In February 2025, the Financial Action Task Force (“FATF“) removed the Philippines from its “grey list” of jurisdictions under increased monitoring for dirty money. To maintain the country’s exclusion from the “grey list”, the Anti-Money Laundering Council (“AMLC“) has undertaken measures to strengthen the Anti-Money Laundering Act of 2001 (“AMLA“).
AMLC proposed amendments to fortify the provisions of the AMLA, specifically to comply with updated FATF Standards and other international benchmarks. The proposed amendments include authorising AMLC to temporarily suspend suspicious transactions, and to designate Virtual Asset Service Providers (VASPs) as covered persons.
AMLC also conducted a National Risk Assessment to further AMLC’s goal of ensuring that the Philippines will remain excluded from FATFs “grey list”.
This is especially relevant as the country has been plagued by severe corruption. In response to recent reports of corrupt anomalous flood control projects, Senate Bill No. 1557 was filed to further strengthen AMLC. Senate Bill No. 1557 empowers AMLC to undertake the following: (i) issue a non-court-based subpoena instead of the current court-based one; (ii) file petitions for freeze order and civil forfeiture directly or through the Office of the Solicitor General; (iii) efficient conduct of bank inquiries without court order; (iv) visit and inspect covered persons to ensure compliance with the AMLA; and (v) suspend transactions as a pre-emptive measure to let AMLC and covered persons hold off any transaction suspected of being related to money laundering, terrorism financing, or any other unlawful activity. Senate Bill No. 1557 also (i) strengthens AMLC’s quasi-judicial functions in handling administrative cases, (ii) prohibits the issuance of injunctive relief against the discharge of AMLC’s functions, except by the Court of Appeals and Supreme Court, (iii) provides for the designation of VASPs as covered persons, and (iv) expands the list of predicate offences to money laundering.
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