Financial Crime World

Terrorist Financing Prevention in the Philippines: FATF’s List of High-Risk Jurisdictions Sparks Enhanced Due Diligence Measures

Background

The Financial Action Task Force (FATF) has listed several jurisdictions as high-risk and non-cooperative, prompting the Anti-Money Laundering Council (AMLC) to direct all covered persons to apply enhanced due diligence measures. According to AMLC Resolution No.64, series of 2014, these jurisdictions are included in the FATF Public Statement dated February 27, 2015.

Threat of Terrorism Financing

The move comes as a response to the increasing threat of terrorism financing and money laundering, particularly in the Philippines. The country has been identified as a key hub for terrorist organizations, with several groups operating in the region. The threat of terrorism financing remains a significant concern in the Philippines, with several attacks attributed to terrorist groups in recent years.

AMLC’s Measures

The AMLC has taken several measures to prevent terrorism financing, including:

  • FATF Public Statement: The FATF Public Statement dated February 27, 2015, lists jurisdictions as high-risk and non-cooperative.
  • AMLC Resolution No.64: Directs all covered persons to apply enhanced due diligence measures for transactions involving these jurisdictions.
  • Resolution No. TF-03: Freezes assets belonging to individuals and entities designated by the United Nations Security Council (UNSC) as being associated with Al-Qaeda and other terrorist groups.
  • Notice of AMLC Resolution No. TF-02: Freezes assets belonging to individuals and entities designated by the UNSC as being associated with the Taliban.

Philippines’ Laws and Regulations

The Philippines has implemented laws aimed at preventing terrorism financing, including:

  • Republic Act No.10168: The Terrorism Financing Prevention and Suppression Act of 2012 requires financial institutions to report suspicious transactions related to terrorist activities.
  • Implementing Rules and Regulations: The AMLC has promulgated implementing rules and regulations for Republic Act No.10168, which include requirements for enhanced due diligence measures and reporting procedures for suspicious transactions.

International Recognition

The Philippines’ efforts to prevent terrorism financing have been recognized by international organizations, including the FATF, which commended the country’s progress in addressing money laundering and terrorist financing risks.

Conclusion

Despite these efforts, the threat of terrorism financing remains a significant concern in the Philippines. The country continues to work to disrupt the financing networks of terrorist groups and prevent further attacks.