The Philippines has marked a significant achievement as the Financial Action Task Force (FATF) announced its removal from the global money laundering 'grey list'. This development, revealed on Saturday, February 22, comes after nearly four years of increased monitoring. Initially added to the grey list in June 2021 due to concerns about mitigating money laundering risks, particularly those associated with casino junkets, the country has since made substantial progress in addressing these issues. This milestone is expected to ease requirements for cross-border transactions and boost investments.
The FATF, an intergovernmental body tasked with combating money laundering and terrorism financing, previously grey-listed the Philippines in 2000 for failing to adequately address money laundering concerns. When a country is placed on the grey list, it is subject to increased scrutiny until it rectifies identified deficiencies in its financial system. In October 2021, the FATF acknowledged that the Philippines had "substantially completed its action plan," paving the way for its eventual removal from the list.
Significant amendments to banking laws played a crucial role in the Philippines' exit from the grey list. The country's anti-money laundering council emphasized that this achievement would not only facilitate faster and lower-cost international money transfers but also enhance financial transparency. According to the council, the removal from the grey list is expected to reduce compliance barriers, thereby aiding overseas Filipino workers who send remittances through banks.
"The Philippines’ exit from the FATF grey list is expected to facilitate faster and lower-cost cross-border transactions, reduce compliance barriers, and enhance financial transparency." – Philippines' anti-money laundering council
The Philippines has welcomed this development, viewing it as a step towards strengthening its financial system and maintaining global confidence. The anti-money laundering council noted that exiting the grey list would help attract investments, providing a boost to the country's economy.
"Exiting the FATF grey list is a significant step in strengthening the Philippines’ financial system and maintaining global confidence." – Philippines' anti-money laundering council
In its statement, the FATF encouraged the Philippines to continue working on ensuring that measures for countering terrorism financing are appropriately applied.
"The FATF encourages the Philippines to continue its work in ensuring that its CFT (countering of the financing of terrorism) measures are appropriately applied." – FATF
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