Philippines Removed from EU AML Watchlist Following Compliance Improvements
The European Commission has formally taken the Philippines off its list of high-risk third countries for anti-money laundering and counter-terrorism financing (AML/CFT). The decision follows a series of reforms and aligns with the country’s earlier removal from the Financial Action Task Force (FATF) grey list.
EU Decision Reflects Compliance with Global Standards
The Philippine Department of Justice (DOJ) confirmed that the European Commission (EC) no longer considers the country a high-risk jurisdiction in terms of financial crime prevention. The EC cited the Philippines’ successful efforts in addressing technical deficiencies in its AML/CFT framework, in line with international requirements. Other countries removed alongside the Philippines include Barbados, Jamaica, Senegal, and Uganda.
The European Commission, acting as an independent executive body of the European Union, maintains oversight of third countries deemed to pose strategic deficiencies in their anti-money laundering controls. Removal from the list indicates that the Philippines has taken sufficient action to align its regulations with EU and FATF standards.
Reform Momentum Builds After FATF Grey List Exit
This development follows the Philippines’ exit from the FATF grey list earlier in 2024. The grey list is used by the FATF to monitor jurisdictions with strategic AML/CFT weaknesses that are actively working with the body to resolve them.
A contributing factor to this progress may have been the recent formal ban on offshore gaming operators (POGOs), a sector that had drawn scrutiny over regulatory oversight and financial transparency. The end of the POGO issue appears to have supported the Philippines’ efforts to enhance its international credibility in financial crime prevention.
In a public statement, Philippine Justice Secretary Jesus Crispin C. Remulla said:
“This accomplishment is an affirmation of our government’s unyielding stand against money laundering and terrorism financing, it will also serve as a catalyst for the DOJ to further strengthen the rule of law not just within the Philippines but even at a global stage.”
Gaming Sector Remains a Key Economic Driver
Despite recent enforcement actions, the country’s regulated gaming industry continues to perform strongly. In 2023, the Philippine gaming market generated PHP 372.3 billion (approximately $6.6 billion) in total revenue. With the removal from international watchlists, the nation may now benefit from improved investor confidence and increased access to global financial systems.