Date: 24.01.2025

by Tomasz Jagodziński

Philippines Awaits FATF Decision on Grey List Exit

The Bangko Sentral ng Pilipinas (BSP) remains optimistic about the Philippines’ potential removal from the Financial Action Task Force (FATF) grey list in the upcoming plenary session. The FATF Plenary and Working Group Meetings are set to take place from February 17 to February 20 in Paris, France.

Rescheduled Monetary Board Meeting

To accommodate BSP Governor Eli M. Remolona Jr.’s attendance at the FATF meetings, the central bank has rescheduled its Monetary Board meeting on monetary policy stance. Initially set for February 20, the meeting will now take place on February 13. Governor Remolona expressed cautious optimism, stating to BusinessMirror,: “We won’t really know until the plenary in Paris. We are hopeful that we will hear good news.”

The Philippines has been on the FATF grey list since June 2021 due to identified deficiencies in its targeted financial sanctions framework related to terrorism financing and proliferation financing. In response, the government has implemented several measures to address these concerns.

According to the Anti-Money Laundering Council (AMLC), exiting the grey list would bring significant benefits, particularly for Overseas Filipino Workers (OFWs), by reducing the costs and delays associated with cross-border financial transactions. Currently, FATF grey list status subjects financial transactions from the Philippines to increased scrutiny, leading to potential rejections and additional costs.

Progress and Upcoming Assessment

In October 2024, the FATF acknowledged that the Philippines had successfully addressed the 18 action plan items required for delisting. As reported by BusinessMirror, the FATF is now preparing for an onsite assessment to verify the sustainability and effectiveness of the country’s anti-money laundering and counter-terrorism financing (AML/CFT) reforms. The onsite visit, scheduled to take place before the February plenary, will involve experts assessing whether the implemented measures align with FATF standards.

FATF President Elisa de Anda Madrazo, who assumed her role on July 1, 2024, emphasized the importance of the visit, explaining that it will determine whether the Philippines’ efforts warrant removal from the grey list.

A successful exit from the grey list would enhance the Philippines’ financial reputation, improve investor confidence, and facilitate smoother international transactions. It would also alleviate the regulatory burdens currently imposed on financial institutions operating within the country.