According to an announcement by the international watchdog on February 21st, ‘the Philippines is no longer subject to increased monitoring by the FATF’.
This is attributed to the jurisdictions’ ‘significant progress in improving its AML/CFT (anti-money laundering/counter financing of terrorism) regime’.
The FATF indicates that enhanced nine principal areas, including improving its AML/CFT controls to mitigate risks associated with casino junkets as well as ‘demonstrating that effective risk-based supervision of DNFBPs (designated non-financial businesses and professions) is occurring’.
The Philippines was also praised for its work on ‘demonstrating an increase in the use of financial intelligence and an increase in ML (money laundering) investigations and prosecutions in line with risk’.
A further improvement was ‘applying cross-border measures in all main international sea/airports, in line with risk’.
Despite the upgraded situation, the Philippines has been asked to continue to work with the Asia/Pacific Group on Money Laundering (APG) ‘to sustain its improvements in its AML/CFT system’.
The removal from the FATF’s grey list was one of the priorities of the government, including the Securities and Exchange Commission (SEC) the Philippine Amusement and Gaming Corporation (PAGCOR), and the Department of Justice (DOJ) – with the nation’s president also weighing in on the issue.
Hopes were for an exit of the grey last back in October of 2024, during the FATF’s plenary session, however the official removal from the list only took place after an on-site visit from the FATF’s Asia/Pacific Joint Group this year. A subsequent plenary session confirmed the nation’s efforts.
“The plenary agreed to take the Philippines off the grey list in recognition of the completion of their action plan, which was agreed in June of 2021. Amongst other efforts and results, the Philippines is now actively combating the risk of dirty money flowing through casinos in the country,” stated FATF President Elisa de Anda Madrazo.
“The Philippines is expected to sustain the implementation of the reforms and importantly to do so in a way that is consistent with the FATF standard. The country will continue to work with the Asia-Pacific Group (APG) on money laundering and will start preparing soon for their next evaluation,” noted Madrazo.
The Philippines is facing a new assessment in 2027, “which means that they will soon start preparing. And of course, that will be an opportunity for the FATF to verify that the measures are sustained and still in place,” stated the FATF official.
