Philippines steps up fight against money laundering in crypto sector

The Philippine central bank, Bangko Sentral ng Pilipinas (BSP), is maintaining vigilance against the money laundering and terrorism financing risks associated with the increase in virtual asset transactions, such as cryptocurrency. BSP Deputy Governor Chuchi G. Fonacier highlighted that the central bank is proactive and supportive amidst the surge in users and transactions involving virtual assets, but also recognises the need for appropriate regulatory mechanisms. The BSP has regulated virtual asset service providers (VASPs) and has aligned its regulations with global risk management standards, such as the Financial Action Task Force (FATF) guidance on money laundering. The Philippines, under increased monitoring by the FATF, has been on its ‘gray list’ since 2021.