Thursday, May 23, 2019

AMLC: PH a destination of illicit funds

From the Manila Times (May 23, 2019): AMLC: PH a destination of illicit funds

The Philippines has become a destination of illicit funds generated from criminal activities including terrorism, the Anti-Money Laundering Council (AMLC) said in its latest risk assessment report.

The AMLC on Wednesday said the assessment was based on 161,650 suspicious transaction reports (STRs), received from January 2013 to December 2017, that involved a total of over P17 trillion in funds.

“The study indicates that . . . illicit funds from … the following unlawful activities: violation of environmental law; illegal trafficking of persons; kidnapping for ransom; and terrorism and conspiracy to commit terrorism” were sent to the Philippines, it said.


Financial activities involving terrorism and conspiracy to commit terrorism accounted for 268 STRs or 50.19 percent of the total transaction value.

The majority of external transactions — 172 STRs or 32.2 percent of the total transaction value — transpired from 2015 to 2017 and comprised remittances from Malaysia, Trinidad & Tobago, the United States and Indonesia.

“Said transactions are allegedly related to the Abu Sayyaf Group and ISIL/ISIS (Islamic State in Iraq and the Levant/Islamic State in Iraq and Syria)-linked groups or were based on referrals from FIUs (financial intelligence units) and LEAs (law enforcement agencies),” the agency said.

It said the main channel used to finance terrorism was commercial banks (77.18 percent), while money changers and remittance agents accounted for 11.94 percent.

“Since the characteristics of financing of terrorism involves frequent sending of funds in small amounts, it is apparent that remittance agents are being utilized because of their feasible locations and affordable services,” the AMLC said.

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