Phl still under heightened threat of money laundering

The Philippines remains under heightened threat of money laundering due to the prevalence of crimes such as drug trafficking, financial fraud and tax evasion, a study by the Anti-Money Laundering Council (AMLC) showed.

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In its latest National Risk Assessment (NRA), the financial intelligence unit noted that abuse of digital platforms, cryptocurrency transfers, junket operators, and cross-border schemes via offshore platforms and remittance networks have quickly evolved in the country.

“The Philippines continues to face high (money laundering) threat, driven primarily by the scale and profitability of several predicate crimes, including illegal drug trafficking; fraud, swindling, and cyber-enabled scams; environmental crimes; tax evasion; and corruption and securities-related violations,” the AMLC said in a statement on Monday.

Meanwhile, the country has “medium” vulnerability to money laundering risks, “reflecting improved institutional capacity, stronger regulatory frameworks, expanded supervision, and more effective domestic coordination.”

The country had the same ratings in the previous NRA issued for 2015 to 2016.

The NRA provides insights on the threats from criminals and their illegal operations, as well as the vulnerabilities of the financial system. It also outlines strategies for government and private institutions to enhance prevention and detection of such activities.

“The NRA serves as an evidence-based foundation for shaping national policy and strengthening our country’s defense against the threat posed by evolving financial crime,” said Matthew M. David, AMLC executive director and secretariat head of the National Anti-Money Laundering/Counter-Terrorism Financing/Counter-Proliferation Financing Coordinating Committee (NACC).

“It reaffirms the government’s commitment to transparency, integrity, and national security.”

The Council first released an NRA in 2016, which assessed risks from 2011 to 2014.