Philippines: court decision undermines FIU

The decision by the Supreme Court of the Philippines made the surprising order last week, causing immediate consternation in the country which struggled to meet demands placed on it by the FATF in order to be removed from the NCCT blacklist.

And the order undermines one of the most basic investigative techniques - and, worse, in effect orders investigators to tip-off suspects.

Under the Order, The Anti Money Laundering Council, the FIU, is no longer able to examine bank accounts connected to investigations without prior notice to the account holder.

This is not, it is emphasised, a question of permission.

But the order reveals a major hole in laws right around the world unless there is a specific legislative power for investigators to examine bank accounts. In Malaysia, for example, the law states "notwithstanding any other written law" - this means that banks are not in breach of banking secrecy laws when they produce documents that investigators demand. And there is a specific power for investigators - with either a court order or with authority from a senior officer depending on the particular circumstances,