The Financial Action Task Force (FATF) removed the Philippines from the “grey list” of countries that are not doing enough to combat money laundering and terror finance.
Nepal and Laos are the latest countries to be added to the ‘grey list.’
The Paris-based global watchdog on money laundering and terrorist financing made the announcements on February 22.
The Philippines had been on the list of jurisdictions that are under increased monitoring for more than three years.
The benefits of Philippines’ removal from “grey list” include faster and more affordable global financial transactions and remittances for Filipino workers overseas, according to previous pronouncements from the country’s Anti-Money Laundering Council.
The Philippines was added to the ‘grey list’ in June 2021. Its successful exit is a result of sustained efforts by government agencies to address 18 requirements set by FATF.
FATF recognized the Philippines’ progress in curbing the flow of illicit funds through its casinos and shutting down offshore gaming operations.
“Amongst other efforts and results, the Philippines is now actively combatting the risk of dirty money flowing through casinos in the country. Offshore gaming operators have been closed and casino junkets are now closely scrutinized,” said FATF president
Elisa de Anda Madrazo in a press conference.
“The Philippines is expected to sustain the implementation of the reforms and, importantly, to do so in way that is consistent with the FATF standards,” she said.
Madrazo said the Philippines will continue to work with FATF’s Asia Pacific Group (APG) on money laundering and will prepare for the next evaluation. — PCIJ.org
Text of the Feb. 21, 2025 FATF report on the Philippines:
The FATF welcomes the Philippines’ significant progress in improving its AML/CFT regime. The Philippines strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in June 2021 by
(1) demonstrating that effective risk-based supervision of DNFBPs is occurring;
(2) demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets;
(3) implementing the new registration requirements for MVTS and applying sanctions to unregistered and illegal remittance operators;
(4) enhancing and streamlining LEA access to BO information and taking steps to ensure that BO information is accurate and up-to-date;
(5) demonstrating an increase in the use of financial intelligence and an increase in ML investigations and prosecutions in line with risk;
(6) demonstrating an increase in the identification, investigation and prosecution of TF cases;
(7) demonstrating that appropriate measures are taken with respect to the NPO sector (including unregistered NPOs) without disrupting legitimate NPO activity;
(8) enhancing the effectiveness of the targeted financial sanctions framework for both TF and PF; and
(9) applying cross-border measures in all main international sea/airports, in line with the risk.
The Philippines should continue to work with APG to sustain its improvements in its AML/CFT system. The FATF encourages the Philippines to continue its work in ensuring that its CFT measures are appropriately applied, particularly the identification and prosecution of TF cases, and are neither discouraging nor disrupting legitimate NPO activity.