Philippines completes action plan and aims to leave FATF grey list next year
The Philippines has addressed 18 deficiencies in AML/CFT controls.
The Philippines.- The Financial Action Task Force (FATF) has announced that the Philippines has addressed all 18 deficiencies identified in its anti-money laundering and counter-terrorism financing (AML/CFT) controls and could potentially leave its grey list of countries in 2025. In a statement on Friday (October 25), the FATF said the Philippines had addressed the eight remaining items in its action plan.
In a separate announcement, the Anti-Money Laundering Council (AMLC) said the FATF’s Asia/Pacific Joint Group (APJG) will visit the Philippines early next year. “This is the final step toward the removal of the country from the grey list,” it said. The country was put on the FATF grey list in June 2021.
Philippines executive secretary Lucas Bersamin said: “This milestone is a testament to the hard work and coordination across government agencies. It reflects our strong commitment to meeting the FATF’s stringent standards and ensuring the long-term protection of our financial system. We are confident that this progress will be affirmed during the on-site visit,” noted Bersamin, who also serves as chairperson of the National Anti-Money Laundering and Combating of Terrorism Financing/Counter-Proliferation Financing Coordinating Committee.
The points remaining were: (1) demonstrating that risk-based supervision of DNFBPs is occurring; (2) demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets; (3) implementing the new registration requirements for MVTS and applying sanctions to unregistered and illegal remittance operators; (4) enhancing and streamlining LEA access to BO information and taking steps to ensure that BO information is accurate and up-to-date; (5) demonstrating an increase in the use of financial intelligence and an increase in ML investigations and prosecutions in line with risk; (6) demonstrating an increase in the identification, investigation and prosecution of TF cases; (7) demonstrating that appropriate measures are taken with respect to the NPO sector (including unregistered NPOs) without disrupting legitimate NPO activity; and (8) enhancing the effectiveness of the targeted financial sanctions framework for both TF and PF.
Philippines Quadcom to summon banks over offshore gaming operators funds
Last week, the Philippines’ House Quad Committee (Quadcom) announced plans to request the presence of several banks, the Anti-Money Laundering Council (AMLC), and the Philippine Anti-Organized Crime Commission (PAOCC) at an upcoming hearing. The purpose is to investigate the movement of funds associated with people or companies under scrutiny for links to offshore gaming operators.
According to PhilStar, Manila chairman Manila 6th District Representative Bienvenido “Benny” Abante mentioned the move at a meeting with members of the Monday Circle at the Westin Hotel. Abante said he was informed that banks were aware of the intention to require their participation. They are reportedly seeking support from the Bankers Association of the Philippines (BAP) to oppose the summons under the protection of bank secrecy laws.
Abante said the AMLC and banks should clarify their role in dealing with suspicious movements by people under investigation. He noted instances where those being investigated were able to quickly move funds after Congress conducted an inquiry. Analysts have also suggested that unusual activity in the stock market could signal that it’s being used to channel departing offshore gaming operators’ funds ahead of the shut down of operators.
Abante said there are now only 43 legal offshore gaming operators despite estimates indicating that nearly 400 operators are still working in various parts of the country, including hidden operations in provinces and small gated communities. He mentioned the case of Alabang, where residents have protested against rentals to Chinese people.
