Combating Financial Terrorism in the Philippines: Challenges and Progress

The Philippines has made significant strides in combating money laundering over the past decade, but it still faces substantial challenges in dealing with transnational issues posed by money laundering. The country’s unique geography, comprising more than 7,000 islands, makes it vulnerable to illicit funds flooding in from neighboring countries.

Geographic Vulnerability

The southern part of the Philippines is a hotbed of insurgent and transnational terrorist activities, which often involve money laundering through ties to organized crime. To combat this threat, the Anti-Money Laundering Council (AMLC) was established in 2001 to ensure that the Philippines is not used as a money laundering site.

Understanding Money Laundering Risk

According to a report by the Asia/Pacific Group on Money Laundering, understanding of money laundering and terrorist financing risk among stakeholders in the Philippines varies. However, it is strongest with the AMLC. With support from the United States Department of State, IDLO has been assisting the AMLC in building institutional and human capacity to combat financial terrorism.

Capacity Building Efforts

In October 2019, IDLO organized a training course on trial advocacy for members of the AMLC, the Office of the Ombudsman, the Department of Justice, and the Office of the Solicitor General in Pampanga. The training aimed to enhance the participants’ skills in handling complex financial cases.

Training Outcomes

After the training, several participants highlighted their need for specialized knowledge and expertise in combating modern money laundering schemes, including international transactions and online-based schemes. They also emphasized the importance of trial advocacy skills, particularly in handling technical subjects like financial transactions and electronic evidence.

IDLO’s Support

The Philippines has been a member of IDLO since 1989 and has hosted its regional training office in Manila. Since 2016, IDLO has provided support to develop the capacity of prosecutors to better handle criminal prosecution and corruption cases. The country’s progress in combating financial terrorism is crucial to maintaining economic stability and ensuring that it does not become a haven for illicit funds.

Conclusion

As the Philippines continues to grapple with these challenges, it is essential that it remains vigilant and works closely with international partners to develop effective strategies to combat financial terrorism.