Philippines 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.

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.

The AMLC said its third NRA, which covers data from 2021 to 2024, is its most comprehensive assessment yet on money laundering, terrorism financing, and proliferation financing. It is the first NRA to include proliferation financing risks.

The full report has yet to be published.

By sector, casinos, real estate developers and brokers, money service businesses, virtual asset service providers have medium to high vulnerability to money laundering.

Under medium vulnerability are the banking sector, securities sector, trust entities, pawnshops, dealers in precious metals and stones, as well as lawyers and accountants.

The insurance sector and national savings and loan associations, on the other hand, have medium-low to low vulnerability.

“These ratings reflect risk profiles associated with cash intensity, exposure to high-value transactions, digital adoption, and the strength of supervisory oversight,” the AMLC said.

TERRORISM RISKS

Meanwhile, the AMLC also reported that the Philippines faces “medium” risks from terrorism financing, a downgrade from its “high threat” evaluation in the previous NRA.

“This assessment reflects the cumulative impact of sustained security operations,

enhanced intelligence coordination, strengthened oversight of nonprofit organizations, and improvements in financial sector controls and reporting mechanisms,” the AMLC said.

However, terrorism financing risks persist in Mindanao’s conflict zones, cross-border transfers to extremist networks and potential abuse of nonprofit organizations.

The AMLC also identified “medium” risk from proliferation financing (PF), citing limited awareness and readiness among public and private entities, weak enforcement of targeted financial sanctions, and operational coordination gaps.

“The Philippines’ first dedicated PF assessment concludes that while PF threat is low, institutional and sectoral vulnerabilities are high, resulting in an overall medium PF risk profile,” it said.

Still, the AMLC noted substantial progress in the country’s proliferation financing, including the activation of the NACC proliferation financing sub-committee, stronger regulatory issuances, and improved supervisory awareness among financial institutions.

In February, the Philippines exited the Financial Action Task Force’s (FATF) “gray list” or the list of jurisdictions under increased monitoring for money laundering.

The FATF is set to reassess the country in 2027, where it will verify whether the country’s anti-money laundering measures are being sustained and still in place.

The Philippines was also delisted from the United Kingdom and the European Commission’s lists of third countries with high risk of money laundering and terrorism financing in March and June, respectively.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the report reflects the country’s progress on its anti-money laundering and counter-terrorism financing (AML/CTF) initiatives, but still shows gaps in enforcement and risk management.

“For the FATF, (the) EU (and the) UK, the report reinforces the need for (the Philippines) to sustain reforms after its recent delistings,” he said in a Viber message. “While it does not automatically mean a return to watchlists, any weakening in enforcement, prosecutions, or supervision could raise red flags and invite renewed scrutiny.”

Meanwhile, Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said via Viber that the AMLC’s findings serve as a “wake-up call.”

“It shows we’ve made progress, but high threats and medium vulnerabilities mean we’re still exposed,” he said. “If we don’t act fast, global bodies like FATF, the EU, and the UK could put us back under scrutiny.”

Mr. Rivera said the National Government should ensure that investigations into money laundering crimes yield more convictions to curb risks and improve confidence in the country’s AML/CTF compliance.

The administration should also tighten oversight of high-risk sectors like digital platforms, accelerate beneficial ownership transparency, and strengthen inter-agency coordination, he added.

Source: Business World

New law allows foreign investors to lease land in the Philippines for up to 99 years

President Ferdinand R. Marcos, Jr. signed into law a measure that allows foreigners to lease land in the Philippines for up to 99 years.

Republic Act (RA) No. 12252 amends RA No. 7652 or the Investors’ Lease Act by further liberalizing the lease of private lands by foreign investors.

“It is the policy of the State to ensure the reliability of investors’ lease contracts to provide a stable environment for foreign investments,” the law read.

The law extends the term of foreign investors’ land leases to 99 years from the current 75, putting the country in line with policies of Singapore, Malaysia, and Indonesia.

Under the law, the President, upon the recommendation of the Fiscal Incentives Review Board (FIRB) or other agencies, can impose a shorter lease period for foreign investors in sectors considered as “critical infrastructure” in the interest of national security.

The law allows long-term land lease for “the establishment of industrial estates, factories, assembly or processing plants, agro-industrial enterprises, land development for industrial or commercial use, tourism, agriculture, agro-forestry, ecological conservation and other similar priority productive endeavors.”

In the case of tourism projects, the 99-year lease is limited to projects with an investment of not less than $5 million, 70% of which will be invested in the project within three years.

Under the law, foreign investors that violate the lease contracts face a fine of between P1 million to P10 million or imprisonment of up to six years.

The lease contract can be terminated if the foreign investor fails to start the investment project within three years of the signing.

This measure was a priority by Legislative-Executive Development Advisory Council for passage before the 19th Congress adjourned.

