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Philippines Battles Money Laundering with AMLC Certification: What You Need to Know

The Bangko Sentral ng Pilipinas (BSP) has mandated that all financial institutions and entities under its supervision obtain Anti-Money Laundering Council (AMLC) certification. But what does this mean for banks, offshore banking units, quasi-banks, trust entities, and other financial players in the country?

Covered Transactions: The Focus of AMLC Certification

Under the Anti-Money Laundering Act (AMLA), “covered transactions” are defined as financial transactions that exceed certain thresholds. These include:

  • Cash transactions over PHP 500,000 ($8,940)
  • Casino transactions exceeding PHP 5,000,000 ($89,406)
  • Engagements with dealers in jewelry, precious metals, or stones above PHP 1,000,000 ($17,883)

Penalties for Non-Compliance

Failure to comply with AMLC certification can result in severe penalties. The crime of money laundering carries an imprisonment term ranging from seven to fourteen years, along with a fine of not less than PHP 3,000,000.00 ($53,600) but not more than twice the value of the monetary instrument or property involved.

Challenges Ahead

The Philippines faces significant challenges in its fight against money laundering. The country was included on the Financial Action Task Force’s (FATF) “grey list” in 2021 due to concerns over casino junket money laundering and terrorism financing cases. To secure removal from this list, authorities must address these issues and strengthen their anti-money laundering measures.

Solutions for Compliance

To help financial institutions navigate these challenges, the Sumsub team has compiled essential guidelines and resources for AMLC certification in the Philippines. Download our free guide to learn more about customer identification, verification, and due diligence measures required by law.

Frequently Asked Questions

  • Is the Philippines a high-risk country for money laundering? Yes, the country has been identified as having certain vulnerabilities to money laundering.
  • What is the AMLA in the Philippines? The Anti-Money Laundering Act (AMLA) of 2001 is the key country’s AML regulation.
  • What are ‘covered transactions’ in the Anti-Money Laundering Act? A ‘covered transaction’ under the AMLA is any transaction involving funds exceeding PHP 500,000 ($8,940) within a single banking day.
  • What is the penalty for money laundering in the Philippines? The crime of money laundering carries an imprisonment term ranging from seven to fourteen years and a fine of not less than PHP 3,000,000.00 ($53,600).

Stay ahead of the curve by ensuring your financial institution complies with AMLC certification requirements. Download our free guide today and take the first step towards a safer and more secure financial future in the Philippines.