LOCAL banks have a “medium risk” exposure to money laundering, terrorist financing and proliferation financing, the Bangko Sentral ng Pilipinas (BSP) said.
In a statement over the weekend, the BSP announced that they have completed the sectoral money laundering, terrorist financing and proliferation financing risk assessment of banks and other BSP-supervised financial institutions (BSFIs).
The results of the assessment showed that the risk exposure of the sector is “medium;” pawning operations are at “low risk.” Financial inclusion products, meanwhile, have “low risk” while e-money and remittance services of pawnshops were assessed as “medium risk.”
The risk assessment was conducted in coordination with the Anti-Money Laundering Council (AMLC) and other relevant agencies or institutions, according to the BSP statement. The move, it added, was in line with the “National Anti-Money Laundering/Countering the Financing of Terrorism Strategy of the Philippines” that calls for a “whole-of-government approach” to “strategically respond to the identified money laundering, terrorist financing and proliferation financing risks.”
The risk assessment also showed that in terms of criminal activities, those that pose the highest level of threat to the sector are the following: corruption; drug trafficking; investment fraud and swindling; and, violations of the Electronic Commerce Act of 2000 and cybercrimes.
“The BSP expects BSFIs to consider the results of the SRA [sectoral risk assessment] in their enterprise-wide risk assessment and to use these as inputs in enhancing their risk mitigation policies and strategies,” BSP Governor Benjamin E. Diokno was quoted in the statement as saying.
“The SRA showed us the results of the hard work not only of the BSP, but also of BSP-supervised financial institutions and our partner agencies in our fight against money laundering and terrorist financing,” Diokno added. “But we should also use the results of this exercise as a reminder to remain vigilant to the threats that undermine the integrity of the Philippine financial system.”
Just last year, the Anti-Money Laundering Council (AMLC) urged Filipinos to be more “cautious and vigilant” in their digital transactions, as suspicious digital activity has been on the rise along with digital payments due to lockdown measures.
The AMLC said some of these include fraudsters pretending to be affiliated with a government unit and a government agency in soliciting Covid-19 donations and Online shopping swindling schemes involving Bitcoins and other cryptocurrencies.
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