The Philippines must stay vigilant against dirty money risks associated with cryptocurrency and online gambling, Moody’s warned.
Xiao Chen, an associate director at Moody’s, made this assessment following the European Commission’s (EC) decision to remove the Philippines from its “high-risk” money laundering list, the Philippine Inquirer reported.
This delisting signifies the country’s alignment with global regulatory standards and is expected to enhance its financial reputation, facilitate access to the EU financial system, and support cross-border trade and investment.
Chen emphasized the importance of continued vigilance, particularly in sectors like online gaming and cryptocurrency, to effectively manage any residual risks. The EC’s decision reflects insights gathered from the Financial Action Task Force (FATF), which removed the Philippines from its “gray list” of jurisdictions under increased scrutiny earlier this year.
To maintain its status and prevent re-entry into dirty money watch lists, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr., who also chairs the Anti-Money Laundering Council (AMLC), noted that authorities are actively identifying emerging risks. He warned that the next significant threat could stem from advancements in digital technology, highlighting an ongoing “arms race” against illicit actors.
Historically, the Philippines faced challenges with money laundering regulations, having been blacklisted by the FATF in 2002 due to inadequate legislative amendments. After years of improving its anti-money laundering measures, the country was removed from the FATF blacklist in 2005.
However, it returned to the gray list in June 2021 due to 18 identified regulatory deficiencies. This status posed risks of increased costs and delays in cross-border transactions, particularly affecting remittances, which are vital to many Filipinos.
The country was again removed from the list last year, ending more than three years of scrutiny by the FATF.
