MANILA – Malacañang has ordered concerned government agencies to hasten the implementation of strategies to contain money laundering, terrorism financing and proliferation financing.
Under Memorandum Circular (MC) 37 issued Monday, all concerned departments, agencies, bureaus, and instrumentalities of the national government, including government-owned or -controlled corporations (GOCCs), are directed to “immediately and timely” formulate and implement relevant strategies, plans and programs to implement the National Anti-Money Laundering, Counter-Terrorism Financing and Counter Proliferation Financing Strategy (NACS) 2023-2027.
All local government units are also encouraged to heed the directive.
“The urgent implementation of the NACS 2023-2027, particularly its Strategic Objective 1, will intensify and expedite efforts to address deficiencies identified by the FATF ICRG (Financial Action Task Force’s International Co-operation Review Group),” read MC 37, signed by Executive Secretary Lucas Bersamin by authority of the President.
“Under international standards on combating ML/TF (money laundering/terrorism financing), countries are required to identify, assess and understand the money laundering and terrorism financing risk for the country, and are mandated, based on said assessment, to apply a risk-based approach to ensure that measures to prevent or mitigate ML/TF are commensurate with the risks identified,” it added.
As of Sept. 2023, there are still eight out of 18 ICRG Action Plans that the Philippines must address to exit the FATF Grey List by January 2024.
The Philippines is also expected to undergo another Mutual Evaluation in 2026.
MC 37 mandated all heads of concerned agencies to conduct an immediate review and assessment of the respective deliverables of their office under the ICRG Action Plans; asaign focal person/s tasked to ensure that all deliverables are completed and all targets are achieved by 30 November 2023; and establish a mechanism for monitoring of progress and reporting of completion of each deliverable.
The National Anti-Money Laundering and Countering the Financing Strategy Coordinating Committee (NACC) Secretariat is mandated to furnish all concerned agencies of the respective deliverables and office targets under the ICRG Action Plans and other relevant documents, including pertinent NACC resolutions.
The memorandum also directs the Anti-Money Laundering Council (AMLC) to submit to the Office of the Executive Secretary, through the Office of the Deputy Executive Secretary for Legal Affairs, a comprehensive report on the status of the implementation of the NACS 2023-2027, particularly the Strategic Objective 1, on or before Dec. 8, 2023.
The AMLC is also designated as the lead agency of the ML/TF National Risk Assessment Working Group and tasked to formulate and issue guidelines for the effective implementation of MC 37.
The council may also call government departments, agencies, including GOCCs, as well as invite LGUs and the private sector to provide assistance in attaining its objectives subject to current laws and rules.
In June 2021, the Philippines was included in the FATF list of “Jurisdictions Under Increased Monitoring” or the “Grey List” for its failure to show tangible and positive progress in addressing all key recommended actions in the Third Mutual Evaluation Report.
President Ferdinand R. Marcos Jr. in July issued Executive Order 33, ordering all government offices and departments to adopt the NACS 2023-2027 to enable the Philippines to address the ICRG Action Plans and ensure that the country exits the FATF Gray List.
MC 37, which was made public on Wednesday, takes effect immediately.
The memorandum circular’s implementation will be funded through the respective appropriations of concerned government agencies and the corporate operating budgets of concerned GOCCs. (PNA)
