BSP Orders Financial Institutions to Comply With FATF Guidelines

All financial institutions under the jurisdiction of the Bangko Sentral ng Pilipinas (BSP) have been directed to take the required steps to assist the Philippines in being removed from the Financial Action Task Force’s (FATF) “gray” list.

The central bank instructed all BSP-supervised financial institutions (BSFIs) to take the necessary steps, such as prompt freezing and submission of returns as ordered by relevant targeted financial sanctions (TFS) issuances.

This pertains to funds, assets, and connected accounts linked to specific individuals and organizations specified in relevant resolutions from the Anti-Money Laundering Council (AMLC) and the United Nations Security Council (UNSC).

Despite acknowledging the actions performed after the country was added to the gray list in 2021, the watchdog decided to remove the country due to ongoing deficiencies.

The country missed the deadline of January 2023. The Philippines was included in the “black” list from 2000 to 2005. According to the FATF continued failure to take action could lead to returning to the “black” list, which the Philippines has become a part of from years 2000 to 2005.

Blacklisting will result in stricter regulations and increased transaction costs for money transfers, particularly the remittances from overseas workers that have contributed to economic expansion.

The administration gave the relevant agencies instructions at the beginning of this year to carry out the measures required to remove the Philippines from the FATF list by 2024.

The central bank instructed BSFIs to regularly visit the FATF website to obtain the latest updates on high-risk jurisdictions and other monitored locations.

The BSP stated, “BSFIs are likewise directed to regularly refer to the FATF’s website for the latest statements on high risk and other monitored jurisdictions and consider the same in their risk analysis and mitigation strategies.”

Meanwhile, the AMLC sent a reminder to companies last month to follow due diligence guidelines or face sanctions.
In 2019, It pushed all covered individuals who work with clients classified as financial businesses and professions to demand the presentation of certificates of registration from the AMLC.