Bangko Sentral ng Pilipinas Governor Benjamin Diokno expressed optimism that the Philippines will successfully exit the 12-month observation for high-risk and non-cooperative jurisdictions in terms of international anti-money laundering/counter-terrorism financing.
Following the adoption of the Mutual Evaluation Report, the Philippines entered a 12- month observation period, the completion of which requires the country to submit a comprehensive progress report to the Asia/Pacific Group on Money Laundering focused on the implementation of its recommended actions.
Diokno said the 12-month observation period gave the country an opportunity to remedy identified shortcomings in the Mutual Evaluation Report.
“I enjoin everyone to work even harder to ensure that the Philippines is able to successfully exit the 12-month observation period. We cannot afford to have the Philippines in the Financial Action Task Force’s list of high risk and non-cooperative jurisdictions…,” Diokno said during the 18th anniversary of the Anti-Money Laundering Council at the Bangko Sentral on Oct. 23.
“Hence, we should be very strategic in our focus for the next 12 months. With perseverance, a reinforced secretariat and a closer link with partner agencies, I am confident that we will be able to address the country’s weak AML/CFT areas,” Diokno said.
Diokno said prior to the ME Report, the AMLC conducted a self-assessment based on the existing legal framework, operations of competent authorities and statistics to forecast the evaluation results.
The assessment reflected accurate ratings for seven out of the 11 immediate outcomes on effectiveness, while on technical compliance, the assessment reflected accurate ratings for 34 out of the 40 FATF recommendations.
He said last year was a productive one for AMLC as it adopted the 2018 implementing rules and regulations. The new rules ensure that covered persons will be held accountable for their violations of the AMLA. It also requires covered persons to adopt robust anti-money laundering and terrorism financing prevention programs.
The AMLC also issued the guidelines on identifying beneficial ownership which seeks to promote transparency in the use of legal persons, legal arrangements and nominee arrangements. This is to ensure that these types of arrangements will be legitimately used and not for the purpose of distancing one’s identity from the proceeds of crime.
Secondly, AMLC has strengthened its cooperation and coordination with partner law enforcement agencies in the drive against money laundering and terrorism financing.
From January 2018 to July 2019, the AMLC was able to produce tangible results of its investigation efforts and cause the freezing of assets with an estimated value of over one billion pesos. It also actively caused the forfeiture of assets with an estimated value of P600 million.
All these investigation efforts helped in the development of 11 money laundering complaints, two terrorism financing complaints, 23 applications for bank inquiry for money laundering and three applications for bank inquiry for terrorism financing.