Business split on impeachment outcome
PROTESTERS gather in front of California National Guard soldiers and LAPD officers guarding the Edward R. Roybal Federal building in Los Angeles on June 10. BLOOMBERG PHOTO
By Andrea E. San Juan @andreasanjuan
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WORLD » A16
TRUMP’S NATIONAL GUARD DEPLOYMENT SPARKS OUTRAGE IN CALIFORNIA, NEWSOM WARNS OTHER STATES TO PREPARE
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HE Senate must uphold the rule of law to ensure a stable and predictable environment in the country, according to a business group. In a statement on Wednesday, the Management Association of the Philippines (MAP) said it is “deeply concerned” by the decision of the Senate of the Philippines to remand the Articles of Impeachment to the House of Representatives. “We believe that the Senate has a constitutional duty to conduct, without any delay or disruption,
the impeachment trial of Vice President Sara Duterte. Abandoning this mandate undermines the integrity of our democratic processes,” MAP said. The business group said this impeachment trial goes beyond politics, as it is “fundamentally” about Good Governance and the Rule of Law. See related story in A3 Nation, “House on remand of impeachment case vs VP: A dangerous precedent.” MAP said that by allowing the trial to proceed, the Senate would affirm its commitment to transparency, accountability and other principles of Good Governance— giving the prosecution a “fair
chance” to present its case and the defense a full opportunity to respond and clear the respondent’s name. “Upholding the Rule of Law is essential not only to safeguard our institutions but also to ensure a stable, predictable environment for economic growth. It builds investor confidence, attracts jobgenerating investments, and ultimately benefits all Filipinos,” MAP noted. Meanwhile, an industry leader is urging the Congress to tackle “more urgent” matters such as the proposed wage hike, high prices of food, and initiatives to support the country’s small merchants in-
stead of “wasting” their time on the impeachment trial against Vice President Sara Duterte, which could scare off investors. “Why are we wasting our time? There are so many items more urgent on the national agenda. So they are forcing that process. Because many of them are fond of telenovela that’s why they want to continue with it. It’s a useless exercise. Why do they have to grandstand? The whole world is watching us. It’s bad enough that few investments are coming in, and the tourists are staying away because of scandals and kidnapping. And we have to add this telenovela See “Business,” A2
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PHL NO LONGER ‘DIRTY MONEY’ HUB, SAYS EC www.businessmirror.com.ph
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Thursday, June 12, 2025 Vol. 20 No. 242
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By Cai U. Ordinario @caiordinario
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HE European Commission has removed the Philippines from its list of “high-risk jurisdictions” when it comes to anti‑money laundering and countering the financing of terrorism (AML/CFT). NO LONGER A ‘DIRTY MONEY’ HUB TIMELINE
Feb 2025: PHL exits FATF grey list after nearly 4 years June 2025: European Commission removes PHL from AML/CFT risk list WHAT IS AML/CFT?
Anti-Money Laundering and Countering the Financing of Terrorism – a global regulatory standard to protect financial systems.
The European Commission said the Philippines is one of the countries that have already addressed their technical deficiencies on AML/CFT. Apart from the Philippines, other countries that were removed from the “dirty money” list also includes Barbados, Jamaica, Senegal and Uganda. “These countries have strengthened the effectiveness of their AML/CFT regimes and addressed
PHL’S PROGRESS IN AML/CFT
n Addressed technical deficiencies
n Strengthened effectiveness of anti-money laundering & anti-terror financing rules n Compliance with FATF action plan
NEXT STEP: EU Parliament to confirm EC decision within 1–2 months under AMLD IV
WHO’S IN, WHO’S OUT “A vote of confidence.”
