Martial Law Looms Over Marawi, Philippines Amidst Ongoing Battle Against Terrorism
Introduction
The 2017 Battle of Marawi has left a lasting impact on the Philippines, with the government continuing to grapple with its aftermath. A recent report highlights the significant challenges facing the country’s efforts to combat money laundering and terrorist financing.
Corruption and Organized Crime: Major Threats to the Country’s Financial System
According to the report, corruption and organized crime are among the major threats generating illicit proceeds in the Philippines. The report notes that an estimated 20% of the annual budget is lost due to corruption, while organized crime groups operate a robust shadow economy, laundering funds from:
- Drug trafficking
- Human trafficking
- Tax crimes
- Cybercrime
ISIS-Affiliated Groups: Relying on Predicate Offenses for Funding and Operations
ISIS-affiliated groups have also been relying on these predicate offenses to raise funds and facilitate their operations. The report warns that these significant threats exploit vulnerabilities in the country’s cash-based economy, under-resourced authorities, and legislative and procedural hurdles.
Need for Improved Coordination and Cooperation
The report highlights the need for improved coordination and cooperation among law enforcement agencies and regulatory bodies to prevent, investigate, and prosecute money laundering and terrorist financing cases. A senior government official noted:
“The Philippines has made significant improvements in its technical compliance with international standards on anti-money laundering and counter-terrorist financing. However, we recognize that there are still challenges that need to be addressed, particularly in terms of coordination and cooperation among authorities.”
Financial Intelligence Unit: Challenges and Opportunities
The report notes that the country’s financial intelligence unit (FIU) has been working to improve its analytical capability and disseminate information to law enforcement agencies. However, it also raised concerns about the FIU’s operational independence and the lack of proactive dissemination of financial intelligence to other law enforcement agencies.
National Strategy to Combat Money Laundering and Terrorist Financing
In light of these challenges, the government has vowed to intensify its efforts to combat money laundering and terrorist financing. The report’s findings have been shared with relevant authorities, and a national strategy is being developed to address outstanding challenges.
Commitment to Addressing Root Causes of Terrorism
As the country continues to grapple with the aftermath of the Marawi siege, the Philippine government remains committed to addressing the root causes of terrorism and ensuring that the country’s financial system is not exploited by criminal organizations.