Terrorist Financing Laws in Philippines Strengthened to Combat Global Threat

The Financial Action Task Force (FATF) has identified several jurisdictions as high-risk and non-cooperative, prompting the Anti-Money Laundering Council (AMLC) to direct financial institutions to apply enhanced due diligence measures. This move is aimed at combating the global threat of terrorism financing.

Enhanced Due Diligence Measures

According to AMLC Resolution No. 64, series of 2014, all covered persons are required to take into account information relative to the jurisdictions mentioned in the FATF’s Public Statement dated February 27, 2015, and apply enhanced due diligence measures as per Rule 9.a.9.a of the Revised Implementing Rules and Regulations (RIRRs) of the Anti-Money Laundering Act of 2001.

Designated Individuals and Entities

The FATF has also identified certain individuals and entities associated with terrorist organizations such as Al Qaida and the Islamic State in Iraq and the Levant (ISIL). In response, the United Nations Security Council (UNSC) has imposed sanctions on them. The AMLC has issued resolutions directing the freezing of property or funds belonging to these designated individuals and entities.

Terrorism Financing Prevention and Suppression Act

Republic Act No. 10168, also known as the Terrorism Financing Prevention and Suppression Act of 2012, was signed into law by President Benigno S. Aquino III in June 2012. The law took effect on July 5, 2012, and is aimed at preventing and suppressing terrorism financing.

Implementing Rules and Regulations

The AMLC has also promulgated the Implementing Rules and Regulations (IRRs) of R.A. No. 10168, which outlines the procedures for reporting suspicious transactions and freezing property or funds belonging to designated individuals and entities.

Role of Financial Institutions

Financial institutions are reminded that they have a critical role to play in preventing terrorism financing, and must take steps to prevent their services from being used by terrorist organizations. The public is also warned against dealing with any property or funds belonging to designated individuals and entities.

Monitoring and Updates

The AMLC will continue to monitor the implementation of these laws and regulations, and will update its website with new information on the sanctions lists and other relevant developments.

By working together to prevent terrorism financing, we can make a significant impact in combating this global threat.