The Philippines has yet to exit the “grey list” of non-complaint jurisdictions designated by the Paris-based watchdog the Financial Action Task Force (FATF), according to a Friday statement, coinciding with the final day of the organisation’s latest plenary meeting.
In the update, the FATF again urged the Philippine authorities “swiftly” to resolve outstanding issues related to its anti-money laundering (AML) and combatting the financing of terrorism (CFT) controls.
The Philippines has for more than two years been on the FATF’s “grey list” of jurisdictions it says require increased monitoring regarding financial crime risk. The country was added to the that list in June 2021.
Among the gaps reiterated by the FATF in its latest update was the need for the Philippines to demonstrate that “supervisors are using AML/CFT controls to mitigate risks associated with casino junkets,” noted the watchdog in the Friday statement.
“The FATF urges the Philippines to swiftly implement its action plan to address the … strategic deficiencies as soon as possible as all deadlines expired in January 2023,” said the organisation.
In January last year, the governor of the Philippine central bank said the country had been given a year extension – until January 2024 – to meet the financial standards needed to get off a risk list of the FATF. That deadline has also lapsed, with local media reports citing the intention of the country’s president Ferdinand Marcos Jr. to have the Philippines removed from the “grey list” by October this year.
President Marcos Jr. in January ordered the country’s relevant government agencies to expedite efforts in addressing the deficiencies pointed out by the FATF “within the year”.
Despite taking steps towards improving its AML/CFT regime, the Philippines has yet to demonstrate an “effective risk-based supervision” of non-financial sectors and professions deemed vulnerable to financial crimes, stated the FATF in its latest announcement.
These entities – also known as Designated Non-Financial Businesses and Professions – include casinos, lawyers, accountants and real estate agents.
In its own statement, the Philippines’ Anti-Money Laundering Council (AMLC) said the FATF “recognised the Philippines’ high level political commitment and cited progress” in the country’s efforts to strengthen its AML/CFT regime.
The statement cited Matthew David, executive director of the AMLC Secretariat, as saying: “This improvement in our AML/CFT regime is a strong recognition of the government’s efforts in curbing terrorism and terrorism financing incidents in the country.”
He added: “It also sends a positive signal to the international community on the unwavering commitment and continuous progress made by the Philippines in this front.”
