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Philippines - Anti-money laundering and combating the financing of terrorism : Mutual evaluation report (English)

This assessment of the anti-money laundering (AML) and combating the financing of terrorism (CFT) regime of the Philippines is based on the Forty Recommendations 2003 and the Nine Special Recommendations on Terrorist Financing 2001 of the Financial Action Task Force (FATF), and was prepared using the AML/CFT assessment Methodology 2004, as updated in February 2008. The assessment team considered all the materials supplied by the authorities, the information obtained on site during their mission from September 22,2008 to October 6, 2008, and other verifiable information subsequently provided by the authorities. During the mission, the assessment team met with officials and representatives of all relevant government agencies and the private sector. A list of the bodies met is set out in Annex 1 to the detailed assessment report. Among the findings of the report are that The Government of the Philippines has taken some significant steps to address the AML/CFT concerns highlighted in the earlier assessment conducted in 2003. However, several issues remain to be tackled to achieve proper compliance with legal standards, and true effectiveness in implementation. The main shortcomings in the legal AML/CFT framework are the absence of several
offenses from the predicate crimes list, the failure to make terrorism financing a stand alone offense, and the deficient implementation of UN Security Council (UNSC) resolutions. Another issue is the current decisional process within the Anti-Money Laundering Council (AMLC), the council's activities are seriously affecting the ability of the intelligence community to perform its core responsibilities, namely intelligence analysis and dissemination. The AMLC’s limited authority to gain direct access to bank records is an equally challenging impediment to the fulfillment of the agency’s tasks. Moreover, the procedures for access to bank records for law enforcement agencies (LEAs).are cumbersome, and the involvement of these agencies in the financial component of predicate investigations is extremely limited. In addition, the very financial institutions (FIs) themselves are the only entities subject to full AML provisions in the domestic financial market. Next, the limited integrity of the national government ID system seriously undermines customer identity verification efforts by covered entities. Finally, a overarching issue faced by most agencies involved within the AML/CFT framework is the current mismatch between their resources and the tasks assigned to them by law.

Details

  • Document Date

    2009/07/08

  • Document Type

    Working Paper

  • Report Number

    68763

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Philippines,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2012/05/24

  • Disclosure Status

    Disclosed

  • Doc Name

    Philippines - Anti-money laundering and combating the financing of terrorism : Mutual evaluation report

  • Keywords

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Citation

Philippines - Anti-money laundering and combating the financing of terrorism : Mutual evaluation report (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/905791468144563778/Philippines-Anti-money-laundering-and-combating-the-financing-of-terrorism-Mutual-evaluation-report

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