Philippine official optimistic on FATF grey list exit

Jenny Ortiz September 26, 2024

The Philippines’ Department of Justice (DOJ) has expressed optimism about the country’s chances of removal from the Financial Action Task Force (FATF) grey list, following nearly five years of heightened monitoring.

According to DOJ Undersecretary Jesse Hermogenes Andres, the Philippines has successfully addressed most of the FATF’s compliance goals, leaving only three outstanding issues that are expected to be resolved ahead of the next FATF evaluation.

The Philippines was placed on the FATF grey list due to concerns over its capacity to combat money laundering and terrorist financing effectively. Over the past several years, the country has worked towards fulfilling 18 key compliance outcomes required for delisting.

To date, the Philippines has completed 15 of these objectives. The three remaining areas that require improvement include enhancing the supervision of casino junkets, strengthening cross-border currency controls, and increasing prosecutions related to terrorism financing. These areas have been addressed in a recent report submitted by Philippine authorities, who are confident that their efforts will meet the FATF’s standards for removal from the grey list.

Intellectual property enforcement boosts AML efforts

In addition to focusing on AML/CTF reforms, the National Committee on Intellectual Property Rights (NCIPR) said it has made headways in protecting intellectual property (IP), further aiding the country’s bid for FATF delisting. By combating counterfeiting and piracy, which are often linked to organised crime, the NCIPR has helped strengthen the Philippines’ overall AML framework.

This year, the committee seized over PHP35 billion (€560.4 million) worth of counterfeit goods, showcasing its determination to disrupt illicit trade. These efforts have also improved the country’s standing in the global fight against money laundering.

FATF review and economic implications

The upcoming FATF review in October will be critical for the Philippines’ financial reputation. An exit from the grey list would not only strengthen investor confidence but also improve the country’s resilience against financial crimes.

The DOJ, along with the Anti-Money Laundering Council (AMLC), remains committed to ensuring long-term compliance with global AML/CTF standards. Successfully meeting the FATF’s requirements would be a milestone, boosting the nation’s credibility on the international stage and opening the door for increased foreign investments.