Philippines Advances Toward Exiting FATF Grey List

Manila – The Philippines is making progress towards being removed from the Financial Action Task Force (FATF) grey list after effectively addressing specific deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) strategies.

According to Philippines News Agency, since committing to enhance its AML/CTF regime in June 2021, the Philippines has made notable strides, including more robust money laundering investigations and prosecutions, improved enforcement of beneficial ownership transparency, and effective risk-based supervision of designated non-financial businesses and professions. The FATF, a global watchdog on money laundering and terrorist financing, has urged the Philippines to continue its efforts to address three strategic deficiencies to completely exit the grey list.

The remaining areas requiring improvement include the application of AML/CFT controls in casino junkets, enhanced measures at all major sea and airports to prevent false currency declarations, and an increased prosecution of terrorism financing cases. Despite progress, these issues remain as critical targets for the country to address by January 2023.

The Anti-Money Laundering Council (AMLC) in the Philippines echoed the FATF’s findings in a separate statement, expressing commitment to addressing the remaining deficiencies in the action plan. AMLC Executive Director Matthew David emphasized the country’s dedication to strengthening its position against global financial crimes.

Earlier this year, President Ferdinand R. Marcos Jr. had already directed relevant agencies to complete the action plan by year-end, initiating the process to exit the FATF grey list. The national effort is coordinated by the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Coordinating Committee (NACC), under the leadership of the Executive Secretary.

During a recent FATF meeting, Executive Secretary Lucas Bersamin reaffirmed the Philippines’ commitment to combating financial crimes and emphasized a comprehensive, whole-of-nation approach to enhancing the country’s financial security regime.