“Coping with terrorism and other transnational threats:
The view from the Philippines”
This paper will attempt to describe the Philippine response to terrorism and other transnational crimes . It will also describe the present government’s efforts to develop a comprehensive strategy to address the challenges of transnational crimes of which terrorism is one.
While the September 11, 2001 attacks in the United States stand out as a heinous act of terrorism ever perpetrated by men against men, in the Philippines, terrorist acts in various forms have become part of the environment within which we live.
I remembered about 20 years ago, in l981, I hosted in Manila a group of visiting American professors who were quite appalled by the presence of many armed security groups in every nook and cranny of their hotel and by the strict rules of inspection of bags and sometimes body frisks that were required in many buildings we visited. One of them even quipped that we were practically living in a “police state.” I remembered that I laughed off these observations noting that these measures were all for their security and that we, Filipinos have not had any problems with them as they have become part of the sceneries of everyday life in the country.
What this small anecdote tells us is that the Philippines is a country whose citizens have, for so many years, seen so many acts of violence and equally heinous terrorist acts like indiscriminate bombings , hostage takings and the like . It is , therefore, not surprising that our nation’s leadership was one of the firsts to condemn the attacks on the American homeland.
In the wake of September 11, there was, however, a discernible heightened awareness among us of the tremendous loss of human lives and destruction of property that result from these acts. Security suddenly took center stage in our national agenda.
It has become an issue for discussion by the highest officials of the land, both in the executive, legislative, and judicial levels. For example, it has galvanized government entities like the Philippine Center on Transnational Crimes to conduct a national conference held just last week involving all government and non-government agencies that deal directly with combating transnational crimes, including terrorism of all forms. It has also led to the fast tracking of a National Plan to Address Terrorism and its Consequences chaired by no less than the Executive Secretary and involving key cabinet officials of the country.
How has the Philippines responded to terrorism and other transnational threats?
I have organized my paper along six identified transnational crimes, namely, money laundering, piracy in the high seas, small arms smuggling, trafficking of women and children, drug trafficking and terrorism of various forms. For each, I have outlined the actions taken by the Philippine government in the national, regional, and international realms. I conclude with some discussions on the effects of the present transnational threats on the Armed Forces of the Philippines’ Modernization program.
In the 30s, the term money laundering came into vogue when organized crime led by the Mafia used laundromats as legitimate business fronts to mix their illicit earnings from extortion, bootlegging, gambling and prostitution with the legitimate earnings from these businesses. Later, organized crime moved from laundromats to law firms, accountancy, banking, film and engineering concerns where huge cash proceeds can be legitimately laundered.
According to recent estimates, worldwide money laundering activity amounts to approximately US$1 trillion a year. The Financial Action Task Force ( FATF) estimates that the amount of money laundered annually worldwide from illicit drug trade alone ranges between US$300 billion to US$500 billion. The inclusion of laundered funds from economic and other non-drug crimes could potentially double these figures.
In the Philippines, the volume of laundered money almost paralleled the proceeds of drug trafficking activities in the country. On the assumption that the value of illicit drugs in the country are all subsequently available for laundering activities, it is estimated that laundered money in the Philippines may total US$5-10 billion a year. This figure represents about 8% of the Philippines GDP and about 33% of the Philippine national budget. If money resulting from corruption is added, an additional US$3 billion a year will be added to the earlier estimate. 
From the foregoing, the total amount of money laundered in the Philippines may amount to a huge amount, indeed, and may result in the undermining of its economy altogether.
While money, laundering has none of the drama associated with terrorist and other heinous criminal acts, its effect on societal stability is far reaching. Its victims cut across various sectors of society and it has potentially devastating economic, security and social consequences. Money laundering has also the potential of undermining the integrity of financial institutions in our country because of the sheer magnitude of the sums involved. Money laundering can also result in unquantifiable, yet significant social costs like loss of jobs, increased cost of health services and reduced capability of our government to provide basic services. More seriously, it undermines our national economy and our currency and therefore poses a serious national and international security threat as well.
