Gov’t ramps up efforts to exit FATF ‘gray list’

PRESIDENT Ferdinand R. Marcos, Jr. has given agencies until Nov. 30 to address deficiencies in their anti-money laundering strategies as part of Philippine efforts to get out of the Financial Action Task Force’s “gray list” by January.

In a memo, the President said state agencies must review and complete deliverables required by the FATF’s International Cooperation Review Group (ICRG) by the end of next month.

“As a member of the APG (Asia Pacific Group), and in compliance with the international standards on combating money laundering and terrorist financing, the Philippines must conduct a money laundering/terrorist financing national risk assessment to determine the country’s risks and vulnerabilities,” Mr. Marcos said in the Oct. 16 memo.

The Philippines is hard-pressed to exit the global financial watchdog’s gray list, which can have severe consequences on its growing economy. Being on the FATF’s list attracts close monitoring of international transactions and limits trade opportunities.

Mr. Marcos noted that out of 18 ICRG action plans, the Philippines still must address eight to be able to get out of the FATF gray list by the start of next year. The Philippines is expected to undergo another mutual evaluation in 2026.

Mr. Marcos also directed the Anti Money Laundering Council (AMLC) to submit to the office of the Executive Secretary a comprehensive report on the status of the implementation of the National Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing Strategy (NACS) 2023-2027 on or before Dec. 8.

In particular, he wanted to see progress on Strategic Objective 1, which states that the government should demonstrate that the country has addressed strategic deficiencies identified in international assessments and that the measures contribute to “effective and sustainable outcomes.”

Under the memo, the AMLC will also serve as the lead agency of the National Money Laundering/Terrorism Financing Risk Assessment Working Group and formulate and issue guidelines for implementation.

The Philippines has been on the FATF’s list of countries under increased monitoring for money laundering and terrorism financing risks since June 2021.

In June this year, the FATF decided to keep the Philippines on the gray list despite some progress in implementing measures against such financial crimes. — K.A.T.Atienza