The Philippines faces continued scrutiny by the Financial Action Task Force (FATF) due to ongoing concerns about its anti-money laundering (AML) and counter-terrorism financing (CFT) measures.
The FATF, the global money laundering watchdog, included the Philippines among 17 jurisdictions on its increased monitoring list on June 28. While the Anti-Money Laundering Council (AMLC) claims to have addressed key areas of its FATF action plan, concerns remain. It acknowledged some improvements, such as increased money laundering investigations and prosecutions, stricter beneficial ownership transparency, and risk-based supervision for designated non-financial businesses (DNFBPs). However, the effectiveness of these measures, particularly in high-risk areas like casino junkets, needs further demonstration.
“We recognize the FATF’s acknowledgement of our efforts,” said AMLC executive director Matthew M. David. “However, the focus remains on addressing outstanding action plan items.”
Key areas requiring improvement include stricter regulation of casino junkets, robust cross-border controls at major ports and airports, and increased prosecutions for terrorism financing. President Marcos Jr. has directed relevant agencies to expedite compliance with the action plan, initially due in January 2023 but extended.
The Philippines’ inclusion on the FATF gray list since June 25, 2021, signifies increased scrutiny of its financial system.
Exiting by year-end is crucial to safeguard the country’s global financial reputation.
