MANILA – The Anti-Money Laundering Council (AMLC) said the Philippines’ removal from the Financial Action Task Force’s (FATF) grey list will enhance the nation’s appeal as an “attractive hub” for foreign direct investment (FDI).
In its statement, the AMLC emphasized that the Philippines’ departure from the grey list represents a significant achievement that highlights the country’s dedication to addressing money laundering and the financing of terrorism.
“Countries in the FATF grey list are placed under increased monitoring. This is a burdensome process for banks and other financial institutions. This process discourages correspondent banking relationships and international financial flows into the country,” the AMLC said.
“Exiting the FATF grey list is a significant step in strengthening the Philippines’ financial system and maintaining global confidence. The government remains committed to ensuring long-term compliance with international standards,” it added.
The FATF have previously placed the Philippines on the grey list in 2021, requiring the country to address 18 action items to secure removal.
Grey-listed countries undergo close monitoring and must implement corrective measures to avoid being placed on the blacklist, which can lead to serious economic repercussions.
The AMLC stated that the Philippines’ delisting from the grey list would promote quicker and more cost-effective cross-border transactions, diminish compliance obstacles, and improve financial transparency.
Furthermore, it noted that the country’s removal would lessen the requirements for international fund transfers, providing advantages to Filipino individuals and enterprises.
“These will support business, strengthen the country’s position as an attractive destination for foreign direct investment, and benefit Filipinos, particularly overseas Filipino workers (OFWs),” the AMLC said.
The FATF’s decision to remove the Philippines from the grey list may likewise prompt foreign banks to review and resume their business relationship and transactions with Philippine financial entities, it added./PN
