The Philippines has taken steps towards improving its anti-money laundering and Combatting the Financing of Terrorism (AML/CFT) regime but has not yet done enough to be removed from the global “grey list” of jurisdictions under increased monitoring.
The update was provided by the Financial Action Task Force (FATF) after concluding its latest plenary meeting in Paris on Friday, with the need for the Philippines to demonstrate that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets listed among continuing areas of concern.
The Southeast Asian nation was first placed on the grey list in June 2021 but has stated its intention to fulfil all requirements for removal by the end of this year. This has included President Ferdinand Marcos Jr late last year issuing a Memorandum Circular directing 44 government agencies, including gaming regulator PAGCOR, to “review and assess” their requirements and take all necessary actions to ensure the country exits the “grey list” within the stated timeframe.
According to details from FATF, the Philippines has “taken steps towards improving its AML/CFT regime, including by identifying and investigating [terrorism financing] cases.”
However, it should continue to work on implementing its action plan to address its strategic deficiencies, including by demonstrating that effective risk-based supervision of DNFBPs (designated non-financial businesses and professions) is occurring; demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets; enhancing and streamlining law enforcement access to beneficial owner information and taking steps to ensure that beneficial owner information is accurate and up-to-date; demonstrating an increase in money laundering investigations and prosecutions in line with risk; and demonstrating an increase 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.
In a statement following the FATF’s update, Philippines Anti-Money Laundering Council Secretariat Executive Director Matthew M. David said, “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. It also sends a positive signal to the international community on the unwavering commitment and continuous progress made by the Philippines in this front.
“As we continue following the marching orders set by the President, a whole of nation approach remains vital moving forward. We are happy that the collaborative effort among agencies in addressing areas for improvement as suggested by the FATF has been cited.”
Also remaining on the “grey list” is Vietnam, although FATF said the nation had opted to defer the deadline to report its progress in fulfilling requirements. Vietnam has, it said, made progress on some recommended actions by joining the Asset Recovery Interagency Network Asia Pacific and adopting a national action plan on AML/CFT/CPF.
The FATF explained, “Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing.
“When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring.”
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