The central bank-led Anti-Money Laundering Council (AMLC), the Philippines’ financial intelligence unit (FIU), is intensifying its efforts to remove the country from the Financial Action Task Force (FATF) “grey list.”
This decision came in response to a call from Malacañang, the official residence and workplace of the President of the Philippines, to take proactive steps to address anti-money laundering (AML) and counter-terrorism financing (CTF) concerns.
In recent developments, the AMLC announced its intention to lead the National Money Laundering/Terrorist Financing Risk Assessment (NRA) Working Group.
This working group will play a pivotal role in assessing and mitigating the risks associated with money laundering and terrorist financing in the Philippines.
To implement these measures effectively, the AMLC will issue guidelines and collaborate with other government departments, agencies, and the private sector.
These pro-active actions aim to strengthen the Philippines’ commitment to combating money laundering and terrorism financing.
Furthermore, the AMLC emphasized its commitment to international AML and CTF standards. It stated that the Philippines will not tolerate money laundering or terrorism financing and will actively cooperate in transnational investigations and prosecutions.
The Philippines was placed on the FATF “grey list” in June 2021 due to unresolved AML and CTF issues and technical compliance deficiencies.
While the FATF has acknowledged the country’s progress in adopting stronger AML and CTF measures, remaining on the list subjects the government to continuous monitoring by the FATF until these strategic issues are adequately addressed.
To address the concerns and pave the way for delisting by January 2024, the National Anti-Money Laundering/Counter-Terrorism Financing/Counter-Proliferation Financing (AML/CTF/CPF) Strategy (NACS) 2023-2027 was developed.
This strategy aims to expedite the resolution of outstanding FATF’s International Cooperation Review Group (ICRG) Action Plans and prompts government agencies to review and assess their deliverables under these plans.
BSP Governor Eli M. Remolona Jr., who also chairs the AMLC, underlined the importance of specific proposed legislation in convincing the FATF to remove the Philippines from the “grey list.”
Key bills include amendments to the Bank Secrecy Law and the Anti-Financial Account Scamming Act (AFASA).
The country is currently addressing eight areas within the 18-point action plan that the FATF has expressed dissatisfaction with in the Philippines’ progress report.
These include issues related to bank deposit secrecy laws and rules concerning directors, officers, stockholders, and their related interests.
The ongoing efforts, legislative changes, and inter-agency cooperation aim to ensure that the Philippines achieves FATF’s compliance standards, leading to a successful exit from the “grey list.”
