President Marcos Jr. has ordered all government offices and departments and encouraged all local government units (LGUs) to adopt the national strategy designed to thwart money laundering and terrorist financing activities so the Philippines can move out of the Grey List of the Financial Action Task Force (FATF).
The President, through Executive Order No. 33 signed by Executive Secretary Lucas Bersamin on July 4 on behalf of Marcos, directed all departments, agencies, bureaus, and offices of the national government, including government-owned or controlled corporations (GOCCs) and encouraged all LGUs to “formulate and implement relevant strategy plans and programs to execute the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter Proliferation Financing Strategy (NACS) 2023-2027.”
EO 33 amended EO 68, s. 2018 or that NACS 2018-2022 which expired last year.
The EO said the expiration of NACS 2018-2022 makes it imperative to adopt a new national strategy that would enable the Philippines address the International Cooperation Review Group (IGRG) Action Plans, ensure the country exits the Financial Action Task Force (FATF) Grey List, and improve its anti-money laundering, counter terrorism financing, and counter proliferation financing (AML/CTF/CPF) regime.
“This is part of the government’s efforts to move the Philippines out of the Grey List of the FATF’s ‘Jurisdictions Under Increased Monitoring’ of countries that failed to show tangible and positive progress in addressing all key recommended actions in the Third Mutual Evaluation Report (MER),” EO 33 stated.
The Paris-based FATF has given the Philippines until January 2024 to comply with the requirements, including improving the implementation of the Anti-Money Laundering law and addressing terrorist financing, to exit the Grey list.
FATF also called attention to the low number of cases filed in connection with money laundering and terrorist financing and eventually the low convictions.
Under the EO, the National Anti-Money Laundering and Countering the Financing of Terrorism Strategy was also renamed as the National Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing Strategy (NACC) and was given an additional power to reorganize its sub-committees.
A sub-committee on Proliferation Financing was also added to the group.
The Terrorism Financing and Proliferation Sub-committee, meanwhile, is reorganized into two separate sub-committees — the Terrorism Financing Subcommittee and the Proliferation Financing Subcommittee.
The National Intelligence Coordinating Agency (NICA) was also included as an additional member of NACC and tasked to “cover activities related to countering proliferation financing.”
The NACC is chaired by the Executive Secretary, with the Governor of the Bangko Sentral ng Pilipinas, who is the concurrent chair of the Anti-Money Laundering Council (AMCL), as vice chairman.
NACC is tasked to facilitate inter-agency coordination relative to the development of national AML/CTF/CFP policies in accordance with the existing AML/CTF/CFP laws and international standards; and ensure the effective and efficient implementation of the national AML/CTF/CFP strategy by providing directives to concerned agencies on major issues on the implementation thereof and monitoring the formulation and implementation of relevant strategy plans and programs.
