Financial Crime World

Philippines’ National Risk Assessment: A Key Tool in Combating Financial Crime

The Philippines’ National Risk Assessment (NRA) has played a crucial role in developing targeted anti-money laundering and countering the financing of terrorism (AML/CFT) actions. The NRA report, which covered the period from 2011 to 2014, provides valuable insights into the country’s AML/CFT landscape.

Developing Risk-Based Strategies

The report highlights the results of a self-assessment conducted by Philippine authorities using a National Money Laundering and Terrorist Financing Risk Assessment Tool provided by the World Bank. This comprehensive framework enables the government to allocate available resources effectively to mitigate risks.

Action Plans for Sector-Specific Vulnerability Assessments

The report presents action plans formulated by eight sub-groups, each responsible for assessing vulnerabilities in their respective sectors:

  • Thread Analysis Group: Assesses vulnerabilities in the banking sector
  • National Vulnerability Assessment Group: Identifies vulnerabilities across various sectors
  • Banking Sector Vulnerability Group: Focuses on vulnerabilities within the banking industry
  • Securities Sector Vulnerability Assessment Group: Evaluates vulnerabilities in the securities market
  • Insurance Sector Vulnerability Assessment Group: Assesses vulnerabilities in the insurance sector
  • Other Financial Institutions Vulnerability Assessment Group: Identifies vulnerabilities in other financial institutions
  • DNFBPs Vulnerability Assessment Group: Focuses on vulnerabilities in designated non-financial businesses and professions (DNFBPs)
  • Financial Inclusion Product Risk Assessment Group: Evaluates risks associated with financial inclusion products

Mitigating Risks Through Comprehensive Framework

Through this comprehensive framework, the Philippine government aims to:

  • Control risks associated with financial crime
  • Mitigate vulnerabilities across various sectors
  • Eliminate risks through effective risk management practices

The NRA Report serves as a vital tool in this effort, providing valuable insights into the country’s AML/CFT landscape and informing strategies for improving risk management practices.