Financial Crime World

Philippines Intensifies Efforts to Combat Money Laundering

Strengthening Anti-Money Laundering Measures

The Philippines has issued guidelines for customer due diligence (CDD) and know your customer (KYC), or electronic KYC (eKYC), in a bid to strengthen its anti-money laundering (AML) measures. The new regulations aim to prevent financial crimes and maintain the integrity of the financial system.

What You Need to Know

  • The Anti-Money Laundering Council (AMLC) has issued guidelines for CDD, requiring financial institutions to implement measures to identify and verify their customers’ identities.
  • Financial institutions in the Philippines must register with the AMLC and comply with regulations to avoid penalties.
  • The penalty for money laundering can range from seven to 14 years of imprisonment, along with a fine of not less than PHP 3 million but not more than twice the value of the monetary instrument or property involved in the offense.

Regulators

  • The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, supervises financial institutions to ensure compliance with AML regulations.
  • The Anti-Money Laundering Council (AMLC) serves as the country’s Financial Intelligence Unit (FIU).

Challenges

  • The Philippines has been included in the “grey list” by the Financial Action Task Force (FATF), citing concerns over money laundering and terrorism financing.
  • To secure removal from the grey list, authorities must address these concerns and strengthen their AML measures.

Solutions

To help financial institutions comply with regulations, Sumsub has compiled a comprehensive guide to CDD and KYC in the Philippines. The guide provides links to pertinent laws and regulations, as well as essential tools and checks required for compliance.

Frequently Asked Questions

Is the Philippines a high-risk country for money laundering?

Yes, the Philippines has been identified as having certain vulnerabilities to money laundering, particularly due to factors such as remittances and cash-intensive casinos.

What is the AMLA in the Philippines?

The Anti-Money Laundering Act (AMLA) of 2001 is the key country’s AML regulation.

What are “covered transactions” in the Anti-Money Laundering Act?

A “covered transaction” under the AMLA is any transaction involving funds exceeding PHP 500,000 ($8,940) within a single banking day.

What is the penalty for money laundering in the Philippines?

According to the AMLA, the crime of money laundering is punishable by imprisonment ranging from seven (7) to fourteen (14) years and a fine of not less than Three million Philippine pesos (PHP 3,000,000.00) but not more than twice the value of the monetary instrument or property involved in the offense.