President Ferdinand Marcos Jr. said on Wednesday, December 4, that the Philippines is about to exit the Financial Action Task Force (FATF) Greylist, following a United Nations official’s confirmation that the country has resolved 18 identified deficiencies to exit the area.
“Another noteworthy achievement is our progress toward exiting from the Financial Action Task Force or FATF Grey List. This is a very, very important item,” Marcos said during the 33rd Anti-Terrorism Council regular meeting and year-end celebration.
“I know that it’s not spoken about a great deal in the public domain but nonetheless, as an obstacle to the continuing transformation of our economy, to the continuing transformation of our place in the world, this, us exiting from the Grey List is a significant move,” Marcos added.
The FATF Grey List is a watchlist for countries deemed to have strategic deficiencies in their anti-money laundering and counter-terrorism financing regimes. Being on the list can negatively impact a country’s reputation and hinder international financial transactions.
Marcos said that the Philippines’ removal from the Grey List will have far-reaching positive consequences, particularly for overseas Filipino workers (OFWs).
“This milestone will benefit millions of Filipinos, from smoother remittances for overseas workers to increased investor confidence that bolsters our economy,” Marcos said.
The Philippines was placed on the FATF Greylist in June 2021 due to insufficient measures against money laundering and terrorist financing. Since then, the country has significantly strengthened its anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks.
As a result, the FATF recognizes that the Philippines has largely fulfilled its action plan and may be removed from the list by February 2025.
During the fifth state conference on the UN Convention Against Corruption implementation and review at Malacañang earlier this week, UN Office on Drugs and Crime country manager Daniele Marchesi praised the Philippines’ financial reform efforts.
All 18 action items that FATF required to exit the gray list of jurisdictions under increased monitoring for the anti-money laundering and counter-financing of terrorism have been addressed,” the UN official said.
“At its October 2024 plenary, the FATF recognized this progress and announced that an on-site assessment would be conducted to confirm the sustainability of these reforms,” Marchesi added.
Marchesi also noted that the FATF would carry out an on-site evaluation to verify the sustainability of the reforms undertaken by the Philippines. (TCSP)
