Senator Panfilo Lacson has introduced a significant legislative measure aimed at bolstering the powers of the Anti-Money Laundering Council (AMLC) in the Philippines. This initiative, known as Senate Bill 1557, seeks to extend the AMLC”s regulatory authority to encompass virtual asset service providers (VASPs) and several other sectors.
Filed on November 26, 2025, the proposed amendments to the Anti-Money Laundering Act (AMLA) aim to redefine the landscape of compliance and oversight in the financial sector. Key provisions of the bill include an expanded definition of covered entities, an update to the list of predicate offenses, and the empowerment of the AMLC to issue non-court subpoenas. These changes are designed to enhance the efficiency of bank inquiries and improve the overall effectiveness of the AMLC”s operations.
The inclusion of VASPs under AMLC supervision signifies a critical step in regulating the burgeoning cryptocurrency market in the Philippines. Additionally, the legislation will cover trusts, online gambling operators, real estate transactions, and the legal and accounting professionals associated with these entities.
Recent reports from the Financial Action Task Force (FATF) highlighted the progress made by the Philippines in regulating virtual assets. The introduction of licensing rules for VASPs and the enforcement of the Travel Rule have been pivotal in the country”s efforts to exit the FATF Grey List.
The existing AMLA, known formally as Republic Act No. 9160, serves as the backbone of the Philippines” defenses against financial crimes. Enforcement of this legislation by the AMLC mandates compliance from a diverse array of financial and non-financial institutions. These institutions are required to detect and report transactions associated with numerous predicate offenses, which include serious crimes such as drug trafficking, corruption, and terrorism financing.
In the context of this legislative proposal, a VASP is defined as an entity that facilitates activities involving virtual assets like cryptocurrencies or tokens. Licensed and regulated primarily by the Bangko Sentral ng Pilipinas (BSP), VASPs must adhere to strict anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. Compliance measures include customer due diligence, transaction monitoring, and reporting of any suspicious activities.
This proposed bill marks a significant evolution in the regulatory framework governing digital assets in the Philippines, reflecting the government”s commitment to addressing the challenges posed by financial crimes in an increasingly digital economy.
