The Philippines has made significant strides in enhancing its anti-money laundering (AML) and counter-terrorism financing (CFT) efforts, earning recognition from both the International Monetary Fund (IMF) and the Financial Action Task Force (FATF). According to the IMF, the country’s progress in addressing key financial crime risks positions it well to meet global standards and further strengthen its financial oversight.
Key Improvements in AML/CFT Framework
The Philippines has taken important steps in addressing deficiencies that had kept it on the FATF’s “grey list” since 2021. In a recent report, the FATF acknowledged the country’s successful completion of several critical action items in its AML/CFT action plan. These included stricter regulations for sectors such as casinos and money transfer services, along with enhanced enforcement against illegal remittance operators. By improving its supervision of Designated Non-Financial Businesses and Professions (DNFBPs), the Philippines has strengthened its defenses against money laundering risks.
Enhanced Law Enforcement and Financial Oversight
The Philippines has also improved its law enforcement capabilities, particularly in tracking illicit financial activities. The country has made progress in granting authorities greater access to beneficial ownership information, allowing them to target money laundering and terrorist financing operations more effectively. Furthermore, investigations into money laundering and terrorist financing have increased, reflecting a growing commitment to financial integrity and transparency.
Challenges Ahead and the Need for Reform
Despite these achievements, the IMF notes that continued efforts are necessary to maintain momentum. One key area for reform is the country’s bank secrecy laws, which limit transparency in financial transactions. Revising these laws would strengthen the Bangko Sentral ng Pilipinas (BSP) and law enforcement agencies’ ability to combat financial crimes effectively.
