BSP Calls on Financial Institutions to Support Philippines’ 2027 FATF Mutual Evaluation
The Bangko Sentral ng Pilipinas (BSP) has called on banks and other BSP-supervised financial institutions to support preparations for the Philippines’ next anti-money laundering and counter-terrorism and proliferation financing mutual evaluation, scheduled for 2027.
In a circular letter signed by Deputy Governor Lyn I. Javier, the BSP said supervised institutions should extend full cooperation and active participation in mutual-evaluation activities and data-gathering initiatives until the evaluation report is adopted. The central bank said information from supervised institutions and other credible sources will be important in demonstrating both the adequacy of its supervisory framework and the effectiveness of preventive controls implemented by financial institutions.
The assessment will examine two broad areas: technical compliance with the FATF Recommendations and effectiveness in practice. The latter will focus on whether the country’s AML/CTPF framework is producing the intended outcomes, including through supervision, preventive measures, financial intelligence and enforcement.
The Philippines was removed from the FATF list of jurisdictions under increased monitoring in February 2025. The forthcoming evaluation will therefore test whether reforms made during and after that period are being sustained and whether institutions can demonstrate effective implementation rather than compliance on paper alone.
For BSP-supervised institutions, the immediate implication is not a new standalone AML rule, but heightened expectations around evidence. Policies, customer due diligence, transaction monitoring, suspicious transaction reporting, sanctions controls, risk assessments, governance and remediation will need to be supported by records that show how controls operate in practice.
Sources
BusinessMirror — Financial institutions told: Prepare for FATF evaluation
The Philippine Star — Banks’ cooperation sought in review of dirty money rules
