ADB rolls out assistance program vs dirty money

The Asian Development Bank (ADB) has set in motion a regional project that helps the banking and finance sectors in four developing member countries, including the Philippines, fight money laundering and financing for terrorism.

The project is backed by a $1 million technical assistance grant obtained from ADB’s Technical Assistance Special Fund.

The project also covers Bhutan, Mongolia, Papua New Guinea and the Philippines.

The project aims to improve the implementation of antimoney laundering regulatory measures as well as regulations meant to combat the financing of terrorism.

It also strengthens the capacity of domestic banks and nonbank financial institutions (NBFIs) to comply with the requirements of the Paris-based Financial Action Task Force (FATF).

Subproject B builds on the gains of Subproject A which supported the targeted DMCs to expand the reach of domestic anti-money laundering and anti-terrorism financing reforms beyond the banking sector.

It intends to deepen the impact of these reforms by helping the governments of the targeted member-country to ensure that the improved regulatory frameworks are adequately implemented by the domestic banking sector, nonbank financial institutions, and designated non-financial businesses and persons.

ADB was one of the first multilateral development banks to address risks to financial sectors arising from money laundering.

Since 2000, it has been implementing regional and country-specific assistance programs to capacitate DMCs.

In 2003, it adopted its current policy on money laundering and financing of terrorism.

The policy has four key elements: assist DMCs to establish and implement effective legal and institutional systems to combat money-laundering and financing of terrorism; increase collaboration with other international and donor organizations; strengthen internal controls; and enhance ADB staff capacity.