AMLC: PH on final step to exit gray list of money laundering watchdog

Financial Action Task Force (FATF). Photo from FATF/Facebook

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) in a statement on Friday said the Philippines was on its “final step” to exit the “gray list” of global watchdog Financial Action Task Force (FATF).

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

The conclusion came at the end of the watchdog’s October plenary, attended by delegates from over 200 countries and international organizations.

Inclusion in the “grey list” means increased monitoring by the FATF to address deficiencies in a country’s anti-money laundering and counter-terrorism financing efforts.

The Philippines has been in the FATF’s “grey list” since 2021.

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

• Risk-based supervision of designated non-financial businesses and professions
• Supervisors’ use of anti-money laundering and counter-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 remittance operators
• Enhancing and streamlining law enforcement agency access to beneficial ownership information and taking steps to ensure that it is accurate and up-to-date
• Increase in the use of financial intelligence and an increase in money laundering investigations and prosecutions in line with risk
• Increase in the identification, investigation and prosecution of terrorism financing cases
• Appropriate measures with respect to the non-profit organizations sector, including unregistered non-profit organizations, without disrupting legitimate activity
• Enhancing the effectiveness of the targeted financial sanctions framework for both terrorism financing and proliferation financing

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

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

According to the AMLC, failing to implement the government’s action plan runs the risk of the Philippines entering FATF’s “black list”, which means possible restrictions and refusal of financial transactions by other member countries.

READ: AMLC: PH nears FATF ‘gray list’ exit

Executive Secretary Lucas Bersamin said in the statement, “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,” he added.

Bersamin is also chairperson of the National Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing Coordinating Committee.