Philippine banks and other financial institutions face a “medium” risk from money laundering and terrorist financing activities, the Bangko Sentral ng Pilipinas said over the weekend.
The BSP recently completed the third sectoral risk assessment of banks and other BSP-supervised financial institutions and released the report that presents the overall money laundering/terrorist financing threats and vulnerabilities of the sector.
The SRA aims to further enhance and update the stakeholders’ understanding of the extent of proceeds of unlawful activities being coursed through BSP-supervised financial institutions and their vulnerabilities to be used as channels or conduits for these proceeds.
Based on the report, the net ML/TF/PF risk exposure of the sector is “medium” except for pawning operations with “low risk”. Financial inclusion products likewise have “low risk” except for e-money and remittance services of pawnshops which were assessed as “medium risk.”