The Anti-Money Laundering Council (AMLC) in the Philippines is pushing for comprehensive legislative reforms to strengthen the country's financial crime laws before a critical international assessment in 2027.
The Anti-Money Laundering Council (AMLC) of the Philippines is advocating for an extensive overhaul of the nation’s anti-money laundering laws in preparation for the country’s upcoming Financial Action Task Force (FATF) mutual evaluation scheduled for 2027. This call for reform emphasizes the urgency to pass amendments to the Anti-Money Laundering Act (AMLA) before the international evaluation to secure the gains made after the Philippines was removed from the FATF’s “grey list” in 2025.
During a recent forum organized by SGV & Co. in Makati City, AMLC Executive Director Ronel Buenaventura highlighted the importance of enhancing the legal framework to effectively counter money laundering and terrorism financing. He stressed that merely exiting the grey list is not the endpoint; continuous progress is essential to prevent the Philippines from being placed back under heightened international scrutiny.
The AMLC’s proposed amendments focus on aligning domestic laws with evolving FATF standards, plugging operational and legal gaps, and boosting investigative and supervisory capacities. Key features of the proposed revisions include:
– Explicit inclusion of Virtual Asset Service Providers (VASPs) and trusts as covered entities under the law.
– Updating and expanding the list of predicate crimes subject to anti-money laundering measures.
– Granting the AMLC non-court-based subpoena power and authority to investigate bank deposits without court orders to expedite evidence gathering.
– Empowering the AMLC to temporarily suspend transactions, freeze assets, and initiate petitions for freeze orders and civil forfeitures without prior court approval.
– Establishing a customer due diligence threshold of ₱150,000 for casinos, in line with FATF standards.
– Formally recognizing AMLC’s authority to conduct risk-based inspections and examinations of covered persons.
These reforms, supported by multiple bills in both the Senate and House of Representatives, are considered high-priority legislation. Institutions subject to AML regulations are expected to adapt to more immediate and direct regulatory requests following the reforms, ensuring faster compliance and response.
The legislative overhaul aims to safeguard the Philippines from reverting to the FATF grey list and to fortify the country’s defenses against financial crimes. AMLC emphasizes that only laws effectively enforced by the time of the FATF onsite visit will be credited, underscoring the need for prompt legislative action.
This development is crucial not only for maintaining the country’s international standing but also for protecting overseas Filipino workers and financial institutions involved in cross-border transactions from vulnerabilities related to money laundering and terrorism financing.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/nation/1003677/amlc-pushes-for-anti-money-laundering-law-overhaul/story/
