News And Announcements

RESULTS OF THE RISK ASSESSMENT OF THE NON-PROFIT ORGANIZATION (NPO) SECTOR

In its Resolution No. 195, Series of 2018 dated 28 November 2018, the Anti-Money Laundering Council (AMLC) approved the Report on the Risk Assessment of the NPO Sector, and authorized its dissemination to all stakeholders.

The AMLC organized the NPO Risk Assessment per Recommendation 8 of the Financial Action Task Force’s (FATFs) 40 Recommendations, which provide international standards on the adequacy and effectiveness of rules, regulations, mechanisms and coordination, among others, to combat money laundering and terrorism financing. The FATF is an international standard-setting body that studies money laundering trends, monitors legislative, financial and law enforcement activities at the national and international levels, and reporting on compliance.

In the conduct of said Risk Assessment, particularly data gathering and regulatory information, the AMLC was supported by the Securities and Exchange Commission (SEC), and the Department of Social Welfare and Development (DSWD). The Philippine Council for NGO Certification (PCNC) and the Caucus for Development NGO Networks (CODE-NGO) also gave valuable inputs in said effort.

The Report on the Risk Assessment of the NPO Sector presents and analyzes the money laundering (ML) and terrorism financing (TF) risks posed by NPOs, based on investigations and actual cases, transaction report analyses, and inputs from sector representatives.

 The ML threats for the sector were assessed as Medium; TF threats were assessed as High-Low. Vulnerability assessment for both ML and TF was rated Medium. Although regulatory framework was generally effective, enforcement of laws and regulations presented some issues.

 The Report recommends specific strategies involving both the public and NPO sectors to mitigate the ML and TF risks associated with NPOs. These strategies include sustained outreach to regulators and the NPO sector, adoption of risk-based regulations and supervision of NPOs and stronger coordination between the government and the NPO sector.

 Regulatory agencies and the NPO sector are advised to study the Report for the adoption of, or enhancement of existing rules and regulations, and improved NPO governance.

 To view the Report on the Risk Assessment of the NPO Sector, please click this link.

AMLC APPROVES 2018 IMPLEMENTING RULES AND REGULATIONS OF THE AMLA

In an effort to enhance the country’s anti-money laundering and counter-financing of terrorism (AML/CFT) regime, the Anti-Money Laundering Council (AMLC) approved the 2018 Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9160 or the Anti-Money Laundering Act of 2001, as amended (AMLA).

Approval of the 2018 IRR came in the wake of the results of the Second National Risk Assessment, in which the AMLC spearheaded the evaluation of the country’s level of risks to money laundering and financing of terrorism, necessitating revisions to the 2016 Revised Implementing Rules and Regulations, and the need for continual improvement of the country’s AML/CFT’s policies. The 2018 IRR also represent a part of the country’s national AML/CFT strategy, a multi-agency collaboration involving the AMLC, financial regulators and law enforcement agencies. Notably, the 2018 IRR incorporate the amendments under Republic Act No. 10927, which included casinos as covered persons. However, implementation by casinos of the Anti-Money Laundering Act of 2001, will continue to be governed by the existing Casino Implementing Rules and Regulations.

In crafting the 2018 IRR, the AMLC consulted multiple stakeholders from both the public and private sectors. The AMLC, moreover, was conscious of the need to strengthen the financial system’s integrity, and bring the Philippines at par with prevailing rules in other countries. An improved AML/CFT policy has positive consequences for the Philippines’ credit rating, financial stability and investment climate.

The 2018 IRR feature new rules on the AMLC’s cooperation and coordination with law enforcement agencies, beneficial ownership, customer due diligence, AMLC supervision and compliance checking, and national risk management and assessment. Recently, the AMLC had also approved guidelines on digitizing customer records, registration and reporting, and equivalent rules and regulations for casinos, among others. Adoption of these measures, including the 2018 IRR, would enable the AMLC to catalyze observance of a compliance culture in the financial and business sectors.

 Established in 2001, the AMLC is a three-member body chaired by the Governor of the Bangko Sentral ng Pilipinas (BSP), with the Chairman of the Securities and Exchange Commission (SEC) and Insurance Commissioner as Members. The current AMLC Chairman is BSP Governor Nestor A. Espenilla, Jr., who took office in July 2017, with Insurance Commissioner Dennis B. Funa and SEC Chairman Emilio B. Aquino, as Members.

The 2018 IRR took effect on 27 November 2018.

To view the 2018 IRR, click this link.

PUBLIC ADVISORY ON FRAUDULENT LETTERS OF GUARANTEES AND FACILITATION OF FUND TRANSFERS AND HOLD ON TAXES 

The Anti-Money Laundering Council (AMLC) Secretariat has noted the inquiries it has received, both from the Philippines and abroad, on the authenticity of certain emails and letters, in which scammers pose as Members of the AMLC, or officers and personnel of the AMLC Secretariat. 

Typically, these scammers send emails or letters informing the potential victim to pay a certain amount of money (which they call “tax clearance”, “facilitation fee” or other similar terms) for him to receive an amount many times larger than this payment, supposedly “to release the hold on the funds” or “to guarantee safe and secure transfer of funds” to the victim’s account.  The scammers require the potential victim to deposit the “payment” to the scammers’ bank account, and disclose his bank account. Once the victim remits the “payment” to the scammers, the scammers cut off any communications with him, and the promised release of funds never materialize.

 The public is hereby informed that Republic Act No. 9160 or the Anti-Money Laundering Act of 2001, the law that created the AMLC, does not grant the AMLC any function or authority to hold an account for tax purposes, guarantee safe and secure transfer of funds or oversee economic transactions, or to engage in commercial transactions.

 Thus, the AMLC and its Members, as well as the AMLC Secretariat or any of its personnel, do not, and will never, contact the public for payment of any sum of money or disclose details of bank accounts. Any email or letter purportedly sent by the AMLC or any of its Members, and its Secretariat, or any officer or employee thereof cannot be genuine or authorized by the AMLC.

 The public is therefore warned to ignore emails, letters, and other documents of this tenor, as these are fraudulent.

 The AMLC further advises the public to report these fraudulent activities to the appropriate law enforcement agencies.

 If you have been victimized by scammers or have encountered or received fraudulent emails or letters, or information on scams of the above tenor or similar deceptive schemes devised by persons identifying themselves with the AMLC or its Secretariat, please e-mail the AMLC Secretariat at This email address is being protected from spambots. You need JavaScript enabled to view it..

New AMLC rules on beneficial ownership intended for financial transparency

To promote financial transparency, the Anti-Money Laundering Council (AMLC) has issued for the first time guidelines on beneficial ownership for all banks, insurance companies, and other covered persons. Covered persons include entities, businesses, casinos and professions subject to the authority and jurisdiction of the AMLC on anti-money laundering and counter-terrorism financing (AML/CFT) matters.

“Beneficial owners” refers to those individuals or natural persons who ultimately own or control the customer, or those for whom another person conducts a transaction. Money launderers and terrorists routinely use the cloak of anonymity to prevent the AMLC and law enforcement agencies (LEAs) to track them down. In the case of the AMLC, they also seek to avoid freezing and forfeiture of their assets obtained through criminal activities.

In many well-publicized cases, criminal elements and a number of high-ranking public figures have used dummies, including non-governmental organizations (NGOs), and individuals, to hide their identities. These criminals then use these dummies to conduct multiple financial transactions involving multiple accounts in the millions of pesos, thereby blurring the illegal source of the funds.

Read more: New AMLC rules on beneficial ownership intended for financial transparency