, I’m highlighting this one in part as an opportunity to sucker-punch last year’s abysmal live-action remake. Is that petty? Absolutely. But there’s nothing like a soulless cash-grab from the more modern, mega-corporate Disney to remind everyone what a dream factory its animation studio once was. This emotionally potent, exquisitely drawn masterpiece still plays like Shakespeare in the Serengeti. Its songs remain the classics they always were, heartwarming and soul-stirring. And through its traditionally hand-drawn approach to realizing its world, The Lion King brings a measure of expressive, ecstatic humanity to its animal kingdom.

Additional picks

Black Panther
Atlantis: The Lost Empire
Flight of the Navigator
Frozen II
A Wrinkle in Time

To find your next binge-watch:

“The Child” and Pedro Pascal as the title character in “The Mandalorian,” which follows the travails of a lone gunfighter in the outer reaches of the galaxy, far from the authority of the New Republic.
Courtesy of Disney+

The Mandalorian The flagship series for Disney+, this surprisingly rich, impressively mounted Star Wars spinoff is a space western on the level that television hasn’t seen since Firefly went off the air. Its masked protagonist offers that perfect shade of Clint Eastwood cool, and its outer-reaches setting grants him an appropriately lawless sandbox to play in, complete with sea slugs and saloon shootouts. But let’s be real: The biggest draw of The Mandalorian (at least out of the gate, in the eight episodes currently available) is the presence of The Child, more commonly known as pop-cultural sensation “Baby Yoda,” particularly precious cargo the titular bounty hunter is tasked with protecting against a legion of former comrades in arms.

Gravity Falls A true mystery box of a kids’ series, Gravity Falls arrived now eight years ago on Disney Channel with little introduction. And across its 40 episodes—initially about the misadventures of 12-year-old twins shipped off to live with their eccentric great-uncle in a haunted Oregon outpost—it gradually revealed itself to be a much richer, smarter, more narratively purposeful tale of hidden worlds and fractured families than anyone could have guessed.

X-Men: The Animated Series Yes, the animation’s somewhat dated, but this ’90s cartoon laid the groundwork for many a serialized small-screen series to come with its uncommonly ambitious storytelling and nuanced treatment of the titular super-team. From season one’s epic saga surrounding the deadly Sentinels program to season two’s deepening of the dynamic between Wolverine and Rogue, X-Men: The Animated Series was one of the first comic-book shows to balance complex story lines with a fully fleshed-out, emotional approach to its characters. And its later-season staging of the Dark Phoenix saga, through which Jean Grey’s cosmic powers began to consume her, stands as the best telling of that arc to date, despite two separate efforts to dramatize it on the big screen.

Additional picks

The Simpsons
Star Wars: The Clone Wars
Ultimate Spider-Man
The Imagineering Story

Coming attractions:

Narrated by Natalie Portman, Disneynature’s “Dolphin Reef” tells the story of Echo, a young Pacific bottlenose dolphin who seems far more interested in exploring the coral reef and its intriguing inhabitants than learning to survive in it.
Courtesy of Disney+

Onward (April 3) Pixar’s latest opened mere weeks before the spread of the coronavirus led major theater chains across the country to close their doors. Set in a suburban fantasy world where elves and centaurs drive decal-decked vans and slack their way through high school, it may be a slighter entry from the studio that brought you Up and The Incredibles. But even middle-shelf Pixar still has magic to spare.

Dolphin Reef (April 3) Natalie Portman narrates this stunning Disneynature documentary about Echo, a young Pacific bottlenose dolphin filled with curiosity about the coral reef his pod calls home. Exploring his surroundings and bumping up against all manner of sea critters, Echo gradually learns his place in the delicately balanced ecosystem of the reef.

National Treasure (April 30) Nicolas Cage heads up a ragtag team of self-described “treasure protectors” in this 2004 adventure gem, in which the epically named Benjamin Gates (Cage) leads the FBI on a merry chase through American history after, yes, stealing the Declaration of Independence (but only because the bad guys were already going to, see!). One of the more endearingly odd highlights of Cage’s filmography, made at the unlikely peak of his time as a Hollywood leading man, it has aged like fine wine and buried riches. (And if you can’t wait till the end of April, it’s on Netflix until it shifts to Disney+).

