MANILA – The Philippines has moved closer to exiting the Financial Action Task Force (FATF) grey list or list of jurisdictions under increased monitoring, after addressing items in its International Co-operation Review Group (ICRG) action plan.
In a statement released on Friday, the FATF recognized that the Philippines has made significant progress in enhancing its anti-money laundering and counter-terrorism financing (AML/CTF) regime.
"Since June 2021, when the Philippines made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime, the Philippines has taken significant steps towards improving its AML/CFT regime, including by demonstrating an increase in ML investigations and prosecutions in line with risk; enforcement of beneficial ownership transparency obligations and law enforcement access
to those beneficial ownership data records; and that risk-based supervision of DNFBPs (designated non-financial businesses and professions) is occurring," the FATF said.
The FATF is a global money laundering and terrorist financing watchdog.
The FATF said the Philippines should continue to work on implementing its action plan to address its three strategic deficiencies.
These include demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets; applying cross-
border measures to all main sea/airports including detection of false declarations of currency and confiscation action in line with risk; and demonstrating an increase in the prosecution of TF cases in line with risk.
"The FATF urges the Philippines to swiftly implement its action plan to address the above-mentioned strategic deficiencies as soon as possible as all deadlines expired in January 2023," the FATF said.
In a separate statement on Friday, the Anti-Money Laundering Council (AMLC) said the Philippines will continue to work on implementing its action plan to address remaining deficiencies.
“We welcome FATF’s recognition of the country’s progress in strengthening its position in the global fight against financial crimes, even as we remain focused on addressing remaining action plan items,” AMLC Executive Director Matthew David said.
Earlier this year, President Ferdinand R. Marcos Jr. directed all government agencies concerned to address all the remaining action plan items within the year to trigger the exit process.
AMLC said the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Coordinating Committee (NACC) and all agencies concerned have been exhausting all measures in line with the President’s directive. The Executive Secretary heads the NACC.
It added that during the recent FATF Working Group and Plenary meeting, Executive Secretary Lucas Bersamin reaffirmed the nation's commitment to combating money laundering, terrorism financing, and proliferation financing of weapons of mass destruction.
Aside from citing the progress made, he emphasized the comprehensive, whole-of-nation approach, the high-level commitment, and continuous efforts of the Philippines to improve its financial security regime. (PNA)
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