IMF emphasizes need for PH to intensify AML, CFT efforts

The Philippines must scale up its efforts towards anti-money laundering (AML) and combatting the financing of terrorism (CFT), according to the International Monetary Fund (IMF). The goal is to speed removal from the Financial Action Task Force’s (FATF) Paris-based “grey list” of non-compliant countries.

Numerous “key remaining gaps” identified by the FATF were mentioned in the most recent IMF report on the Philippines, which was made public on Friday. One of them showcases how the Philippines has effectively implemented AML and CFT procedures to reduce the hazards related to gambling junkets.

The IMF also listed other major gaps, including the need to prove that designated non-financial businesses and professions are effectively supervised, to enhance law enforcement agencies’ access to beneficial ownership data, and to actively investigate and prosecute sophisticated money laundering cases.

Because the Philippines is on the FATF’s “grey list,” further monitoring of financial crime risks is required. This list was updated to include the country in June 2021.

In October, the FATF urged the Philippines to move swiftly on its action plan to rectify the “strategic deficiencies” in AML and CFT that are already in place. The government’s continued commitment to bolstering the nation’s AML framework and counterterrorism initiatives has been reiterated by the Philippines’ Anti-Money Laundering Council.

The FATF noted areas where more work is required to address strategic deficiencies, including the reduction of risks associated with casino junkets, even though it appreciated the Philippines’ efforts to enhance its AML/CFT system since June 2021.

The country has been awarded a one-year extension until January 2024 to meet the financial conditions necessary to be taken off the FATF’s risk list, the governor of the Philippine Central Bank said in January.

Original story by: GGRAsia