Philippines

Last updated 11/08/2008

The Philippines has established a financial intelligence unit, the Anti-Money Laundering Council (AMLC), and has a system for reporting suspicious transactions. Significant capacity building support has been provided across a range of key AML-related institutions, i.e., Central Bank, Securities and Exchange Commission, Department of Justice, and industry associations.

As a fundamental first step towards the establishment of an effective anti-money laundering regime, an anti-money laundering law (Republic Act No.9160) was enacted on 29 September 2001. It covers banks, non-banks, quasi-banks, trust entities, insurance companies, securities dealers, brokers, salesmen, investment houses, etc. In July 2002, Republic Act 9160 was amended under Republic Act No.9194, which lowers the threshold amount for single covered transactions, expands the reporting requirements and authorizes the AMLC to inquire into or examine any particular deposit or investment.

The AMLC stated that by the end of January 2007, it had received 6,808 suspicious transaction reports compared to 6,520 reports received by the end of December 2006. The 6,808 reports contained 14,176 transactions that were suspected to be linked to money launderers, which indicated that one report can cover more than one dubious transaction. Of the 14,176 transactions, 11,390 were from banks and other financial institutions." [1]

In May 2008, it was reported that the central bank had modified the ‘know your customer’ requirements for financial institutions to require only a single piece of client ID in order to conduct business. [2]

In an attempt to satisfy international best practice standards as set forth by the Financial Action Task Force, a house bill was recently filed that if passed will amend Republic Act No. 9160 in order to (i) bring certain non-financial businesses and professions within the scope of the regulated sector, including lawyers, notaries and other independent legal professionals when they prepare for or carry out transactions for their clients’ money, monetary instrument, property or other assets and (ii) broaden the meaning of “unlawful activity”. [3]

_______
Sources

International Narcotics Control Strategy Report, Released by the Bureau for International Narcotics and Law Enforcement Affairs, March 2006.

Marcus Simpson, “Philippine FIU links rise in STRs to coming election”, 20 February 2007, www.complinet.com.
Marcus Simpson, “Philippines’ central bank relaxes ID verification rule,” 16 May 2008, www.complinet.com.
Marcus Simpson, “Philippines inks broadening of money laundering regulated sector,” 7 August 2008, www.complinet.com.