Philippines

People

Human trafficking is widespread in the Philippines, with victims exploited in online scams, gambling, agriculture and the sex trade – both domestically and abroad. Detection of child sexual exploitation online has increased, driven by high internet penetration and financial desperation in impoverished communities. The government’s decision to shut down all offshore gaming operators is a positive step towards addressing one of the country’s major human trafficking drivers. Forced labour and sexual exploitation are also linked to armed groups and displacement, especially in Mindanao. While not a global trafficking hub, the Philippines remains a significant regional hotspot. The country also experiences high levels of sextortion, alongside Vietnam and Thailand, with profits ranging from hundreds to millions of pesos. Victims include both local and foreign nationals, with payments varying based on location and extortion type.

Human smuggling persists, driven by poverty and foreign demand for domestic workers, particularly in Western Asia and Western countries. Smuggling networks, often led by foreign criminal groups, increasingly exploit job seekers through online platforms. The Philippines primarily serves as a source country, with operations spanning Asia, the Gulf and beyond. While remittances support local economies, judicial protections for smuggled people remain weak. Both domestic and foreign actors profit from the trade, including organized syndicates in China, Thailand and Vietnam. Despite recent arrests, enforcement remains limited. Corruption in this market involves state actors, particularly government officials who fabricate documents such as marriage licences or work certificates, despite their illegality.

Extortion and protection racketeering are also present in the Philippines, with organized crime groups profiting substantially from these activities. Kidnappings for ransom, once politically motivated, now primarily target foreign nationals – particularly from China and Vietnam. These kidnappings are often linked to ransom demands or Chinese-organized crime syndicates associated with gambling operations.

Trade

Arms trafficking remains a significant concern in the Philippines due to its porous borders, regional conflicts and the diversion of legal imports. Firearms are smuggled both domestically and regionally, with connections to groups in Indonesia, South Korea and Japan. Several actors are involved in the trade, including police officers and members of the military who have been implicated in supplying non-state actors through theft and resale of official weapons. There are also cases of family-run operations engaging in the illegal production and sale of arms within the country. Despite some enforcement successes and peace efforts in Mindanao, the trade continues to fuel violence, particularly in conflict-affected areas like Davao. Domestic actors profit the most, though diaspora-linked imports persist.

Counterfeit and pirated goods are widespread, spanning industries including food, medicine and cosmetics. The trade is further obscured by online platforms and poses public health and safety risks, especially with falsified medicines. Domestic criminal groups dominate the market, with links to tax evasion and money laundering. Cultural acceptance of counterfeits, driven by affordability, sustains demand and allows illicit sellers to operate openly.

The illicit trade in excisable goods, including tobacco and alcohol, continues to result in significant tax revenue losses. The illicit tobacco market alone accounts for considerable losses each year. These products often enter the market through smuggling routes, evading import duties, or are locally produced and sold without proper tax stamps. Demand is fuelled by affordability, and ties to counterfeit goods and organized crime are evident. While largely domestic, the market intersects with international actors, such as Chinese criminal groups.

Environment

Illegal logging and flora trafficking remain significant challenges in the Philippines, ranging from large-scale timber exports to small-scale community operations. While the ornamental plant trade exists, it is limited in scope. Major hotspots include the Sierra Madre, Palawan and Samar, where illegal operations often encroach on protected areas. Criminal networks, local actors and state officials – including military and government personnel – enable or overlook these operations in exchange for profit. Although enforcement efforts have increased, environmental degradation and community marginalization persist. Profits largely benefit domestic actors, with some reinvested locally. Opposition to these activities has been met with threats and extreme violence, including targeted assassinations.

Wildlife trafficking and illegal fishing pose major threats to biodiversity in the Philippines, one of the world’s most mega-diverse countries. More than 50 endangered species – including pangolins, turtles and birds – are affected. Organized crime groups, sometimes protected by local elites, are the primary actors involved in this trade. These groups collaborate with regional counterparts to facilitate the sale and smuggling of wildlife across borders. Illegal fishing is widespread and largely unchecked, with little awareness of its criminal nature. Profits from this market primarily go to domestic actors. Wildlife traders often rely on corrupt officials to move contraband through airports without needing to conceal the wildlife or provide appropriate permits.

Crimes involving non-renewable resources – particularly gold, copper and nickel – are widespread across the Philippines and include various actors who exploit the grey area between legality and illegality. Small private mining firms operate within this space, engaging in both lawful and unlawful activities. These firms often maintain close ties with local government officials, leveraging these relationships for financial and political gain. The military is also involved, allegedly using violence against activists and potentially profiting from illicit operations. While the government has publicly denounced illegal mining and has taken steps to dismantle criminal networks, their efforts have not been completely successful. Evidence suggests there is complicity among state officials at the local level; this includes instances of state officials benefiting from illegal activities and violence against activists.

