The Paris-based Financial Action Task Force (FATF) publishes the list three times a year.
As of 24 October, the Philippines remained in the lineup of “jurisdictions under increased monitoring,” along with 20 other countries including Haiti, Lebanon, South Africa and Yemen.
However, FATF says the jurisdiction has “substantially completed” an 18-point action plan to restore its financial integrity. It also has “the necessary political commitment” to maintain the improvements. Pending final reviews, FATF could delist the country as early as February 2025.
Back in black
According to the Philippine Inquirer, without comprehensive action, the Philippines could have landed back on the notorious black list of countries at high risk for financial crimes, joining North Korea, Iran and Myanmar.
It last occupied the black list in 2002. At that time, Asia’s second most populous country had virtually no legal AML framework.
In 2003, after the government established its first Anti-Money Laundering Act, FATF removed the Philippines from the list.
More and stronger safeguards
Last week, FATF applauded the country for meaningful reforms. They include:
- Ensuring that supervisors are using AML/CFT controls to mitigate the risk of financial crimes
- Using financial intelligence to detect such crimes
- Increasing investigations and prosecutions
- Addressing deficiencies in Philippines monetary systems to counter money laundering, terrorism financing and proliferation financing (i.e., supplying money or services to illegal entities trading in weapons of mass destruction)
Last year, President Ferdinand Marcos Jr. ordered all government agencies to join the fight, adopting the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Strategy (NACS) of 2023-27.
And this year, he banned Philippine Offshore Gaming Operations (POGOs), an industry that had become havens for financial crimes.
‘A huge impact’ on global financial security
Philippines executive secretary Lucas Bersamin hailed the imminent delisting “as a testament to the hard work and coordination across government agencies … We must continue our efforts to ensure that our reforms are implemented and sustained.”
According to the Manila Bulletin, FATF President Elisa de Anda Madrazo called the development an “example of the positive impact that this process can have in a country. 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.”
Original article: https://igamingbusiness.com/legal-compliance/philippines-could-exit-fatf-grey-list-2025/
