MANILA: The Philippines welcomed on Saturday (Feb 22) its removal from the “grey list” of a global watchdog on dirty money, saying its exit would ease requirements for cross-border transactions and help boost investments.
The Financial Action Task Force (FATF), an intergovernmental body combating money laundering and terrorism financing, took the Philippines off its grey list after nearly four years, it said in a statement on Friday.
The Philippines was added to the grey list in June 2021 over a host of concerns, such as mitigating dirty money risks associated with casino junkets, sanctioning unregistered remittance operators and prosecuting terrorism financing cases.
“The FATF encourages the Philippines to continue its work in ensuring that its CFT (countering of the financing of terrorism) measures are appropriately applied,” FATF said.
The Philippines’ anti-money laundering council said the country’s exit from the grey list would reduce requirements for international money transfers, help attract investments and aid overseas Filipino workers who send remittances through banks.
“The Philippines’ exit from the FATF grey list is expected to facilitate faster and lower-cost cross-border transactions, reduce compliance barriers, and enhance financial transparency,” it said in a statement on Saturday.
“Exiting the FATF grey list is a significant step in strengthening the Philippines’ financial system and maintaining global confidence.”
A country under FATF’s grey list is placed under increased monitoring until it has rectified identified flaws in its financial system.
Last October, the FATF had said the Philippines “has substantially completed its action plan”.
FATF had previously grey-listed the Philippines in 2000 for failing to address money laundering concerns at the time. It was removed five years later after amending its banking laws.
