Philippines bolstering efforts to combat terrorism financing

Maria T. Reyes

The Philippines is stepping up efforts to combat the financing of terrorist organizations in the country and tackle money laundering, particularly when used to finance illicit weapons proliferation. Manila is working with international organizations and partners such as Australia and the United States to strengthen domestic agencies, and enhance training and collaboration.

The Philippine government is seeking to mitigate threats posed by terrorist organizations such as the Abu Sayyaf Group, the Bangsamoro Islamic Freedom Fighters (BIFF), the Communist Party of the Philippines’ New People’s Army and the Islamic State group. Although terrorist attacks have decreased in recent years, the groups continue to clash with government forces. In early December 2023, for example, Philippine troops battled with BIFF and the Islamic State group in the southern province of Maguindanao del Sur, leaving 11 suspected militants dead.

In July 2023, Philippine President Ferdinand Marcos Jr. ordered the adoption of a national strategy to counter money laundering, and terrorism and proliferation financing through 2027. The plan outlines objectives and priorities for government and other stakeholders to enhance such initiatives and address challenges identified by international assessments.

In September 2023, the U.S. Justice Department’s International Criminal Investigative Training Assistance Program conducted a five-day course in Manila on countering terrorist financing and investigating money laundering. Senior officers from the Philippine National Police attended the course, which was conducted in collaboration with the U.S. State Department’s Bureau of Counterterrorism.

A month later, Marcos issued a memorandum directing government agencies to formulate plans and programs to implement the national strategy. Among the priorities is removing the Philippines from the “gray list” of the Paris-based Financial Action Task Force, where it has been listed since 2021 after failing to address gaps in its efforts to combat money laundering and terrorism financing.

“The Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity,” the memorandum stated, specifying “the proliferation of weapons of mass destruction, terrorism, and financing of terrorism.” It tasked the Anti-Money Laundering Council (AMLC), a government agency launched in 2001, with leading a national working group to assess risks and develop prevention and mitigation measures.

The AMLC hosted the 2023 Anti-Money Laundering and Counter-Terrorism Financing Summit in late November. The online event, which was held in conjunction with Australian and U.S. partner agencies, sought to bolster collaboration and strengthen compliance.

“This convergence of stakeholders reflects a collective endeavor to mitigate financial threats, championing professional excellence, and a united front,” an AMLC news release stated.

Maria T. Reyes is a FORUM contributor reporting from Manila, Philippines.