Philippines Tightens AML Defences as 2027 Global Compliance Test Nears

The Philippines is stepping up its anti-money laundering and counter-terrorist financing regime as authorities prepare for a major international assessment that could test whether recent reforms are delivering results beyond the rulebook.

President Ferdinand Marcos Jr. has directed government agencies to support the drafting of the country’s National Anti-Money Laundering and Counter-Terrorism/Proliferation Financing Strategy for 2026 to 2030, placing the Anti-Money Laundering Council (AMLC) at the centre of the exercise.

The strategy is being developed ahead of the Philippines’ fourth mutual evaluation by the Asia/Pacific Group on Money Laundering (APG) in 2027. The assessment will examine both technical compliance with the Financial Action Task Force’s 40 recommendations and the effectiveness of the country’s AML/CFT system across 11 immediate outcomes.

For the financial sector, the pressure is increasingly focused on where illicit funds can move most easily. The Philippines’ latest national risk assessment calls for deeper risk-based supervision of higher-risk sectors, including banks, money service businesses, pawnshops offering remittance services, casinos, real estate and virtual asset service providers.

Remittance channels are particularly significant for compliance authorities because of the Philippines’ large cross-border money transfer ecosystem. The strategy is expected to translate the latest risk assessment into sector-specific measures, stronger supervision and better use of financial intelligence.

The AMLC has also identified beneficial ownership transparency, proliferation financing controls and stronger monitoring of digital financial providers as priority areas.

The regulatory challenge is therefore moving beyond legislation. Philippine authorities will need to demonstrate that banks, remittance businesses, fintechs and other covered entities can identify suspicious transactions, report them effectively and support investigations.

Compliance takeaway: The 2027 APG review is likely to make implementation as important as technical compliance. For financial institutions, weaknesses in transaction monitoring, beneficial ownership checks and remittance controls could become significant examination risks.

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