Philippines fulfills 18 Financial Action Task Force (FATF) action items, may exit ‘grey list’ by 2025

In a statement on Friday, the FATF said the Philippines has completed its action plan to address deficiencies that had kept the country in the watchdog’s “grey list” since June 2021.

Countries and jurisdictions included in the FATF’s grey list are under “increased monitoring.”

The FATF said the Philippines has been able to address the eight remaining action plan items.

These include the demonstration of effective risk-based supervision of Designated Non-Financial Business and Professions (DNFBP); use of anti-money laundering and counter-terrorism financing (AML/CTF) controls to mitigate risks associated with casino junket.

The Philippines was also able to implement the new registration requirements for Money or Value Transfer Services (MVTS) and sanctions to unregistered and illegal remittance operators.

The FATF also noted the Philippines’ compliance with enhanced law enforcement authorities’ access to beneficial ownership (BO) information, and keep the BO information accurate and up-to-date.

Other fulfilled action plan items are the use of financial intelligence and increase in money laundering investigations and prosecutions; increase in the identification, investigation, and prosecution of terrorist financing (TF) cases; implementation of appropriate measures for the non-profit organization (NPO) sector; and enhancement of the targeted financial sanctions framework for both TF and proliferation financing (PF).

The FATF, during its Oct. 2024 plenary, made an initial determination that the Philippines has “substantially completed its action plan.”

The FATF said there would be an “on-site assessment” to verify that the implementation of AML/CFT reforms in the Philippines has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future.

In a separate statement, the Anti-Money Laundering Council (AMLC) said the FATF’s Asia/Pacific Joint Group (APJG) will visit the Philippines early next year.

“This is the final step toward the country’s removal from the grey list,” the AMLC said.

Executive Secretary Lucas Bersamin said the government would continue its efforts in ensuring that reforms are implemented and sustained, as having a “resilient” AML/CTF regime is critical in safeguarding the country’s financial system and economy from illicit activities.

“This milestone is a testament to the hard work and coordination across government agencies,” said Bersamin, who also acts as chairperson of the National Anti-Money Laundering and Combating of Terrorism Financing/Counter-Proliferation Financing Coordinating Committee.

“It reflects our strong commitment to meeting the FATF’s stringent standards and ensuring the long-term protection of our financial system. We are confident that this progress will be affirmed during the on-site visit,” he added.