Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. will represent the Philippines at the upcoming Financial Action Task Force (FATF) Plenary and Working Group Meetings in Paris next month, as the country seeks to be delisted from the FATF’s gray list of nations flagged for money laundering issues.
The BSP confirmed on Tuesday that Remolona will attend the FATF meetings from February 17 to 20, 2025. As chairperson of the Monetary Board, his participation prompted the BSP to reschedule its policy rate meeting, originally set for February 20, to February 13.
The Philippines has been on the FATF gray list since June 2021, but has made substantial progress in addressing the 21 action plans required to exit the list.
In its October 2024 plenary, the FATF acknowledged the Philippines’ efforts in implementing 18 of these reforms. But FATF officials emphasized that an on-site assessment is necessary to verify the sustained implementation of anti-money laundering (AML) and counter-financing of terrorism (CFT) reforms.
Notable improvements in the Philippines’ compliance efforts include enhanced supervision of designated non-financial businesses and professions (DNFBPs) and tighter registration requirements for money or value transfer services (MVTS).
The country has also taken steps to mitigate risks associated with casino junkets and imposed sanctions on unregistered remittance operators.
Despite these advancements, further reforms are needed for full compliance. The International Monetary Fund (IMF) highlighted in its December 2024 country surveillance report that ongoing adherence to FATF standards will be crucial ahead of the next mutual evaluation in 2027.
The IMF also called for reforms to the Philippines’ bank secrecy laws, which would strengthen the BSP’s supervisory powers and improve the effectiveness of its AML/CFT measures.
The FATF’s Asia/Pacific Joint Group (APJG) is expected to visit the Philippines ahead of the plenary meetings next month to verify the sustainability of the country’s reforms.
A successful review and delisting would improve the Philippines’ standing in the global financial system and reduce the country’s exposure to heightened scrutiny.
