Lacson Pushes Bill to Expand AMLC Powers, Fully Cover Virtual Asset Providers

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Senator Panfilo Lacson has filed a measure seeking to strengthen the Anti-Money Laundering Council (AMLC) with broader regulatory powers and expanded coverage of entities, including virtual asset service providers.

Senate Bill 1557

Filed on November 26, 2025, Senate Bill 1557 proposes amendments to the Anti-Money Laundering Act (AMLA) by widening the definition of covered persons, updating predicate offenses, and allowing the AMLC to issue non-court subpoenas and conduct more efficient bank inquiries.

The bill formally includes virtual asset service providers, trusts, online gambling operators, real estate buyers and sellers, and legal and accounting professionals of covered persons under AMLC supervision.

“Recent corruption issues have highlighted the complexities of financial crimes. Updating the AMLA to meet the requirements of the times would also prevent us from being placed in the FATF (Financial Action Task Force) Grey list again.”

Panfilo “Ping” Lacson, Senator, 20th Congress

The Financial Action Task Force reported in June 2025 that the Philippines has made progress in regulating virtual assets after introducing VASP licensing rules and enforcing the Travel Rule, developments that supported the country’s removal from the FATF Grey List. 

• The watchdog said the Philippines remains “Partially Compliant,” noting that implementation and supervision gaps persist.
• FATF added that while registered VASPs are operating under inspection and enforcement actions have been taken against non-compliant platforms, the country must further strengthen oversight to reach a higher compliance rating.

Other Provisions

• Updates and broadens predicate offenses, adding terrorism-related offenses, cybercrime, online sexual exploitation of children, anti-dummy violations, and agricultural economic sabotage.
• Sets a ₱150,000 threshold for casino customer due diligence, aligned with FATF standards.
• Authorizes AMLC to directly file freeze and civil forfeiture petitions, with or through the Office of the Solicitor General.
• Permits AMLC to suspend suspicious transactions as a preemptive measure.
• Enhances AMLC’s authority to inspect covered entities and strengthen risk-based supervision.
• Grants AMLC the power to administer oaths and handle quasi-judicial functions in administrative cases.
• Provides indemnity protection for AMLC personnel in harassment suits.
• Expands confidentiality rules to include all persons with access to AMLC information.
• Limits courts that may issue injunctive relief against AMLC actions to the Court of Appeals and the Supreme Court.

Current AMLA

The Philippines’ AMLA, or Republic Act No. 9160, serves as the country’s primary defense against financial crimes, which ensures the integrity of the financial system. 

Enforced by the AMLC, the law mandates strict compliance from a wide array of financial and non-financial institutions. The AMLA’s coverage requires these institutions to detect and report transactions linked to any of the country’s extensive list of predicate offenses—the unlawful activities that generate illicit funds, such as drug trafficking, corruption, and terrorism financing.

Covered Persons:

• Financial Institutions: Banks, insurance firms, money service businesses, and Virtual Asset Service Providers (VASPs).
• DNFBPs: Casinos, jewelry dealers, and real estate brokers/developers (for transactions above ₱500,000).

Key Obligations:

1. Verify the true identity of all clients (Know Your Customer).
2. Reporting:
   • Covered Transactions (CTRs): File reports for single transactions over ₱500,000 (or ₱5,000,000 for casinos).
   • Suspicious Transactions (STRs): Report any transaction, regardless of amount, that lacks legal justification or suggests illicit activity.
3. Maintain all transaction records and identification data for five years

Compare and Contrast

Area	Current AMLA	Proposed SB 1557	Comparison / Impact
Virtual Assets	Covered. Currently included by regulation (BSP/AMLC), treating them as MSBs/financial institutions.	Explicitly Designated. The bill formalizes and entrenches their status in the primary law.	Clarifies VASP status in the main law, making the coverage permanent and less subject to regulatory changes.
Real Estate	Limited. Only Real Estate Developers and Brokers are covered, and only for cash transactions exceeding ₱500,000.	Expanded to include those buying and selling real estate.	Significant Expansion. This widens the net to include buyers/sellers themselves, targeting real estate as a common money laundering vehicle.
Legal/Accounting	Excluded. Lawyers and Accountants are excluded when acting as independent legal professionals where client confidentiality/privilege applies.	Expanded. The exclusion is removed for lawyers and accountants of covered persons.	Significant Shift. This aims to close a loophole where professional services can be used to set up or conceal laundering schemes.
Trusts	Partially Covered. Generally covered through the trust departments of banks (Covered Persons).	Explicitly Designated. Trusts themselves are added as covered persons.	Ensures that trusts, regardless of where they are administered, are subject to reporting obligations.
Online Gambling	Limited. Only Casinos (including internet and ship-based) are currently covered.	Expanded to include online gambling operators regardless of their license classification.	Widens the Scope. Targets all online gambling platforms, closing loopholes that may exist for smaller or non-PAGCOR regulated operators.
Casino Threshold	Covered Persons (Casinos) must conduct CDD/KYC for single transactions above ₱5,000,000.	Proposed CDD threshold set at ₱ 150,000 (equivalent to FATF’s prescribed USD 3,000).	Massive Decrease in Threshold. This is a major change to align with international FATF standards, making it much harder to launder money through casinos.

What are VASPs?

A VASP, or Virtual Asset Service Provider, in the Philippines is an entity licensed and regulated primarily by the Bangko Sentral ng Pilipinas (BSP). It is a business or entity that facilitates activities involving virtual assets, such as cryptocurrencies or tokens. 

This includes:

• Exchanges that allow buying, selling, or trading virtual assets.
• Wallet providers that store or transfer virtual assets.
• Custodians that manage assets on behalf of clients.
• Other services like token issuance platforms, decentralized finance (DeFi) intermediaries, and brokers.

VASPs are subject to anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, including customer due diligence, transaction monitoring, and reporting suspicious activity. Essentially, they act as the regulated financial intermediaries of the digital asset ecosystem.

Check out: List of Licensed Virtual Currency Exchanges in the Philippines.

This article is published on BitPinas: Lacson Bill Expands AMLC Powers, Fully Covers Virtual Asset Providers Under Oversight

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