The Philippines has been removed from the Financial Action Task Force’s (FATF) grey list after implementing reforms to strengthen anti-money laundering and counter-terrorism financing (AML/CFT) controls, a move expected to ease regulatory scrutiny on financial transactions and improve investor confidence.
FATF president Elisa de Anda Madrazo announced the country’s exit from the grey list at a virtual press conference following the watchdog’s three-day plenary in Paris. The decision comes nearly four years after the Philippines was placed on the list in June 2021 for deficiencies in its AML/CFT framework.
“The plenary agreed to take the Philippines off the grey list in recognition of the completion of their action plan,” Madrazo said. She cited the government’s crackdown on financial crimes, including stricter oversight of the casino industry and last year’s ban on Philippine offshore gaming operators (POGOs), as key factors in the decision.
“There was actually an onsite visit that verified the progress. And just to give you a couple of examples, they showed that, on average, there is $5 million a month of proceeds that are being confiscated, which is very important,” Madrazo said.
The FATF credited the Philippines for improving supervision of designated non-financial businesses, tightening controls on casino junkets, and enhancing the transparency of money transfer services. Authorities also imposed sanctions on unregistered remittance operators and expanded law enforcement access to beneficial ownership data to prevent corporate structures from being used for illicit activities.
Regulators have increased the use of financial intelligence to support investigations and prosecutions of money laundering cases, aligning enforcement actions with risk assessments. Reforms extended to the nonprofit sector, with authorities tightening oversight of unregistered organizations while ensuring legitimate activities remain unaffected.
Further steps included strengthening targeted financial sanctions against terrorism and proliferation financing, as well as implementing new cross-border measures at major ports and airports.
Despite the milestone, Madrazo emphasized that the Philippines must maintain compliance with FATF standards. She confirmed that the country is set for a new FATF mutual evaluation in 2027, requiring authorities to begin preparations to ensure continued regulatory alignment.
“This will provide an opportunity for the FATF to verify that the reforms remain in place and are being sustained in line with FATF standards,” she said.
The Philippines’ removal from the grey list is expected to reduce the cost of cross-border financial transactions, ease due diligence requirements for foreign investments, and further integrate the country into the global financial system.
