The Anti-Money Laundering Council (AMLC), an agency of the Government of the Philippines tasked with implementing the provisions of Republic Act No. 9160, recently tightened restrictions against terrorist funding and money laundering last month. The increased scrutiny follows Philippines’ President Rodrigo Duarte’s signing of new legislation on February 1, 2021. Amongst its power, the new law “allows the AMLC to apply for court summons, as well as search and seizure warrants,” according to a report by Reuters.
The new law was passed in an effort to avoid the Philippines from being put on a grey list by the Financial Action Task Force (FATF), a Paris-based intergovernmental watchdog agency. The FATF list could result in scaring away foreign investments, particularly from real estate developers (REDs), real estate brokers (REBs), and offshore gaming operators (OGOs), and OGO-service providers, all of which are incredibly lucrative businesses for the Southeast Asian country. The country has a notorious history of being on the list back when in 2000 it was reprimanded for failing to address money laundering issues, though was later removed in 2005 after amending legislation.
As the AMLC closely scrutinizes the situation, this month it also announced its involvement with the United Nations Security Council Sanctions Committee. New guidelines were announced on March 3, 2021, that cover targeted financial sanctions related to terrorism financing and proliferation financing, with remedies outlined by the UN.
If you currently have foreign investments in the Philippines and are seeking mitigation, or are planning to invest and want to assess the legal risk, it would be prudent to consult with a legal team in advance. Give us a call at (305) 455-5206 to schedule an appointment with the seasoned attorneys at Padula Law.
