Financial Crime World

Stricter AML Regulations Introduced in the Philippines to Combat Money Laundering and Terrorism Financing

The Securities and Exchange Commission (SEC) of the Philippines has issued Memorandum Circular No. 16 s.2018, setting out guidelines for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for SEC-covered institutions.

Strengthening the Fight Against Money Laundering and Terrorist Financing

The new guidelines aim to ensure that these institutions comply with the country’s AML/CFT regulations, which are in line with international standards set by the Financial Action Task Force (FATF). The guidelines require covered institutions to implement robust risk-based approaches to:

  • Customer Due Diligence: Conduct thorough customer due diligence to identify and verify customers’ identities.
  • Monitoring and Reporting of Suspicious Transactions: Monitor transactions for suspicious activities and report any unusual transactions to the Anti-Money Laundering Council (AMLC).
  • Maintenance of Records: Maintain accurate and detailed records of all transactions.

Key Requirements

Under the new rules, SEC-covered institutions must:

  • Establish a Compliance Officer: Appoint a compliance officer responsible for ensuring that the institution is in compliance with AML/CFT regulations.
  • Conduct Regular Training Programs: Provide regular training programs for employees on AML/CFT issues.
  • Report Suspicious Transactions: Report any suspicious transactions to the AMLC.

Enhancing Effectiveness

The SEC has emphasized the importance of implementing effective AML/CFT measures, citing the significant impact that money laundering and terrorist financing can have on the country’s financial system. The new guidelines are expected to enhance the overall effectiveness of the Philippines’ AML/CFT regime and bring it in line with international best practices.

Industry Expert Reaction

Industry experts have welcomed the move, noting that it will help improve transparency and accountability within the financial sector. “The new guidelines will provide a clear framework for SEC-covered institutions to comply with AML/CFT regulations,” said [Name], an industry expert. “This will help reduce the risk of money laundering and terrorist financing in the country.”

Philippines’ Efforts to Strengthen AML/CFT Regime

The Philippines is one of several countries that has been working to strengthen its AML/CFT regime following the FATF’s recommendations. The new guidelines are seen as a significant step forward in this effort, and are expected to have a positive impact on the country’s financial system.