In a statement late Friday, Feb. 21, 2025, the FATF acknowledged the Philippines’ efforts to strengthen its financial oversight mechanisms since being placed on the grey list in June 2021. The country has implemented reforms to enhance supervision, particularly in high-risk sectors such as designated non-financial businesses and professions and casino junkets.
Stricter measures
Authorities have also enforced stricter registration requirements for money value transfer services and imposed penalties on unregistered remittance operators. Law enforcement agencies have improved access to beneficial ownership data and increased efforts to ensure its accuracy.
Additionally, the FATF said the Philippines has demonstrated a rise in financial intelligence utilization, money laundering investigations, and prosecutions aligned with identified risks. The country has also intensified efforts to detect, investigate, and prosecute terrorism financing cases.
Measures have been taken to regulate non-profit organizations without hampering legitimate activities, it added.
What is the FATF grey list?
The FATF grey list is a list of jurisdictions under increased monitoring due to deficiencies in their anti-money laundering and counter-terrorism financing frameworks. Countries placed on the grey list are considered to have weaknesses in their financial regulations that could make them vulnerable to illicit financial activities. FATF noted improvements in the implementation of targeted financial sanctions and the application of cross-border controls at major international entry points.
While the Philippines has exited the grey list, the FATF urged authorities to sustain progress through continued collaboration with the Asia/Pacific Group on Money Laundering (APG). The country is expected to ensure that counter-terrorism financing measures remain effective and do not inadvertently impact legitimate non-profit organization activities.
The removal from the grey list is seen as a boost for the country’s financial system, potentially enhancing investor confidence and reinforcing its commitment to global AML/CFT standards.
