SENATE President Francis Escudero credited the Marcos administration for prioritizing efforts to combat money laundering and terrorist financing resulting in the country’s removal from the Financial Action Task Force (FATF) grey list.
“We thank President Ferdinand Marcos Jr. for making this one of his administration’s priorities, as well as all the National AML/CFT Coordinating Committee led by Executive Secretary Lucas Bersamin for seeing this through to the end,” Escudero said.
“This sends a strong message to the international community that we are a country that abides by laws and takes the matter of going after financing of criminal elements seriously,” he added.
The Paris-based international watchdog placed the Philippines on its grey list in June 2021 due to deficiencies in the country’s anti-money laundering and counter-terrorism financing frameworks.
Escudero emphasized that removal from the list was the result of decades-long reforms aimed at restoring trust in the country’s financial system and making transactions easier for overseas Filipino workers (OFWs).
“We have continuously worked with the FATF to address the remaining obstacles to our removal from its watch-list,” he noted.
Inclusion in the grey list has made financial transactions more difficult for the country, affecting credit access and foreign banking relationships, while at the same time increasing remittance costs for OFWs.
One of the significant changes included the inclusion of casinos under the AMLA’s coverage, following FATF recommendations to curb illicit financial flows linked to gambling operations.
“It is the reputation of the Philippines in the international community that is at stake here. Now that we have hurdled this long-standing obstacle, we expect to see even more investment inflows into the country, as well as easier and less expensive transactions for our OFWs wherever they are situated,” Escudero noted.
Senator Joel Villanueva also welcomed the FATF decision, saying it will lead to financial and economic benefits, particularly for OFWs sending money back home.
Villanueva praised the government’s moves to crack down on money laundering and terrorism financing, including the decision to phase out Philippine Offshore Gaming Operators (POGOs), which have been linked to criminal activities.
“With a stronger, credible, and transparent financial system, we are now in a better position to attract more foreign investments, create jobs, and drive economic growth,” he said.
Villanueva also urged the private sector and the government to continue strengthening financial regulations to maintain credibility and prevent future inclusion on the grey list.
Earlier, Senator Sherwin Gatchalian echoed similar sentiments, also linking the FATF decision to the recent ban on POGOs and expressed confidence that the decision would boost the country’s ability to attract foreign direct investments.
“Still, the government should sustain efforts to address potential risks and to further strengthen regulations to deter illicit financial flows,” Gatchalian said.