The Philippines has been removed from the Financial Action Task Force (FATF) “grey list” of jurisdictions at higher risk for financial crimes.
The country was added to the list in June 2021. Since then, it has checked off an 18-point action plan, devised by FATF, to restore its financial integrity. It also has demonstrated “the necessary political commitment” to maintain the improvements, FATF said.
Last July, in a dramatic demonstration of that commitment, President Ferdinand Marcos Jr outlawed Philippine Offshore Gaming Operations (POGOs). The action took place following reports of corruption in that sector. Law enforcement arrested a number of alleged POGO leaders and conspirators, and deported tens of thousands of foreign-born POGO workers.
The government and private sectors have collaborated to strengthen anti-money laundering (AML) and counter-terrorism financing (CFT) safeguards. They have also introduced measures to prevent proliferation financing, which funds weapons of mass destruction.
Among other reforms, authorities are:
- Applying greater scrutiny to non-financial institutions
- Using AML/CFT controls to mitigate risks associated with casino junkets
- Implementing new registration requirements for money- or value-transfer services (MVTS)
- Using fraud-detection technologies to detect financial crimes
- Increasing investigations and prosecutions of crimes as they are discovered
FATF: “Huge impact” on global systems
Last October, before the delisting, FATF President Elisa de Anda Madrazo commended the Philippines for working to reinforce financial systems. She said the improvements in one country have a beneficial effect on global markets.
“With billions of dollars flowing in annually and the sheer volume of cross-border transactions, the progress made by the Philippines will have a huge impact in the security of the international financial system,” said Madrazo.
At a 20 February press conference, she added, “The Philippines (must) sustain the implementation of the reforms and importantly, to do so in a way that is consistent with the FATF standard.”
“Seal of good financial housekeeping”
Philippines executive secretary Lucas Bersamin was jubilant about the delisting. “This hard-fought … battle against money laundering will be preserved and protected through consistent compliance with global standards,” he said last week.
The Philippines Anti-Money Laundering Council (AMLC) added that the removal “strengthens the country’s position as an attractive destination for foreign direct investment.”
Meanwhile, the Paris-based watchdog has added two countries to the grey list: Nepal and the Lao People’s Democratic Republic. They join Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, Côte d’Ivoire, Croatia, Democratic Republic of Congo, Haiti, Kenya, Lebanon, Mali, Monaco, Mozambique, Namibia, Nigeria, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam and Yemen.
High-risk jurisdictions on the FATF “black list” include Democratic Republic of Korea, Iran and Myanmar. The FATF publishes the lists three times a year.
Original article: https://igamingbusiness.com/money-laundering/a-clean-slate-for-philippines-as-it-exits-fatf-grey-list/
