Philippines exits world dirty money watchlist

PH exits dirty money watchlist

By Niña Myka Pauline Arceo, February 22, 2025

https://www.manilatimes.net/2025/02/22/news/ph-exits-dirty-money-watchlist/2060473

MANILA, Philippines — The Philippines has officially been removed from a global dirty money watchlist.

This comes after nearly four years of heightened monitoring by the Paris-based Financial Action Task Force (FATF).

The intergovernmental organization late on Friday commended the country for addressing anti-money laundering, counter-terrorism financing and counter-proliferation financing (AML/CFT/CPF) deficiencies identified in previous evaluations.

"The Philippines has completed their action plan to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF's increased monitoring process," it said in a statement.

In a briefing, FATF President Elisa de Anda Madrazo said the country had actively combated the risk of dirty money flowing through local casinos.

"Offshore gaming operators have been closed and casino junkets are now closely scrutinized," she said.

"The Philippines is expected to sustain the implementation of the reforms and importantly, to do so in a way that is consistent with FATF standards."

The Philippines was the only country removed by the FATF from the so-called "grey" list, where it was placed in 2021, during their February plenary meeting.

The watchdog had kept the Philippines on the list for a third straight year in 2024, citing continued deficiencies in its AML/CFT systems.

Inclusion in the grey list means increased monitoring by the FATF and a commitment by the government to quickly resolve identified deficiencies.

The FATF said the Philippines had enhanced the effectiveness of its AML/CFT framework, having:

– demonstrated that effective risk-based supervision of designated non-financial businesses and professions was occurring;

– demonstrated that supervisors were using AML/CFT controls to mitigate risks associated with casino junkets;

– implemented new registration requirements for money or value transfer services and applied sanctions against unregistered and illegal remittance operators;

– enhanced and streamlined law enforcement agency access to beneficial ownership information and had taken steps to ensure that the information was accurate and up-to-date;

– demonstrated an increase in the use of financial intelligence and an increase in money laundering investigations and prosecutions;

– demonstrated an increase in the identification, investigation and prosecution of terrorist financing cases;

– demonstrated that appropriate measures were taken with respect to non-profit organizations (NPOs) without disrupting legitimate activity;

– enhanced the effectiveness of the targeted financial sanctions framework for both terrorist and proliferation financing; and

– applied cross-border measures at all main international sea/airports.

The FATF, however, still urged the country to continue to work with the Asia/Pacific Group on Money Laundering to sustain the AML/CFT improvements.

"The FATF encourages the Philippines to continue its work in ensuring that its CFT measures are appropriately applied, particularly the identification and prosecution of TF cases, and are neither discouraging nor disrupting legitimate NPO activity," it said.

Madrazo said the Philippines would again be assessed in 2027, which "will be an opportunity for the FATF to verify that the measures are sustained and still in place." ..

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