Philippine reports progress since reinclusion in gray list

MANILA, Philippines — The Philippines has highlighted the positive and tangible progress the country has made since it was reincluded in the gray list of global dirty money watchdog Financial Action Task Force (FATF) almost a year ago.

Anti-Money Laundering Council chairman and Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the political commitment of the Philippines in addressing the action plan, as provided by the Asia-Pacific Joint Group on Money Laundering (APJG), remains strong and steadfast since the country was included in the list of jurisdictions under increased monitoring in June last year.

“The Philippines continues to work toward demonstrating positive and tangible progress, and we further appeal that you look upon the country’s efforts with fairness, considering the many constraints and hazards posed by the ongoing health crisis,” Diokno recently told members of the secretariats of the FATF and APJG.

Diokno said the APJG has initially rated several issues raised against the Philippines as largely addressed, including immediate outcomes 3-3 or the continuing efforts to implement the new registration requirements and apply proportionate and dissuasive sanctions to unregistered and illegal remittance operators, as well as immediate outcomes 10/11-2 demonstrating that supervisors undertake risk-based supervision of targeted financial sanctions by financial institutions and designated non-financial businesses and professions.

Likewise, the Philippines also demonstrated positive and tangible progress for immediate outcomes 8-2 or the calls for the country to demonstrate that cross-border measures are applied to all main seaports and airports of the country, including detection of false declarations of currency and confiscation action resulting therefrom, with particular focus on high-risk activities in line with the Philippines’ risk profile.

To address this, the Philippines has applied in the regulatory framework of the Bureau of Customs and subsequently employed cross-border measures in all the country’s major international sea and airports.

The government has also created a dedicated staff with specialized knowledge on financial crimes within law enforcement agencies with financial investigation units to address Immediate Outcome 9-4 calling for the increase in the number of dedicated terrorism financing (TF) investigators and the enhancement of TF investigation and prosecution capacity, including regular specific financial investigation training on different types of TF activity.

Likewise, Diokno said that the Philippines has significantly increased its counter-terrorism financing resources and has boosted TF investigation and prosecution capacities law enforcement agencies, national security agencies, and relevant government agencies.

The AMLC chief also reported the Philippines’ Deputation Program to increase counter-terrorism financing manpower by designating force multipliers from various law enforcement agencies and national security agencies called Deputized AMLC Financial Investigators (DAFIs).

Currently, there are 486 DAFIs and 807 support personnel with law enforcement agencies having own terrorism and TF units.

“This is no small feat as it shows a proactive and robust national policy in increasing TF resources to support TF identification, investigation, and prosecution, which are indicated in the action plan item,” Diokno said.

The FATF has given the Philippines until January next year to address the action item plans given by the International Co-operation Review Group (ICRG).

“But just as the Philippines is committed to swiftly and concretely implement the action plan as provided by the APJG, so, too, must the APJG commit to adhere to the given action plan and refrain from expanding its scope,” Diokno said.

Amidst the pandemic, the Philippines has worked vigorously to address the deficiencies identified in the 2018 mutual evaluation review of the APJG.