Financial Crime World

AML/CTF Regulation Updates: Strengthening Compliance and Risk Management

As the Philippines prepares for its 2026 Mutual Evaluation by the Financial Action Task Force (FATF), regulatory bodies are working to strengthen anti-money laundering and combating the financing of terrorism (AML/CTF) controls. In this article, we’ll explore recent developments in AML/CTF regulation and provide insights on how organizations can stay ahead of the curve.

Strengthening Junket Sector Controls

The Philippine Amusement and Gaming Corporation (PAGCOR) has emphasized the importance of conducting customer due diligence on junket operators and individual players. Casinos must also submit Suspicious Transaction Reports if warranted, failure to comply with which will result in appropriate sanctions.

Key Takeaways:

  • Conduct customer due diligence on junket operators and individual players
  • Submit Suspicious Transaction Reports if warranted
  • Failure to comply may result in sanctions

Beneficial Ownership Information

Corporations under the supervision of the Securities and Exchange Commission (SEC) are required to submit accurate and updated beneficial ownership information. Law enforcement agencies may request this information from the SEC to support financial investigations.

Key Takeaways:

  • Corporations must submit accurate and updated beneficial ownership information
  • Law enforcement agencies may request this information for financial investigations

Money Laundering Investigations and Prosecutions

The relevant law enforcement agencies must sustain their efforts in filing money laundering cases with the Department of Justice (DOJ) and the courts. The Anti-Money Laundering Council (AMLC) emphasizes that these complaints should be related to high-risk predicate crimes such as corruption, smuggling, environmental crimes, intellectual property violation, etc.

Key Takeaways:

  • Law enforcement agencies must file money laundering cases with the DOJ and courts
  • Complaints should be related to high-risk predicate crimes

Terrorism Financing Prosecutions

The relevant law enforcement agencies must also prioritize terrorism financing prosecutions. AMLC stresses the importance of pre-emptive measures to prevent the misuse of financial systems for terrorist purposes.

Key Takeaways:

  • Law enforcement agencies must prioritize terrorism financing prosecutions
  • Pre-emptive measures are necessary to prevent financial system abuse

Regulatory Updates and Proactive Risk Management

To stay ahead of regulatory changes and financial crime shifts, organizations should adopt a proactive approach to risk management. This involves leveraging data and information from investigations and reports to detect suspicious activity patterns, implementing continuous updates to AML frameworks, and ensuring consistent compliance with evolving regulations.

Key Takeaways:

  • Organizations must adopt a proactive approach to risk management
  • Leverage data and information from investigations and reports to detect suspicious activity patterns
  • Implement continuous updates to AML frameworks

Expert Insights

Ma. Patricia B. Paz-Jacoba, Partner at SyCipLaw, emphasizes the importance of streamlining processes through automation and eliminating unnecessary steps to reduce errors. She also highlights the need for organizations to continuously monitor regulatory developments, conduct regular risk assessments, implement robust compliance procedures, and foster a culture of compliance.

Key Takeaways:

  • Streamline processes through automation and eliminate unnecessary steps
  • Continuously monitor regulatory developments and conduct regular risk assessments
  • Implement robust compliance procedures and foster a culture of compliance

Conclusion

As the Philippines prepares for its 2026 FATF Mutual Evaluation, it is crucial for organizations to stay informed about AML/CTF regulation updates and adopt a proactive approach to risk management. By doing so, they can mitigate the possibility of regulatory violations and financial crimes, maintaining trust with stakeholders and ensuring compliance with evolving regulations.

Sources:

  • Anti-Money Laundering Council (AMLC)
  • Financial Action Task Force (FATF)
  • Securities and Exchange Commission (SEC)
  • Department of Justice (DOJ)
  • Philippine Amusement and Gaming Corporation (PAGCOR)