The Philippine Center on Transnational Crime ( PCTC) which was created by Exec Order no 62 and Executive Order 100 has the power of supervision and control of anti-transnational crime operations of all government agencies and instrumentalities. The PCTC correctly reported that money laundering is critical to the operation of virtually every form of transnational crime. Thus, any effort to counter money laundering activities are fundamentally designed to prevent or limit the ability of criminals to use their ill gotten gains from their criminal activities.
What have we done to counter money laundering?
On September 29, 2001, Republic Act 9160 or the Anti money laundering law was passed. This law created the Anti money laundering Council (ALMC) which was tasked to enforce the provisions of the law. The ALMC is composed of the heads of the Philippine Central Bank, the Securities and Exchange Commission, and the Insurance Commission.
RA 9160requires all covered institutions to report to the ALMC any transactions in excess of P4million ( approx. US$80,000) within five banking days from the transaction. The ALMC is empowered to freeze an account for a period not exceeding 15 days while the depositor is given 72 hours from receipt of the freeze order to contest the order. ALMC is then given 72 hours to rule on the depositor’s explanation.
Upon the order of the court, the ALMC may inquire into the questioned account and obtain from the court a forfeiture of the account based on its investigation. The law also requires banks and other financial institutions to establish and record a client’s identity to include the legal existence and organizational structure of a corporate client.
Before September 29, 2001, money laundering was not a crime under Philippine law. The Philippine bank secrecy laws also effectively made it virtually impossible for government authorities to obtain any financial information kept by the banks.
The Philippines was listed in a non-cooperative countries’ list by the FATF in its report in June, 2000. In the face of the threatened sanctions of the FATF countries and the US Treasury, the Central Bank of the Philippines issued a number of circulars to combat money laundering.
On July 7, 2000, the Central Bank of the Philippines issued Circular no. 251 which direct banks and other similar financial institutions to establish a “know your client policy” to regularly update account information, to report suspicious transactions and to develop anti money laundering programs. The circular also prohibits anonymous and fictitious accounts.
Despite RA 9160, however, the FATF continued to keep the Philippines in the list of Non-cooperative Countries and Territories (NCCT) alongside 18 other because of what the FATF deems as existing deficiencies in the anti money laundering law.
Piracy can be traced as far back as 3000 years ago when in 1350 BC, a piracy incident recorded on clay tablets reported pirate attacks on Mediterranean ships in North Africa. Interestingly, a piracy law existed during the Roman period when a document in 100BC stated that “Roman citizens should be able to conduct, without peril, whatever business they desire. No official or garrison will harbor pirates who should be considered zealous collaborators... “ This edict was reportedly sent to Cyprus, Alexandria, Egypt and Syria.
The seas connecting various coastal states are vital to the economic life of the countries in the Southeast Asian regions. The Asia Pacific has two significant sea lines of communication, one passing through the South China Sea to the Indian Ocean and the Middle East and the other passing through East China and the Sea of Japan to the Pacific Ocean. The seas in the Asia Pacific are most strategic in world trade as the sea trade that pass through this area comprise more than 1/3 of the total world maritime volume. Almost 2/3 of the bulk of crude oil sail through the Strait of Malacca. 23% of the world’s crude oil or approximately 4 billion barrels of crude oil a day traverse these waters headed for Japan, South Korea, and Taiwan.
In the Philippines, the archipelagic waters of the country are particularly vulnerable to piratical acts because its small islands, narrow shipping channels and the density of shipping traffic and fishing activities provide appropriate cover for piracy activities to be perpetrated almost undetected.
The audacity with which piratical activities are carried out in the region has given birth to the so-called “Asian piracy” where ships are boarded and cash and valuables are stolen with little or no resistance from their victims. The more serious type of piracy is where tankers or larger vessels along with its entire cargo become victims of pirate attacks. This type of piracy is carried out by more organized gangs who are well trained and technologically savvy and who use the Internet for information on shipping schedules and other valuable data.
The case of the Anna Sierra, a Cypriot ship, may be cited. This is a ship filled with 12,000 tons of sugar worth US$5million on its way to the Philippines which was hijacked in the Thai-Cambodian border, its crew of 23 people thrown into lifeboats without food and water and cast adrift. Luckily, the crew was rescued by Vietnamese fishermen and the ship was later discovered in a Chinese port registered under another name in Honduras.
