Marcos EO to hasten Philippines exit from money laundering list

MANILA, Philippines — The Philippines’ plan to exit the gray list of global dirty money watchdog Financial Action Task Force (FATF) got a shot in the arm after the Marcos administration strengthened the country’s anti-money laundering, counter-terrorism financing and counter proliferation financing (AML/CTF/CPF).

President Marcos issued Executive Order 33 last Tuesday, which directs all government offices and departments to adopt the National Anti-Money Laundering, Counter-Terrorism Financing and Counter Proliferation Financing Strategy (NACS) 2023 to 2027.

The new strategy replaces the expired NACS for 2018 to 2022, which was created under EO 68 and crafted to help the Philippines address the remaining deficiencies in its action plan and exit from the jurisdictions under increased monitoring by the Paris-based FATF.

“In accordance with their respective mandates, all departments, agencies, bureaus and offices of the national government, including government-owned or controlled corporations are directed, and all local government units are encouraged, to formulate and implement relevant strategy plans and programs to execute the NACS 2023 to 2027,” the President stated in the EO signed by Executive Secretary Lucas Bersamin.

In June 2021, the Philippines was placed in the gray list anew after it failed to satisfy the FATF-International Cooperation Review Group (ICRG) in addressing the technical deficiencies raised by the Asia Pacific Group (APG) on Money Laundering under its 2019 mutual evaluation review.

Last June 23, the country was retained in the jurisdiction under increased monitoring for the second straight year as it has yet to address eight out of the 18 deficiencies in AML/CFT controls.

The global dirty money watchdog urged the Philippines to swiftly implement its action plan to address the strategic deficiencies as soon as possible after failing to meet the deadline that expired in January this year.

“The Philippines entered the gray list in June 2021, but its action plan actually has expired in January this year and eight of 18 action items remain outstanding. So this is not a small number,” FATF president T. Raja Kumar said in response to a query from The STAR during an online press conference last June 23.

Considering the noted deficiencies in the matter of proliferation financing, the EO renamed the previous National Anti-Money Laundering and Countering the Financing of Terrorism Strategy to National Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing Strategy.

An additional sub-committee on proliferation financing was also created.

The National AML/CTF Coordinating Committee was given additional power to reorganize its sub-committees. The National Intelligence Coordinating Agency (NICA) was included as additional member of the NACC given its mandate on intelligence gathering.

President Marcos directed the NACC “to cover as well activities related to countering proliferation financing.”

The President said the NACC shall be chaired by the executive secretary, while newly appointed Bangko Sentral ng Pilipinas Governor Eli Remolona, who is the concurrent chairman of the Anti-Money Laundering Council (AMLC), would serve as vice chairman.

NACC members will be composed of heads of the Departments of Foreign Affairs, Finance, Justice, National Defense, Interior and Local Government, Trade and Industry, the Securities and Exchange Commission, Insurance Commission, Philippine Amusement and Gaming Corp., Cagayan Economic Zone Authority, Aurora Pacific Economic Zone and Freeport Authority, and the NICA.

On top of the powers and authority under EO 68, the NACC shall “facilitate inter-agency coordination relative to the development of national AML/CTF/CFP policies in accordance with the existing laws and international standards, and ensure the effective and efficient implementation of the national 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.”

In 2002, the FATF placed the Philippines in the list of non-cooperative countries and territories or the blacklist for having no legal anti-money laundering framework.