Philippines: A Key Destination for Funds Related to Terrorism Financing
The Philippines has emerged as a critical destination for funds related to terrorism financing (TF), with the country’s Anti-Money Laundering Council (AMLC) receiving an increasing number of Suspicious Transaction Reports (STRs).
Rising Awareness and Red-Flag Indicators
According to AMLC data, the rising number of STRs indicates a growing awareness among covered persons (CPs) regarding the identification and detection of financial transactions linked to TF and other relevant crimes. Red-flag indicators and transaction patterns are evident in STR submissions, revealing a sophisticated network of financial activities.
Disrupting Funding for Terrorism Activities
Despite the relatively low amount of funds frozen compared to estimated amounts raised, the issuance of sanctions freeze orders, designations of local threat groups as terrorists, and enhanced due diligence have contributed significantly to disrupting funding for terrorism activities.
Strengthened Response to TF Threats
The AMLC has also noted an improvement in the number of cases investigated related to TF, demonstrating a strengthened response to threats posed by terrorism and TF. Domestic and international coordination mechanisms are instrumental in providing better responses to these threats, with recent experiences showing that close cooperation among agencies yields positive results.
International Cooperation and Coordination
The country’s leaders recognize the significant contribution of all international initiatives and cooperation in addressing terrorism issues, having supported various efforts to combat terrorism crimes that transcend borders. Further strengthening coordination and collaboration between the public and private sectors is crucial to combating TF.
Recommendations for Enhancing TF Reporting and Investigations
To enhance TF reporting and investigations, the AMLC recommends:
- Conducting targeted capacity-building initiatives for microfinance institutions and non-profit organizations.
- Implementing risk-based supervision of non-profit organizations.
- Designating terrorists and known terrorist organizations in accordance with United Nations Security Council Resolution 1373.
- Establishing processes for communicating nationally listed persons and organizations to reporting entities, financial sectors, enforcement agencies, and the general public.
Red-Flag Indicators and Suspicious Triggers
The AMLC has identified several red-flag indicators and suspicious triggers that may indicate a financial transaction linked to TF. These include:
- Preparation for travel to conflict zones.
- Unusual account activity, such as large cash deposits or withdrawals.
- Donations to organizations linked to terrorist activities.
- Use of funds from social assistance programs or student loans.
- Available credit products exploited for personal gain.
Preventing the Misuse of Funds
By recognizing these red-flag indicators and suspicious triggers, CPs can play a crucial role in preventing the misuse of funds by terrorist organizations.
Conclusion
The Philippines’ efforts to combat TF demonstrate its commitment to maintaining financial stability and security in the face of emerging threats. By strengthening coordination and cooperation between government agencies, private sector institutions, and civil society, the country can effectively prevent the misuse of funds by terrorist organizations and protect its citizens from the scourge of terrorism.