Given the strategic location and importance of the waters of the Asia Pacific, piracy in the high seas has turned out to be one of the major challenges confronting the region’s maritime industry and security. In the l990s, the Asia Pacific region proved to be the most vulnerable region in the world where in Southeast Asia alone , 60% of the total piracy attacks have been reported. Annual losses and damage to property as a result of piracy has resulted in losses amounting to US$16 billion. Among the countries hard hit are the Philippines along with Thailand, Indonesia, India, and Sri Lanka.
In l996, the Philippines was among the highest ranking countries in the world with a record of 27 piracy attacks constituting 12% of the world’s total. However, the figures may be higher because of under reporting due to effects on insurance claims and the feared effects on the reputation of the shipping industry.
Looking at the patterns of piracy occurrences in the Philippines, it was noted that piracy was at its peak during far weather conditions from the months of January to July. Attacks are usually carried out at night and in the wee hours of the morning from 3-5 a.m. Most of the reported piracy attacks occurred in the Western Mindanao area . 57% of the attacks happened in the waters of Zamboanga, Sulu, Basilan, and TawiTawi. Pirate assaults committed in Philippine territory utilize small vessels such as pumpboats, motorboats, and speedboats for easy maneuverability , escape, concealment, and abandonment. Pirates usually work in teams of 3-16 members and their arms range from bladed weapons to M14s, M16s, and other high-powered firearms. It is believed that pirates that operate in international waters in the region are affiliated with organized pirates in Malaysia and Indonesia.
In the face of rising incidence of piracy in Philippine seas, the government has drawn up several measures to control and eliminate these criminal activities. Various government groups led by the maritime Group of the Philippine National Police , the Philippine Coast Guard, the Philippine Ports Authority and the MARINA have been tasked to wok together and liaise with other regional and international entities in enforcing all applicable laws that deal with piracy and armed robbery in the high seas.
On September 24, 2000, President Gloria Arroyo signed Executive Order 37 strengthening the mandate of the Maritime and Ocean Affairs Center of the Department of Foreign Affairs in promoting ocean and maritime interest of the country and in implementing the National Marine Policy . we have , of course, ratified the UNCLOS and subscribe to its provisions relating to maritime security.
The Philippines has also engaged its Navy in joint exercises in sea patrol and law enforcement initiatives with neighboring countries. In October, 2001, for instance, Philippine Coast guard and their Japanese counterparts participated in joint drills on anti-piracy operations in simulated piracy attacks requiring joint rescue operation by air and sea by Filipinos and Japanese.
In June, l999, during the Second ASEAN Ministerial Meeting on Transnational Crime, intensification of partnerships with regional agencies and organizations and strengthening and promotion of linkages among existing regional mechanisms to combat Transnational Crimes was agreed upon. The Council for security Cooperation in the Asia Pacific ( CSCAP) has likewise been actively discussing piracy issues as part of its track two process to support the ASEAN Regional Forum (ARF).
Among the challenges confronting not only the Philippines but the region as well are the contrasting interpretation and understanding of concepts relevant to maritime security in the region which render it difficult to perceive piracy problems from a collective perspective. Second , there are various territorial disputes among Southeast Asian nations which undermine efforts to coordinate anti-piracy activities. Third, lack of funding for projects designed to combat piracy is also a problem. In the Philippines, the delay in the modernization program of the Philippine Navy because of lack of funds limit its ability to acquire much needed equipment so that it is usually out-gunned and out-maneuvered by criminals with more sophisticated equipment and boats.
In the recently concluded National Conference on Combating Transnational Crimes, the Philippine Center of Transnational Crime has drawn up an Action Plan to prevent and suppress acts of piracy and armed robbery against ships. This action plan will be incorporated in the National Strategic Plan for Combating Transnational Crimes that the Cabinet Committee cited in an earlier section is presently crafting.
Small arms and light weapons are normally acquired and controlled by the armed forces of the various states as part of their duty of protecting and preserving the security of their respective countries. Once these small arms and light weapons are, however, acquired by hostile forces, they cause undue injury and death to individuals, they cause disruptions of economic activities, and they undermine the rule of law.
