*EPF508 03/14/2003
Text: Anti-Money Laundering Group Cites Progress in Philippines
(March 13 press release from Financial Action Task Force) (580)

The Financial Action Task Force (FATF), an international group established in 1989 to combat money laundering, says that the Philippines will remain on its list of "non-cooperative countries and territories (NCCTs)" until it has implemented its new anti-money laundering legislation effectively, but will not be subject to additional counter-measures.

FATF President Jochen Sanio said: "This is a significant success for the FATF and the Philippines in the fight against money laundering. Close monitoring of implementation issues will be crucial in determining an appropriate time for the Philippines' removal from the NCCT list."

Following is the text of a March 13 press release on the issue from the FATF:

(begin text)

Paris, 13 March 2003

FATF decides not to impose counter-measures on the Philippines

Members of the Financial Action Task Force (FATF) have decided not to apply any countermeasures (1) to the Philippines in addition to Recommendation 21 (2). This decision is the result of the enactment on 7 March 2003 of Republic Act No. 9194, which amends the Philippine Anti-Money Laundering Act of 2001. The new legislation addresses the main legal deficiencies in the Philippine anti-money laundering regime previously identified by the FATF.

However, the Philippines will remain on the list of non-cooperative countries and territories (NCCTs) until it has implemented effectively its new anti-money laundering legislation. FATF President Jochen Sanio said: "This is a significant success for the FATF and the Philippines in the fight against money laundering. Close monitoring of implementation issues will be crucial in determining an appropriate time for the Philippines' removal from the NCCT list." The FATF will monitor the situation in the Philippines and will discuss appropriate next steps at its next Plenary meeting in Berlin, Germany on 18-20 June 2003.

Further information about the FATF and its work on non-cooperative countries and territories can be found at: http://www.fatf-gafi.org.

The FATF is an independent international body whose Secretariat is housed at the OECD. The twenty-nine member countries and governments of the FATF are: Argentina; Australia; Austria; Belgium; Brazil; Canada; Denmark; Finland; France; Germany; Greece; Hong Kong, China; Iceland; Ireland; Italy; Japan; Luxembourg; Mexico; the Kingdom of the Netherlands; New Zealand; Norway; Portugal; Singapore; Spain; Sweden; Switzerland; Turkey; United Kingdom and the United States. Two international organisations are also members of the FATF: the European Commission and the Gulf Co-operation Council. South Africa and Russia are observer countries.

For further information, please contact Helen Fisher, OECD Media Relations Division (tel: 33 1 45 24 80 97 or [email protected]) or the FATF Secretariat (tel: 33 1 45 24 79 45 or [email protected]).

(1) The counter-measures agreed in June 2001 are contained in the FATF Review to Identify Non-Cooperative Countries or Territories: Increasing the Worldwide Effectiveness of Anti-Money Laundering Measures (22 June 2001) at: www.fatf-gafi.org/NCCT_en.htm.

(2) Recommendation 21 applies to all countries on the NCCTs list and states that "Financial institutions should give special attention to business relations and transactions with persons, including companies and financial institutions, from countries which do not or insufficiently apply these Recommendations. Whenever these transactions have no apparent economic or visible lawful purpose, their background and purpose should, as far as possible, be examined, the findings established in writing, and be available to help supervisors, auditors and law enforcement agencies."

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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