PHL Central Bank Responds to FATF Recommendations Against Financial Crimes

ByRichard C. Sloan

Apr 7, 2022
BW FILE PHOTO

THE PHILIPPINES’ central bank is focused on introducing tougher regulations on the registration of money transfer services and the effectiveness of targeted financial sanctions, as it aims to get out of the Action Group’s “grey list” Finance (FATF) by next year.

The country hopes to convince the FATF that it is thffeffectively implement stricter anti-money laundering and anti-terrorism measures Ifnancing, after the inclusion of the Philippines in the gray list in June 2021.

“The BSP is implementing measures to address the three elements of the action plan relating to the implementation of the new registration requirements for money or value transfer services, the application of sanctions to operators of transfer of unregistered and illegal funds, and improving the effectiveness of the Targeted Financial Sanctions (TFS) framework for terrorist financing and proliferation financing,” the PASB said in its annual report.

“This [The BSP] ensure that the remaining elements of the action plan for BSPs and BSFIs (financial institution supervised by BSP) are adequately addressed, in line with the country’s strong commitment to address all identified strategic issues.Ifcapabilities to get out of the gray list,” the BSP added.

The FATF said in March that the country was still among the jurisdictions under increased scrutiny for the risk of “dirty money”, while noting the country’s progress in terms of policies related to sanctions against terrorism. . Ifnancing and strengthening the staff of the Anti-Money Laundering Council (AMLC).

The FATF said it would continue to monitor the country’s anti-dirty money and terrorist financing measures, in particular its progress in implementing registration requirements for money transfer services or of value, as well as the imposition of sanctions against illegal operators.

For its part, BSP said it has formed a group that tracks and collates actions and countermeasures seen in other jurisdictions. The central bank also said it was listing incidents related to de-risking and correspondent banking, among others.

“The information gathered will be used to implement appropriate policy responses and other necessary interventions,” he said.

The BSP regulates money services businesses that engage in remittances, money transfers, and foreign exchange transactions, as well as those related to virtual assets.

More than 7,000 of these companies are registered with the BSP at the end of 2021.

The government will submit its next progress report to the FATF in May. OfIfCivilians hope the country will be removed from the gray list by January 2023. — Luz Wendy T. Noble