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Philippines Implements New Reporting Rule for Money Laundering and Terrorist Financing

Philippine Central Bank mandates 24-hour risk reporting to combat money laundering, aligning with global standards.

By Mackenzie Crow

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5/3, 23:04 EDT
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Key Takeaway

  • The Bangko Sentral ng Pilipinas mandates financial institutions to report money laundering and terrorist financing risks within 24 hours.
  • This regulation aims to address the FATF's concerns, with the Philippines on its "gray list" for strategic deficiencies in combating financial crimes.
  • President Ferdinand Marcos Jr. commits to rectifying these issues within the year, highlighting a national effort towards compliance and removal from the gray list.

Enhanced Reporting Measures

The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has introduced a new regulation requiring financial institutions to report any risks related to money laundering and terrorist financing within 24 hours of detection. This directive, detailed in a circular dated April 29, aims to provide the central bank with "timely and accurate information on significant risk events." This move is part of the BSP's broader efforts to strengthen its anti-money laundering and counter-terrorism financing supervision.

Addressing Global Concerns

The Philippines is currently on the Financial Action Task Force's (FATF) "gray list," a designation that indicates the country has strategic deficiencies in its efforts to combat money laundering and terrorist financing. The FATF is a Paris-based global watchdog focused on preventing illicit financial activities. In response to this listing, President Ferdinand Marcos Jr. has directed all relevant government agencies to address the FATF's concerns swiftly. According to Anti-Money Laundering Council Executive Director Matthew David, the Philippines aims to rectify these deficiencies within the year to initiate the process of being removed from the FATF's gray list.

National Efforts for Compliance

The Philippine government's commitment to addressing the FATF's concerns underscores a national effort to enhance its financial crime prevention systems. The new reporting requirement by the BSP is a critical step in this direction, ensuring that the central bank receives immediate notifications of potential risks, thereby enabling more effective oversight and intervention. This regulatory adjustment reflects the country's proactive stance in improving its financial regulatory framework to meet international standards.

Management Quotes

  • Matthew David, Executive Director of the Anti-Money Laundering Council:

    "President Ferdinand Marcos Jr. early this year directed all government agencies concerned to swiftly address the remaining strategic deficiencies identified by the FATF."