Date: 28.10.2024

by Sebastian Warowny

Philippines Advances in AML Reforms

The Philippines is on the cusp of significant progress in strengthening its anti-money laundering (AML) and combatting the financing of terrorism (CFT) measures. The country has successfully implemented eight critical reforms.

Eight Key Reforms Implemented

The country has successfully implemented eight critical reforms aimed at enhancing the effectiveness of its AML/CFT regime. These reforms demonstrate the Philippines’ commitment to aligning with international financial standards and mitigating risks associated with financial crimes.

The Financial Action Task Force (FATF), the global watchdog based in France, acknowledged the Philippines’ substantial completion of its action plan. The FATF has determined that an on-site assessment is warranted to verify the sustained implementation of these reforms and the ongoing political commitment to future improvements.

An on-site visit by the FATF’s Asia/Pacific Joint Group is scheduled for early next year. This visit aims to verify the sustainability of the AML/CFT reforms and assess the high-level political commitment of the Philippine government to continue enhancing its financial system’s integrity.

Given that the Philippines is one of the few countries in the Asia-Pacific region with a licensed casino industry open to locals and a regulated online gaming sector, these developments are particularly significant. Strengthened AML/CFT measures can enhance the credibility and attractiveness of the Philippine iGaming market to international stakeholders.

Final Step Towards Exiting the Grey List

The upcoming on-site assessment is considered the final step toward the Philippines’ removal from the FATF’s grey list, where it has been since June 2021. Exiting the grey list could positively impact capital flows and boost confidence among foreign investors and gaming operators.

Lucas Bersamin, Executive Secretary of the Anti-Money Laundering Council (AMLC), expressed confidence in the progress made. He highlighted the hard work and coordination across government agencies.

“It reflects our strong commitment to meeting the FATF’s stringent standards and ensuring the long-term protection of our financial system. We are confident that this progress will be affirmed during the on-site visit”, he added.