The proliferation of small arms and light weapons in the Philippines ahs spawned a culture of violence where its citizens use them with impunity. A UN study conducted in l999 on proliferation of small arms noted that approximately 2 million people have been killed in about 150 conflicts around the world. The UN Secretary general reported that “ the death toll from small arms dwarfed that of all other weapons system. In some years, it even greatly exceeded the toll of the atomic bombs that destroyed Hiroshima and Nagasaki.”
Small arms are seen as threats to peace and development and threats to democracy and human rights. A UN report submitted by a Group of governmental experts on small arms stressed that the wide availability of small arms also engenders insecurity among nations and make it difficult to do post-conflict reconstruction demobilization and integration of former combatants.
The same report noted that access to small arms and light weapons usually prolong violence by “encouraging a violent rather than a peaceful resolution of differences and by generating a vicious circle of a greater sense of insecurity which in turn leads to a greater demand for and use of such weapons.”What poses danger in their use is the excessive and destabilizing accumulation and transfer of small arms and light weapons that is directly proportional to the intensification of internal armed conflicts and sophisticated crimes and various forms of violence.
Small arms and light weapons have the advantage of being carried by only one person or, if a light arm, by two or more persons, a pack animal or a small vehicle and thus, allows for mobile operations. Their use by terrorist have wrought devastating damage to human life and property. Since small arms require minimum maintenance and logistics, they are also suited for protracted operations . Their easy concealment make them also suitable for covert actions and transfer. Finally, because they are normally of lower cost especially if used or surplus, then they are affordable by many groups other than the state.
The Philippines is no stranger to this growing global concern. According to the Philippine Center on Transnational Crimes ( PCTC), as of November 2001, an estimated 75,107 deadly weapons are in the possession of domestic threat groups. Alarmingly, among the documented criminal cases numbering 2,442 cases, 86% of these crimes involve the use of unlicensed firearms.
The main sources of loose firearms are the unregistered local gun manufacturers who produce the so-called “paltik.” These clandestine backyard industries are located in the Visayan islands of Cebu particularly in Danao and Mandaue cities. These factories are usually manned by family members and is a major source of livelihood in the areas identified. The products are sold to both local and foreign markets.
The “small arms trail” can be traced from these individual small gun manufacturers whose products are purchased by syndicated crime groups and brought to predesignated bodegas or depots. These are then shipped to Manila or any port of delivery through ships, barges, motor bancas and other water carriers. Some sophisticated crime groups utilize helicopters and other aircraft for shipments and use even major international airports in the country.
The PCTC report also noted that the notorious Yakuza crime syndicate in Japan have brought to Japan individual Filipino gun makers using the cover of tourist or a contract worker and hired to manufacture guns inside Japan.
Massive gunrunning has also been reported in the Southern Philippines area particularly in the areas of Agusan, Misamis, Surigao, Sulu, Basilan, Tawiwi, and Zamboanga provinces.
Some of the factors seen as contributing to the free flow of arms into the country are the following:
q The country’s geographic configuration with its long and irregular coastlines and several sparse and isolated islands provide easy natural covers for gunrunners who use them for landing sites and storage points for their contrabands;
q The prospects for huge profits and ready markets for small arms are immediate incentives for arms smugglers;
q There is increased connivance between gunrunning syndicates and some corrupt law enforcers making it more difficult to apprehend the former;
q The persistent involvement of some powerful political families in the Philippines to build their private armies and the continuing inability of the law enforcement groups to enforce the laws make it more difficult for this crime to be punished accordingly;
q Although government authorities have a listing of establishments that deal with the selling, delivery and manufacturing of firearms, they have difficulty in the monitoring, inventory and surveillance activities of the day-to-day transactions of this group.
So, how does the Philippines combat the proliferation of small arms and light weapons in the country?
To date, there are two licensed manufacturers of small arms in the country, namely, the Danao Arms Corporation ( DAMCOR) and the Workers League of Danao Multipurpose Cooperative ( WORLD-MPC). These two manufacturers are authorized to produce a total of 6,000 assorted firearms annually based on their manufacturer’s license issued by the Chief of the Philippine National police. However, a large number of small-scale firearms producers continue to operate illegally.
What are the government agencies tasked to combat small arms proliferation?
