Philippines Remains on FATF’s ‘Grey List’ for Money Laundering

The Philippines continues to be on the Financial Action Task Force’s (FATF) “grey list,” which includes countries under increased monitoring for improving their anti-money laundering and counter-terrorism financing (AML/CFT) measures.

President Ferdinand Marcos Jr. had directed government agencies early this year to address the country’s grey listing. The FATF, which updates its lists three times a year, places nations with significant deficiencies in combating money laundering and terrorist financing on either its “black” or “grey” lists.

The grey list indicates that a country is committed to resolving strategic deficiencies within agreed timeframes and is under increased monitoring. The Philippines shares this status with countries such as Bulgaria, Kenya, Nigeria, and Vietnam, among others.

In its latest update, the FATF acknowledged significant steps taken by the Philippines, including increased money laundering investigations and prosecutions, enforcement of beneficial ownership transparency, and risk-based supervision of designated non-financial businesses and professions (DNFBPs).

However, the FATF emphasized that the Philippines must continue to implement its action plan, which includes:

• Enhancing AML/CFT controls for casino junkets
• Applying cross-border measures at main sea and airports to detect and confiscate false currency declarations
• Increasing prosecutions of terrorism financing cases

Since June 2021, the Philippines has committed to working with the FATF and the Asia/Pacific Group on Money Laundering (APG) to strengthen its AML/CTF regime. Despite substantial progress, the FATF urged the Philippines to address the remaining strategic deficiencies swiftly, noting that all deadlines had expired in January 2023.

In response, President Marcos Jr. set a new deadline for the Philippines to exit the grey list by early 2024. The Anti-Money Laundering Council (AMLC) reported that all relevant agencies are working diligently to meet this goal. Executive Secretary Lucas Bersamin, representing the Philippines at the recent FATF Working Group and Plenary meeting, reaffirmed the nation’s commitment to combating financial crimes and improving its financial security regime.

AMLC Executive Director Matthew David welcomed the FATF’s recognition of the country’s progress but emphasized the need to address the remaining action plan items.