The Philippines has been removed from the Financial Action Task Force “grey list” of countries under increased monitoring for money laundering and terrorism financing, a status that can hamper global financial transactions.
Executive Secretary Lucas Bersamin, who chairs the National Anti-Money Laundering Coordinating Committee, said the country’s removal from the list is expected to ease financial flows, reduce compliance barriers, and enhance transparency.
“For so long, our investment attractiveness has been dragged down by this dirty money haven label. This hard-fought administration win in its battle against money laundering will be preserved and protected through consistent compliance with global standards,” Bersamin said.
The FATF, an international watchdog monitoring financial crimes, placed the Philippines on its grey list in 2021 due to deficiencies in anti-money laundering and counterterrorism financing measures.
Bangko Sentral ng Pilipinas governor and Anti-Money Laundering Council chairman Eli Remolona Jr. credited the removal to strong cooperation between government agencies and the private sector.
AMLC singled out President Ferdinand Ferdinand Marcos Jr.’s 2023 signing of an executive order targeting money laundering and “counter-terrorism financing” as having played a key role in the decision.
Mr. Marcos last year also banned offshore gaming operators, known locally as POGOs, that were said to be used as fronts by organized crime groups for human trafficking, money laundering, online fraud, kidnappings, and even murder.
“This seal of good financial housekeeping benefits overseas Filipinos as it would make cross-border transactions faster and cheaper as layers of compliance barriers are removed,” Bersamin said.
Finance Secretary Ralph Recto added: “This is a landmark achievement of the Marcos, Jr. administration. 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.”
Speaker Martin Romualdez underscored the far-reaching benefits of the country’s removal from the grey list, highlighting its positive impact on businesses, investors, and OFWs.
“By restoring our standing in the global financial community, we are removing burdensome restrictions, reducing transaction costs, and allowing financial flows to move more efficiently. This is particularly good news for our OFWs, whose hard-earned remittances will now be processed faster and with lower fees,” Romualdez said.
Editor’s Note: This is an updated article. Originally posted with the headline “AMLC: Philippines exits FATF ‘grey list’.”