There are several government agencies designated to restrain this specific illegal activity. The Bureau of Customs is given the primary task of dealing with the smuggling of firearms. The National Law Enforcement Coordinating Committee ( NALECC) was tasked to coordinate all the efforts of the other law enforcement and intelligence agencies in the identification and entrapment of smugglers particularly in local inter-island ports of entry. Searches by Coast Guard and the Customs Police are also conducted.
The Inspectorate branch of the Philippine National Police Firearms and Explosives Division ( FED) is at the forefront of the campaign against illicit trade of small arms by legitimate dealers. This is done through the conduct of surprise inspections of stores, detailed inventory, manufacturing sight visits and stricter pass or transport control. Movements and transport of firearms form one facility to another or from one warehouse to another are also monitored by this body.
In the draft National Plan of Action to Combat Trafficking in Small Arms, the PCTC has recommended the following actions:
q The development of a central repository of all data pertaining to firearms trafficking with the PCTC as the lead agency;
q The establishment of a directory of experts and technical consultants whose expertise are in combating firearms smuggling and other related operations;
q Increased coordination and close cooperation among the law enforcement agencies involved in combating small arms trafficking;
q Conduct training programs on combating small arms trafficking by local or foreign trainers for all relevant personnel of the various enforcement agencies like the Philippine National Police, the Armed Forces of the Philippines and the Philippine Center on Transnational Crime.
On the regional level, the Philippines is in the forefront of the many efforts made by the ASEAN Regional Forum’s ( ARF) Experts’ Group Meeting on Transnational Crime on issues on piracy and illicit trafficking of small arms. In the international realm, it has cooperated fully in the activities of the ASEANPOL and the World Customs Organization in combating illicit trafficking in small arms and light weapons.
The United Nations defines trafficking in human beings as “ the illicit and clandestine movements of persons across national borders, largely from developing countries and some countries with economies in transition, with the end goal of forcing women and girl children into sexually or economically oppressive and exploitative situations for profit of recruiters, traffickers and crime syndicates as well as other illegal activities related to trafficking such as forced domestic labor, false marriages, clandestine employment and false adoption.”
The Global alliance against Traffic in Women ( GAATW) defines trafficking in women as “ all acts involved in the recruitment and/or transportation of a woman within and across national borders for work or services by means of violence or threat of violence , abuse of authority or dominant position, debt bondage, deception or other forms of coercion.”
It is estimated that at least 1-2 million persons, especially women and children are trafficked each year across international borders. Some observers note that the number may be higher because of many unreported cases. Victims are usually forced to work in sweatshops, construction sites, brothels, and fields. Many victims are subjected to threats against their persons and family members , abject living conditions and dangerous workplaces.
Trafficking occurs across borders and within countries. It happens in both developed and developing countries. Many criminal groups traffic human beings because it is a high profit, low risk activity which does not require huge capital investment.
The trafficking of people, especially women and children, for prostitution and forced labor is one of the fastest growing areas of international criminal activity. Although men are also victimized, the overwhelming majority of those trafficked are women and children. Trafficking is a problem that affects virtually every country in the world. Generally, the flow of trafficking is from the less developed economies to industrialized ones or towards neighboring countries with higher standards of living.
Although estimates vary in view of the nature of this underground activity, it is estimated that about 225,000 victims each year come from Southeast Asia alone. The growth of sex tourism in the region is one of the factors identified that leads to the high incidence of trafficking of women and children.
While there is no single victim stereotype, a majority of trafficked women are under the age of 25 , many in their late teens. Trafficking victims are often subjected to cruel mental and physical abuse in order to keep them in servitude, including beating, rape, starvation, forced drug use and seclusion. Many victims suffer mental breakdowns and are exposed to sexually transmitted diseases including AIDS. They are often denied medical care and some who become sick are even killed.
The Philippines has been identified as both a source, transit, as well as destination country, to a limited degree, for trafficked persons. Young Filipino women and girls are trafficked for the purpose of sexual exploitation. Many of them live in abject conditions of work.
How does the Philippine government confront this issue?
Philippine anti-trafficking efforts focus mainly on prevention and assistance to its victims. The government provides assistance such as medical aid, shelter, some limited financial help to repatriated victims and provides help to victims through its various diplomatic and consular offices in other countries. The government also works closely with NGOs who work on combating human trafficking. In the regional arena, the Philippines coordinates closely with other governments in the region in many issues involved in human trafficking. It participates actively, for instance, in the Asia Pacific Consultations on Refugees, Displaced Persons, and Migrants .
