Moody’s has urged the Philippines to remain vigilant against money laundering risks tied to cryptocurrency and online gambling. This caution comes despite recent progress in regulatory compliance.
The warning comes after the European Commission removed the Philippines from its “high-risk” money laundering list. This decision boosts the country’s global financial reputation. It also streamlines cross-border transactions.
Xiao Chen, Associate Director at Moody’s, stressed the importance of continued oversight in high-risk sectors like iGaming and digital assets. He warned that lax monitoring could once again draw international scrutiny.
Earlier this year, the Financial Action Task Force (FATF) cleared the Philippines from its gray list. They cited improvements in the country’s anti-money laundering (AML) framework.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr., who also chairs the Anti-Money Laundering Council (AMLC), cautioned about the next major threat. He warned it may arise from evolving digital technologies. He described it as an “arms race” between financial regulators and tech-savvy criminal actors.
The Philippines has faced longstanding challenges with AML compliance. In 2002, the FATF added the country to its denylist due to insufficient safeguards. They removed it in 2005 after major reforms. In 2021, the FATF placed the country on its gray list again, citing 18 regulatory deficiencies. This impacted remittance flows. It also increased transaction costs.
After three years of targeted reforms, the FATF removed the Philippines from enhanced monitoring in 2024. Local regulators now aim to protect that progress. They plan to closely monitor cryptocurrency activity and offshore gaming operations, both seen as potential avenues for illicit finance.
