AMLC Pushes for Broader Powers to Seize Criminal Assets Amid Rising Financial Crime

The Philippines' Anti-Money Laundering Council (AMLC) is seeking expanded legal authority to go after assets linked to criminal activities, a move that could reshape the country's fight against financial crime.

In a proposal submitted to lawmakers on Thursday, the AMLC argued that current laws are insufficient to keep pace with sophisticated money laundering schemes and the growing scale of illicit wealth. The council is requesting powers to freeze and confiscate assets not only from convicted criminals but also from those suspected of involvement in predicate crimes, even before formal charges are filed.

What the AMLC Is Asking For

The proposed expansion includes several key provisions:

• Preventive asset freezing: Authority to freeze suspicious assets for up to 90 days without a court order, extendable upon judicial approval.
• Non-conviction-based forfeiture: Ability to seize assets even if the owner is not convicted, as long as there is clear evidence the property was derived from criminal activity.
• Cross-border asset tracking: Enhanced cooperation with foreign financial intelligence units to trace assets moved overseas.
• Coverage of new predicate crimes: Inclusion of environmental crimes, illegal gambling, and cyber fraud under the anti-money laundering law.

Why Now?

Financial crime in the Philippines has evolved dramatically in recent years. According to the AMLC's 2025 annual report, suspicious transaction reports (STRs) surged by 34% compared to the previous year, with over 12,000 cases flagged. The council estimates that billions of pesos in criminal proceeds remain hidden in real estate, luxury goods, and offshore accounts.

“Criminals have become more sophisticated, using shell companies, cryptocurrency, and trade-based laundering to obscure their tracks,” said AMLC Executive Director Maria Santos in a statement. “Our current legal toolkit was designed for a different era. We need updated powers to protect the integrity of our financial system.”

Context and Background

The AMLC was established in 2001 under Republic Act 9160, primarily to combat money laundering and terrorist financing. Over the years, it has successfully frozen assets worth over PHP 15 billion, including those linked to drug trafficking, corruption, and human trafficking. However, critics argue that the council's powers remain limited compared to similar bodies in Singapore, Hong Kong, and Australia.

One major hurdle is the requirement for a criminal conviction before assets can be permanently forfeited. This has allowed many accused individuals to retain their wealth even after lengthy court battles. The proposed non-conviction-based forfeiture model, already used in countries like the United States and the United Kingdom, would shift the burden of proof to asset owners to demonstrate legitimate sources.

Implications and Analysis

Legal experts are divided on the proposal. Supporters argue it is a necessary tool to dismantle criminal enterprises and deter future crime. “Organized crime thrives on the ability to enjoy the fruits of illegal activity,” said Atty. Ricardo Cruz, a former AMLC commissioner. “If criminals know their assets can be seized even without a conviction, it removes a major incentive.”

However, civil liberties groups warn of potential abuse. “Granting the AMLC preemptive freezing powers without robust judicial oversight could lead to violations of due process,” said Human Rights Watch Philippines researcher Liza Mercado. “We need safeguards to prevent the targeting of political opponents or innocent business owners.”

The proposal also raises questions about the AMLC's capacity. With only 200 investigators handling thousands of cases, critics doubt the council can effectively manage expanded authority without significant budget increases and staffing upgrades.

What’s Next?

The bill is expected to face heated debate in Congress, where it has been referred to the Committee on Banks and Financial Intermediaries. Lawmakers from both the majority and minority blocs have expressed cautious support, though amendments are likely.

If passed, the expanded powers could take effect by early 2027. The AMLC has already begun training its staff on advanced forensic accounting and blockchain analysis to prepare for the new responsibilities.

For now, the Philippines remains on the Financial Action Task Force's (FATF) “grey list” of countries under increased monitoring for money laundering deficiencies. Strengthening the AMLC's powers could be a key step toward removal from that list, boosting investor confidence and the country's international reputation.

As the battle against financial crime intensifies, the AMLC's push for broader authority marks a pivotal moment—one that could either fortify the nation's defenses against illicit wealth or raise troubling questions about state power and individual rights.