Philippines exits FATF grey list, POGO crackdown reforms pay off
In a major move, the Philippines has been removed from the Financial Action Task Force (FATF) grey list, marking a significant milestone in its efforts to combat money laundering and terrorism financing. The decision was announced following the FATF plenary meeting in Paris, where the global financial watchdog recognised the country’s substantial progress in strengthening its regulatory framework.
The Philippines was the only country removed from the FATF grey list in February 2025. Currently, 25 nations, including Vietnam and Nepal, remain under increased monitoring due to deficiencies in their financial crime prevention measures.
The FATF placed the Philippines on its grey list in June 2021 due to concerns over strategic deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
The removal of the country from the grey list has been widely welcomed by experts, who see it as a positive step for the country’s financial and business environment. Ariyo Aboumahboub, Chief Business Development Manager at Infinite Payment Technology, shared his perspective on the development.
“The removal of the Philippines from the grey list is an impressive milestone and a positive sign for the financial and business environment in the country. This could only boost investor confidence and can only mean good things for the iGaming industry. From my viewpoint, I am hopeful that it would translate to smoother transactions, greater interest from investors, and increased global competitiveness across all sectors, including iGaming,” said Aboumahboub in an exclusive comment to SiGMA World News.
Anti-POGO efforts seen as key factor
A major factor leading to this designation was the proliferation of Philippine Offshore Gaming Operators (POGOs), which had been suspected of facilitating illicit financial activities, including money laundering and fraud. Several POGO facilities operated with minimal oversight, creating vulnerabilities within the financial system. These vulnerabilities were exploited extensively to launder proceeds from illegal activities such as online scams and human trafficking.
As a result, the Philippine government undertook a series of comprehensive reforms aimed at strengthening its financial regulatory framework.
Authorities tightened regulations on POGOs and other high-risk financial entities, implementing stricter licensing requirements and regular compliance audits to prevent illegal activities. Several POGOs that failed to meet regulatory standards were shut down, reducing opportunities for illicit financial flows.
Several new laws were enacted via PAGCOR to expand the scope of AML regulations, ensuring that all entities vulnerable to financial crimes were brought under stricter scrutiny. Greater coordination between the Anti-Money Laundering Council (AMLC), law enforcement agencies, and regulatory bodies was established to improve the identification and prosecution of financial crimes.
The country also enhanced its risk-based oversight on casinos and junket operators, addressing FATF concerns over potential money laundering risks. Improvements in the use of financial intelligence led to more effective money laundering investigations and prosecutions in alignment with identified risks.
PAGCOR plays a major role
To strictly improve these measures, the Philippine Amusement and Gaming Corporation (PAGCOR) played a crucial role. PAGCOR Chairman and CEO Alejandro H. Tengco hailed the country’s exit from the grey list as a significant development that should attract more foreign investment.
“We are honoured to have played a crucial part in this development, and the public can rest assured that PAGCOR will continue to ensure that all our licensees comply with anti-money laundering rules and regulations,” he stated in an official statement.
Much of the state gaming firm’s AML efforts are handled by two key units: the PAGCOR Anti-Money Laundering Supervision and Enforcement Department (PASED) and the Anti-Money Laundering Compliance Department (ACD).
“Rest assured that your PASED and ACD teams will work even harder, together with other departments and our licensees, to ensure that we never go back to the grey list,” Mr. Tengco added.
Exiting the FATF grey list is a major step forward for the Philippines. This move is expected to improve the country’s international financial reputation, making cross-border transactions easier for businesses and individuals. Foreign investors, who often view greylisting as a risk factor, are likely to regain confidence in the Philippine financial system, potentially boosting economic growth.
However, despite this progress, challenges remain. The government must ensure that the reforms introduced are consistently enforced and adapted to counter emerging financial threats. Continued collaboration between regulatory agencies, financial institutions, and law enforcement will be vital in maintaining compliance with global AML and CTF standards.
