In 2021, the Philippines was included in the Financial Action Task Force gray list placing the country under an increased monitoring to check its progress or measures against money laundering and terrorism financing.
The designation means the country and the businesses operating within are at high risk, and submission of more regulatory documents and enhanced observance of due diligence are needed.
“The status also signals other countries and investors that there is heightened risk in the Philippines. In a study conducted by the International Monetary Fund published May 27 last year, gray listing has a negative impact on the country’s capital flows. Hence, it is an important reminder for financial institutions of their role in fighting money laundering and terrorism financing,” said Jericho Jensen, Chief Data and Analytics Officer and Chief Information Officer of MDI Novare Technologies.
Committed to supporting local financial institutions, particularly rural banks, technology firm MDI Novare has kicked off a series of webinars to educate them on anti-money laundering and counter terrorism fighting activities as part of the government’s efforts to establish a clean financial sector.
MDI Novare’s webinar series aims to enhance rural banks’ technical and technological know-how to implement robust systems to fight financial crimes by equipping them institutions with the needed skills on how to report on suspected money laundering activities and how to combat them.
The first webinar in the series entitled “A-L, An Introduction to Anti-Money Laundering Systems in the Philippines” was given by Atty. Rainier Dela Fuente, an accredited AML trainer and consultant, and a former financial investigator at the Anti-Money Laundering Council, where he eventually became part of the Council’s Office of the Executive Director.
Despite its current gray listing, the Philippines has been adopting and implementing legal measures to counter money laundering and terrorism financing, the most notable of which is the Anti-Money Laundering Act of 2001, as amended.
The AMLA aims to protect the integrity of bank accounts by ensuring that only accounts originating from legal sources are maintained and those linked to criminal activities are removed from the banking system. The AMLA also aims to prevent the country from being tagged as a money laundering destination. The law also bolsters its international commitment to prevent financial crimes by fulfilling its obligation through information exchanges with other countries and agencies.