In the recently held National Conference on transnational crime spearheaded by the Philippine Center on Transnational Crimes, the following action plans were identified by the workshop group in that conference.
q Development of a shared database on human trafficking with the PCTC as lead agency;
q Compilation of relevant laws on human trafficking;
q Creation of a directory of experts including academics who conduct studies on this issue;
q Institutionalize coordination and cooperation among the various law enforcement agencies engaged in combating human trafficking;
q Work for the passage of the Anti-trafficking bill in the Philippine Congress
In addition to the above, the Philippines also created the Executive Council to Suppress Trafficking in Persons through Executive Order 220 signed on May 23, 2000. This Council is tasked to assist the President in the formulation of policies aimed at suppressing human trafficking. The government agencies involved are the following: Department of Foreign Affairs, National Bureau of Investigation, Department of Labor and Employment, the Criminal Investigation and Detection Group, the Philippine Center on Transnational Crime , the Philippine overseas Employment Administration, the Overseas Workers’ Welfare Administration , the Commission on Human Rights and the National Council on the Role of Women.
In the legislature, there are various bills in the pipeline which all aim to stem off the trafficking of women and children. Some of these initiatives are House and Senate bills to institute policies to eliminate the trafficking of Filipino women and minors and to establish higher standards of protection and rehabilitation of Filipino women who are forced into prostitution, sexual servitude and bonded labor. These bills also criminalize trafficking in women and children in all its forms and prosecute and penalize traffickers and their intermediaries through criminal and civil measures. The bills also aim to harmonize the Philippine laws with those of other countries in the region.
There are also existing Philippine laws against human trafficking such as Rep. Act 6955 which declares it an unlawful practice to match Filipino women for marriage to foreign nationals on a mail order basis and other similar practices including the advertisement, publication, printing and distribution of brochures , fliers and other propaganda materials and Rep.Act 7610 which is an act providing for stronger deterrence and special protection against child abuse, exploitation and discrimination.
National efforts are, however, not adequate to combat human trafficking so the Philippines is intensifying cooperation with both regional and international initiatives towards confronting this challenge.
The illicit drug trade seriously affects millions of lives in both developed and developing countries. Most of its impact is felt by its victims who are the most vulnerable and marginalized sectors of society, for most parts.
The UN World Drug Report 2000 notes that some 180 million worldwide consume drugs. This figure includes 144 consuming cannabis, 29 million consuming amphetamine type stimulants, 14 million taking cocaine and 13 million taking opiates, 9 million of whom are addicted to heroin. 
In recent years, the most pronounced increase in drug abuse has been reported for synthetic drugs. Estimates of the total revenue from the illicit drug industry ranges from US$300,000 million to US$500,000 million equivalent to 8% of total world trade.
In the Philippines, the drug problem surged in the latter part of the 60s. Marijuana, mercodol, mogadon, madrax, opium, and heroin were the most widely used drugs. In l981, the country became the transit point for heroin and cocaine increasing the number of drug users to 312,000 from a low 20,000 in the previous years. The Philippine National Youth Commission survey reported that approximately 3.7 million of the 74 million Filipinos are drug users. Of this number, about 7% or about 1.2 million are from ages 15-29. The number of drug pushers is placed at roughly 560,000 in Metro Manila alone and these are from an estimated 83 drug syndicates.
The local drug trade is estimated to be worth about US$50 billion and is likely to increase as the Philippines gradually evolves as a major transshipment point as well as a major supplier of marijuana.
In the Philippines, several agencies are tasked with combating drug trafficking. The Dangerous Drug Board (DDB) is responsible for the promulgation of rules and regulations necessary to carry out the purposes of the Dangerous Drug Act provided by Republic Act 6425 as amended. It is also tasked with designing drugs control, treatment and rehabilitation plan and program in consultation with other agencies of the government. It receives , collects, and evaluates information regarding the importation, production and manufacture, sale and stocks of drugs including seizures and apprehensions. 
