The Anti-Money Laundering Council of the Philippines on Tuesday said that the country hopes to get out of the Financial Action Task Force's (FATF) "grey list" for money laundering this year.

The Philippines was added to the list by the FATF, an intergovernmental group that fights money laundering and funding for terrorism, in June 2021. This was done for several reasons, such as the risk of money laundering from casino trips and the fact that people involved in funding terrorism cases are not being prosecuted.

In a Palace briefing, Anti-Money Laundering Council executive director Matthew David said that the Philippines still needs to fix a number of problems that the FATF has pointed out.

"The most challenging action item is terrorism financing prosecution. We need to file more terrorism financing cases," David said.

David said that the Philippines has a better chance of being moved to the blacklist if it stays on the green list for too long.

Being put on the FATF's "blacklist" could mean stricter rules and higher transaction costs for the millions of Filipinos who live and work abroad and send billions of dollars back to their home country.

"Being on the black list means the FATF believes we have serious weaknesses in our anti-money laundering and counterterrorism financing systems," he explained.

For overseas Filipino workers (OFWs), who send billions of dollars in remittances back home, the grey listing could translate to higher transaction costs, increased documentation requirements, and even delays or rejections of their remittances.

"The financial burden on our OFWs is a major concern," David emphasized. "They may have to pay more fees, submit additional documents, and face longer processing times for their hard-earned money."

While the Philippines has avoided the blacklist for now, its continued presence on the "grey list" still carries significant risks. "This is a reputational issue," David emphasized. "It can affect our credit rating and discourage foreign direct investment."

The World Bank and International Monetary Fund are also closely monitoring the situation, raising further concerns about the country's financial standing.