Banks’ cooperation sought in review of dirty money rules

The Philippines is preparing for its 2027 anti-money laundering (AML) review by the Financial Action Task Force (FATF), a critical assessment that will determine its standing in global financial integrity. The Bangko Sentral ng Pilipinas (BSP) is actively seeking cooperation from banks and other financial institutions to provide data, aiming to demonstrate the effectiveness of the country's safeguards against illicit funds. This proactive stance follows the Philippines' exit from the FATF gray list in February 2025, after addressing previous deficiencies identified in June 2021. The upcoming evaluation will scrutinize both the legal framework and the practical implementation of AML measures, including those against terrorism financing and the proliferation of weapons of mass destruction. A key challenge remains access to records, as highlighted by the Anti-Money Laundering Council (AMLC) in investigating alleged irregularities in flood control projects. Delays and incomplete submissions of financial documents have hampered efforts to trace suspected criminal proceeds, indicating a need for stronger asset recovery powers and further amendments to the Anti-Money Laundering Act.