Drugs

The Philippines primarily serves as a trans-shipment hub for heroin, with trafficking networks using courier services, airports and seaports for distribution. Foreign criminal groups – particularly those linked to Chinese syndicates – dominate the trade. They employ sophisticated concealment methods such as hiding the drug in milk boxes, Chinese tea bags, sandals, shampoo bottles and secret luggage compartments. Despite regional cooperation and enhanced border security efforts, the heroin trade continues largely unchecked. Local demand is low, and the domestic market plays a minimal role.

Cocaine trafficking in the Philippines similarly revolves around trans-shipment, with minimal domestic demand. The country’s archipelagic geography, porous borders and maritime routes facilitate smuggling, primarily by foreign actors such as Chinese criminal groups. Concealment methods include hidden packaging and ship-to-ship transfers. Despite increased maritime patrols, authorities have struggled to curb the flow of cocaine. Profits from the trade largely bypass the local economy, with cocaine ranking below more significant drug markets such as cannabis and synthetic drugs.

Cannabis is among the most commonly seized drugs in the Philippines, with use and domestic cultivation increasing since 2021. While not a major criminal market, it is well-established in the country, driven largely by small-scale networks and individuals for personal or medicinal use. Seizures frequently involve large domestic quantities, with recent cases uncovering cannabis shipments from Thailand, Canada and the US. Despite this, law enforcement’s responses have been criticized for being violent and ineffective. Profits are mostly domestic, and there have been reports of corruption, with officials allegedly accepting bribes to reduce charges in cannabis-related cases.

Methamphetamine dominates the synthetic drug market. Most crystal meth originates from the Golden Triangle region – particularly Myanmar and Thailand – with significant involvement from Chinese and Vietnamese criminal groups. Smaller quantities originate from countries outside the region, such as South Africa and Mexico. The Philippines is a key trans-shipment point due to its geographic location. While domestic production is minimal, the Philippines experiences extensive import and export activity. Despite record seizures, including 1.8 tonnes in 2024, enforcement efforts have not curbed the trade. The market is driven by foreign criminal groups, particularly Chinese and Mexican cartels, often operating in collaboration with local criminal networks.

Cyber Crimes

Cybercrime has increased significantly in the Philippines, with a sharp rise in both the frequency and complexity of attacks in 2024. Incidents have targeted government agencies, the media, universities and private entities, often involving data breaches and foreign actors. Notable attacks include the Balada Injector and Infostealer malware variants. Cybersecurity risks remain high, with a vast number of organizations reporting incidents annually. A major 2024 case involved Russian nationals stealing millions of dollars’ worth of cryptocurrency through insider access. Despite regulatory efforts, profits from cybercrime largely benefit foreign actors, while enforcement and extradition remain limited.

Financial Crimes

Financial crime in the Philippines is widespread and highly diversified, including financial fraud, tax evasion and cryptocurrency fraud. Organized criminal groups – often from neighbouring countries and linked to mafia-style groups – dominate this market, running large scam operations within the country. These groups also engage in large-scale illicit activities worldwide. Additionally, tax evasion exists among large companies and influential individuals; fraudulent real estate deals, insider trading and pyramid schemes are common. Despite enforcement efforts, the government’s response remains weak. The economic effect is substantial, with tax evasion alone causing significant economic losses.

Criminal Actors

Mafia-style groups in the Philippines have evolved into entrenched, hierarchical organizations rooted in familial and political ties. Operating primarily in rural regions, they maintain control over illicit markets such as illegal mining and logging. Their activities are characterized by systematic violence, including targeted killings, to eliminate opposition and reinforce territorial control. These groups are closely tied to regional political clans, particularly in Mindanao and Davao, where such alliances bolster political power. Their impact underscores the blurred line between governance and organized crime in certain areas of the country.

In contrast, criminal networks in the Philippines are often composed of loosely affiliated groups lacking centralized hierarchies. Most active in urban areas like Manila, these organizations typically focus on low-risk, high-reward crimes such as extortion, smuggling and fraud. While generally less violent than mafia-style groups, they may engage in localized acts of violence to assert dominance, typically targeting rivals rather than the general public. Some groups have cultivated limited influence over local officials, allowing them to interfere in community-level governance. While they exert significant influence in their local areas, particularly urban environments, their reach rarely extends to the national level. Increased law enforcement efforts in recent decades may have curtailed their activities and prevalence.

