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The Philippines is determined to ensure that it does not face another compliance setback in the Financial Action Task Force (FATF) grey list evaluation, slated for 2027.
Bangko Sentral ng Pilipinas (BSP) Governor, Eli Remolona Jr. emphasised that just because the Philippines are off the grey list does not mean that they are going to stop their efforts
Eli M. Remolona, Jr
“We have to make sure we do not get back into the grey list,” he said.
The country’s recent delisting, approved by the FATF in February, concludes a long effort that began after the 2016 Bangladesh Bank heist, which highlighted vulnerabilities in the Philippine financial system.
To address these, the FATF issued 18 action items, including stricter oversight of money service businesses, casino junkets, and designated non-financial businesses.
“The good news from last month was not the end of a four-year ordeal; it was actually the end of a nine-year ordeal if you count from 2016,” BSP’s Governor said.
A key factor in the Philippines’ success was its demonstrated commitment to reforms, notably the crackdown on Philippine offshore gaming operators.
The FATF has even recognised the Philippines as “a regional leader in tackling money laundering and terrorism financing,” and has requested the country to provide evaluators for other Asian nations still on the grey list.
However, the BSP is also bracing for new challenges, particularly from cybercriminals. Remolona acknowledged that while digital technology is evolving, it still remain as the preferred means for money laundering actors to take money in.
He described the situation as an “arms race” between authorities and criminals, requiring continuous updates to anti-money laundering and counter-terrorism financing systems. The BSP is focusing on a national risk assessment to identify and mitigate emerging vulnerabilities.
The country aims to sustain its progress until the 2027 evaluation, ensuring it remains a trusted financial hub.