Mr. Marcos signed the law on Sept. 3, but a copy of the law was uploaded on the Official Gazette website on Sept. 4.

The law takes effect 15 days after it has been published in the Official Gazette or a newspaper of general circulation.

Source: Business World

Investing in people’s health

In his fourth State of the Nation Address (SONA), President Ferdinand R. Marcos, Jr. underscored healthcare as a central pillar of national development, highlighting landmark reforms and programs designed to bring accessible, affordable, and equitable care to every Filipino.

A key focus of the President’s address was the mental well-being of Filipino youth. With growing concerns over bullying and depression in schools, he ordered the hiring of additional guidance counselors in public schools to ensure that students receive the psychological support they need.

The administration is also investing in early childhood development. President Marcos announced the allocation of P1 billion to establish Barangay Child Development Centers (CDCs) in 328 low-income barangays. These CDCs will serve as vital daycare hubs that monitor immunization, nutrition, and growth of children under six, while providing supplementary feeding.

“The top priorities are far-flung areas. And this is just the start,” the President said, vowing to address the lack of daycare centers.

To strengthen disease prevention and early intervention, the Department of Health (DoH) has been tasked to “fast-track its childhood immunization program” and ensure that all Filipino children are fully immunized as soon as possible. Complementing this directive is the launch of the YAKAP Caravan — short for Yaman ng Kalusugan Program Para Malayo sa Sakit. This enhanced version of PhilHealth’s Konsulta Program expands access to outpatient services, essential medicines, laboratory tests, and even cancer screening at accredited facilities.

Addressing the alarming rise in obesity rates, particularly among adults aged 20 and above, President Marcos encouraged Filipinos to embrace active lifestyles. He called on local government units (LGUs) to revitalize public parks and plazas and to organize activities such as sports competitions, fun runs, Zumba classes, and aerobics sessions.

To further promote wellness, the President called for an expansion of “Car-Free Sundays,” an initiative now practiced in several major cities including Metro Manila, Baguio, Cebu, Iloilo, and Davao. The Philippine Sports Commission (PSC) will also open its track and field ovals in Pasig City, Manila, and Baguio City to the public free of charge.

Improving access to urgent care was another top priority. The President reported that 53 Bagong Urgent Care and Ambulatory Services (BUCAS) centers have been established in 32 provinces. These intermediate healthcare facilities bridge the gap between rural health units and hospitals, offering services such as minor surgeries and diagnostic testing. Over a million Filipinos have already benefited from BUCAS services between March 2024 and March 2025.

Another milestone emphasized in the SONA was the enhanced PhilHealth (Philippine Health Insurance Corp.) benefit packages rolled out under the Marcos administration.

Notably, the Z benefits package for kidney transplants was increased by more than 230%, from P600,000 to P2.1 million. In addition, the number of covered hemodialysis sessions has been raised from 90 to 156 annually, effectively covering the standard thrice-weekly dialysis regimen for a full year.

“For patients requiring dialysis, your thrice-weekly sessions and medicines are now free for the whole year. If a kidney transplant is needed, we have raised the coverage… and starting this year, PhilHealth will also cover health services and medicines after the kidney transplant,” the President said.

Other improvements to the PhilHealth Z benefits include coverage for major cardiac procedures such as heart valve replacements and post-surgical cardiac rehabilitation. PhilHealth has also raised coverage for severe dengue from P16,000 to P47,000 and for mild dengue from P10,000 to P19,500.

PhilHealth benefits for cataract surgery have significantly increased as well, from P16,000 to P80,000, expanding access to vision-restoring procedures for senior citizens and vulnerable groups. Persons with disabilities (PWDs) have also received added support, with PhilHealth now covering mobility devices like wheelchairs, walkers, and crutches, as well as rehabilitation services. The national government continues to shoulder PhilHealth premiums for all PWDs.

For cancer patients, the administration continues to implement the Cancer Assistance Fund (CAF), a DoH program mandated by the National Integrated Cancer Control Act (NICCA). The government has also earmarked an additional P1.7 billion for cancer medicines not yet covered by PhilHealth. President Marcos also affirmed support for human papillomavirus (HPV) vaccination, which helps prevent cervical and other HPV-related cancers.

A commitment reiterated by the President is the continuation of the Zero Balance Billing (ZBB) policy in DoH hospitals. Under this scheme, patients no longer need to worry about settling their hospital bills, as expenses for basic accommodation are covered in full by PhilHealth and government funds. This initiative ensures that patients and their families are not burdened by the financial complexities of healthcare access during critical times.

Through these sweeping reforms, President Marcos reaffirmed his administration’s vision of a healthier, more resilient Philippines. By addressing gaps in mental health, childhood care, disease prevention, and treatment affordability, the government is investing not only in people’s health but in the nation’s future.

Source: Business World