Philippines Aims to Exit FATF Grey List by Year-End

The Philippines is setting its sights on a significant achievement – removing itself from the FATF (Financial Action Task Force) grey list by the end of this year. This goal was emphasized by President Ferdinand R. Marcos Jr. during a recent meeting with various government agencies. The President stressed the vital economic importance of exiting the grey list, which originally had a deadline of January 2023 for removal. However, this deadline was extended by 12 months to allow the country more time to address its regulatory deficiencies.

Matthew David, the executive director of the Anti-Money Laundering Council (AMLC) Secretariat, expressed the government's unwavering commitment to addressing the FATF's identified shortcomings. David reported that the country aims to resolve all 18 deficiencies outlined by the FATF in 2024 and exit the grey list by year-end. Of these deficiencies, 10 have already been addressed, while the remaining eight are either in the process of being tackled or have not yet been addressed.

David acknowledged that the Philippines still needs to focus on countering terrorism financing effectively. Despite the challenges, the Philippine government believes it is on the right track and is satisfied with the AMLC's efforts.

David pointed out the consequences of prolonged grey list status, stating that the longer the country remains on the list, the higher the risk of being moved to the black list.

To address the deficiencies, the Philippine government issued Memorandum Circular No. 37 in October, instructing 44 government agencies to work on resolving the FATF's concerns. Authorities like PAGCOR were also required to enhance their anti-money laundering (AML) efforts. Additionally, the Philippines collaborated with China to crack down on illegal offshore operators in the country, resulting in the repatriation of 400 Chinese nationals.