AMLC to use AI amid surge in transaction reports

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) is modernizing its operations by developing an artificial intelligence (AI) program to better manage the large volume of transaction reports it processes annually. 

In a budget hearing yesterday, AMLC executive director Matthew David said they need AI assistance in managing millions of covered and suspicious transaction reports (CTRs and STRs). 

“In the AMLC, the AI project is already under development. We’re about to complete it within this year. We’ve already procured suppliers more than a year ago,” he said. 

He said the advanced AI system was a joint venture with Tiger Inc. and would likely be operational by early next year if the AMLC would be able to procure a subscription for the AI after developing the program. 

According to David, the AMLC received 15 million CTRs and STRs last year from 14,000 covered persons, including banks, designated non-financial businesses and professions (DNFBPs), law enforcement and government agencies.

“We only have around 30 analysts that go through all of the data. We need some assistance from technology and machine learning to detect more activities of money laundering and terrorist financing,” he said. 

He added that by utilizing AI, AMLC analysts would be able to focus their efforts on the most critical cases while reducing the risk of missing significant threats.

As of June 30, the AMLC secretariat has 227 employees composed of 200 permanent personnel, representing 80.7 percent of the agency’s 248 authorized positions. 

As a financial intelligence unit (FIU), the AMLC collects, evaluates and analyzes financial information regarding potential money laundering and terrorist financing. 

It also disseminates financial intelligence products to law enforcement agencies, foreign FIUs and other AMLC units to support and assist investigations.

During the first semester of 2024, the AMLC shared 1,437 financial intelligence products to various stakeholders, 44 percent higher than the 998 disseminations in the same period last year.

David also said the AMLC is proposing a higher budget for 2025 amid higher allocations for maintenance and other operating expenses, which include subscription expenses. 

For 2025, the AMLC submitted a proposed budget of P346.031 million to the Department of Budget and Management. However, the DBM only recommended P163.33 million, 53 percent lower than the requested amount.

David said that under the proposed budget, around P50 million would be allocated to the annual AI subscription. This is the “biggest chunk” of the agency’s information and communications technology products that they are procuring for next year.

The proposed budget underscores the agency’s commitment to modernize its infrastructure and streamline operations to better tackle money laundering, terrorism financing and other financial crimes.