Philippines compliance with FATF action plans likely this year

MANILA, Philippines —   The Anti-Money Laundering Council (AMLC) is optimistic that the Philippines will complete all three remaining action items from the Financial Action Task Force this year, triggering the country’s exit from the FATF’s gray list.

In an email interview, the AMLC told The STAR that the Philippines needs to address the remaining three action plan items to exit the gray list, and the FATF will look into whether the measures implemented will be able to produce sustainable results.

“With the continued contributions and strong participation of all relevant government agencies, we are optimistic that the Philippines will be able to accomplish all remaining action plans within the year. This will then trigger the exit process for the Philippines,” the AMLC said.

In its June update, the FATF retained the Philippines on its gray list for the third straight year as the country has yet to adequately address the gaps in its regime to counter money laundering as well as terrorist and proliferation financing.

The three remaining action items include mitigating risks associated with casino junkets, filing criminal charges against persons involved in terrorism financing and further improving the country’s cross-border measures.

According to the AMLC, the Philippine Amusement and Gaming Corp. (PAGCOR) has adopted measures to mitigate risks associated with casino junkets.

“Casinos with junket operations implemented measures applicable to both junket operators and players, such as fit and proper checks, conduct of customer due diligence (CDD) and transaction monitoring, among others,” the AMLC said.

It said that casino supervisors ensure the casinos’ implementation of these measures through compliance examinations. As a result, compliance has increased amid improved conduct of CDD and transaction monitoring.

The Bureau of Customs (BOC) has also enhanced its implementation of cross-border measures in all its main international airports and seaports across the country, the AMLC said.

This includes the rollout of the government’s eTravel system, an electronic system integrating immigration requirements and the customs declaration system.

“The eTravel increased the filing of declarations, improved detection and identification of false declarations, and increased cash seizures arising from false declarations,” the dirty money watchdog said.

“The public, especially traveling Filipinos, are highly encouraged to comply with cross-border declarations in our airports and seaports as a component of our whole-of-nation approach to exit the gray list,” the AMLC said.

Law enforcement agencies and prosecutors also increased prosecutions related to terrorism financing in line with the country’s TF risk profile.

“There has been a substantial increase in the number of prosecutions instituted since June 2021. Around four TF convictions have been achieved since June 2021, showing the strength of the prosecution’s evidence,” the AMLC said.

“Measures have been adopted to ensure sustainability, including participation of prosecutors in investigations, and institutionalization of training programs within the Department of Justice and law enforcement agencies,” it added.

The FATF urges the Philippines to swiftly implement its action plan to address the strategic deficiencies as soon as possible, as all deadlines expire in January 2023.

BSP Governor Eli Remolona Jr. said the country might be able to exit the gray list in January 2025.