Metro Manila (CNN Philippines, January 2) — The Philippines aims to exit a global dirty money watchlist this month to avoid possible sanctions from the international financial community.
“Our aim is to exit the gray list this January 2024. That’s a self-imposed deadline,” Anti-Money Laundering Council (AMLC) Executive Director Matthew David said in a press briefing Tuesday.
The country has been on the gray list of the Paris-based Financial Action Task Force (FATF) since June 2021. This means the Philippines has been under increased monitoring due to strategic deficiencies in anti-money laundering/counter-terrorism financing measures.
President Ferdinand Marcos Jr. earlier ordered all concerned agencies to “expedite efforts to address deficiencies identified by the FATF ICRG (International Co-operation Review Group).”
David warned that the country might end up on the FATF “black list” should it fail to carry out the remaining eight of its 18 recommended action plans.
\”The longer we are on the gray list, the higher risk we will enter the black list. We don’t want to be in the blacklisted jurisdiction,\” David said.
In a worst case scenario, the FATF could impose countermeasures on transactions of Filipinos abroad, according to David.
\”There is already a reputational risk on the economy. It may affect our credit rating. It might also affect the foreign direct investments,\” he added. \”The government is doing everything we can to complete the action items.\”
In June 2023, the FATF said the Philippines has yet to address the following:
– Demonstrate effective risk-based supervision of designated nonfinancial businesses and professions
– Demonstrate that supervisors use anti-money laundering and counter-financing of terrorism controls to mitigate risks associated with casino junkets
– Enhance and streamline the access of law enforcement agencies to accurate and up-to-date information regarding beneficial ownership
