Philippines sets 2024 as deadline to come out of FATF ‘grey listing’

The Philippines is targeting 2024 as a deadline to become delisted from the ‘grey list’ of the Financial Action Task Force (FATF).

All remaining shortcomings are to be addressed by the relevant government agencies in the country, as well as the Anti-Money Laundering Council (AMLC) of the Philippines, by order of President Ferdinand R. Marcos Jr.

A government press release published by the Philippine Information Agency confirmed that the AMLC is fully backing the President’s decision.

AMLC Executive Director Matthew David said: “The President reiterated the government’s high-level political commitment and directed all government agencies concerned to strictly address the remaining strategic deficiencies identified by the FATF in relation to the greylisting of the Philippines.

“The Philippines is aiming to address all these deficiencies within 2024 and to trigger the exit process from this FATF greylisting.”

David also added that all government agencies are being urged to continue with their sufficient cooperation as they maintain focus on the 2024 delisting goal. 

FATF – the international AML and CTF unit under the supervision of G7 – placed the Philippines in its grey list back in June 2021 and gave it a total of 18 requirements to complete. 

As a result, President Marcos Jr introduced Executive Order No. 33 in 2022 that pushed towards stricter financial controls and strategies, and the country now has only eight actions to complete. 

These include a demonstrated increase in AML and CTF investigations and prosecutions, ensuring cross-border measures across entry points such as seaports and airports, effective risk-based supervision of non-financial businesses and professionals (NFBPs), and streamlining access to beneficial ownership information.

The Director of the AMLC added: “There are precautions for being on the grey list, because the longer we are on the grey list, the bigger the possibility or the higher the risk that we will enter the black list. 

“Of course, we don’t want to be in the blacklisted jurisdiction. And if we will be on the blacklisted list, there are repercussions to that and one of the repercussions is the effect on the transactions of our OFWs.”

Ramping up the efforts to take the country off of FATF’s list comes just in time for the planned igaming market launch in the Philippines later this year. 

Last year the country decided to tighten up the regulatory framework around offshore licensed holders through the Philippine Amusement and Gaming Corporation (PAGCOR), while also clamping down on illegal overseas gambling to prepare ahead for this year’s planned online casino market launch.