The Philippines is on the verge of being removed from the “grey list” of the Financial Action Task Force (FATF), a move that could have a significant positive impact on the country’s economy. The FATF, a global body that monitors financial crimes such as money laundering and terrorist financing, placed the Philippines on its grey list in June 2021. This was due to the country’s weaknesses in preventing illegal financial activities.
However, things are looking up for the Philippines. Last month, a team from the FATF visited the country to assess its progress. According to people familiar with the matter, the FATF team found that the Philippines had made impressive strides in addressing the problems it was initially criticized for. This means the country could soon be removed from the grey list, which would mark a significant achievement in its ongoing efforts to combat illicit finance.
Improvements in Anti-Money Laundering Efforts
The grey list is a list of countries that are seen as not doing enough to prevent money laundering and terrorist financing. Being on this list can make it harder and more expensive for people in the Philippines to send money abroad, especially for overseas Filipino workers who play an important role in the country’s economy.
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To address these issues, the Philippine government has taken several important steps. One of the most significant moves was a crackdown on online casinos that were linked to money laundering and financial scams. These casinos were mostly focused on attracting Chinese customers, and President Ferdinand Marcos Jr. banned them in January to help reduce illegal financial activities.
Additionally, the country’s central bank has worked hard to improve supervision over businesses that handle money. This includes making sure that money service businesses, such as money changers, follow the rules and are not used for illegal activities. The government has also focused on improving the enforcement of laws aimed at blocking the financing of terrorist groups and weapons proliferation.
Furthermore, the Philippines has introduced new measures to ensure that companies are transparent about who owns them. This information is made available to government agencies like the Bureau of Internal Revenue and law enforcement, which makes it easier to track illegal financial activities.
Continued Efforts to Strengthen Financial Security
The Philippine government’s efforts to strengthen its financial security have paid off, and the FATF is taking notice. The country has ramped up its use of financial intelligence, allowing authorities to better track suspicious financial transactions. There has also been an increase in investigations and prosecutions related to money laundering and terrorist financing.
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These improvements have made it more likely that the Philippines will be removed from the FATF’s grey list. However, the decision is not final yet. For the Philippines to be officially taken off the list, the majority of FATF members must vote in favor. Some countries have more influence than others in these decisions, so even a small number of negative votes could result in the Philippines remaining on the list.
If the country is removed from the grey list, it would be a major milestone. It would make it easier and cheaper for Filipinos to send money home, which is crucial for the country’s economy. It would also improve the Philippines’ ability to engage in international financial transactions, benefiting businesses and consumers alike.
The Philippines’ efforts to strengthen its anti-money laundering system and counter the financing of terrorism and weapons have been recognized globally. The FATF has acknowledged the country’s progress, and the upcoming FATF plenary in February could see the final decision on whether the Philippines will be removed from the grey list.
As the country continues to enhance its financial regulations and transparency, it is on the path to better securing its economy and reputation on the global stage.
