Philippines Set to Exit FATF Grey List This October

The anticipated exit of the Philippines from the Financial Action Task Force (FATF) grey list this October marks a significant milestone for the country. This development comes following the announcement by the Department of Justice (DOJ), as shared by DOJ Undersecretary Jesse Hermogenes Andres at the 2024 National Committee on Intellectual Property Rights High-Level Meeting in Manila.

The grey list acts as a monitor for jurisdictions under enhanced scrutiny due to issues related to money laundering and terrorist financing. The Philippines was added to this list almost five years ago and has been working diligently to meet the FATF’s required outcomes. Jesse Hermogenes Andres expressed optimism, stating, “We are very confident that when the FATF grey list matter is taken up this October, the Philippines will likely be removed from the grey list due to our performance in various areas, including intellectual property rights protection.”

The country needed to satisfy 18 committed outcomes to be delisted, and as Andres highlighted, 15 of these have already been completed, with the final report submitted last month. This progress reflects the significant enhancements made in the Philippines’ anti-money laundering and counter-terrorism financing (AML/CTF) systems.

Despite the substantial strides, the FATF has stressed the importance of ongoing efforts in three strategic areas: ensuring AML/CTF controls on casino junkets, implementing cross-border currency controls at major ports, and escalating the prosecution of terrorism financing cases to align with perceived risks. However, Andres reassured that these concerns have now been addressed.

The FATF’s upcoming review of the Philippines’ efforts is eagerly awaited, with a positive conclusion expected. Should the Philippines successfully exit the grey list, it would signify a restored confidence in its financial systems, bolstering its standing in the global financial community.