Financial Crime World

Boosting Compliance with Anti-Money Laundering Regulations in the Philippines

Urgent Call to Action for Financial Institutions

Manila, Philippines - The Anti-Money Laundering Council (AMLC) has issued a stern warning to financial institutions to enhance their compliance with anti-money laundering (AML) regulations to prevent illicit activities and maintain the country’s economic integrity.

Key Takeaways

  • Report suspicious transactions to the AMLC
  • Provide regular training for staff on AML regulations and suspicious transactions
  • Keep accurate records of all financial transactions
  • Cooperate with authorities in investigations
  • Implement transaction monitoring systems
  • Conduct regular audits
  • Split clients into risk categories and monitor them accordingly
  • Perform continuous monitoring

Who’s Affected?

The following entities are required to register with the AMLC and comply with AML regulations:

  • Banks
  • Offshore banking units
  • Quasi-banks
  • Trust entities
  • Non-stock savings and loan associations
  • Pawnshops
  • Foreign exchange dealers
  • Money changers
  • Money remittance or transfer companies
  • Electronic money issuers

Covered Transactions

A covered transaction refers to a financial transaction that meets certain criteria, such as amounts exceeding PHP 500,000. These transactions require financial institutions to submit reports to regulatory authorities.

Regulators

The AMLC and the Bangko Sentral ng Pilipinas (BSP) are responsible for regulating the financial system and preventing crime in the Philippines.

Penalties

Violations of AML regulations can result in imprisonment, fines, or both. The penalty for money laundering is up to 14 years’ imprisonment and a fine of not less than PHP 3 million.

Challenges

The Philippines remains on the Financial Action Task Force (FATF) “grey list” due to concerns over money laundering and terrorism financing. Authorities are working to address these issues, but the country faces numerous challenges in its bid to be removed from the list.

Solutions

Sumsub has compiled a comprehensive guide to AML regulations in the Philippines, providing essential tools, checks, data, and documents required for compliance.

  • Download the guidelines for free today and discover the legal prerequisites for customer identification, verification, and due diligence measures in the Philippines.