The, there is the National Drug Enforcement and Prevention Coordinating Center ( DEP) which consolidates the drug law enforcement and prevention efforts of national government agencies, local government units and government owned and controlled corporations and non government organizations. It has the authority to coordinate, oversee evaluate the anti-drug activities relating to the implementation of the National Anti-drug Program of Action.
The Philippine National Police ( PNP) conducts operations against drug syndicates such as buy bust operations, raids of drug dens, saturations drives, arrests , investigations and prosecution of drug pushers. It also provides intelligence information regarding drug syndicates and personalities to the DEP . Finally, it administers and manages the PNP Rehab Centers in Metro Manila .
On the regional level, the Philippines participates actively in the ASEAN wide effort tot reduce the threat of drug abuse and illicit trafficking which pose security threats to the nations in the region. In the international congress held in Bangkok in 2000, we endorsed a plan of action for ASEAN member states that sets down targets and time frames and measures to be taken in order to realize the goal of making ASEAN drug free.
The Philippines has not only become a transshipment point but has also become a destination country of prohibited drugs. Thus, to solve the drug problem the government needs to pay attention to supply reduction, demand reduction and victim rehabilitation and integration. In all these, close cooperation and coordination with not only national and local government agencies are required but with regional and international initiatives , as well. Finally, because organized crime groups , including drug traffickers, need to raise funds to sustain their activities, the government cannot solve the drug problem without the concomitant anti-money laundering efforts to strangle the fund sources of these criminal groups.
In the Philippines, terrorism is defined as “ the use of violence, threat or intimidation or destruction of lives and properties with the objective of creating fear in the public mind to achieve a purported political end and to coerce or influence their behavior to undermine the confidence of the general public on the government.”
In the Philippines, the primary agency tasked with fighting terrorism is the Philippine National Police ( PNP). The PNP works along a two-fold framework in its fight against terrorism, i.e., proactive and responsive. The proactive measures involve the formulation and implementation of antiterrorism measures aiming to prevent such attacks and the responsive component consists of actual counter terrorist actions like the strengthening of preventive and security measures for effective border control and aviation and maritime security and the development of PNP/AFP counter-terrorist capabilities,
Per Executive Orders 336 and 62, a National Council for Civil Aviation Security ( NCCAS) and the Philippine Center on Transnational Crimes ( PCTC) were also established as the lead agencies in the fight against terrorism. The primary objective of the NCCAS is to prevent aviation related terrorism and to upgrade the capabilities of law enforcement agencies in combating terrorism.
The PCTC, on the other hand, took over some of the functions of the Philippine National police in terms of coordination of efforts against transnational crimes where police attaches of the Philippine National Police and the political attaches of the department of Interior and Local Government fall under the supervision of the PCTC. The PCTC , per EO 62, also has the power to supervise and control the conduct of anti- transnational crime operations of all government agencies .
The PCTC is also mandated to establish a central database on national and international legislation and jurisprudence on transnational crimes, to establish a center for strategic research on the structure and dynamics of transnational crimes and to design programs and projects aimed at enhancing national capacity building, like training and information exchanges, for combating transnational crimes in the Philippines.
What is the role of the Armed Forces of the Philippines in countering transnational threats?
We have noted in an earlier section that the Philippine National Police is the one mandated to institute measures to fight terrorism alongside that of the PCTC and the NCCAS. However, 2 years ago , in 2000 the Armed Forces of the Philippines was tasked by then President Joseph Estrada not only to actively engage in the fight against the communist and the secessionist groups in the country but to engage actively in eliminating the small terrorist band of bandits which have resorted to kidnappings and hostage takings of both Filipino and foreign victims. This was the Abu Sayyaf.
After the September 11 attacks in the United States, the Arroyo government lost no time in pledging full support for the international coalition against terrorism. The Philippines specifically pledged all out assistance to the US as a strategic ally and in consonance with UN Security Council Resolution 1368. Admiral Thomas Fargo, commander in chief of the Pacific fleet visited and met with our National Security Adviser Roilo Golez and together outlined military plans for the use of Subic Naval Base and Clark Air Field in the global war against terrorism.
