Philippine AML rules remain sketchy despite 2016 heist, US says

Almost a year has passed since the news of the $81 million Bangladeshi bank heist broke out, and yet the Philippines has yet to make progress in its efforts to curb money laundering, the U.S. government said in a report.

The 2017 edition of the International Narcotics Control Strategy Report released by the U.S. Department of State identified five locations in the Asia Pacific region as “countries/jurisdictions of primary concern.” Last year, the state department’s list included Macau, Australia and Singapore. These three were no longer identified in the 2017 list, but Philippines—as in 2016—continued to receive extensive criticism.

If you recall, the Philippines made global headlines in February 2016, when hackers stole $101 million from Bangladeshi bank accounts in New York, of which $81 million was transferred to a branch of Rizal Commercial Banking Corporation in Manila. From there, the money was reportedly withdrawn through remittance firm Philrem Services Inc before it was funneled through the local casino industry by two Chinese junket operators.

The incident has prompted calls for changes such as the inclusion of casinos in the country’s Anti-Money Laundering Act, although progress has yet to be seen.