In response to recent comments by the Financial Action Task Force (FATF), the Philippines’ Anti-Money Laundering Council (AMLC) is actively implementing enhanced protocols to address key deficiencies in its anti-money laundering (AML) controls, specifically focusing on casino junkets. This move comes after FATF urged the Philippines to swiftly enhance its AML measures, leading to the nation’s placement on the FATF “grey list” in June 2021. Despite facing a deadline extension until January 2024, the Philippines is committed to improving its AML and counter-terrorism financing (CTF) frameworks.
Government Initiatives:
Casino Junkets: Acknowledging the concerns raised by FATF, the AMLC is intensifying efforts to implement AML and CTF controls to manage risks associated with casino junkets. This targeted approach aims to address vulnerabilities in the casino sector, a crucial area identified by FATF.
Enhanced Risk-Based Supervision: The government is focusing on refining the supervision of Designated Non-Financial Businesses and Professions (DNFBP) through a risk-based approach. This initiative is designed to strengthen oversight and mitigate potential AML and CTF risks in various sectors.
Beneficial Ownership Information: To enhance law enforcement agencies’ capabilities, there is a concerted effort to refine access to Beneficial Ownership information, ensuring accuracy and timeliness. This step is pivotal in identifying and addressing potential money laundering activities promptly.
Intensifying Investigations and Prosecutions: The Philippines is elevating efforts in money laundering investigations and prosecutions aligned with identified risks. This includes a commitment to swift and effective actions against individuals and entities involved in money laundering activities.
Terrorism Financing Measures: A significant aspect of the government’s strategy involves the identification, investigation, and prosecution of terrorism financing cases. This multifaceted approach aims to strengthen the nation’s ability to combat financing linked to terrorism.
Response to FATF Recommendations:
The AMLC reaffirms its commitment to international standards and collaboration with FATF and the Asia/Pacific Group on Money Laundering (APG). Executive Order No. 33, Series of 2023, and Memorandum Circular No. 37, issued by President Ferdinand R. Marcos Jr., underscore the unwavering commitment and set the strategic direction for the country’s initiatives. Despite the lapse of January 2023 deadlines, the AMLC emphasizes that pertinent agencies are dedicated to swiftly and effectively implementing outstanding action plans.
Progress Achieved:
The Philippines has made significant strides in becoming a strong international partner in ML and TF investigations. This includes building a robust Beneficial Ownership information system aligned with best practices and establishing a comprehensive DNFBP risk-based framework ahead of the global network.
Private Sector Involvement
The AMLC calls on the private sector to play a pivotal role in contributing to efforts to exit the FATF “grey list.” Recognizing the value of guidance from international bodies, the Philippines remains committed to continuous improvement and collaboration. The collaborative approach involves working hand in hand with international partners and leveraging the collective strength of national agencies to address strategic deficiencies and ensure the resilience and integrity of the country’s financial landscape.
The Philippines’ response to FATF recommendations reflects a proactive and strategic approach to enhance its AML and CTF frameworks. The targeted initiatives, commitment to international collaboration, and progress achieved so far underscore the nation’s determination to strengthen its financial integrity. As the Philippines works towards exiting the FATF “grey list,” the collective efforts of government agencies and the private sector are instrumental in achieving sustained success in combating money laundering and terrorism financing.