Financial Crime World

Financial Crime Trends in the Philippines for 2020: A Mixed Bag of Compliance and Non-Compliance

The Financial Action Task Force (FATF) has released its Follow-Up Report for the Philippines, assessing the country’s progress in implementing the technical requirements of the FATF Recommendations. The report reveals a mixed bag of compliance and non-compliance across various areas.

Assessing Risk and Applying Risk-Based Approach

The Philippines has implemented a robust risk assessment framework and applies a risk-based approach to its anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts. However, there are still some issues with the effectiveness of its risk assessment process.

Compliance

  • Implemented a robust risk assessment framework
  • Applies a risk-based approach to AML/CFT efforts

Non-Compliance

  • Issues with the effectiveness of its risk assessment process

National Cooperation and Coordination

The country’s financial intelligence unit, the Anti-Money Laundering Council (AMLC), has improved its coordination with other law enforcement agencies and government entities to combat financial crimes.

Compliance

  • Improved coordination with law enforcement agencies and government entities
  • Effective in combating financial crimes

Money Laundering Offence

The Philippines has implemented a comprehensive money laundering offence framework, but there are still some gaps in its prosecution and sentencing of such cases.

Compliance

  • Implemented a comprehensive money laundering offence framework

Non-Compliance

  • Gaps in prosecution and sentencing of money laundering cases

Confiscation and Provisional Measures

The country’s confiscation and provisional measures framework is largely compliant with the FATF Recommendations. However, there are still some issues with the effectiveness of its asset freezing and confiscation procedures.

Compliance

  • Largely compliant with FATF Recommendations
  • Effective in combating financial crimes

Non-Compliance

  • Issues with asset freezing and confiscation procedures

Terrorist Financing Offence

The Philippines has implemented a comprehensive terrorist financing offence framework, but there are still some gaps in its prosecution and sentencing of such cases.

Compliance

  • Implemented a comprehensive terrorist financing offence framework

Non-Compliance

  • Gaps in prosecution and sentencing of terrorist financing cases

The country’s targeted financial sanctions framework is largely compliant with the FATF Recommendations. However, there are still some issues with the effectiveness of its designation and implementation procedures.

Compliance

  • Largely compliant with FATF Recommendations
  • Effective in combating financial crimes

Non-Compliance

  • Issues with designation and implementation procedures

In conclusion, the report highlights both areas of compliance and non-compliance, which will require further attention and improvement to effectively combat financial crimes.