Philippines Philippines

New Documents

On June 11, 2024, the Monetary Board of the Philippines Central Bank canceled the registration of FOREIGNEX Inc. to operate as a money changer and foreign exchange dealer.

In a new resolution, Philippine Senator Win Gatchalian called for an investigation into alleged human trafficking and scamming activities within the Multinational Village in Paranaque.

News

Enforcement Actions

The Central Bank of the Philippines announced that the Monetary Board canceled MCEX Foreign Exchange’s registration as a money changer and foreign exchange dealer.

Bangko Sentral ng Pilipinas canceled the registration of the Manila-based foreign exchange dealer for violating various laws and regulations governing money services businesses, including the Anti-Money Laundering Act of 2001.


Important Facts

  • The U.S. State Department labels the Philippines as a major money laundering country, particularly given the country's geographic location within key trafficking routes. The COVID-19 pandemic resulted in new emerging threats for the country, including higher instances of money laundering, environmental crimes, and human trafficking. Drug trafficking also remained a pervasive challenge, with increased activity around seaports.¬†Corruption and a growing online gaming industry also serve as sources of criminal proceeds.¬† The banking sector remains the primary avenue for money laundering followed by money service businesses, including foreign exchange dealers, moneychangers, remittance centers, and pawnshops. Criminal organizations and terrorists exploit the country's cash and remittance-based economy, strict bank secrecy laws, numerous, unregulated charities, and under-resourced authorities to further their criminal activities. In 2020, the country's Anti-Money Laundering Council filed 79 cases, including three petitions for asset forfeiture. Legislators also passed the Anti-Terrorism Act of 2020 to facilitate the adjudication of money laundering cases.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 8 High : 0
Largely Compliant : 29 Substantial : 1
Partially Compliant : 3 Moderate : 4
Non-Compliant : 0 Low : 6

The Philippines' technical compliance was most recently re-rated in a Aug. 2, 2022 follow-up report.

BASEL i

Rank : 45/141
Score : 5.67/10

TRANSPARENCY INTERNATIONAL i

Rank : 113/180
Score : 34/100

Tax Justice Network i

Rank : 60/133
Score : 63/100