PH eyes exit from int'l 'grey list' in 2024

The Philippine government is aiming to remove the country from the Financial Action Task Force's (FATF) grey list by January 2024. 

At a Palace press briefing, Anti-Money Laundering Council (AMLC) Executive Director Atty. Matthew David said that President Ferdinand ''Bongbong'' Marcos Jr. has directed concerned government agencies to address and resolve the Philippines' ''grey listing.''

''The President has reiterated the government's high-level political commitment and directed all government agencies concerned to swiftly address the remaining strategic deficiencies identified by the FATF in relation to the grey listing of the Philippines,'' David said. 

David said the government has imposed a deadline to exit the grey list by the start of 2024.

''The deadline given by FATF was January 2023, it was last year already and it was not extended. However, since we did not meet the deadline of January 2023, we're still in the grey list and our aim, the aim of the government is to exit the grey list this January 2024. That was a self-imposed deadline but we are still hopeful that we exit the grey list this 2024,'' he explained. 

In 2021, the Philippines, Haiti, Malta, and South Sudan were placed on a "grey list" of countries under increased monitoring to counter money laundering and terrorist financing.

The Financial Action Task Force (FATF), an international organization that coordinates global efforts to crack down on money laundering and terrorism financing, said nations on the list are working with it to correct deficiencies in their financial systems.

Credit rating

Meanwhile, David admitted that the Philippines' inclusion in the grey list would have an adverse effect on the country's foreign direct investments and its credit rating.

''It's basically... there's already a reputational risk on the Philippines, particularly on the economy. It may affect our credit rating,'' David said. 

''As you very well know, the World Bank and the IMF is looking into also the status of the Philippines regarding the grey list. It might also affect foreign direct investments in the Philippines because if you don't exit the grey list they might think the AMLC system is not adequate enough or strong enough as regards money laundering,'' David explained. 

David said the FATF has given the Philippines 18 recommended actions to address the matter. 

''The FATF gave us 18 recommended actions, items which we should address. As I mentioned a while ago, to measure and assess our effective of the rules and regulations, and the laws we have passed,'' David said. 

''Right now, we have eight as I mentioned a while ago, sinummarize ko po 'yun, 'yung eight action items po na 'yun... Ngayon po we have complied 10 out of the 18, tulad ng sabi ko may walo na lang po tayong kailangang i-address,'' he added. 

The FATF said that when a country is under grey list, it means the country has been actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. —VAL, GMA Integrated News