AMLC reviews Philippines’ supervision of targeted financial sanctions

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) is reviewing the effectiveness of the Philippines’ conduct of risk-based supervision of targeted financial sanctions (TFS) as part of efforts to delist the country from the gray list of Paris-based Financial Action Task Force (FATF).

The country’s sole financial intelligence unit said it is conducting a thematic review of the effectiveness of customer and transaction-screening systems of covered persons in TFS Implementation as part of an action plan to remove the Philippines from the list of jurisdictions under increased monitoring by the global dirty money watchdog.

“This TFS thematic review is among the initiatives that will effectively demonstrate the AMLC’s risk-based supervision of TFS on terrorism financing and proliferation financing and will help address said action plan,” it said.

The AMLC has selected covered persons to be tested to determine the effectiveness of their customer and transaction-screening systems in the implementation of TFS.

According to the financial intelligence unit, it applies a risk-based approach in performing its overarching role as the primary AML/CTF supervisor and enforcer to ensure compliance of all covered persons, including designated non-financial businesses and professions (DNFBPs) with the Anti-Money Laundering Act of 2001, as amended and the Terrorism Financing Prevention and Suppression Act of 2012.

“Thus, the Philippines must, among others, demonstrate that covered persons understand their TFS obligations and that supervisors undertake risk-based supervision of TFS measures of financial institutions and DNFBPs,” the AMLC said.

After being reincluded in the FATF’s gray list, the Philippines has made progress in its high-level political commitment to work with the FATF and Asia Pacific Group on Money Laundering (APG) to strengthen the effectiveness of its anti-money laundering/combating the financing of terrorism (AML/CFT) regime.

“Removal from such list requires accomplishing the Philippines’ action plan within the prescribed timeline. Said action plan includes enhancing the effectiveness of the TFS framework for terrorism financing and proliferation financing of weapons of mass destruction,” the AMLC said.

AMLC chairman and Bangko Sentral ng Pilipinas Governor Benjamin Diokno is confident the Philippines will be removed from the gray list on or before January 2023 as the Philippines has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes.