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WHEREAS, Section 2 of Republic Act (RA) No. 9160, as amended by RA No. 11521 or the "Anti-Money Laundering Act of 2001," declares it a policy of the State to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity, and that the State, consistent with its foreign policy, shall extend cooperation in transnational investigations and prosecutions of persons involved in money laundering activities wherever committed, as well as in the implementation of targeted financial sanctions related to the financing of the proliferation of weapons of mass destruction, terrorism and financing of terrorism;

WHEREAS, Executive Order (EO) No. 68 (s. 2018), as amended by EO No. 33 (s. 2023), established the National Anti-Money Laundering/Counter-Terrorism Financing/Counter Proliferation Financing (AML/CTF/CPF) Coordinating Committee (NACC) to facilitate inter-agency coordination relative to the country's AML/CTF/CPF policies;

WHEREAS, in August 2019, the Asia Pacific Group (APG) on Money Laundering concluded the Third Mutual Evaluation of the Philippines, which assessed the levels of technical compliance of Philippine laws, rules and regulations with international AML/CTF standards, and effectiveness of the country's overall AML/CTF system;

WHEREAS, in October 2019, the Financial Action Task Force (FATF) affirmed the Third Mutual Evaluation Report (MER) of the Philippines, and placed the Philippines under a twelve-month Observation Period, pursuant to the FATF International Co-operation Review Group (ICRG) process;

WHEREAS, 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 MER;

WHEREAS, under EO No. 33, the National AML/CTF/CPF Strategy (NACS) 2023-2027 was adopted for the purpose of enabling the Philippines to address the ICRG Action Plans, ensure that the Philippines exits the FATF Grey List, and improve its AML/CTF/CPF regime;

WHEREAS, EO No. 33 provides that the Anti-Money Laundering Council (AMLC) Secretariat shall serve as the Secretariat of the NACC, and shall provide technical and administrative support to the NACC;

WHEREAS, as of September 2023, out of eighteen (18) ICRG Action Plans, there are still eight (8) that the Philippines must address to exit the FATF Grey List by January 2024;

WHEREAS, 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;

WHEREAS, in 2026, the Philippines is expected to undergo another Mutual Evaluation;

WHEREAS, under international standards on combating ML/TF, countries are required to identify, assess and understand the money laundering and terrorism financing risks 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;

WHEREAS, as a member of the APG, and in compliance with the international standards on combating ML/TF, the Philippines must conduct an ML/TF National Risk Assessment (NRA) to determine the country's risks and vulnerabilities associated with ML/TF; and

WHEREAS, Section 17, Article VII of the Constitution vests in the President the power of control over all Executive departments, bureaus and offices, and the mandate to ensure faithful execution of laws;

NOW, THEREFORE,, the following are hereby ordered:

Section 1. Urgent Implementation of NACS 2023-2027. In accordance with their respective mandates, all concerned departments, agencies, bureaus, and instrumentalities of the National Government, including government-owned or -controlled corporations (GOCCs) are directed, and all local government units (LGUs) are encouraged, to immediately and timely formulate and implement relevant strategies, plans and programs to implement NACS 2023-2027, particularly its Strategic Objective No. 1. For this purpose, all Heads of concerned agencies shall:

a. Immediately review and assess the respective deliverables of their office under the ICRG action Plans;

b. Assign focal person/s tasked to ensure that all deliverables are completed and all targets are achieved by 30 November 2023; and

c. Establish a mechanism for monitoring of progress and reporting of completion of each deliverable.

The NACC Secretariat is hereby directed to furnish all concerned agencies of the respective deliverables and targets of their offices under the ICRG Action Plans, and such other relevant documents, including the pertinent resolutions of the NACC.

The AMLC is hereby directed 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 implementation of NACS 2023-2027, particularly its Strategic Objective 1, on or before 08 December 2023.

