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Philippines Adopts International Standards on Anti-Money Laundering and Combating Financing of Terrorism

Country Complies with Global Regulations to Combat Illicit Financial Activities

The Philippine government has taken a significant step in its efforts to combat money laundering and financing of terrorism by adopting international standards on anti-money laundering (AML) and combating the financing of terrorism (CFT). The country’s financial regulatory authorities have implemented measures to prevent the misuse of its financial system for illegal activities.

Background

The Philippines has been under pressure from the Financial Action Task Force (FATF), an intergovernmental organization that sets global standards on AML/CFT, to improve its financial regulations. In 2001, the country passed the Anti-Money Laundering Act (AMLA) to comply with international standards. However, the FATF found the law inadequate in certain aspects, leading to the Philippine Congress amending the law in 2003.

Key Amendments

• The amended AMLA lowered the threshold amount for single covered transactions from P4 million to P500,000 within one banking day.
• The law also expanded financial institution reporting requirements to include suspicious transactions and authorized the Anti-Money Laundering Council (AMLC) to inquire into or examine any particular deposit or investment upon order of a competent court.

AMLC’s Role

The AMLC is the highest policy-making body and lead agency for implementing the Philippines’ AML regime. It is responsible for investigating money-laundering offenses and assisting in the prosecution of such cases. The AMLC is composed of: * Governor of Bangko Sentral ng Pilipinas as Chairman * Commissioner of the Insurance Commission * Securities and Exchange Commission Chairperson

Impact

The Philippines’ adoption of international standards on AML/CFT will help to prevent the misuse of its financial system for illegal activities. The country’s financial regulatory authorities will have a stronger framework to detect and prevent money laundering and terrorist financing.

Conclusion

The Philippine government’s efforts to comply with global regulations on AML/CFT demonstrate its commitment to combating illicit financial activities. The implementation of these measures will help to strengthen the country’s financial system and protect it from abuse by criminal organizations.

Related Articles:

• FATF’s Assessment of the Philippines’ AML/ CFT Regime
• International Cooperation in Combating Money Laundering and Terrorist Financing