MANILA — The Philippines remains on the “gray list” of Paris-based watchdog Financial Action Task Force (FATF), with a call to swiftly address remaining deficiencies in its defenses against money laundering and terrorist financing.
The country is still under “increased monitoring,” particularly in terms of progress in resolving deficiencies within agreed time frames, as stated by FATF on Friday. Being on the list can limit cross-border transactions and pose reputational risks.
The Philippines has been on the list since June 2021, striving to avoid a return to the “black list,” which could lead to stricter regulations and more costly remittances, crucial for many Filipinos.
The recent decision came after FATF’s plenary meeting this month, posing an obstacle to President Marcos’ goal of exiting the gray list by October 2024. The FATF plenary meets three times a year, usually in February, June, and October.
“Three out of 18 action items remain outstanding. Put another way, it means that the Philippines has actually taken action,” said FATF president Raja Kumar during a press conference.
Despite progress, the Philippines still needs to display credible controls against money laundering and terrorist financing risks from casino junkets, according to the watchdog.
Further recommendations include enhancing cross-border measures at main seaports and airports, cracking down on false currency declarations, and increasing prosecutions related to terrorist financing.
However, FATF acknowledged the country’s efforts, noting an uptick in investigations and prosecutions of money laundering cases. The country was also commended for improving law enforcement agencies’ access to beneficial ownership data, aiding in combating individuals concealing illicit activities.
Moreover, the FATF recognized the “risk-based” supervision of entities such as casinos, lawyers, accountants, and real estate agents.
Meanwhile, Jamaica and Turkiye successfully exited the gray list.