—Remolona on PHL’s FATF grey list exit
COUNTRIES REMOVED FROM EC DIRTY MONEY LIST Philippines Barbados Jamaica Senegal Uganda
COUNTRIES ADDED TO THE DIRTY MONEY LIST Algeria Angola Côte d’Ivoire Kenya Laos
Lebanon Monaco Namibia Nepal Venezuela
SEA Countries Still Listed: Laos, Myanmar, Vietnam
technical deficiencies to meet the commitments in their action plans on the strategic deficiencies identified by the FATF [Financial Action Task Force],” the EC said in a statement. “The Commission concludes that these countries have addressed the strategic deficiencies identified in their AML/CFT regimes. It is therefore appropriate to remove these countries from See “PHL,” A2
BSP: SCAM COMPLAINTS MAY DECLINE WITH AFASA IN PLACE
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HE Bangko Sentral ng Pilipinas (BSP) may see a decline in bank complaints, especially when it comes to scams and fraudulent transactions, with the passage of the Anti-Financial Account Scamming Act (Afasa). In a briefing on Wednesday, BSP Office of the General Counsel and Legal Services Deputy Director Janice G. Ayson-Zales said the Afasa allows banks to immediately hold accounts once they receive complaints from account holders. Ayson-Zales said this is one of the key features of the Afasa which allows banks and other financial institutions, including
e-wallets, to hold disputed funds initially for five days which can be extended to 30 days. “With the passage of Afasa, we are anticipating that complaints will go down because, for example, if the banks are able to interconnect the FMS, the fraud management system, so in case there are behavioral anomalies, the bank will stop the transaction,” Ayson-Zales said. “If you’re in Manila, tapos [and then] after five minutes there are transactions in Europe, [through] the FMS, the transactions being done by the scammer in Europe, [the transaction] should be stopped by the See “BSP,” A2
BM Graphics: Ed Davad
PHL OFF THE LIST:
REFLECTIONS OF FREEDOM Children play beneath waving Philippine flags at the Aguinaldo Shrine in Kawit, Cavite, their joyful figures reflected on the rain-soaked ground. It was here, on June 12, 1898, that General Emilio Aguinaldo declared the nation’s independence from Spain and raised the Philippine flag for the first time, giving it the distinction of being Asia’s first republic. Over a century later, the shrine stands as a bridge between history and the present, as the country prepares to mark the 127th Independence Day with the theme Kalayaan 2025: Kalayaan, Kinabukasan at Kasaysayan. NONIE REYES
Public financial mgt report: PHL still at risk By Reine Juvierre S. Alberto @reine_alberto
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HILE the Philippines made notable gains in fiscal discipline, resource allocation and service delivery, weaknesses in these areas could still undermine the country’s public financial management (PFM) performance. Based on the results of the 2024 Philippine Public Expenditure and Financial Accountability (Pefa) Performance Assessment Report, the country’s PFM system demonstrated strong performance in maintaining actual expenditure and revenue close to budgeted amounts in terms of fiscal discipline. Debt management practices, through the monthly, quarterly and annual reconciliation of debt
data and public reporting of debt service and stock, were also cited as reinforcing fiscal prudence. However, the report flagged weaknesses in expenditure control and fiscal risk reporting, which could undermine fiscal discipline and increase the risk of unplanned deficits and debt accumulation. In terms of resource allocation, the PFM system was found to be relatively strong, particularly in integrating performance information and prioritizing investments. To ensure that strategic goals and resource allocation are aligned, comprehensive annual performance plans outline the policy objectives, key performance indicators and planned outcomes. Major investment projects in the country are also prioritized to direct resources towards initiatives with high economic impact, while
transfers to local government units are governed by rules and procedures. Still, the report raised concerns about strategic alignment and medium-term planning. It noted that department-level expenditure forecasts remain incomplete, and adjustments to medium-term projections are often not adequately explained in budget documents. “Resource misallocations could hinder the government’s ability to address pressing national objectives, including infrastructure development and poverty alleviation,” the report said. On service delivery, the report acknowledged improvements in transparency and accountability, including the publication of data on departmental outputs and outcomes and the expansion of pro-
curement monitoring systems. Yet, gaps remained in accountability mechanisms, including the absence of an independent procurement complaints body and limited legislative action on audit recommendations. “Weaknesses in service delivery monitoring and asset management constrain the PFM system’s ability to achieve efficient outcomes, particularly in education, health, and infrastructure,” it said. The 2024 Pefa Assessment is the first multiframework, multistakeholder assessment of its kind in the Philippines, led by the Asian Development Bank (ADB), with support from development partners. The PFM Committee launched the results of the PEFA Reports, providing an evidence-based look at the strengths and weaknesses of the See “Public,” A2
PESO EXCHANGE RATES n US 55.7620 n JAPAN 0.3850 n UK 75.2899 n HK 7.1054 n CHINA 7.7587 n SINGAPORE 43.3507 n AUSTRALIA 36.3624 n EU 63.7081 n KOREA 0.0409 n SAUDI ARABIA 14.8683 Source: BSP (June 11, 2025)