President Arroyo came out with the 14-point pillars of policy against terrorism. Part of this 14 Point Plan included the direct tasking of both the Armed Forces of the Philippines and the Philippine National Police in the fight against lawless violence engendered by the terrorist threat. The Executive Secretary, Alberto Romulo, was made responsible for overseeing and supervising the implementation of the Philippine response to the war against terrorism. At the time of this writing, the Cabinet Oversight Committee on Internal Security ( COC-IS) is currently developing the National Plan to Address Terrorism and its Consequences. The national plan will define the national framework, strategies, and operational plans to address terrorism and its consequences to the political, economic, and socio-cultural well being of the Filipino. 
What is the influence of the present transnational threats to the AFP modernization program?
The AFP modernization Law was passed on July 5, 1994. Among others, it provided for the modernization of the AFP along several components as follows:
1. Force restructuring and organizational development- the AFP Modernization program shall develop the AFP into a compact, efficient, responsive and modern force with the capability to engage in conventional and/or unconventional warfare, disaster relief and rescue operations and contribute to economic development and other non traditional military roles;
2. Capability, materiel and technology development- the AFP Modernization Program entails the development and employment of certain capabilities that can address the assessed threat. Priority for resource allocation shall be pursued in the following order: The Navy, Air Force, Army, and General Headquarters. The acquisition of new equipment and weapons system shall be synchronized with the phase out of uneconomical and obsolete major equipment and weapons systems in the AFP inventory;
3. Bases support system development- the AFP Modernization Program shall entail the development of permanent bases for land, air and naval forces to conform with national defense strategies and the government’s socio-economic thrusts;
4. Human resource development- the human resource development , among others, shall enable the AFP to be a service/people oriented and professionally united force that will have the capability to implement its expanded role in environment/resource protection and multinational peacekeeping operations;
5. Doctrine development- the transition of the AFP to an external security oriented force requires the review, evaluation, and validation of its present doctrines.
Given the foregoing, one immediately notes that the external security oriented force originally intended by RA7898 had to be abandoned in favor of the AFP presently joining the PNP in the campaign against both the insurgents and the local criminals like the Abu Sayyaf.
In the face of the new transnational threats, particularly terrorism of whatever form, understandably, the doctrines, human resource development, and the equipage of the AFP, together with the PNP will be redirected towards these new threats.
The Philippines recognizes that the fight against terrorism requires the collective efforts of everyone in the international community of nations. Towards this end, the Philippines has been known to be in the forefront of any and all initiatives, whether regional and international, in this all out war against terrorism of whatever form.
 Paper presented at the National Defense University’s 23rd Annual Pacific Symposium on “ Addressing transnational threats in the Asia Pacific region”, February 20-21, 2002. Fort McNair, Washington, DC, USA.
 The FATF is an intergovernmental policymaking task force that review national action vs. money laundering.
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 UN, “ Proliferation of small arms, light weapons and landmines...” Press release DC/2717, June 27, l999
 Group on Governmental Experts on Small Arms. A report submitted to UN Gen Assembly on August 19, l999.
 PCTC, “ Draft National Plan of Action against illicit trafficking in small arms and light weapons”, Quezon City, Philippines, 2000, p.1.
 Ibid. pp4-5.
 Ibid. p.5
 Ibid. p.6
 Ibid. 10-11.
 Ibid. p.11.
 PCTC. Draft report on the proceedings of the National conference on transnational crimes. February 7-8, 2002, Manila, Philippines.
 “ Trafficking in women and children in the Mekong sub-region”, UNICEF, September, l998.
 GAATW is a non-government organization involved in combating trafficking in women and children.
 “Trafficking in Persons Report” , US Department of State, July, 2001.
 Trafficking in women and children. Congressional research service Report 98-649C
 Trafficking in Persons report, op.cit.
 PCTC National Conference on transnational crimes. February 7-8., 2002, Manila, Philippines.
 World Drug Report 2000. Un Drug Control program.
 UN Drug Report, June 26, l997.
 Report of the International Narcotics Control Board , 2000.
 PCTC. The Current situation of and countermeasures against transnational crime in RP. No date.
 National Anti-drug Program of Action. PCTC.
 Report of the International Narcotics Drug Board for 2000.
 Proposed 1995 Philippine Anti-terrorism Act.
 Clyde Fernandez. Terrorism at the turn of the century. PCTC. 2001.
 Draft report of the PCTC national Conference on Transnational Crimes, February 7-8, 2002, Manila, Philippines.