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Philippines: Real estate sector at medium high vulnerability to dirty money
14 Jul 2021

The Philippines’ real estate sector has a medium high vulnerability to dirty money transactions due to limited anti-money laundering/combating the financing of terrorism (AML/CFT) regulation, according to the Anti-Money Laundering Council (AMLC).

In a report, the AMLC said it received 142,562 covered transaction reports (CTRs) worth P684.4 billion, as well as 5,416 suspicious transaction reports (STRs) worth P321.4 billion.

Under Republic Act 11521 or the Anti-Money Laundering Act (AMLA) of 2001, real estate covered persons are required to report single cash transactions in excess of P7.5 million or its equivalent in other currencies.

Likewise, covered persons, including banks and other financial institutions, are also required to submit STRs regardless of the amount and mode of payment.

The AMLC said that most of the sample CTRs ranging from P500,000 to P3 million cornered 76.1 percent of the total CTRs, while transactions in excess of P7.5 million accounted for only 10.7 percent.

The banking sector accounted for 99 percent of the CTRs, with commercial banks corner 85.8 percent followed by savings and mortgage banks with 9.4 percent, government banks with 3.2 percent and private development and rural banks with 1.25 percent.

By Lawrence Agcaoili, The Philippine Star, 14 July 2021

Read more at The Philippine Star

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