The Bangko Sentral ng Pilipinas (BSP) and government officials expect faster and cheaper financial transactions among banks and other lenders following the country’s exit fromww the gray list of the Financial Action Task Force (FATF), a global anti-money laundering watchdog.

“Through concerted reforms, government agencies fortified the integrity of our financial system and reaffirmed our nation’s commitment to combating financial crimes,” BSP Governor and Anti-Money Laundering Council Chairman Eli Remolona Jr. said.

Exclusion in the FATF’s gray list means Philippine banks can skip longer and tedious processes in securing funds from offshore sources.

Overseas Filipino workers can also transfer funds back home at cheaper costs.

Fewer hurdles

“It means that our businesses face fewer hurdles in securing international financing, which encourages foreign investors,” President Ferdinand Marcos Jr. said.

Said government officials delivered such statements during a recognition ceremony at Malacañang last Monday.

The President gave Remolona a plaque of recognition for helping the country exit from the FATF’s gray list.

The Philippines was included in the list in 2021.

Stronger banking industry

Based on its Report on the Financial System for the second half of 2024, the BSP said banks’ total loans grew by 10.6 percent to P15.3 trillion by December.

Non-performing loans ratio declined to 11.4 percent from 12.6 percent in 2023 as the country sustained over 5 percent economic growth.

Deposits also rose by 7 percent to P20.4 trillion.

Accordingly, total assets in the local banking system grew by 9 percent to P27.4 trillion.