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Financial Regulators Tighten Grip: The Impacts of New AML Rules on Remittances to the Philippines from Germany

17 Apr 2024

Filipinos in Germany form a vibrant and significant community, contributing substantially to their host country and homeland through regular financial support.

However, recent developments in Anti-Money Laundering (AML) regulations within both Germany and the Philippines are impacting the landscape of money transfers, posing potential challenges and requiring adaptations for those who send money to Philippines from Germany.

This comprehensive guide delves into the key changes, their potential implications for Filipino expats in Germany, and strategies for navigating the new regulatory environment to ensure your remittances reach loved ones back home securely and efficiently.

Tightening the Grip: Regulatory Updates in Germany and the Philippines  

Let's start with the regulatory updates of Germany first.

EU's 6th AML Directive

This directive, implemented in June 2021, strengthens customer due diligence (CDD) requirements for money transfer providers, mandating stricter verification procedures for senders and beneficiaries.

Money transfer providers must conduct thorough background checks on senders and recipients, potentially leading to longer processing times and additional documentation requirements.

PSD2 Update

The revised Payment Services Directive 2 (PSD2) introduces stricter authentication measures for online payments, potentially impacting how Filipino expats authorize money transfers. 

Increased scrutiny of transactions, particularly high-value transfers, might trigger additional verification steps or delays.    

Suspicious Activity Reporting

Providers must report suspicious activity to authorities, which could lead to temporary holds on transactions while investigations are conducted.

Now, let's discuss regulatory updates in the Philippines.

Bangko Sentralng Pilipinas (BSP) Regulations

The Philippine Central Bank has issued stricter AML regulations for remittance service providers to combat money laundering and terrorist financing. 

Taxation Updates

Recent changes in Philippine tax laws might affect how remittances are processed and received, depending on the amount and purpose of the transfer.

Potential Impacts for Filipino Expats

Let's discuss the impact these updates may have on OFWs.

Enhanced verification procedures

Expect more stringent identity verification steps when sending money, involving document submission and potential physical verification.

Increased processing times

Due to stricter checks, money transfers might take slightly longer to be processed and delivered.

Potential Fees

Additional fees might be incurred to cover the costs associated with enhanced due diligence and regulatory compliance.

Tax Implications

Understand the revised tax regulations in the Philippines to ensure your remittances comply and reach beneficiaries without unnecessary deductions.

Additional Documentation

Be prepared to provide more information about yourself, the recipient, and the purpose of the transfer.

Potential Transaction Delays

High-value transfers or those flagged as suspicious might be subject to additional scrutiny and potential delays.

Choosing Compliant Providers

Opting for reputable money transfer services like ACE, with robust AML compliance procedures, is crucial when you send money online to Philippines from Germany.

Adapting to the New Landscape

Here, we talk about ways to deal with the regulatory updates.

Choose Licensed Providers

Opt for reputable money transfer services licensed and compliant with regulations in Germany and the Philippines, such as ACE.   

Prepare Necessary Documents

Keep your identification documents, proof of income, and beneficiary information readily available to facilitate verification.

Plan for Potential Delays

Factor in slightly longer processing times when planning your remittances to avoid last-minute disruptions.

Stay Informed

Regularly check with your chosen money transfer provider and relevant authorities for updates on regulations and compliance requirements.

Be Transparent

Provide accurate and complete information during transactions to avoid unnecessary delays.

Staying Connected, Securely

Reliable money transfer services like ACE Money Transfer adhere to evolving regulations while ensuring a smooth and secure remittance experience. 

ACE'S recent app update offers enhanced security features, a user-friendly interface and streamlined verification processes, making a money transfer from Germany to Philippines easier than ever. 

With ACE Money Transfer, you can be confident that your hard-earned funds reach your loved ones securely and efficiently, even amidst changing regulations. 

Way Forward

While new AML regulations might initially seem like hurdles, they aim to create a safer and more transparent financial ecosystem for everyone.

By understanding the changes, choosing compliant providers, and staying informed, Filipino expats in Germany can continue supporting their families back home with peace of mind.

Remember, reliable money transfer services like ACE Money Transfer are your allies in navigating these changing regulations, ensuring online money transfers to Philippines from Germany are secure and seamless.

So, stay informed, adapt your approach, and continue fostering financial connections with your loved ones in the Philippines.


How will the new AML regulations impact the processing time for sending money from Germany to the Philippines?

Expect potentially longer processing times due to stricter verification procedures. Plan and initiate transfers well in advance.

What additional documents might I need to provide when sending money?

Be prepared to furnish IDs, proof of income, and recipient information to comply with enhanced due diligence requirements.

Due to the new regulations, should I refrain from any specific money transfer services?

Opt for reputable services like ACE Money Transfer with proven AML compliance records to ensure smooth and secure transactions.

What happens if my transaction is flagged as suspicious?

High-value transfers or those raising red flags might face delays for additional verification. Be transparent and provide accurate information to minimize such situations.

Where can I find updates on the latest AML regulations and their impact on sending money to the Philippines? 

Check official government websites, news outlets, and reliable money transfer service providers like ACE Money Transfer. They offer informative resources and support on blogs, social media, and websites.


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