DUMAGUETE CITY—The Philippines faces a risk of returning to the Financial Action Task Force (FATF) grey list despite its recent exit in 2025, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said.
“To be honest, there’s a risk. We have a risk of returning to the grey list, although we’re doing what we can to prevent that,” Remolona told reporters during a media information session Sunday.
The warning follows a third national risk assessment from the Anti-Money Laundering Council (AMLC) which found the country continues to face a “high money laundering” threat.
The council attributed the persistent risk to the scale and profitability of predicate crimes including illegal drug trafficking, fraud, swindling, and cyber-enabled scams.
The AMLC also identified environmental crimes, tax evasion, corruption and securities-related violations as primary drivers of illicit financial flows.
The FATF, a global dirty money watchdog, placed the Philippines on its grey list in June 2021 because of perceived weaknesses in the implementation of anti-money laundering laws.
Inclusion on the list signifies that a jurisdiction is under increased monitoring and must commit to resolving strategic deficiencies within a set timeframe.
The country successfully exited the list in February 2025 after completing an action plan to strengthen its regulatory regime. However, Remolona noted that addressing the comprehensive risks identified by global monitors is a long-term challenge.
“This is going to be a long process, so we have time to do what we need to do to show the FATF that we’re doing everything we can,” Remolona said, adding that he remains optimistic the country has sufficient time to bolster its defenses.
The Paris-based FATF is scheduled to conduct its next mutual evaluation of the Philippines in 2027. Failure to meet standards could lead to stricter scrutiny of international financial transactions, potentially increasing costs for overseas Filipino workers and domestic businesses.
