AMLC pushes for anti-money laundering law overhaul

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The Anti-Money Laundering Council (AMLC) is pushing for a legislative reform to overhaul the country's financial crime laws, emphasizing its urgency, as pending amendments to the Anti-Money Laundering Act (AMLA) must be passed before the Philippines faces a critical international evaluation in 2027.

During a forum organized by SGV & Co. in Makati City on Friday, AMLC executive director Ronel Buenaventura said strengthening the anti-dirty money watchdog’s legal framework is crucial as the country prepares for the upcoming Financial Action Task Force (FATF) mutual evaluation next year.

To recall, in 2025, the Philippines was removed from the FATF’s so-called anti-dirty money “grey list.”

When the FATF places a nation under “grey list” or increased monitoring, it means that a country committed to resolving the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring.

For Buenaventura, however, the Philippines’ non-inclusion in the grey list was “not destination” as the government must keep the country from being under the watch of an international body for money laundering and countering financing of terrorism.

“We did not exit the gray list only to return to it," the AMLC chief said.

"The 2027 mutual evaluation timing is critical," he said, noting that FATF methodology, assessors only consider laws and measures actually enforced by the end of an on-site visit.

"An amendment still pending when the assessors complete their visit earns the country no credit,” he said.

The AMLC outlined three key objectives behind the proposed amendments —aligning the national legal framework with evolving FATF standards, addressing operational and legal gaps, and enhancing investigative, supervisory, and enforcement capabilities.

To achieve this, the AMLC is pushing for expansive revisions to the 2001 law, currently backed by at least five Senate bills and nine House bills pending before their respective banking committees.

The measures have been included among the top priority legislation targeted for passage.

The proposed amendments include the following:

• Explicitly including Virtual Asset Service Providers (VASPs) and trusts as covered persons under the law
• Updating and adding new felonies and offenses to the list of predicate crimes.
• Granting the AMLC non-court-based subpoena power and expanding its authority to inquire into bank deposits without a court order, aimed at accelerating evidence-gathering in financial investigations.
• Empowering the AMLC with the authority to temporarily suspend transactions, freeze criminal assets, and directly file petitions for freeze orders and civil forfeitures without requiring an initial court order
• Setting the threshold for customer due diligence by casinos to P150,000, aligning it directly with FATF-prescribed standards, and explicitly establishing the AMLC's authority to inspect and examine covered persons based on risk-based supervision.

For covered institutions, Buenaventura said that the reforms could translate to faster, more direct requests from the regulator, requiring compliance and response processes to be fully prepared. —VAL, GMA News