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 AMLCs
limited authority to gain direct access to bank records is
an equally challenging impediment to the fulfillment of the
agencys 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
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Document Date
2009/07/08
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Document Type
Working Paper
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Report Number
68763
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Volume No
1
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Total Volume(s)
1
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Country
-
Region
-
Disclosure Date
2012/05/24
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Disclosure Status
Disclosed
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Doc Name
Philippines - Anti-money laundering and combating the financing of terrorism : Mutual evaluation report
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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