Philippine President Ferdinand Marcos has ordered all relevant government agencies to get the country off the “grey list” of jurisdictions vulnerable to economic crimes, especially money laundering. According to Inside Asian Gaming, those agencies must resolve eight outstanding deficiencies before the country can exit the list, compiled by the Financial Action Task Force (FATF), a Paris-based global watchdog.
Matthew David, executive director of the Philippines’ Anti-Money Laundering Council (AMLC), confirmed to the Philippine News Agency that removal from the list is a top priority for 2024.
Last October, the FATF reiterated its order that Philippine lawmakers address shortcomings in their anti-money laundering (AML) controls, including those related to casino junkets, which bring high-rolling gamblers in, often from other countries including China. FATF gave the country until this month to make good on those improvements, and the AMLC reaffirmed its “steadfast commitment to bolstering the effectiveness of its AML, CTF (counter-terrorism financing) and counter-proliferation financing regime.
“Since June 2021, guided by high-level political commitment, the Philippines has actively collaborated with the FATF and the Asia/Pacific Group on Money Laundering (APG) to enhance the country’s AML/CTF measures,” the council said. It declared its “unwavering commitment (to) set the strategic direction for the country’s initiatives.”
Among other measures, the council has promised to better manage junket risks, strengthen money laundering investigations and prosecutions and focus on the identification, investigation and prosecution of terrorism financing cases.
“The Philippines values the guidance and recommendations from international bodies like the FATF and remains committed to continuous improvement and collaboration,” the council said.
David added that the body “is aiming to address all these deficiencies within 2024 and to trigger the exit process from this FATF ‘grey listing.’” He pointed to progress so far, saying the council has already complied with 10 of 18 items identified by FATF, with such as the effective risk-based supervision of Designated Non-Financial Business and Professions; access to beneficial ownership information; and enforcement of cross-border measures.
The eight deficiencies are “still partly addressed,” he said, with one “not yet properly addressed. … We need to file more terrorism financing cases (with help from) law enforcement agencies, including the AMLC.
“Everybody believes we’re 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.
“There are repercussions for being in the grey list, because the longer we’re in the grey list, the bigger the possibility or the higher risk that we will enter the black list.”
Three countries are now on the black list, described on the FATF website as “high-risk jurisdictions subject to a call for action: the Democratic People’s Republic of Korea, Iran and Myanmar.
In addition to the Philippines, the grey list includes Barbados, Bulgaria, Burkina Faso, Cameroon, Croatia, the Democratic Republic of Congo, Gibraltar, Haiti, Jamaica, Mali, Mozambique, Nigeria, Senegal, South Africa, South Sudan, Syria, Tanzania, Turkey, Uganda, the United Arab Emirates, Vietnam and Yemen.
