AMLC: Philippine remains off global dirty money list

The Anti-Money Laundering Council (AMLC) confirmed that the Philippines remains off the Financial Action Task Force (FATF)’s gray list following its removal in February this year and has not received similar reports of outdated foreign references still linking the country to the list.

In a statement, AMLC said the Philippines was officially delisted from the FATF gray list on Feb. 21, during the global watchdog’s plenary meeting in Paris, France. The delisting came after the country successfully addressed all 18 action items required to strengthen its anti-money laundering and counter-terrorism financing framework.

“The Philippines remains delisted,” AMLC said, adding that the government continues to implement various initiatives to ensure continued compliance with international standards and prevent relisting.

The clarification comes after the Department of Foreign Affairs (DFA) reported that a close relative of journalist Gretchen Ho was denied foreign exchange service at an Oslo airport on Oct. 6. The incident reportedly stemmed from the use of an outdated list that still included the Philippines under the FATF gray list.

The DFA said it has reached out to the Norwegian Ministry of Foreign Affairs and the Financial Supervisory Authority of Norway to clarify the matter.

The AMLC, however, said it “has not received similar reports of outdated references being used abroad.” It added that the country’s delisting was “disseminated through news coverage, foreign governmental regulatory bulletins, foreign financial institutions’ mechanisms and Philippine embassy or trade channels.”

Among the various initiatives it implemented to ensure continued compliance with FATF standards is the conduct of the third National Risk Assessment, a multi-agency initiative led by the AMLC that evaluates the country’s exposure to money laundering, terrorism financing and proliferation financing risks. The results will help shape targeted mitigation strategies.

The AMLC also cited ongoing work to strengthen its supervisory framework, including updates to enforcement manuals and guidelines to align with FATF recommendations and improve regulatory oversight.

In addition, the council said it continues to enhance inter-agency cooperation by working closely with law enforcement bodies to ensure a “whole-of-nation approach” in investigating and prosecuting financial crimes.

On the legislative front, the AMLC said amendments to the Anti-Money Laundering Act of 2001 are being pursued to address emerging threats and maintain alignment with evolving FATF standards.

The Philippines was first placed under the FATF’s increased monitoring list, or gray list, in June 2021 for deficiencies in its anti-money laundering and counter-terrorist financing systems.

Its removal in February marked the culmination of years of reform efforts by the AMLC, the Bangko Sentral ng Pilipinas and other key agencies.

Source: Philstar

Protecting every saver

How deposit insurance can be a lifeline during unforeseen circumstance.

Waking up to a home flooded up to hip level or reporting for work only to find out you have been let go by the company are scenarios one would wish were just a bad dream. For Karla and Paulo, however, this was their reality when Typhoon Ondoy and the global pandemic happened, respectively. Faced with the sudden dilemma, they found themselves asking: How do I begin again?

Emergency situations such as natural calamities and virus outbreaks strike without warning. Having a savings account — or better yet an emergency fund, can spell the difference between feeling helpless and having peace of mind.

Karla and her family lost almost all of their belongings, but thankfully the money she tucked in the bank was left unharmed. “Buti na lang may savings ako. Maliit man o malaki na sakuna, importante na ready ka, na may savings ka sa bangko para may mahuhugot ka. Hindi mo need maghintay ng tulong sa iba dahil kaya mong tulungan ang sarili mo at ang pamilya mo (It was a good thing I had my savings in a bank. Whether it is a small or big calamity, it is important that you are ready, that you have savings in the bank that you can use. That way, you won’t need to wait on others for help because you are capable of helping yourself and your family),” Karla recalled with a sense of relief.

This sense of security in the banking system is exactly what the Philippine Deposit Insurance Corporation (PDIC) aims when fulfilling its twin public policy objectives of protecting depositors and promoting financial stability. As the state deposit insurer, the PDIC provides a financial safety net through deposit insurance to depositors of banks up to the maximum coverage amount set by law.

In Paulo’s case, his unforeseen emergency was brought about by COVID-19. The pandemic not only taught him that nothing is permanent but also stressed the importance of saving money in banks. As the family’s breadwinner, he immediately needed to find another way to earn a living after being laid off. That was when he tried delivery work.

“Dati wala akong effort para mag-ipon sa bangko. Lahat ng sinasahod ko napupunta agad sa mga bilihin at mga bayarin. Nung nawalan ako bigla ng trabaho, dun ko na realize na ang hirap pala pag wala kang naitabi. Kaya ngayon, kahit pa P10 o P20 lang na extra, kapag pinagsama-sama malaking dagdag na rin para sa emergency fund (I used to not make an effort to save in banks. What I earn went straight to buying the necessities and paying the bills. When I suddenly lost my job, that was the only time I realized just how hard it is when you have nothing saved. So now, I save even if it is just an extra P10 or P20 to add to the emergency fund),” he said.

