Global AML watchdog the Financial Action Task Force (FATF) confirmed Friday that the Philippines is still on its “grey list” of jurisdictions under increased monitoring but acknowledged it has taken significant steps towards improving its AML/CFT regime.
The update followed the conclusion of the sixth and final Plenary of the FATF under the Presidency of T. Raja Kumar, which saw delegates from the FATF’s global network of over 200 jurisdictions and observers from international organizations participate in three days of discussions on key money laundering, terrorism financing and proliferation financing issues in Singapore.
While two countries, Jamaica and Türkiye, were removed from the “grey list”, the Philippines is one of 21 nations still under increased monitoring, despite the FATF stating it had demonstrated an increase in money laundering investigations and prosecutions in line with risk. The Philippines had also highlighted enforcement of beneficial ownership transparency obligations and law enforcement access to those beneficial ownership data records, and that risk-based supervision of DNFBPs (designated non-financial businesses and professions) is occurring.
However, “the Philippines should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets; (2) applying cross-border measures to all main sea/airports including detection of false declarations of currency and confiscation action in line with risk; and (3) demonstrating an increase in the prosecution of terrorism financing cases in line with risk.
“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.”
As previously reported by Inside Asian Gaming, the Philippine government has stated its intention to fulfil all requirements for removal by the end of 2024, with President Ferdinand Marcos Jr late last year issuing a Memorandum Circular directing 44 government agencies, including PAGCOR, to “review and assess” their requirements and take all necessary actions to ensure the country exits the “grey list” within the stated timeframe.
PAGCOR Chairman and CEO Alejandro Tengco revealed at G2E Asia in early June that he had appointed the regulator’s new President and COO, Atty. Wilma Eisma, to “personally oversee” its efforts to ensure the country is removed from the FATF’s grey list as soon as possible.