Section 2. Conduct of NRA. All concerned departments, agencies, bureaus, and instrumentalities of the National Government, including GOCCs, specifically those names in ANNEX A, attached herewith, (hereinafter referred to as the "ML/TF NRA Working Group") are enjoined to extend support and participation in the conduct of ML/TF NRA. The ML/TF NRA Working Group shall have nine (9) subgroups, namely:

a. Threat Assessment;

b. National Vulnerability;

c. Banking Sector Vulnerability;

d. Securities Sector Vulnerability;

e. Insurance Sector Vulnerability;

f. Other Financial Institution's Vulnerability;

g. Designated Non-Financial Business and Professions Vulnerability;

h. Financial Inclusion Products Risk Assessment; and

i. Non-profit Organizations.

The AMLC shall serve as the lead agency of the ML/TF NRA Working Group, and shall formulate and issue guidelines as may be necessary for the effective implementation of this Circular. The AMLC may call upon any government department, agency, bureau or office, including GOCCs, and invite LGUs and representatives from the private sector, to provide assistance in attaining its objectives, subject to existing laws, rules and regulations.

All Heads of member-agencies of the ML/TF NRA Working Group shall designate their alternates, with ranks not lower than an Assistant Secretary or its equivalent, who have technical knowledge and operational experience on the matter, and who are fully authorized to decide for or on their behalf.

Section 3. Funding. The initial funding requirements necessary for the implementation of this Circular shall be charged against the respective appropriations of concerned government agencies and the respective corporate operating budgets of concerned GOCCs, subject to availability thereof and in compliance with relevant budgetary, accounting, and auditing rules and regulations. Thereafter, the funding requirements necessary for the continued implementation of this Order shall be included in the budget proposal of the AMLC, subject to the usual budget preparation process.

Section 4. Effectivity. This Circular shall take effect immediately.

DONE, in the City of Manila, this 16^th of October, in the year of our Lord, Two Thousand and Twenty-Three.

 

By  authority of the President:

 

 
  (SGD.) LUCAS P. BERSAMIN
  Executive Secretary

 

ANNEX A

Financial Intelligence Unit

Anti-Money Laundering Council

Supervisory Authorities

Aurora pacific Economic and Freeport Zone

Bangko Sentral ng Pilipinas

Cagayan Economic Zone Authority

Insurance Commission

Philippine Amusement and Gaming Corporation

Securities and Exchange Commission

Law Enforcement and other relevant government agencies

Anti-Terrorism Council

Armed Forces of the Philippines

Bureau of Customs

Bureau of Immigration

Bureau of Internal Revenue

Cooperative Development Authority

Civil Service Commission

Department of Environment and Natural Resources

Department of Finance

Department of Foreign Affairs

Department of the Interior and Local Government

Department of Justice

Department of National Defense

Department of Social Welfare and Development

Department of Trade and Industry

Inter-Agency Council Against Trafficking

Intellectual Property Office of the Philippines

Intelligence Service Armed Forces of the Philippines

Land Registration Authority

National Bureau of Investigation

National Intelligence Coordinating Agency

National Privacy Commission

National Security Council

Office of the Ombudsman

Office of the Solicitor General

Presidential Anti-Organized Crime Commission

Philippine Amusement and Gaming Corporation

Philippine Center on Transnational Crime

Philippine Coast Guard

Philippine Drug Enforcement Agency

Philippine Deposit Insurance Corporation

Philippine Ports Authority

Philippine National Police - Anti-Cybercrime Group

Philippine National Police -Anti-Kidnapping Group

Philippine National Police - Aviation Security Group

Philippine National Police - Criminal Investigation and Detection Group

Philippine National Police - Directorate for Investigation and Detection Management

Philippine National Police - Directorate for Intelligence

Philippine National Police - Highway Patrol Group

Philippine National Police - Intelligence Group

Presidential Anti-Organized Crime Commission

Professional Regulation Commission - Board of Accountancy

Professional Regulation Commission - Board of Real Estate Service

Supreme Court - Office of the Court Administrator