According to a report by the Bangko Sentral ng Pilipinas (BSP), as of September 2024, more than 450 cities and municipalities in the country remain unbanked. This means that many Filipinos may still be unaware of the benefits of saving in banks and having their hard-earned money protected by the PDIC.

To sustain the protection the PDIC provides to depositors, it continuously strengthens the Deposit Insurance Fund (DIF), the funding source of deposit insurance built primarily through the collection of semi-annual assessments from banks.

Starting March 15, 2025, the DIF guarantees that deposits up to the maximum deposit insurance coverage (MDIC) of P1 million per depositor per bank are protected. This is double the previous MDIC of P500,000, which was last adjusted in 2009.

This increase in the MDIC not only demonstrates the stability of the DIF but also ensures more deposit accounts are insured, thus reinforcing public trust and confidence in the banking system. Hopefully, more individuals, like Karla and Paulo, can confidently choose to save in banks, knowing that the PDIC is their ally in safeguarding their savings and the welfare of their family during challenging times.

Source: Business World

National strategy for financial inclusion

In the pursuit of economic growth and poverty alleviation, ensuring equal opportunities becomes a pivotal factor. The Bangko Sentral ng Pilipinas (BSP) has taken a significant step in this direction by introducing the National Strategy for Financial Inclusion 2022-2028, building upon the success of its predecessor, the 2015-2020 road map.

This comprehensive plan transcends the mere expansion of financial services; it aspires to foster sustainable and inclusive economic growth throughout the nation.

Let's delve into the key pillars of the National Strategy:

Opening financial doors for everyone

The BSP aims to ensure that every Filipino, especially those in remote and underserved areas, can easily access formal financial services. This strategic approach involves reinforcing the banking infrastructure, advocating for the adoption of digital financial services and fostering the establishment of financial access points. The goal? To ensure comprehensive financial inclusion and bridge existing gaps in accessibility.

Financial literacy and keeping you safe

Recognizing the importance of financial literacy, the strategy places a significant emphasis on educating the public about financial products and services. It also focuses on enhancing consumer protection measures to ensure that all users of financial services are well-informed and protected against potential risks.

Per Philippine Fintech Report 2023, BSP Circular 1166 introduces updates to the rules governing e-money and electronic money issuers in the Philippines. These updates encompass new requirements related to risk management, interoperability, transaction limits and liquid assets. The BSP also updated guidelines to its digital bank framework of December 2020, with regard to corporate and risk governance of digital banks as well as the applicable prudential regulations on capital, leverage and liquidity.

Harnessing technology for financial evolution

In a bid to embrace the digital era, the BSP is actively steering the financial sector toward a digital transformation. The strategic initiative promotes the widespread adoption of digital platforms, electronic payment methods and innovative financial technologies to enhance the efficiency and accessibility of transactions, with a particular emphasis on serving remote areas.

Based on the Philippines Fintech Map 2023, we now have a total of 299 fintech (financial technology) companies across different services. Major players are from the payment sector, followed by lending, remittances, e-wallet, and others. In summary, it aims to make money moves smoother and easier, even in far-off places.

Support for micro, small and medium enterprises (MSMEs)

Now, let's talk about our homegrown heroes — the MSMEs. They're the heart and soul of our economy, and the BSP aims to provide comprehensive support by facilitating easier access to credit, offering financial literacy programs for entrepreneurs and fostering a conducive environment for growth.

Traditional lending models often require collateral, which can be a challenge for many SMEs. Some lending initiatives in the Philippines provide collateral-free loans based on alternative credit scoring models.

This helps broaden access to financing for businesses that may not have substantial assets for collateral. The numerical shift from traditional to digital transactions among SMEs is noticeable. Centralized data from the Department of Trade and Industry (DTI) reveals that, as of 2023, 70 percent of SMEs have adopted digital payment solutions.

Inclusive policy environment

The BSP acknowledges the importance of a regulatory environment that fosters financial inclusion. With this, the BSP is teaming up with everyone — government agencies, industry players and nongovernmental organizations to create a policy that ensures everyone has a fair shot at financial well-being.

Monitoring and evaluation

The BSP's strategy is adaptable, with a robust monitoring and evaluation framework in place. Regular assessments will gauge the effectiveness of implemented initiatives, enabling timely adjustments and ensuring that the goals of financial inclusion are steadily met.

In a nutshell, BSP's National Strategy for Financial Inclusion 2022-2028 is like a financial revolution that's here to make our lives easier, our businesses stronger and our future brighter.

For SMEs, exploring diverse financing options, understanding loan terms and staying informed about government programs and fintech innovations offer broader opportunities for financial support in today's dynamic economic landscape.

The collaboration between regulatory bodies, financial institutions and innovative fintech companies is crucial in shaping a more inclusive and resilient financial future for the Philippines.

NSFI-2022-2028.pdf

Download PDF • 2.75MB

Source: Manila Times