Banks’ cooperation sought in review of dirty money rules

The Bangko Sentral ng Pilipinas (BSP) has urged banks and other regulated financial institutions to assist in the preparation for the Philippines' 2027 anti-money laundering review. In a circular letter, Deputy Governor Lyn Javier called for the institutions' full cooperation in the mutual evaluation, an assessment of the country's financial crime defenses and their implementation effectiveness.

The review will scrutinize measures against money laundering, terrorism financing, and weapons of mass destruction proliferation. Information from supervised entities and credible sources will be essential in demonstrating the effectiveness of oversight and preventive measures. Banks are encouraged to provide insights into the country's ongoing compliance with international standards.

The fourth round of evaluation will take place in 2027 under the Financial Action Task Force (FATF)'s fifth round of mutual evaluations. The assessment will focus on the country's risks, challenges, and the effectiveness of its safeguards. Technical compliance and effectiveness assessment are the two main components of the review.

BSP Governor Eli Remolona Jr. admitted in February that the controversy surrounding alleged irregularities in flood control projects posed a risk to the country's standing. Authorities are working to prevent a return to the FATF gray list, a status the Philippines exited in February 2025 after addressing deficiencies identified in June 2021.

The Anti-Money Laundering Council (AMLC) has identified access to records as a challenge in investigating the flood control controversy, and stronger asset recovery powers as a priority ahead of the evaluation.