PH exits int'l body's money laundering 'grey list'

The Philippines is no longer among the countries under the watch of an international body for money laundering and countering financing of terrorism (AML/CFT), nearly four years after the country was included in a so-called anti-dirty money “grey list.”

In a statement issued early Saturday morning, following its three-day Plenary (February 19-21), the Paris-based Financial Action Task Force (FATF) announced that the Philippines is no longer under increased monitoring.

When the FATF places a nation under “grey list” or increased monitoring, it means that a country committed to resolving the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring.

“The FATF Plenary congratulated the Philippines for the positive progress in addressing the strategic anti-money laundering and countering the financing of terrorism and proliferation financing deficiencies previously identified during their mutual evaluations. The Philippines has completed their Action Plan to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF’s increased monitoring process,” the international anti-dirty money body said.

The FATF’s decision to remove the country in its grey list came after an onsite visit on January 20-22, 2025, during which the Philippines successfully demonstrated compliance with its action plan, including:

• strengthening supervision of designated non-financial businesses, such as lawyers, accountants, real-estate sector and company service providers, and casinos;
• reducing risks associated with casino junkets;
• cracking down on unregistered and illegal money transfer operators;
• improving access to accurate beneficial ownership information for law enforcement agencies;
• increasing investigations and prosecutions related to money laundering and terrorism financing;
• implementing appropriate measures for non-profit organizations to prevent misuse while allowing legitimate activities; and
• implementing stricter cross-border measures on all main sea/airports of the country.
   

The Philippines was included in the FATF grey list in June 2021.

In a statement, the Anti-Money Laundering Council (AMLC) welcomed the Philippines’ removal from the FATF grey list, noting that such an inclusion was a “burdensome process for banks and other financial institutions” and “discourages correspondent banking relationships and international financial flows into the country.”

The AMLC said the country’s exit from being under increased monitoring for AML/CFT is seen to facilitate faster and lower-cost cross-border transactions, reduce compliance barriers, and enhance financial transparency.

“These will support business, strengthen the country's position as an attractive destination for foreign direct investment (FDI), and benefit Filipinos, particularly overseas Filipino workers (OFWs),” the antitrust body-dirty money council said.

Both Executive Secretary Lucas Bersamin and Finance Secretary Ralph Recto also emphasized the positive effects of the FATF decision, especially in terms of attracting foreign direct investments.

“For so long, our investment attractiveness has been dragged down by this dirty money haven label,” Bersamin said.

“By upholding the highest standards of financial governance, we will attract more foreign direct investments and expand more trade partnerships that will help accelerate economic growth. With this momentum, our next goal is clear—a credit rating upgrade within the Marcos Jr. administration,” Recto said.

Bersamin, who chairs National Anti-Money Laundering/Counter-Terrorism Financing/Counter-Proliferation Financing Coordinating Committee (NACC) said that “this recognition affirms that the Philippines’ AML/CTF/CPF framework aligns with global standards.”

“It supports our vision to enhance economic competitiveness for the benefit of our people,” said Bersamin.

The country’s removal from the grey list also came nearly two years after President Ferdinand Marcos Jr., in July 2023, issued Executive Order (EO) No. 33.

The EO served as a roadmap for addressing the action plan imposed by the FATF.

Bangko Sentral ng Pilipinas (BSP) Governor and Anti-Money Laundering Council (AMLC) chairman Eli Remolona Jr. said that “this achievement is a result of strong cooperation within the government as well as the private sector.”

“It also complements our ongoing efforts to make the financial system a stronger driver of sustainable growth,” said Remolona.

The AMLC said the Philippines’ exit from the FATF grey list is a significant step in strengthening the country’s financial system and maintaining global confidence.

“The government remains committed to ensuring long-term compliance with international standards,” it said. —KG/VBL, GMA Integrated News