Additional picks:

David Lynch’s The Straight Story (April 3)
Running Wild With Bear Grylls, Season Five (April 10)
America’s Funniest Home Videos, Seasons 12–19, 23 (April 24)
John Carter (May 2)

More must-read stories from Fortune:

What to watch on Amazon Prime while social distancing during the coronavirus pandemic
What to watch on Netflix while social distancing during the coronavirus pandemic
—For Jesse Eisenberg, WWII biopic Resistance and sci-fi nightmare Vivarium both hit close to home
—Sobriety is the new black: How musicians are upending the usual narrative surrounding addiction
MusiCares’s COVID-19 Relief Fund gets all-star help for donations, concerts
Follow Fortune on Flipboard to stay up-to-date on the latest news and analysis.

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BSP may pump more money into system amid outbreak



THE Philippine central bank is expected to pump more money into the financial system as low lending rates fail to stimulate an economy that has been put into a standstill by a novel coronavirus pandemic.

“Quantitative easing measures, through bond purchases and other tools by central banks are faster to implement and have immediate positive effects on the economy and financial markets,” said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

They are unlike stimulus measures that may require more time through legislation, he said in an e-mailed reply to questions.

The Bangko Sentral ng Pilipinas (BSP) earlier went on a buying spree of three-month government securities worth $300-billion from the Bureau of the Treasury under a repurchase agreement payable in six months.

Both quantitative easing measures and policies are needed at a time of a pandemic, according to Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc.

“With the magnitude of an impact such as a pandemic, all monetary and fiscal means should be on deck, and nothing should be left unused,” he said.

Quantitative easing would also help boost lending, apart from the liquidity boost and rate cuts enforced by the central bank, said Robert Dan J. Roces, chief economist at Security Bank Corp.

“The additional reserves would kick-start lending, causing broad money growth to expand, and eventually lead to an increase in real economic activity,” he said in an e-mail.

Meanwhile, BSP needs to come up with a bigger and stronger scope of response to ensure the economy is better cushioned from the impact of the COVID-19 pandemic, analysts said.

The economic effects of the pandemic could be worse than the 2008 global financial crisis, UnionBank’s Economic Research Unit said in a report, adding that the government needs to boost its response.

“By mere optics, the current crop of policies may have to be augmented further and a more targeted policy support is very much needed,” it said in an e-mailed note.

The share of exports, imports and tourist arrivals in the gross domestic product (GDP) last year rose to 59.3% (from 52.9%), 68.7% (from 50.1%), and 12.7% (from 5.9%), respectively from 2007, the bank said, citing government data.

On the other hand, the share of consumption and remittances in the economy fell to 68.4% (from 71.6%) and 8.5% (from 9.7%), respectively. In absolute amount, consumption almost doubled to P6.7 trillion last year from 2007, while remittances more than doubled to P30.1 billion

“Apart from the trade’s bigger part of the economy, tourism has more than doubled in terms of GDP contribution,” according to the report.

“Aggregate consumption, the biggest contributor to GDP, and remittance inflows have continuously supported economic growth for more than a decade,” it added.

“An estimated deeper impact of the COVID-19 pandemic on the bigger real macroeconomy, compared with the economic losses caused by the global financial crisis warrants wider and more encompassing policies,” it added.

The month-long lockdown in Luzon, which contributes 70% to GDP, is expected to slow the economy. Tourism, trade and remittances are also expected to suffer because of the outbreak.

Economic managers have estimated losses of P428.7 billion to P1.355 trillion in gross value added or about 2.1% to 6.6% of GDP. The government had targeted growth of 6.5-7.5% this year.

“If we are going to take their initial assessments seriously, then the response to this pandemic should be stronger and the scope bigger,” according to the report.

The central bank cut policy rates by 50 basis points this month and will buy P300 billion worth of securities from the Treasury bureau to help fund government initiatives related to the outbreak.

On Thursday, it remitted in advance P20 billion in dividends to the National Government to help it deal with the health crisis. — Luz Wendy T. Noble

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