MANILA, Philippines, March 2 ------ The Philippines is no longer on the list of countries under heavy scrutiny by the top global money laundering and terrorism financing watchdog. The Financial Action Task Force (FATF) has removed the Philippines from its gray list after an on-site visit in January confirmed the country’s significant progress in strengthening measures on anti-money laundering and combatting the financing of terrorism (AML/CFT).
This was announced by FATF president Elisa de Anda Madrazo at a virtual press conference following the conclusion of a three-day plenary and working group meeting held in Paris from Feb. 17 to 20. Madrazo said the Philippines successfully exited the gray list after nearly four years, or since its inclusion in June 2021. She commended the Philippines for addressing the deficiencies identified in previous mutual evaluations. The country will no longer be subject to the FATF’s increased monitoring process as a result of its removal from the gray list. “The plenary agreed to take the Philippines off the gray list in recognition of the completion of their action plan, which was agreed in June 2021,” Madrazo said.
She also cited the country’s actively combating the risk of dirty money flowing through casinos as well as banning of Philippine offshore gaming operators last year. “The Philippines is expected to sustain the implementation of the reforms and importantly, to do so in a way that is consistent with the FATF standard,” she said.
In a statement, the FATF said the country strengthened the effectiveness of its AML/CFT framework to meet commitments outlined in its action plan. It also said the Philippines demonstrated effective risk-based supervision of designated non-financial businesses and professions. Authorities ensured that supervisors use AML/CFT controls to mitigate risks associated with casino junkets.
The country also implemented new registration requirements for money or value transfer services and applied sanctions on unregistered and illegal remittance operators, according to the FATF. Furthermore, law enforcement agencies enhanced and streamlined their access to beneficial ownership information, ensuring accuracy and timeliness. There was also an increase in the use of financial intelligence, leading to more money laundering investigations and prosecutions. Appropriate measures were also taken in dealing with the nonprofit organization sector, including unregistered NPOs, while ensuring no disruption in legitimate NPO activities.
The Philippines, the FATF said, also enhanced the effectiveness of its targeted financial sanctions framework for both terrorism and proliferation financing. Additionally, cross-border measures were applied to all major international sea and airports. Madrazo stressed the importance of sustaining reforms as she encouraged the country to continue working with the Asia/Pacific Group on Money Laundering to ensure measures in place remain effective. She said the Philippines will undergo another FATF assessment in 2027. “This will provide an opportunity for the FATF to verify that the reforms remain in place and are being sustained in line with FATF standards,” she added.
Source: philstar.com
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