Philippines unlikely to exit FATF’s gray list in October – BSP

MANILA, Philippines — The Philippines may not be able to exit from the gray list of the Financial Action Task Force (FATF) in October and will likely be removed in January next year, Bangko Sentral ng Pilipinas Governor and Anti-Money Laundering Council (AMLC) Chairman Eli Remolona Jr. said.

At an economic forum hosted by the Economic Journalists Association of the Philippines, Remolona said the country still has to work on three out of 18 action items to be removed from the gray list.

“We don’t get out of the gray list by October. Once we’ve been told we have largely addressed those three remaining items, there’s still an exit process that then ensues,” Remolona said.

“If that works out, (the FATF) has to come here in January to check whether what we said is true. If that works out, then we will exit in January,” he said.

The AMLC chief said he is confident that the country would be able to address the three remaining action items by October.

“In October they will decide whether we have fulfilled the 18 action plans. And then between October and January, they check. January is the exit date,” he added.

The FATF retained the Philippines on its gray list for the third straight year in June as the country has yet to adequately address the gaps in its regime to counter money laundering as well as terrorist and proliferation financing.

Based on its latest report, the FATF said the Philippines needs to implement controls to mitigate risks associated with casino junkets.

Remolona said the government is tightening its monitoring of casino junkets while the Philippine Amusement and Gaming Corp. is working on it.

Cross-border measures should also be applied to all main sea/airports including detection of false declarations of currency and confiscation of illicit proceeds in line with risk.

The Philippines should also demonstrate an increase in the prosecution of terrorism financing cases in line with risk.

The FATF is urging the Philippines to swiftly implement its action plan to address the strategic deficiencies as soon as possible, as all deadlines expired in January 2023.

The country made a high-level political commitment to work with the FATF and Asia Pacific Group on Money Laundering to strengthen the effectiveness of its AML/CFT regime after it was re-included in the gray list in June 2021.

The Paris-based FATF re-included the Philippines in the gray list in June 2021 after the country failed a mutual evaluation by APG on money laundering.

The body had identified 18 deficiencies in the country’s measures against money laundering and terrorist and proliferation financing.