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Philippines Moves Closer to Removing AMLC Certification Hurdles
In an effort to strengthen its anti-money laundering (AML) measures and prevent financial crimes, the Philippines is revising its reporting procedure for obtaining the Anti-Money Laundering Council (AMLC) certification. The move comes as the country aims to remove itself from the Financial Action Task Force’s (FATF) “grey list” of jurisdictions under increased monitoring.
What are Covered Transactions?
Under the AMLA law, a covered transaction refers to any financial transaction that meets certain criteria set by AML regulations. These transactions include:
- Cash transactions exceeding PHP 500,000 ($8,940)
- Casino transactions exceeding PHP 5,000,000 ($89,406)
- Other specified thresholds
Regulators
The Anti-Money Laundering Council (AMLC) is the Philippines’ Financial Intelligence Unit (FIU), responsible for regulating the financial system and preventing crime in the country. The Bangko Sentral ng Pilipinas (BSP) also plays a crucial role, supervising financial institutions to ensure compliance with AML regulations.
Penalties
The crime of money laundering carries severe penalties in the Philippines, including:
- Imprisonment ranging from seven to fourteen years
- Fines up to twice the value of the monetary instrument or property involved
- Failure to keep records may result in imprisonment for six months to one year or a fine of PHP 100,000 ($1,800) to PHP 500,000 ($9,000)
- Malicious reporting can lead to imprisonment for six months to four years and fines up to PHP 500,000
Challenges
The Philippines faces significant challenges in its efforts to combat money laundering. The country’s inclusion on the FATF “grey list” has led to:
- Increased scrutiny from international financial institutions and regulatory bodies
- Stricter due diligence requirements
- Potential sanctions
Solutions
To overcome these challenges, financial institutions and regulated businesses must adapt and adopt an all-in-one platform for know-your-customer (KYC) and continuous monitoring. The Sumsub team provides essential tools, checks, data, and documents required for the Philippines, including:
- Customer identification
- Verification
- Due diligence measures
FAQ
Q: Is the Philippines a high-risk country for money laundering? A: Yes, the Philippines has been identified as having certain vulnerabilities to money laundering.
Q: What is the AMLA in the Philippines? A: The Anti-Money Laundering Act (AMLA) of 2001 is the key country’s AML regulation.
Q: What are ‘covered transactions’ in the Anti-Money Laundering Act? A: A “covered transaction” under the AMLA is any transaction involving funds exceeding PHP 500,000 ($8,940) within a single banking day.
Q: What is the penalty for money laundering in the Philippines? A: According to the AMLA, the crime of money laundering is punishable by imprisonment ranging from seven (7) to fourteen (14) years and a fine of not less than PHP 3,000,000.00 but not more than twice the value of the monetary instrument or property involved in the offense.
By revising its reporting procedure for obtaining the AMLC certification, the Philippines aims to strengthen its anti-money laundering measures and prevent financial crimes.