FATF to Phl: Expedite action plans to exit 'grey list'

Global money laundering and terrorist financing watchdog Financial Action Task Force (FATF) urged the Philippines on Friday to implement its action plans as soon as possible to improve its anti-money laundering and counter-terrorism financing (AML/CTF) efforts.

FATF issued the statement as the watchdog said the country is still on the "grey list" or the list of jurisdictions under increased monitoring after falling short in addressing the remaining concerns on its (AML/CTF) regime.

The watchdog issues 'black' and 'grey' lists three times a year, categorizing countries or jurisdictions with inadequate AML/CTF measures.

When the FATF places a nation on the "grey list" or under increased monitoring, it signifies that the country has pledged to address the identified strategic deficiencies within agreed-upon timeframes and is subject to heightened scrutiny.

“The FATF urges the Philippines to swiftly implement its action plan to address (...) strategic deficiencies without delay, as all deadlines expired in January 2023,” it added.

"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/CTF regime, the Philippines has taken significant steps towards improving its AML/CTF 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.

In early January this year, President Ferdinand Marcos Jr. directed relevant government agencies to address and resolve the Philippines' "grey listing."

The government has set a deadline to exit the grey list by the beginning of 2024, having missed the initial deadline of January 2023.

In a separate statement, the Anti-Money Laundering Council (AMLC) said the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Coordinating Committee (NACC) and all relevant agencies have been making exhaustive efforts to comply with the President’s directive.

“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.

The NACC is headed by the Executive Secretary.

The AMLC noted 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 the proliferation financing of weapons of mass destruction.

In addition to highlighting the progress made, Bersamin emphasized the comprehensive, whole-of-nation approach, the high-level commitment, and the continuous efforts of the Philippines to enhance its financial security regime.

The AMLC stated that the Philippines will continue to work on implementing its action plan to address remaining deficiencies. This includes demonstrating that supervisors are using AML/CTF controls to mitigate risks associated with casino junkets; implementing cross-border measures at major air and seaports, including detecting false currency declarations and resulting confiscations; and increasing the prosecution of terrorism financing cases.