UNIVERSITY OF MINDANAO

Research Title: Extent of Financial Crime Incidents in the Philippines

Rosgicyl Asoy Mabolo Rcrim,

MCJ205 (4235) Economic Crimes

Dr. Carmelita Chavez

 INTRODUCTION

The Philippines deals with an ongoing challenge of widespread financial crime, including
corporate fraud, bribery, corruption, money laundering and cybercrime. Corruption had been
identified as the second most troubling economic crime in the country, and fraudulent schemes
and illegal practices were numerous.

The Anti-Money Laundering Act of 2001 and the Anti-Money Laundering Commission play an
important role in the Philippines’ efforts to combat financial crime. Despite progress in
addressing this issue, challenges remain due to poor enforcement and widespread corruption.
They also urge the country to implement their action plans to address the strategic gaps in the use
of anti-money laundering and counter-terrorism financing The paper no provides detailed
information on the extent of financial crime in the Philippines, shedding light on illegal financial
activities

PRESENTATION OF DATA AND DISCUSSION

MONEY LAUNDERING

The Philippines has been identified as a hotbed of money laundering, with weak law
enforcement and widespread corruption that allows the proceeds of crime to be easily laundered
has repeatedly infiltrated the country as an Economy about The company has filed for money
laundering on several occasions with the implementation of the Anti-Money Laundering Act
(AMLA) in 2010 and is active in money laundering cases appeal to the government.

The prevalence of money laundering is further compounded by the country’s booming

economy and position on the drug trafficking corridor. While no specific figures were provided
on the extent of money laundering in the Philippines, the country’s challenges in this area are
well documented Efforts to strengthen the effectiveness of the country’s AML/CFT regime and
provide financial intelligence and increased use of research skills.

TAX EVASION

Tax evasion is a major challenge for the Philippines, affecting the country’s revenue and
economic growth. The Department of Finance (DOF) estimates that tax evasion amounts to
about $5.2 trillion, contributing to the country’s underfunding. The Bureau of Internal Revenue
(BIR) is actively pursuing cases of tax evasion, and the Run After Tax Evasion (RATE) program
is pursuing cases of tax fraud and evasion through criminal investigations.
 A Philippine opinion poll ranked tax evasion as the 11th least serious moral issue,
slightly less serious than political violence or parental spanking, and slightly more serious than
the death penalty or terrorism Philippine government has gone has enforced tax laws and
penalties to prevent tax evasion, including measures such as increased tax accountability,
voluntary compliance, and cooperation with other government agencies to prevent tax evasion
The study identified a wide range of potential sources of tax evasion at The Philippines has
sustained them, including financially and legally.

ILLEGAL CRYPTOCURRENCY

Illegal crypto-currency schemes are a major concern in the Philippines, making the
country increasingly notorious for such activities. According to the Organized Crime Index, the
Philippines has become known for illegal schemes involving crypto-currency, promising huge
profits but putting Filipino foreign investors at risk Besides, the Philippine National Police anti-
cybercrime group warned of the dangers of crypto-currency gaming systems. Play-to-earn"
mobile and online games use fake prizes to steal millions of dollars’ worth of crypto-currency.

While specific statistical information on the extent of illegal crypto currency programs in
the Philippines is not readily available in the given areas, the country’s reputation for such
activities is well documented. The country has lost billions of pesos. It is important to note that
the overall illegal participation in cryptocurrency is still small, less than 1% of the total volume
but the growing trend in cryptocurrency is worrisome The country and activities have been
documented is well connected Governments and law enforcement agencies are so constantly
working towards providing cybersecurity measures to meet the challenges posed by illegal
cryptocurrency systems and protect investors and the public.

BRIBERY AND CORRUPTION

Bribery and corruption face major challenges in the Philippines, which is considered one
of the most corrupt countries in the world. According to the Corruption Perceptions Index (CPI)
released by Transparency International, the Philippines ranks first out of 180 countries in terms
of relative corruption, with an overall score of 33 out of 100 22 out of 31 countries and territories
in the region.

Bribery and corruption have been identified as the second most troubling financial crimes in the
Philippines. According to one study, 21% have experienced bribery and corruption, with losses
ranging from $5 million to $50 million. Most respondents reported an average of five frauds. The
prevalence of bribery and corruption in the Philippines poses a serious threat to the country’s
economy and governance. Lax domestic enforcement and widespread corruption allow the
proceeds of crime to be easily laundered, which has created challenges in tackling money
laundering.

CYBERCRIME

The Philippines faces a serious threat from cybercrime, leading to an increase in

economically motivated cybercrime and politically motivated cyberattacks According to the
Philippine National Police (PNP) Anti-Cybercrime Group (ACG). , more than 16,000 computer
crimes were recorded from January to August 2023, including internet fraud, legal access to
affiliated identity theft, atm /credit card fraud, threats, data compromise , images and videos
against visual abuse, electronic fraud, and unfair torture[4]. ACG also highlighted the use of
emerging technologies such as non-fungible tokens (NFTs), cryptocurrencies and online
gambling by cybercriminals to dupe unsuspecting victims

In June 2021, the Philippines reported 98.41 thousand cyber attacks, showing a sharp
decrease from the same month last year The country has a high rate of economic crimes related
to cybercrime one of the most, including fraudulent schemes and other illegal online practices.
rise when increasing actions. The Philippines is facing the challenge of effectively addressing the
problem of sharing illicit software and cybercrime with developing countries in Southeast Asia
and other parts of the world. As the technology spreads and grows in domestic industries and
industries, its use is expected to increase, due to lack of necessary preventive safeguards, and in
some cases, lack of understanding of the risks associated with its use for the sake of
understanding the injustice.

CONCLUSION

This research paper " sheds light on the country's widespread challenges in tackling various
economic crimes. The investigation highlights bribery, corruption, tax evasion, money
laundering and cybercrime a highly prevalent emphasis, which in aggregate undermine the
integrity of the monetary system. They emphasize widespread corruption and the need for more
drastic measures to effectively address these issues. The findings highlight the importance of
strengthening tax laws, enhancing enforcement capacity and promoting international cooperation
to combat financial crime The paper deals with the fight against financial crime first for the
Philippine government and related stakeholders to implement comprehensive measures to
safeguard the country’s economic integrity and enable sustainable economic development It
serves as a call a the importance of action
 RECOMMENDATION

The following recommendations can be made to address the broad challenges identified.

1. Strengthening anti-money laundering (AML) measures: The Philippines should continue to

upgrade its AML/CFT regime to address identified technical deficiencies in compliance. This
includes improving implementation of FATF recommendations and increasing the use of
financial reporting and investigative expertise to combat money laundering and terrorist
financing

2. Enhancing tax compliance and enforcement: The government should prioritize strengthening
tax laws and penalties to curb tax evasion. This can be achieved through encouraging voluntary
tax compliance, enhanced tax accountability and cooperation with other government agencies to
prevent tax evasion

3. Combating bribery and corruption. Efforts to combat bribery and corruption should be
strengthened, including the implementation of anti-corruption laws and the promotion of
transparent practices and good governance encouraged to.

4. Improve cybersecurity infrastructure. Given the increasing incidence of cybercrime, the

Philippines should focus on improving cybersecurity infrastructure to protect against cyber
crimes that the economy and provoked its politically motivated cyberattacks.

5. International Cooperation: The Philippines should continue to engage in international

cooperation and information sharing to effectively combat financial crimes, including money
laundering, tax evasion and cybercrime..