MANILA: The Philippines has successfully addressed all 18 strategic deficiencies outlined by the Financial Action Task Force (FATF), a milestone that positions the country to potentially exit the FATF’s ‘grey list’ by 2025. This marks a significant development for the nation, which has been under increased monitoring since June 2021.
According to Philippines News Agency, the FATF announced that the Philippines has completed its action plan aimed at rectifying the deficiencies that led to its inclusion on the grey list. The country addressed the eight outstanding action items, which encompass a range of measures, including effective risk-based supervision of Designated Non-Financial Business and Professions (DNFBP) and the use of anti-money laundering and counter-terrorism financing (AML/CTF) controls to mitigate risks associated with casino junkets.
The Philippines has also implemented new registration requirements for Money or Value Transfer Services (MVTS) and imposed sanctions on unregistered and illegal
remittance operators. Additionally, the FATF acknowledged the country’s efforts to ensure law enforcement authorities have enhanced access to beneficial ownership information and to maintain the accuracy and currency of this information.
Further fulfilled action plan items include the application of financial intelligence, an increase in money laundering investigations and prosecutions, and a heightened focus on identifying and prosecuting terrorist financing cases. The Philippines has also implemented measures for the non-profit organization sector and enhanced the targeted financial sanctions framework for both terrorist financing and proliferation financing.
During its October 2024 plenary session, the FATF made an initial determination that the Philippines has ‘substantially completed its action plan.’ An on-site assessment is scheduled to verify the sustained implementation of AML/CFT reforms and to confirm the ongoing political commitment to these reforms.
In a separate statement, the Anti-Money Laun
dering Council (AMLC) announced that the FATF’s Asia/Pacific Joint Group (APJG) will conduct a visit to the Philippines early next year. The AMLC emphasized that this visit represents the final step toward the nation’s removal from the grey list.
Executive Secretary Lucas Bersamin reiterated the government’s dedication to maintaining and enhancing these reforms, highlighting the importance of a resilient AML/CTF regime in protecting the country’s financial system and economy from illicit activities. Bersamin, who also chairs the National Anti-Money Laundering and Combating of Terrorism Financing/Counter-Proliferation Financing Coordinating Committee, stated, “This milestone is a testament to the hard work and coordination across government agencies. 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.”