State actors in the Philippines do not directly control criminal markets but influence them through widespread corruption and complicity. This includes accepting bribes to overlook illegal activities, facilitating smuggling operations and participating in human trafficking. Local governments, particularly at the barangay level, are often under the influence of organized crime, sometimes with the tacit support of national political figures. Corruption among customs and immigration officials plays a critical role in enabling illegal departures and the creation of false documentation. These practices are frequently linked to entrenched political patronage networks. Public officials also frequently exploit their positions for financial gain through embezzlement and the misuse of state resources being common, further undermining institutional efforts to combat organized crime.

Foreign criminal groups, especially Chinese groups, maintain their influence in the Philippines through alliances with local militias and transnational networks. Their activities include cybercrime, human trafficking, drug smuggling and illicit gambling, with urban areas serving as operational hubs. These groups are dispersed throughout the country but are particularly concentrated in urban areas where they can exert territorial control. They are also often associated with high levels of violence. Many acquire land and establish businesses that serve as fronts for their illicit activities, and their networks include mafia-style groups from other countries, such as Mexican drug cartels.

Private-sector actors play a consistent, albeit less visible, role in the country’s illicit economy. While not heavily involved in overt criminal enterprises, they are frequently linked to practices such as tax evasion – often through semi-legal means – and environmental crimes like illegal logging and mining. These activities are usually enabled by connections with local government officials, particularly in provincial areas. Although their involvement rarely extends to high-level organized crime, private-sector actors contribute to a broader ecosystem of impunity and illicit profit, especially in resource exploitation and fiscal misconduct.

Leadership and governance

Organized crime remains a significant issue in political campaigns, with political rhetoric often shaping policy – though it’s not always effective across all criminal markets. The Philippines faces persistent governance and rule-of-law challenges, as reflected in declining scores on global governance indicators and reports of systemic human rights abuses. While the government has maintained a strong public stance against organized crime, particularly drug trafficking, its approach has drawn widespread criticism. Former President Rodrigo Duterte, for example, has been linked to thousands of extrajudicial killings related to the war on drugs. Despite this, organized crime continues to influence political rhetoric and campaign agendas, often amid allegations of official complicity and entrenched political interests. Legislation addressing issues such as counterfeit goods and cybercrime exists, but enforcement remains limited by capacity constraints. Meanwhile, armed conflict with insurgent and terrorist groups continues, alongside maritime tensions in the South China Sea involving regional actors.

Authoritarian practices during the Duterte administration, including extrajudicial killings and human rights violations, undermined transparency efforts. Oversight bodies such as the Ombudsman, Sandiganbayan and Commission on Audit exist, but face resource limitations that limit their effectiveness. Laws penalizing corruption remain poorly enforced, contributing to public mistrust. The Ferdinand Marcos Jr. administration has shown some improvement in governance resilience. However, public perceptions of opacity persist, exacerbated by limited cooperation with international accountability mechanisms. The Philippines scores poorly on global transparency indices, including the Right to Information Index. Contributing factors include a weak legal framework, vague exemptions and a lack of independent appeal processes – all of which restrict access to public information.

The Philippines actively participates in international treaties and regional cooperation efforts to combat organized crime. This includes its 2022 ratification of the Arms Trade Treaty and ongoing engagement with the Permanent Court of Arbitration. The country maintains 10 active extradition treaties and multiple mutual legal assistance agreements with key partners such as the US and Australia. Bilateral efforts with countries like India, China and Canada target cybercrime, drug trafficking and human smuggling. However, the government faces criticism for its non-compliance with international accountability norms – particularly regarding extrajudicial killings during the Duterte administration. Ongoing maritime tensions with China have further intensified the country’s international security partnerships.

Domestically, the Philippines has enacted several legislative reforms to address organized crime, including laws on anti-terrorism, human rights protection and anti-trafficking. The creation of the Department of Migrant Workers and a proposed law to strengthen cybercrime legislation reflect growing institutional capacity. In October 2024, the government banned all Philippine Offshore Gaming Operators due to their involvement in illegal activities, including human trafficking. This move has prompted increased regional cooperation to combat trafficking and dismantle exploitative online gambling networks. Arms control efforts, such as weapon collection programmes and the Arms Trade Treaty, promote transparency but may also obscure deeper trafficking issues. Recent laws targeting agricultural smuggling and enhancing procurement systems aim to improve governance and reduce corruption. Still, challenges persist, including links between officials and criminal actors, inadequate support for marginalized communities and limitations in addressing environmental and victim-related crimes.

