PH fails to meet target to exit ‘grey list’ by Jan 2024

The Philippines failed to meet its target of exiting the Financial Action Task Force's (FATF's) “grey list” by January 2024, but the government on Sunday welcomed the citation of local efforts to address the watchdog’s concerns.

In a report dated February 23, the FATF placed the Philippines under “increased monitoring,” which indicated that a jurisdiction was actively working to deal with “strategic deficiencies” in the efforts against money laundering, terrorist financing, and proliferation financing.

The Anti-Money Laundering Council (AMLC) said earlier this year the government aimed to exit the list by January 2024, after being included in 2021.

Progress on anti-money laundering and combating financing of terrorism (AML/CFT) was reviewed by the FATF in October 2023, after the Philippines failed to meet its target by the watchdog’s January 2023 deadline.

“Since June 2021, when the Philippines made a high-level political commitment to work with the FATF and APG (Asia/Pacific Group on Money Laundering)… the Philippines has taken steps towards improving its AML/CFT regime, including identifying and investigating TF (terrorism financing) cases,” the FATF said.

It noted, however, that the country should continue to work on its action plan, including demonstrating effective risk-based supervision of designated non-financial businesses and professions (DNFBPs).

The FATF said the Philippines should also work on demonstrating that supervisors are using controls to address risks linked with casino junkets, and enhancing and streamlining the access of law enforcement agencies to beneficial ownership information which should be up-to-date.

The watchdog said the country should also demonstrate an increase in money laundering investigations and prosecutions, and in the prosecution of terrorism financing cases.

“The FATF urges the Philippines to swiftly implement its action plan to address the above-mentioned strategic deficiencies as soon as possible as all deadlines expired in January 2023,” it said.

For its part, the AMLC welcomed the latest report as it said the FATF cited steps taken by the Philippines in improving its AML/CFT regime.

“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,” AMLC Executive Director Atty. Matthew David said in a statement.

“It also sends a positive signal to the international community on the unwavering commitment and continuous progress made by the Philippines in this front,” he added.

Former Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno in June 2021 said the Philippines would need more time to implement measures against money laundering and terrorist financing.

“The government remains dedicated to strengthening the country’s position in the global fight against financial crimes,” David said Sunday. — DVM, GMA Integrated News