Financial Crime World

Philippines Tightens Grip on Terrorist Financing as Money Laundering Risk Remains High

In a bid to combat the growing threat of terrorist financing, the Anti-Money Laundering Council (AMLC) has intensified its efforts to prevent money laundering and terrorism financing in the Philippines. The country’s AML/CTF regime remains under scrutiny following the release of the Second National Risk Assessment Report in 2017.

National Money Laundering Threat Remains High

According to the report, the level of national money laundering threat is high, driven by predicate crimes such as:

  • Drug trafficking
  • Graft and corruption
  • Fraud
  • Tax crimes
  • Smuggling
  • Intellectual property law violations
  • Illegal manufacture and possession of firearms, ammunition, and explosives
  • Environmental crimes

Banks and money service businesses were identified as sectors primarily and widely used by criminals to launder the proceeds of crime.

AMLC’s Efforts to Address Threats

The AMLC has taken concrete steps to address these threats, including:

  • Coordinating with law enforcement agencies to file 85 cases in the first eight months of 2021, involving over PHP1.31 billion and other assets.
  • Implementing the National Anti-Money Launderling and Countering the Financing of Terrorism Strategy for 2018-2022 (NACS), which aims to coordinate efforts among relevant agencies to combat money laundering and terrorism financing.

Studies and Regulations

The AMLC has also released several studies on money laundering and terrorism financing typologies, including:

  • Terrorism and Terrorism Financing Risk Assessment
  • Foreign Terrorist Fighters Study using Suspicious Transaction Reports
  • Assessment of the Philippines’ Exposure to External and Internal Threats Based on Suspicious Transaction Reports for 2018-2020

The council has also issued several amendments to AML/CTF regulations this year to strengthen the country’s supervisory framework. The move is expected to improve AML/CTF operations and demonstrate the Philippines’ progress towards a more effective AML/CTF regime.

Commitment and Cooperation

The country’s exit from the list of Jurisdictions under Increased Monitoring or the grey list requires commitment and cooperation among the public and private sectors in addressing all 18 International Cooperation Review Group (ICRG) action plan items. The AMLC has stressed that beyond mere compliance, the goal is to fundamentally strengthen the country’s AML/CTF system.

Stakeholders’ Commitment

The council has expressed its gratitude for stakeholders’ relentless commitment and energy to combat money laundering and terrorism financing and preserve the integrity of the financial system.