AML/KYC in Philippines: Regulations, Laws, and More (2025)

I fell down a rabbit hole about Philippine banking regulations last month after a friend mentioned how much easier it’s gotten to open business accounts there.

Turns out, the whole AML/KYC situation in the Philippines is actually pretty interesting if you’re into regulatory stuff (which, apparently, I am now). It’s not the bureaucratic disaster you might expect from reading old forum posts from 2018-2019.

From what I could piece together from talking to people who actually work there, plus digging through BSP circulars and way too many compliance blogs, the system has quietly gotten its act together over the past few years.

The weird part? Most of the articles I found online are still talking about the old headaches. So if you’re trying to understand what AML and KYC compliance actually looks like in the Philippines right now, a lot of what you’ll find is outdated.

Here’s what I learned

AML/KYC in the Philippines: A Quick Glance

In the Philippines, KYC is the required process businesses must follow to confirm their customers are who they say they are. It’s the frontline defense against money laundering and terrorism financing. This entire system is overseen by a few key government bodies, primarily the Anti-Money Laundering Council (AMLC) and the Bangko Sentral ng Pilipinas (BSP).

To get the job done, you need to collect and double-check a few key pieces of information from your customers. A smooth digital onboarding process is really the best way to handle this.

Here are the basic documents you’ll typically need for your KYC due diligence in the Philippines:

• Valid, government-issued photo ID (like a passport, driver’s license, or the new PhilID)
• Recent proof of address (like a utility bill)
• Official registration documents (for business accounts)

Getting these documents in order is your first step toward building a compliant and trusted relationship with your customers.

Who Needs to Conduct AML/KYC Due Diligence in the Philippines?

The AML rules in the Philippines don’t just apply to banks. The law casts a wide net, and if your business handles financial transactions, there’s a very good chance you’re considered a “covered person.”

Here’s a look at some of the businesses that need to have a full AML compliance program in place:

• Banks and Financial Institutions: This includes all types of banks, from large commercial ones to smaller rural banks.
• Non-Bank Financial Institutions: Think pawnshops, money transfer services, and digital payment operators.
• Insurance Companies: This covers all insurance companies, brokers, and related businesses.
• Securities Dealers and Brokers: Investment houses and any firm dealing with securities fall under this.
• Designated Non-Financial Businesses (DNFBPs): This is a broad category that includes casinos, real estate brokers, and dealers in precious metals and stones.

If your business is on this list, having a solid KYC process is not optional.

Key AML/KYC Regulations in the Philippines

The country’s AML/KYC framework is built on a few key laws and regulations. Here’s a rundown of the ones that matter most for your business.

• BSP Circular 1170 – Latest e-KYC Regulations

This is one of the most important recent updates for any business operating online. Issued by the Bangko Sentral ng Pilipinas, Circular 1170 officially gives the green light for electronic KYC (e-KYC). This means you can now onboard customers remotely using modern technology. 

The circular specifically allows for tools like video calls and biometric verification, which have been a major boost for digital banking and financial inclusion in the country.

• Anti-Money Laundering Act in the Philippines

The Anti-Money Laundering Act of 2001 (AMLA) is the foundational law for all AML and KYC rules in the country. It defines what money laundering is, creates the AMLC to act as the financial intelligence unit, and outlines the core duties for all businesses. 

These duties include customer identification, record-keeping, and reporting suspicious transactions.

• Philippine Identification System Act – Republic Act No. 11055

This law, known as the PhilSys Act, created a single, unified national ID system for all citizens and resident aliens. The resulting national ID, called the PhilID, is now accepted as a primary and sufficient proof of identity for any transaction, including opening a bank account. This is designed to make digital identity verification simpler and more accessible for everyone.

• BSP Manual of Regulations for Banks – Section 921/921Q

If the AMLA is the main rulebook, this section of the BSP’s Manual of Regulations is the detailed instruction manual for banks. It gets into the specifics of how to perform customer due diligence, what information to collect, and how to manage risk. It’s the practical guide that banks use to build their day-to-day compliance operations.

• Terrorism Financing Prevention and Suppression Act – Republic Act No. 10168

This law expands on the AMLA to specifically target the funding of terrorism. It gives the AMLC the power to investigate and freeze assets suspected of being linked to terrorist activities. For businesses, this means your transaction monitoring systems must also be designed to spot and report any red flags related to terrorism financing.

How to Streamline AML/KYC Due Diligence in the Philippines

A clunky, manual onboarding process is a great way to lose good customers before they even get started. This is where technology can make a real difference. An automated system can handle the heavy lifting of verification, turning a slow manual task into a fast and seamless background process. 

For example, OCR technology can instantly pull information from an ID, while other tools can check it against government databases in real time.

Signzy’s platform is designed to handle these challenges, helping you build an efficient and compliant onboarding process with ready-to-use APIs.

• Automated Document Verification: Our system can instantly verify a wide range of Philippine government-issued IDs, including the new PhilID, checking for security features and signs of tampering.
• Liveness and Biometric Checks: Our face match technology confirms that the person presenting an ID is its rightful owner by comparing a live selfie to the document photo, which is a key part of modern fraud detection.
• Scalable and Flexible APIs: Our solutions can be easily plugged into your existing infrastructure, allowing you to build a KYC workflow that grows with your business and adapts to your specific needs.

Curious how this can streamline your compliance process? Let’s walk through a quick demo created specifically for your team’s needs in the Philippines.