Philippines President Ferdinand R. Marcos Jr has reportedly directed all related government agencies to take immediate action in addressing eight remaining strategic deficiencies identified by global AML watchdog the Financial Action Task Force (FATF), with a view to exiting its “grey list” of nations under increased supervision within 2024.
As reported by state-run Philippine News Agency, the President’s directive – delivered at a sectoral meeting at Malacañan Palace earlier this week – was outlined in a Palace briefing where Anti-Money Laundering Council (AMLC) Secretariat executive director Matthew David confirmed removal from the “grey list” was now a top priority.
The Office of the President of the Philippines previously issued in October a Memorandum Circular directing relevant government agencies, including gaming regulator PAGCOR, to “review and assess” their requirements and take all necessary actions in relation to the nation’s deficiencies.
“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 this week.
“The Philippines is aiming to address all these deficiencies within 2024 and to trigger the exit process from this FATF ‘grey listing.”
Asked about the Philippines’ progress to date, David said it had already complied with 10 of 18 items identified by FATF, with outstanding items including the demonstration of effective risk-based supervision of Designated Non-Financial Business and Professions; access to beneficial ownership information; enhancement in money laundering and financial investigations and prosecutions; and enforcement of cross-border measures.
The eight deficiencies are “still partly addressed” with one “not yet properly addressed”, he added.
“The most challenging action items regarding terrorism financing prosecution, we need to file more terrorism financing cases and the one in charge of complying with this action item is the law enforcement agencies, including the AMLC,” David said.
“Everybody believes we are on the right track and the President has commended the work of different agencies of government. The President also directed the agencies of government to continue with their actions and to continuously sustain good coordination among themselves — between the law enforcement and other government agencies.
“Our goal is to eventually exit the grey list. There are repercussions for being in the grey list because the longer we are in the grey list, the bigger the possibility or the higher risk that we will enter the black list.”
As previously reported by IAG, the Philippines was initially given until January 2023 to convince FATF that it should be removed from a “grey list” of nations under increased monitoring for deficiencies in AML and CTF controls, but this was later extended by 12 months until 2024.
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