Philippines banks have medium risk exposure to money laundering, terror financing
22 Mar 2021

Domestic banks and other financial institutions have a medium risk exposure to money laundering, terrorist and proliferation financing, according to the result of the Third Sectoral Risk Assessment (SRA) conducted by the Bangko Sentral ng Pilipinas (BSP), Anti-Money Laundering Council (AMLC) and other relevant institutions.

BSP Governor Benjamin Diokno said the latest assessment reflects the hard work not only of the central bank, but also of BSP-supervised financial institutions (BSFI) and partner agencies to combat money laundering and terrorist financing.

“But we should also use the results of this exercise as a reminder to remain vigilant to the threats that undermine the integrity of the Philippine financial system,” Diokno said.

Based on the report, pawning operations in the country have a low risk exposure to money laundering and terrorist financing.

Financial inclusion products, likewise, have a low risk exposure except for e-money and remittance services of pawnshops that were assessed as medium risk.

The Philippines is in danger of being included in the gray list and may face sanctions from Paris-based Financial Action Task Force (FATF) after the country was placed under a 12-month observation period by the Asia Pacific Group on Money Laundering (APG) in October 2019.

By Lawrence Agcaoili, The Philippine Star, 22 March 2021

Read more at The Philippine Star

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