Philippines Launches National Strategy to Combat Financial Terrorism

The Philippine government has taken a significant step in combating financial terrorism by adopting a national strategy to counter money laundering and terrorism financing.

Background

The Philippines continues to face threats from terrorist organizations such as the Abu Sayyaf Group, Bangsamoro Islamic Freedom Fighters (BIFF), Communist Party of the Philippines’ New People’s Army, and the Islamic State group. In response, President Ferdinand Marcos Jr. has ordered the adoption of a national strategy to counter money laundering, terrorism financing, and proliferation financing through 2027.

National Strategy

The plan outlines objectives and priorities for government agencies and other stakeholders to enhance initiatives and address challenges identified by international assessments. The Philippines has been listed on the “gray list” of the Financial Action Task Force (FATF) since 2021 due to gaps in its efforts to combat money laundering and terrorism financing.

Initiatives

To achieve this goal, the government has launched a national working group led by the Anti-Money Laundering Council (AMLC) to assess risks and develop prevention and mitigation measures. The AMLC also hosted an anti-money laundering and counter-terrorism financing summit in November, which aimed to strengthen collaboration and compliance among stakeholders.

International Cooperation

The Philippine government is working closely with international organizations and partners such as Australia and the United States to strengthen domestic agencies, enhance training, and improve collaboration. In May 2023, over 17,600 troops from the three countries participated in the annual exercise Balikatan, focusing on counter-terrorism, maritime security, amphibious operations, live-fire training, urban and aviation operations, and humanitarian assistance and disaster relief.

Progress

The country has also seen a significant decrease in terrorist attacks in recent years. However, the groups continue to clash with government forces, as evident from the recent battles between Philippine troops and BIFF and the Islamic State group in Maguindanao del Sur province in early December 2023.

Commitment

The Philippines is committed to preventing its territory from being used for money laundering and terrorism financing. The government has issued a memorandum directing agencies to formulate plans and programs to implement the national strategy, with a focus on removing the country from the FATF’s gray list.

Training and Capacity Building

Senior officers from the Philippine National Police attended a five-day course in Manila on countering terrorist financing and investigating money laundering, conducted by the U.S. Justice Department’s International Criminal Investigative Training Assistance Program in collaboration with the U.S. State Department’s Bureau of Counterterrorism.

Conclusion

The country’s efforts to combat financial terrorism demonstrate its commitment to international cooperation and its determination to prevent the misuse of its financial system for illicit activities.