Financial Crime World

Financial Crime Trends in Philippines: FATF Follow-Up Report Reveals Key Findings

The Financial Action Task Force (FATF) has released its Philippines Follow-Up Report 2022, which provides an assessment of the country’s implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures. The report highlights several areas where the Philippines has made significant progress, while also identifying key challenges that need to be addressed.

Philippines’ Progress in Implementing AML/CFT Measures

According to the report, the Philippines has largely complied with recommendations related to:

  • Assessing Risk and Applying a Risk-Based Approach (R.1)
  • National Cooperation and Coordination (R.2)
  • Confiscation and Provisional Measures (R.4)

The country has also made significant progress in implementing measures to prevent terrorist financing, including:

  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing (R.6)
  • Terrorist Financing Offence (R.5)

Areas for Improvement

However, the report identifies areas where the Philippines needs to improve, including:

  • Customer Due Diligence (R.10)
  • Record Keeping (R.11)
  • Internal Controls and Foreign Branches and Subsidiaries (R.18)

Additionally, the Philippines has not yet fully complied with recommendations related to:

  • Reporting of Suspicious Transactions (R.20)
  • Tipping-Off and Confidentiality (R.21)

Partial Compliance and Non-Compliance

The report also highlights several areas where the Philippines is partially compliant or non-compliant, including:

  • Regulation and Supervision of Financial Institutions (R.26)
  • DNFBPs (R.28)
  • Prevention of Cash Couriers from being used for Illegal Activities (R.32)

Conclusion

The report provides a comprehensive assessment of the Philippines’ AML/CFT framework and identifies key areas where improvement is needed. The country’s authorities must take concrete steps to address these deficiencies in order to effectively combat financial crime and protect its financial system.

FATF Recommendations

The FATF recommendations are designed to help countries implement effective AML/CFT measures, which are critical for preventing and detecting financial crimes such as money laundering, terrorist financing, and other illicit activities. The Philippines’ commitment to implementing these measures is essential for maintaining a stable and secure financial environment.