MANILA – The government’s relentless efforts to fight money laundering and terrorism financing and implement similar reforms resulted in the Philippines’ removal from the Financial Action Task Force (FATF) grey list, Malacañang said.
The removal would mean smoother financial transactions, more foreign investors, and lower remittance fees for overseas Filipino workers (OFWs), stressed Undersecretary Claire Castro of the Presidential Communications Office.
“Dahil sa pagpupursige ng ating Pangulo, napatanggal na po natin ang ating bansa sa Financial Action Task Force grey list. Hindi titigil ang ating Pangulo na maisaayos at mapigil ang mga gawaing may kinalaman sa money laundering at terrorist financing,” she added.
If a country is grey-listed, it is under increased monitoring by the FATF due to certain deficiencies in its campaign against money laundering and terrorism financing, among others.
Blacklisted countries, on the other hand, are those with significant strategic shortcomings or with a severe lack of measures to fight money laundering and terrorism financing.
The FATF grey-listed the Philippines in 2021 after the international watchdog identified 18 deficiencies that the government must address to fight money laundering and terrorism financing.
These include deficiencies in regulatory supervision in gambling operations related to Philippine Offshore Gaming Operators (POGOs), weaknesses in the implementation of targeted financial sanctions despite obvious anomalies, and delays in implementing the Anti-Terrorism Act of 2020 despite the huge intelligence confidential funds.
Castro said the FATF recognized the reforms initiated by President Ferdinand “Bongbong” Marcos Jr., who issued Executive Order No. 33, which established the country’s anti-money laundering, counter-terrorism financing, and counter-proliferation financing strategy for 2023-2027.
The FATF is the global watchdog for money laundering and terrorist financing. It sets international standards to prevent these illegal activities and the harm they cause society.
The 39-member body also sets international standards to ensure national authorities can effectively go after illicit funds linked to drug trafficking, the illegal trade in arms, cyber fraud, and other serious crimes./PN
