The Philippine government expects its removal from a global money laundering watchdog’s “gray list” to lead to a credit rating upgrade.
The Financial Action Task Force announced Wednesday that the Philippines is no longer under increased monitoring, ending its status since June 2021.
Finance Secretary Ralph Recto lauded the Philippines’ successful exit from the FATF gray list, a significant step toward securing a credit rating upgrade under President Ferdinand Marcos Jr.’s administration.
The FATF, an international body tasked to combat money laundering and terrorism financing, placed the Philippines on the gray list in 2021 due to lax implementation of anti-money laundering efforts.
The Philippines has been cited as a model and regional leader in addressing financial integrity issues in the international financial system.
“This is a landmark achievement of the Marcos Jr. administration. It’s a seal of good housekeeping that strengthens public confidence in our financial system. I thank all of those in the government who worked tirelessly to achieve this goal,” Recto said.
“This will directly benefit our remitting overseas Filipino workers, businesses, and the Filipino people. By upholding the highest standards of financial governance, we will attract more foreign direct investments and expand more trade partnerships that will help accelerate economic growth. With this momentum, our next goal is clear—a credit rating upgrade within the Marcos Jr. administration,” he said.
Marcos made the country’s FATF exit a top priority, issuing Executive Order No. 33 in 2023 to fast-track compliance with global financial standards.
The Department of Finance played a key role in this achievement as a member of the National Anti-Money Laundering/Counter-Terrorism Financing/Counter-Proliferation Financing Coordinating Committee, the inter-agency body responsible for overseeing the National AML/CTF/CPF Strategy and guiding its implementation across relevant agencies.
State-run Philippine Amusement and Gaming Corp. (PAGCOR) also welcomed the country’s exit from the FATF gray list and vowed to continuously strengthen regulations and strict monitoring of the local gaming industry.
PAGCOR chairman and chief executive Alejandro Tengco said the exit from the list is a significant development that should help bring in more foreign investments to the country.
“We are honored to have played a crucial part in this development, and the public can rest assured that PAGCOR will continue to ensure that all our licensees are compliant with all anti-money laundering rules and regulations,” he said.
“We also commit to sustain the fight against money laundering and terrorist financing in the entire Philippine gaming industry, including our online gaming operators, land-based casinos and junket operators,” Tengco said.
Tengco said much of the state gaming firm’s AML efforts are handled by two key units: the PAGCOR Anti-Money Laundering Supervision and Enforcement Department and the Anti-Money Laundering Compliance Department.
“Rest assured that your PASED and ACD teams will work even harder, together with other departments and our licensees, to ensure that we never go back to the gray list,” Tengco said.