Criminal justice and security

The judiciary faces ongoing systemic challenges, including corruption, inefficiency and threats to judicial independence, all of which undermine efforts to prosecute organized crime and erode public trust in the justice system. While specialized judicial units and oversight bodies exist, they remain under-resourced. The prison system is severely overcrowded and plagued by poor sanitation and persistent gang activity – conditions exacerbated by militarized policies during the COVID-19 pandemic. Recent efforts aim to reduce congestion and improve prison conditions.

Law enforcement similarly struggles with persistent challenges, including corruption, inadequate resources and limited public trust. Although specialized agencies like the Philippine Drug Enforcement Agency exist, overlapping mandates, extortion and officials’ involvement in illicit markets undermine their effectiveness. Furthermore, human rights violations, including extrajudicial killings linked to anti-drug operations, persist with minimal accountability. Law enforcement agencies are frequently implicated in abuses, and safeguards against arbitrary detention are often ignored. Community distrust further hampers crime reporting, particularly in trafficking and wildlife cases. While intelligence-sharing mechanisms are in place, they are limited by poor coordination and corruption. Despite efforts to implement reforms and improve training – including cooperation on cybercrime – the overall capacity of law enforcement remains weak, with institutional leadership often lacking clear strategic direction.

The Philippines continues to face border security challenges due to its geographic vulnerabilities and limited infrastructure, making it a major trans-shipment hub for illicit goods. While the government has opened new ports and increased its maritime presence, enforcement remains weak, hampered by corruption among customs and border officials. To address these gaps, the country participates in the Trilateral Cooperative Arrangement and cooperates with INTERPOL. Cybersecurity remains under-developed, though steps have been taken to expand the country’s cyber defence capabilities. Border-related vulnerabilities are further exacerbated by escalating maritime disputes with China – which have occasionally led to physical altercations – underscoring persistent tensions in the South China Sea.

Economic and financial environment

The Philippines has made measurable progress in strengthening its anti-money laundering framework, including passing legal amendments to broaden definitions, regulating online financial activities and expanding oversight of high-risk sectors such as offshore gambling and digital currencies. Financial intelligence units are active and the government has taken steps to combat online sexual exploitation and drug-related transactions. However, enforcement remains weak due to systemic corruption and institutional limitations. The country has faced scrutiny from the Financial Action Task Force (FATF) for failing to fully address strategic deficiencies, though recent reforms have raised hopes of eventual removal from the FATF’s Grey List. Still, vulnerabilities persist, and substantial progress is expected to take time.

The broader economic regulatory environment remains hindered by structural inefficiencies, corruption and the influence of entrenched political and business elites. Although the economy has shown robust post-pandemic gross domestic product growth, systemic barriers – such as under-developed capital markets, inconsistent enforcement of labour laws and bureaucratic red tape – impede the ease of doing business. Organized crime influences sectors like private security and local arbitration, particularly in areas with weak oversight. Cybercrime is an increasing concern for the private sector, but the government’s response remains limited. While legitimate business opportunities exist, regulatory gaps and weak enforcement create conditions conducive to smuggling and extortion. Although institutional improvements are under way, they have yet to produce tangible results.

Civil society and social protection

The Philippines has made efforts to support victims of organized crime, particularly human trafficking survivors, but services remain limited and under-resourced. Reports indicate that the government has decreased efforts to protect victims, and the absence of a government-led victim support strategy has hindered the effectiveness of existing programmes. Much of the work in aiding trafficking victims falls to NGOs, whose impact is constrained by insufficient funding and limited collaboration with the government. Legal protections for witnesses exist but are inconsistently applied, often favouring those with political or economic influence. Fear of retaliation, especially in cases involving law enforcement, discourages many victims from testifying. Victims, particularly drug users, face public stigma due to narratives shaped during the war on drugs. Civil society plays a critical role in victim support services, and whistle-blowers have been instrumental in exposing major corruption scandals.

National strategies to prevent organized crime are primarily led by the Philippine National Police and the Inter-Agency Committee on Anti-Illegal Drugs. However, their effectiveness has been questioned due to associated human rights concerns. Civil society also plays a vital role in prevention and support, but coordination with the government remains limited. Recent efforts include inter-agency training to improve wildlife trafficking detection at ports.

Civil society organizations (CSOs) play a major role in combating organized crime, especially with regard to victim support and anti-trafficking efforts. However, their capacity has been strained by the COVID-19 pandemic and ongoing political pressures. Relations between the government and CSOs remain tense, with reports of surveillance, harassment and ‘red tagging’ of activists and journalists. Media freedom is increasingly restricted, as evidenced by declining press freedom rankings and impunity for violence against journalists. The Anti-Terrorism Act also raises concerns about the suppression of dissent. Despite these challenges, NGOs have become more engaged on crime-related issues, and the Philippines maintains a relatively open environment for civil society engagement.