Global alliances against financial crime are intensifying, with the Financial Action Task Force (FATF) announcing that 84 public-private partnerships worldwide are now actively sharing intelligence to disrupt money laundering, scams, and terrorist financing
The fight against financial crime has shifted toward public-private partnerships (PPPs).
FATF reports that at least 84 information-sharing networks now operate across dozens of countries, enabling faster exchange of intelligence between banks, fintechs, virtual asset firms, and law enforcement.
These alliances are designed to counter the surge in fraud and the speed of digital, cross-border transactions.
Examples include Indonesia’s SIPENDAR platform, which uses machine learning to build terrorist financing watchlists, and Canada’s proactive intelligence model targeting human trafficking and illegal wildlife trade.
The global fight requires coordinated intelligence sharing, harmonized regulations, and technology-driven monitoring.
FATF emphasizes that no single jurisdiction can combat these threats alone. By building PPPs, enhancing digital intelligence, and embedding safeguards for privacy and due process, countries can collectively disrupt illicit financial flows.
FATF as the Global Watchdog
The Financial Action Task Force (FATF) was created at the 1989 G7 Summit in Paris, initially composed of the G7 countries, the European Commission, and eight other nations.
Its founding purpose was to examine money laundering techniques, review existing national and international measures, and propose a comprehensive framework to counter illicit financial flows. Within a year, FATF issued its first Forty Recommendations, which became the cornerstone of global anti-money laundering (AML) standards.
Following the September 11, 2001 terrorist attacks, FATF expanded its scope to include counter-terrorist financing (CFT), issuing Eight Special Recommendations to address emerging risks. In 2004, a ninth recommendation was added, creating the “40+9” framework.
Over time, FATF integrated these into a unified set of 40 Recommendations, revised in 2012 to cover threats such as the financing of weapons of mass destruction.
The watchdog sets global standards for anti-money laundering (AML) and counter-terrorist financing (CFT). More recently, FATF has introduced binding measures for virtual assets and crypto service providers, recognizing the risks posed by digital finance.
Today, FATF’s framework is adopted by over 200 jurisdictions worldwide, either directly or through FATF-style regional bodies. Its blacklist and greylist mechanisms exert significant pressure on countries to comply, as being listed can restrict access to global financial markets.
Its latest report warns that social media, instant messaging apps, and streaming platforms (SMSPs) are increasingly exploited for terrorist financing.
Techniques include fraudulent crowdfunding, misuse of creator-economy features like tipping, rotating wallets, QR codes, and coded language to evade detection.
FATF urges stronger cooperation between governments, financial institutions, and tech companies, noting that fewer than 30% of jurisdictions currently assess terrorist financing risks through SMSPs.
Philippines’ Watchdog
In the Philippines, the Anti-Money Laundering Council (AMLC) is the primary authority for AML/CFT enforcement.
It works closely with the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC), and the Insurance Commission (IC).
BSP ensures banks, EMIs, and VASPs comply with AML regulations, while AMLC investigates suspicious transactions and coordinates with international bodies to prevent the country from being placed on FATF’s “grey list.”
The Philippines was placed on the FATF grey list in June 2021, indicating deficiencies in its anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks.
Being on the grey list meant heightened monitoring and reputational risks, as international financial institutions often view listed countries as higher-risk jurisdictions.
This status threatened to raise transaction costs for remittances, complicate cross-border banking relationships, and potentially discourage foreign investment.
To address these concerns, the Anti-Money Laundering Council (AMLC) and the Bangko Sentral ng Pilipinas (BSP) spearheaded reforms.
These included strengthening Know Your Customer (KYC) requirements, enhancing suspicious transaction reporting, tightening oversight of Virtual Asset Service Providers (VASPs), and improving beneficial ownership transparency.
The Philippines also expanded its coverage of “designated non-financial businesses and professions” (DNFBPs), such as real estate brokers and jewelry dealers, to ensure they were subject to AML obligations.
By 2024, FATF acknowledged significant progress. The Philippines demonstrated improved risk-based supervision, better inter-agency coordination, and stronger enforcement actions against money laundering and terrorist financing.
As a result, the country was removed from the grey list, restoring confidence in its financial system and reaffirming its commitment to global standards.
Maintaining AML Standards in PH
The Philippines has made significant strides in strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) framework, but financial crime remains a persistent challenge.
According to the Anti-Money Laundering Council (AMLC), suspicious transaction reports (STRs) have steadily increased over the past five years, reflecting both heightened vigilance and the growing sophistication of criminal networks.
Online fraud, cyber-enabled scams, and digital payment misuse are among the fastest-rising categories.
The country’s prior inclusion in the FATF grey list in 2021 underscored deficiencies in monitoring and enforcement, but reforms implemented by 2024—such as stricter oversight of virtual asset service providers (VASPs), expanded coverage of non-financial businesses, and improved beneficial ownership transparency—helped the Philippines exit the list.
Still, AMLC continues to warn that the volume of STRs, particularly linked to cyber fraud and cross-border transfers, remains high, signaling that financial crime is not abating but evolving.
Financial institutions in the Philippines play a frontline role in combating these risks.
Banks, e-wallet providers, and VASPs are mandated by the Bangko Sentral ng Pilipinas (BSP) to implement Know Your Customer (KYC) protocols, customer due diligence, and ongoing transaction monitoring.
They must report suspicious activities to AMLC, adopt risk-based approaches to detect unusual patterns, and ensure compliance with both domestic regulations and FATF standards.
For example, rapid layering of transactions, sudden spikes in account activity, or transfers inconsistent with customer profiles are flagged as potential indicators of money laundering.
Institutions are also required to integrate technology-driven solutions, such as AI-powered monitoring systems, to keep pace with the speed of digital transactions.
While the Philippines has reduced systemic risk by exiting the grey list, the financial crime rate remains elevated, particularly in the digital space.
Financial institutions are not only compliance enforcers but also guardians of trust in the financial system.
Their vigilance ensures that the country maintains credibility in global markets, protects remittance flows vital to millions of households, and prevents criminals from exploiting the rapid growth of digital finance.
DOPAY Protection
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Our goal is to give DOPAY users the confidence that every transaction—whether a simple transfer or a crypto trade—is conducted under strict compliance with international AML/CFT laws.
DOPAY not only bridges financial inclusion but also strengthens the Philippines’ role in the global fight against financial crime.
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