The Financial Action Task Force (FATF) officially announced that the Philippines has been removed from its grey list, signifying the country is no longer under increased monitoring. This decision recognizes significant improvements in the Philippines’ anti-money laundering and counter-financing of terrorism (AML/CFT) framework.
According to the FATF, the Philippines has made substantial progress across nine key areas. Notably, the country improved its AML/CFT controls, particularly addressing risks linked to casino junket operations. The Philippines also demonstrated effective risk-based supervision of designated non-financial businesses and professions (DNFBPs).
Additionally, the FATF highlighted the nation’s increased use of financial intelligence and proactive efforts in money laundering investigations and prosecutions, aligning these efforts closely with identified risks. Further improvements include strengthened cross-border controls implemented across major international seaports and airports.
Despite this milestone, the FATF urged the Philippines to continue collaborating with the Asia/Pacific Group on Money Laundering (APG) to maintain and further strengthen these improvements.
Exiting the FATF grey list was a top priority for Philippine authorities, including the Securities and Exchange Commission (SEC), the Philippine Amusement and Gaming Corporation (PAGCOR), and the Department of Justice (DOJ). The President of the Philippines also closely monitored and supported these efforts.
Initially, the country aimed to exit the grey list during FATF’s plenary session in October 2024. However, official removal occurred only after a successful on-site evaluation conducted by FATF’s Asia/Pacific Joint Group earlier this year, with confirmation in a subsequent plenary meeting.
FATF President Elisa de Anda Madrazo stated, “The plenary agreed to remove the Philippines from the grey list in recognition of their completion of the action plan agreed upon in June 2021. The Philippines is now actively combating risks associated with money laundering activities, especially in the casino sector.”
Madrazo emphasized the importance of sustaining these reforms and maintaining compliance with FATF standards. She added that the Philippines will begin preparations soon for its next evaluation in 2027, which will assess whether the implemented measures have been effectively sustained.
