Efforts of the National Committee on Intellectual Property Rights (NCIPR) to combat counterfeiting and piracy would be crucial to delisting the country from the Financial Action Task Force (FATF) gray list by 2025, using the efforts of the National Anti-Money Laundering Council, according to the Department of Justice (DoJ).

“We are very confident that when the FATF gray list is taken up this October, the Philippines may already exit the gray list because of our performance in various areas including intellectual property (IP) protection,” Justice Undersecretary Jesse Hermogenes Andres said at the recent 2024 NCIPR high-level meeting.

Intellectual Property Office of the Philippines deputy director general Nathaniel Arevalo echoed the positive outlook while noting that counterfeiting and piracy have been linked to financing activities of organized crime groups.

“Trade in illegal goods is a transnational crime often run by complex criminal networks. Failing to deter illicit goods such as IP infringing goods from the market further emboldens these criminal groups to expand their operations and harm more people and brands,” Arevalo said.

$500B in syndicate crimes

According to the European Union Agency for Law Enforcement Cooperation, organized crime represents as much as 2.5 percent or nearly $500 billion of world trade.

Arevalo said NCIPR’s record-high seizure this year “signifies the relentless efforts of its 15 members to disrupt illicit trade in the country and protect consumers and IP rights holders.”

In the first nine months of the year, the NCIPR seized P35.24 billion worth of bogus products, a record high that surpassed last year’s P26.89 billion

“IPOPHL is committed to strengthening efforts at the NCIPR, intensifying our cooperation internally and with external members and improving the country’s reputation in the FATF and in the global context as an enabler of creativity, innovation, and legitimate businesses,” Arevalo said.

The gray list is a list of countries actively working with the FATF to improve their effectiveness in combating and preventing anti-money laundering and terrorist financing.

As of October 2023, there are 23 countries on the list, including the Philippines.

The DoJ led the Financial Intelligence, Law Enforcement, and Prosecution Sub-Committee (FILEPSC) with IPOPHL as member.

The FILEPSC is a sub-committee of the National Anti-Money Laundering/Countering the Financing of Terrorism Coordinating Committee, the body that oversees the implementation of the National Anti-Money Laundering and Counter-Financing of Terrorism Strategy approved in 2018.