1. AUDIT TO DETECT FRAUD AND CORRUPTION: EVALUATION OF THE FIGHT AGAINST CORRUPTION AND MONEY LAUNDERING
The 10th ASOSAI Research Project
Atty. ALEXANDER B. JULIANO
Director – Fraud Audit Office
Commission on Audit - Philippines

2. Assessment of Current Situation of Anti-Corruption in the Philippines

3. The Philippines Anti-corruption Strategy
Stand-alone anti-corruption program or anti-corruption strategy

4. The Philippines Anti-corruption Strategy
Umbrella document with separate programs for sectors or ministries
Inter-agency Anti-Graft Coordinating Council

5. The Philippines Anti-corruption Strategy
Section in another policy document, e.g. national development or investment program
Strategies are embodied in Anti-corruption Laws
Specific laws, courts, and prosecutors dedicated to government anti-corruption

6. CHAPTERS IN THE ANTI-CORRUPTION DOCUMENT
Background chapters
Level of implementation of previous strategy
Objectives and priority areas
Chapters on prevention and criminalisation / law-enforcement measures
Public participation/education
Monitoring and assessment mechanism and criteria

7. ACTION PLAN
The anti-corruption strategy has an action plan embodied in the Anti-Corruption Laws

8. ELEMENTS OF THE ANTI-CORRUPTION ACTION PLAN
General objectives
Specific measures
Specific institutions
Time-frame
Criteria for assessing implementation
Budget specially allocated
Institution responsible

9. The anti-corruption documents and action plans are published
PUBLICATION
The anti-corruption documents and action plans are published

10. MEASURES EMPLOYED IN FIGHTING CORRUPTION
Open and transparency in the operation of agencies
Development and implementation of entitlements, norms and standards
Administrative reform
Development and enforcement of the code of conduct and the code of professional ethics
Penalty forms to heads of the agencies in case of occurrence of corruption
Salary payment via bank account
Declaration of assets and income
Regulation of returning gift by the public officials
Whistle blowing and prohibition of acceptance of gift/donation

11. ANTI-CORRUPTION AGENCIES
The Office of the Ombudsman
Department of Justice
The National Bureau of Investigation
The Commission on Audit

12. MAIN RESPONSIBILITIES/FUNCTIONS OF THE ACA
Monitor and evaluate the implementation of the anti-corruption strategy
Collect, centralize and exploit the denunciations
Conduct investigations 
Disseminate knowledge on anti-corruption activities
Raise public awareness about the fight against corruption
Identify the causes of corruption and to propose to the competent authorities of measures to help eliminate it
Draw a risk map of corruption in the country
Anti-corruption screening of legal acts
Research and analysis on corruption
Keep a database on the statistics regarding cases of corruption year by years
Research and analysis on conflict of interest in the public management

13. RE-EVALUATION OF BODIES/ AREAS/ ACTIVITIES HAVING HIGH RISK OF CORRUPTION
The ACAs regularly re-evaluate the bodies, areas and activities with high risk of corruption in order to employ appropriate measures to mitigate corruption

14. The ACAs have a hotline and website in order to facilitate citizens’ complaint on corruption.

15. CRIMINALIZATION OF DIFFERENT TYPES OF CORRUPTION
Special Law
Criminal Law

16. NEED TO ENACT NEW LEGISLATION
Abuse of position/power
Influence peddling
Kickback
Nepotism
Political dynasty

17. RANKING OF CORRUPTION MEASURES
1 Preventive policies and measure
2 Detective actions
3 Punitive measure

18. LAWS AND REGULATIONS GOVERNING THE FINANCING OF POLITICAL PARTIES
The Omnibus Election Code

19. The Philippines have laws and regulations governing code of ethics of and declaration of assets by public officials

20. The Philippines has “accounting and auditing standards” for both public and private sectors

21. Our public officials have legal obligation to report corruption-related offence

22. IMPLEMENTATION RATE OF THE RULES/REGULATION IN COMBATING CORRUPTIONS
Very poor
Poor
Fair 1 2

23. Memorandum of Implementation signed on June 14, 2013
THE PHILIPPINES HAS RATIFIED UNITED NATIONS CONVENTION AGAINST CORRUPTION (UNCAC)
Memorandum of Implementation signed on June 14, 2013

24. The Philippines has begun the UNCAC peer review process

25. The Philippines is a member of anti-corruption conventions, initiatives or international project (OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions; GRECO etc.)
Yes 3

26. SUCCESS LEVEL OF INTERNATIONAL COOPERATION
Extradition
Mutual legal assistance
Asset recovery
Cooperation with law enforcement authorities
Cooperation between national authorities
Moderate
Low
High

27. EFFECT OF MEDIA IN FIGHTING CORRUPTION
To some extent, media have helped public to recognize the real situation of corruption, however the provided information are sometimes inaccurate and subjective

28. SOCIETY’S PARTICIPATION IN
TACKLING CORRUPTION
Actively but not effectively

29. About the same as past years
PRESENT LEVEL OF ANTI-CORRUPTION EFFORTS COMPARED TO PAST YEARS EXPERIENCE
About the same as past years

30. PARTICIPANTS TO ANTI-CORRUPTION EDUCATIONAL AND TRAINING PROGRAMS
Public officials
Non-governmental organizations
Businessmen
Media

31. FACTORS THAT INHIBIT THE RESULT OF THE FIGHT AGAINST CORRUPTION
Corrupt people are not severely punished
The collusion between law enforcers and corrupt people
Authorized officials lack commitment
Some superiors cover up for their subordinates
Afraid of retaliation and victimization
Have not mobilized well people’s and media’s participation
Lack of competent and experienced staff
Lack of capacity and financial resources
Insufficient pay and benefits to government employees
Public officials lack political will
Corruption too ingrained in government institution

