The Philippines’ Anti-Money Laundering Council (AMLC) is preparing a major overhaul of its rules to widen oversight of high-risk industries such as real estate, casinos, online gambling, and virtual asset service providers (VASPs).
AMLC’s stratagem aims to preserve the country’s hard-won removal from the Financial Action Task Force (FATF) gray list and strengthen defenses against illicit financial flows.
The watchdog’s 2026 regulatory plan outlines revisions to the implementing rules of the Anti-Money Laundering Act (AMLA), last updated in 2018. The council seeks expanded powers to issue bank inquiry orders, transaction suspension orders, and administrative freeze orders without lengthy court processes.
This urgency stems from the Philippines’ next FATF mutual evaluation in 2027, where delays or weak safeguards could risk whether the country can maintain its removal from the FATF gray list.
AMLC as Philippines’ Watchdog
The Anti-Money Laundering Council (AMLC) is the Philippines’ primary financial intelligence unit and watchdog against dirty money.
Established under the Anti-Money Laundering Act of 2001, it investigates suspicious transactions, freezes assets linked to illicit activity, and coordinates with law enforcement. Its role is pivotal in ensuring compliance with global AML standards and protecting the integrity of the financial system.
Over the years, the AMLC has evolved from a relatively weak body into a central pillar of financial regulation, playing a decisive role in safeguarding the country’s reputation in international finance.
The Bangko Sentral ng Pilipinas (BSP), on the other hand, regulates banks and financial institutions, while the AMLC provides investigative and enforcement muscle. BSP relies on AMLC’s intelligence to monitor compliance, identify risks, and enforce penalties.
For example, when banks report suspicious transactions, the AMLC analyzes the data and can initiate asset freezes or investigations. This partnership ensures that prudential regulation and anti-money laundering enforcement work hand in hand, creating a comprehensive defense against financial crime.
Jointly, these two form a dual framework: BSP ensures prudential regulation, while AMLC ensures that financial institutions are not conduits for money laundering or terrorist financing.
Fighting Financial Crimes in the Country
The Philippines has a checkered history with anti-money laundering regulation.
In the early 2000s, weak rules landed the country on the FATF gray list, limiting access to global financial markets. A second gray-listing occurred in 2012, largely due to inadequate coverage of casinos and poor enforcement.
Reforms since 2018, including stricter customer due diligence and expanded coverage of high-risk sectors, helped secure removal from the gray list in 2021.
The National Risk Assessment (2021–2024) gave the country a score of 0.67 out of 1.0, up from 0.60, reflecting strengthened frameworks. However, challenges remain, particularly in monitoring non-bank sectors and virtual assets.
Recent AMLC reports flagged ₱35 billion worth of suspicious transactions and froze ₱25 billion in assets linked to illicit activity. These figures indicate both the scale of financial crime and the increasing capacity of regulators to respond.
The AMLC has also noted rising cases of cyber-enabled fraud, online scams, and misuse of e-wallets. While enforcement has improved, the volume of suspicious activity underscores systemic vulnerabilities, particularly in sectors outside traditional banking.
Observed Crime Trend
Globally, financial crime is estimated to launder 2–5% of gross domestic product (GDP) annually, or up to $2 trillion. Watchdogs in the U.S., EU, and Asia are expanding oversight to cover virtual assets, online gambling, and high-value goods.
The US Treasury’s Financial Crimes Enforcement Network (FinCEN) has introduced beneficial ownership transparency rules, while Singapore’s Monetary Authority has tightened regulations for crypto exchanges. The European Union’s AML Authority (AMLA), set to launch in 2027, will centralize supervision across member states.
The aforementioned global initiatives highlight the recognition that illicit finance adapts quickly to new technologies, requiring regulators to stay ahead of evolving risks.
Local and International Initiatives in Combatting Financial Crimes
The Philippines has steadily broadened its anti-money laundering (AML) framework to align with global standards.
Locally, the AMLC and BSP have expanded coverage to include casinos, real estate brokers, dealers in precious metals and stones, and virtual asset service providers (VASPs). These sectors were historically outside the scope of AML rules, but their inclusion reflects recognition that illicit actors often exploit non-bank channels.
The AMLC has also strengthened its Suspicious Transaction Reporting (STR) system, requiring financial institutions and covered entities to report unusual activity within five working days.
Internationally, the Philippines is part of the Asia/Pacific Group on Money Laundering (APG), which conducts peer reviews and provides technical assistance.
The country has also committed to implementing the FATF “travel rule” for crypto transactions, requiring exchanges to share sender and recipient information to prevent anonymous transfers. Cooperation with the United Nations Office on Drugs and Crime (UNODC) and Interpol further enhances intelligence-sharing on cross-border financial crime.
All these measures demonstrate that AML is no longer a purely domestic concern but a global effort requiring harmonized rules and coordinated enforcement.
Banks, E-Wallets, Platforms: Shared Responsibility
Financial institutions are the first line of defense against money laundering and terrorist financing.
Banks, e-wallet providers, and fintech platforms must implement robust know-your-customer (KYC) protocols, verify beneficial ownership, and continuously monitor transactions for suspicious activity.
They are legally required to submit Suspicious Transaction Reports (STRs) and Covered Transaction Reports (CTRs) to the AMLC, ensuring that regulators have timely visibility into potential risks.
The part of institutions also goes beyond compliance. They must invest in technology-driven monitoring systems, such as AI-powered anomaly detection, to identify patterns that human auditors might miss.
They also need to balance customer convenience with security, ensuring that digital onboarding processes do not become loopholes for illicit actors. Failures in this area can be costly: banks and fintechs that neglect AML obligations risk heavy fines, reputational damage, and even suspension of licenses.
At the same time, financial institutions play a critical role in educating consumers. Through the promotion of awareness of fraud risks, phishing schemes, and safe digital practices, they help build a culture of vigilance.
In the era of digital finance, where transactions are instantaneous and borderless, the responsibility of institutions to safeguard financial data and protect consumers has never been greater.
DOPAY is your partner wallet for secure financial transactions.
As a BSP-licensed Electronic Money Issuer (EMI) and Virtual Asset Service Provider (VASP), DOPAY integrates AI-powered anomaly detection and strict onboarding protocols into its e-wallet and crypto trading services.
With DOPAY’s crypto wallet, you can gain crypto rewards for every trade under our Trade & Earn program. Not just that, with DOPAY’s Refer & Earn program, Filipinos can unlock new doors for earning possibilities with every successful referral.
Download the DOPAY app today!
