Philippines is leaving the FATF Gray List
As the Philippines approaches being taken off the Financial Action Task Force’s (FATF) gray list, it is about to reach a major regulatory milestone. This development is the result of a number of calculated changes made to strengthen the country’s anti-money laundering (AML) and countering the funding of terrorism (CFT) systems in accordance with international norms.
Comprehensive analysis of AML/CFT reforms:
These changes have been spearheaded by the Securities and Exchange Commission (SEC), which has concentrated on the strict adherence to the 18 major action items that FATF has recommended. The Philippines has been on the gray list since June 2021 because of alleged weaknesses in its financial monitoring mechanisms; these measures are essential to removing the country from the list.
The Philippines’ steadfast dedication to strengthening its regulatory framework against financial crimes is demonstrated by FATF’s recognition that the country has “substantially completed its action plan” during its October 2024 plenary session.
“On our part, the SEC will continue investing in digitalizing and optimizing resources to ensure that the reforms we have implemented will be sustainable,” said SEC Chairperson Emilio B. Aquino in response to the continued efforts to maintain these reforms, as reported by the Manila Bulletin. As we build on our successes and collaborate with regional and global partners to further bolster our AML/CFT initiatives, we will also continue to be steadfast in our commitment to transparency and compliance.
Early next year, FATF’s Asia/Pacific Joint Group will conduct an on-site assessment to confirm the durability and successful execution of these reforms, which will be a crucial event. The ongoing political commitment to maintaining these standards will also be evaluated in this assessment.