32. THE RESULT OF THE CURRENT FIGHT AGAINST CORRUPTION
Have had positive impact

33. ROLE OF CITIZENS IN FIGHTING CORRUPTION
The citizens help to promote public sector transparency and accountability
Complaint system/ Whistle Blower, and Denunciation

34. Assessment of Current Situation of Anti- Money Laundering in the Philippines

35. Money laundering is a criminal offence in the Philippines

36. LAW GOVERNING ANTI-MONEY LAUNDERING
Republic Act Anti-Money Laundering Act of 2001

37. R.A. 9160 could not cover all money laundering aspects to deal with this phenomenon

38. RATE OF IMPLEMENTATION OF ANTI-MONEY LAUNDERING LAW
Fair
Good 2

39. The Philippines has a national Financial Intelligent Unit (FIU) functioning as national center for the collection, analysis, and dissemination of information regarding potential money laundering offences

40. The Anti-Money Laundering Council (AMLC) is the
official authority in-charge of anti-money laundering

41. ANTI-MONEY LAUNDERING MEASURES WHICH HAVE BEEN APPLIED EFFECTIVELY
Identify customer and update customer information
Report, provide and save information
Gather, treat and transform information
Apply temporary measures to adjudge violations
Investigation of predicate crimes to money laundering
Institute civil forfeiture proceedings against proceeds of crime
Cause the filing of complaints for the prosecution of money laundering offenses

42. OUR AMLC ENJOYS INDEPENDENCE
Legal
Functional
Financial
Recruitment of employees

43. THE FOLLOWING FUNCTIONS
OUR AMLC PERFORMS
THE FOLLOWING FUNCTIONS
Developing policies and improving legislation
Data collection, analysis and evaluation
Supervision and coordination
Investigation of the cases
Raising awareness in the public
Carry out researches
Carrying out examination of the cases
Requesting any kind of information
Prosecution of money laundering and related cases

44. RANK OF THE EFFECTIVENESS OF ANTI-MONEY LAUNDERING MEASURES1
Preventive policies and measures 2
Detective actions 3
Punitive measure

45. The citizens may inform (denounce) the country’s AML Board about a suspected case of money laundering via website of the AML Board or via letter

46. UPDATED RULES AND INFORMATION ABOUT ANTI-MONEY LAUNDERING
Recent amendment to RA 9160

47. The AMLC requires all financial institutions to have anti-money laundering (AML) & Know Your Customer (KYC) procedures

48. FINANCIAL INSTITUTIONS HAVE TO COMPLY WITH LEGAL OBLIGATIONS CONCERNING ANTI-MONEY LAUNDERING LAW
Internal controls
record-keeping requirements
Thorough client identification
Creating and updating list of red flags
Prohibition of anonymous account
Employee training programs
Independent audit/ compliance function
Monitoring program
Policies covering relationship with politically exposed persons
Policy protecting accounts / relations with shell banks
Policy of protecting employees

49. FINANCIAL INSTITUTIONS ARE OBLIGED TO COMPLY WITH LEGAL OBLIGATIONS OR ADMINISTRATIVE POLICIES IN TERMS OF CLIENT DUE DILIGENCE PROCEDURES
Implementation systems for the identification of its customer
Collecting information and assessing its customer’s AML policies and practices
Screening its customer’s information against sanction list
Regular updating and verification / validation of customer’s information

50. MOST COMMON TYPES OF SUSPICIOUS TRANSACTION REPORTS (STR) FROM FINANCIAL INSTITUTIONS
Inconsistencies with the financial profile
Financial transactions involving the person(s) considered in the “high risk” category
Unusually large cash transactions
Suspicious behaviours
Unusual use / exchange of cash
Refusals to show identification
Avoiding reporting obligations
Unusual account activities
Cutting large amount of transaction into pieces
Clear evidence of illegal activities linked with a transfer

51. FINANCIAL INSTITUTIONS ARE OBLIGED TO COMPLY WITH FATF RECOMMENDATIONS
Yes
Although not a FATF Member, Philippine Laws are substantially compliant with FATF recommendations

52. Rate of AMLC’s ability to cooperate and exchange financial information at international level
Good
Very Good 2

53. There are cooperation agreements or protocols among the local institutions in our country to share financial information and financial transfers and if it’s involved with money laundering

54. ROLE OF CITIZENS IN FIGHTING MONEY LAUNDERING
The citizens help to promote public sector transparency and accountability
Civil society is also engaged in anti-money laundering efforts
Complaint system/ Whistle Blower, and Denunciation

55. The penalties for money laundering incidents are appropriate

56. FACTORS THAT INHIBIT THE FIGHT AGAINST MONEY LAUNDERING
Money laundering criminals are not severely punished
Limited capacity of staff and resources to handle said cases
The collusion between enforcement officers and money laundering criminals
Limitation of citizen’s knowledge about money laundering criminal
Lack of competent and experienced staff to handle money laundering cases
Inherent difficulty in detecting and investigating money laundering cases
Laws protecting the depositors and other privacy issues

57. PARTICIPANTS TO ANTI-MONEY LAUNDERING EDUCATIONAL AND TRAINING PROGRAMS
Public officials but only few /selected public officials have been provided with training
schools
General Public
NGOs
Financial Institutions (bank etc.)
Business associations and private companies

58. Controlling systems are the keystone and deterrent for fighting against money laundering
Yes 4

59. There are high institutions providing training workshops for the employees of controlling agencies about methods to detect money laundering
Yes 4

60. RESULT OF THE CURRENT FIGHT AGAINST-MONEY LAUNDERING
Have had positive impact