PH on final step to leave the AFTF graylist

MANILA, Philippines – The Anti-Money Laundering Council (AMLC) said in a statement Friday that the Philippines is on the “final step” of leaving the “grey list” of the global watchdog Financial Action Task Force (FATF).

The FATF also said Friday that the Philippines has “substantially completed” its action plan against money laundering and terrorist financing.

The conclusion came at the end of the Watchdog’s October plenary meeting, attended by delegates from more than 200 countries and international organizations.

Inclusion on the “grey list” means increased FATF oversight to address shortcomings in a country’s efforts to combat money laundering and terrorist financing.

The Philippines has been on the FATF ‘grey list’ since 2021.

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In a statement, the FATF said the country has implemented 18 reforms, including the following:

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• Risk-based supervision of designated non-financial businesses and professions
• Regulators’ use of anti-money laundering and anti-terrorist financing controls to mitigate risks associated with casino junkets
• New registration requirements for money or value transfer services and applying sanctions to unregistered and illegal money transfer companies
• Improving and streamlining law enforcement agencies’ access to beneficial ownership information and taking steps to ensure it is accurate and up to date
• Increase in the use of financial intelligence and an increase in money laundering investigations and prosecutions commensurate with the risks
• Increase the identification, investigation and prosecution of terrorist financing cases
• Appropriate measures regarding the non-profit sector, including non-registered non-profit organizations, without disrupting legitimate activities
• Increasing the effectiveness of the targeted financial sanctions framework for both terrorist financing and proliferation financing

AMLC confirmed that the FATF’s Asia/Pacific Group will visit the Philippines in early 2025 to verify the sustainability of the plans.

“This is the final step towards the country’s removal from the gray list,” AMLC added.

According to the AMLC, failure to implement the government’s action plan risks putting the Philippines on the FATF “blacklist,” which means possible restrictions and denial of financial transactions by other member states.

READ: AMLC: PH nears FATF exit from ‘grey list’

Executive Secretary Lucas Bersamin said in the statement: “This milestone is a testament to the hard work and coordination between government agencies.”

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

Bersamin also chairs the National Coordination Committee on Combating Money Laundering, Terrorist Financing and Counterproliferation Financing.