Financial Crime World

Philippines Moves Closer to Exiting FATF Grey List as AML/CTF Regime Improves

The Philippines has made significant progress in enhancing its anti-money laundering and counter-terrorism financing (AML/CTF) regime, bringing it closer to exiting the Financial Action Task Force (FATF) grey list. According to a statement issued by the FATF on June 28, the country has taken substantial steps forward since making a high-level political commitment to work with the organization and the Asia/Pacific Group on Money Laundering (APG) in June 2021.

Progress Made

The progress includes:

  • An increase in money laundering investigations and prosecutions
  • Enforcement of beneficial ownership transparency obligations
  • Law enforcement access to data records
  • Risk-based supervision of Designated Non-Financial Businesses and Professions (DNFBPs)

Remaining Action Plan Items

To trigger the exit process, President Ferdinand R. Marcos Jr. has directed all government agencies concerned to address the remaining action plan items by January 2024. The National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Coordinating Committee (NACC) is working tirelessly to address these items.

Commitment to Combating Financial Crimes

At a recent FATF Working Group and Plenary meeting, Executive Secretary Lucas P. Bersamin reaffirmed the country’s commitment to combating money laundering, terrorism financing, and proliferation financing of weapons of mass destruction. He emphasized the comprehensive approach taken by the Philippines to improve its financial security regime.

Remaining Deficiencies

The country still needs to address some remaining deficiencies, including:

  • Demonstrating that supervisors are using AML/CTF controls to mitigate risks associated with casino junkets
  • Implementing cross-border measures at main air and seaports
  • Increasing prosecutions of terrorism financing cases

Statement from the Anti-Money Laundering Council

“We welcome FATF’s recognition of the country’s progress in strengthening its position in the global fight against financial crimes,” said Executive Director Matthew M. David of the Anti-Money Laundering Council. “We remain focused on addressing remaining action plan items.”

Reiteration of Commitment

President Marcos has reiterated his commitment to addressing the remaining ICRG action plan items, ensuring that the Philippines remains steadfast in its efforts to exit the FATF grey list.