By Luisa Maria Jacinta C. Jocson, A reporter
PHILIPPINES did is moving forward in its bid to get off the “grey list” of the Financial Action Task Force (FATF) next year as “overwhelmingly filled” its rebig action items.
“Yes, I think we have passed a very important step,” said Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. in the message.
This is after the FATF kept the Philippines on its list of places under increased surveillance for “dirty money” risks at its October general meeting.
The Philippines is now on the gray list for more than three years or from June 2021.
However, the FATF said that the country faces remaining shortfalls in the recommended measures to improve and counter money laundering. fmitigation of terrorism (AML/CFT).
“We are very happy to report and share with you that this week the panel reviewed the progress of the Philippines and considers that the Philippines has indeed completed this action plan,” FATF President Elisa de Anda Madrazo said in a statement. the latest conference on Friday.
The FATF will visit the site to verify this progress, which is scheduled to take place anytime between now and February 2025.
“Visiting the area means that a team of experts is entering the country to verify the progress that has been made so that FATF can decide whether to remove it from the gray list or not. We will expect a response to this by February 2025,” he added.
The on-site inspection will also “ensure that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains for future implementation,” the FATF said on its website.
The Anti-Money Laundering Council (AMLC) said in a statement that the country is now “closer to exiting the anti-money laundering list by 2025.”
This will pave the way for Filipinos, especially overseas workers, to “benefit from faster and cheaper remittances and other transactions,” it added.
“Failure to address the remaining elements of the action plan would have put the Philippines at risk of being blacklisted,” AMLC said.
“FATF member countries impose restrictions and additional inspections, and possible rejection of transactionsactions and countries on the blacklist. This leads to transaction failures, delays, and costs that may be passed on to consumers,” it added.
AMLC said FATF’s Asia-PacifThe ic Joint Group will visit the country early next year to “ensure the sustainability of AML/CTF reforms.”
“This is the last step to remove the country from the gray list,” he added.
The FATF last week said that the Philippines has implemented key reforms such as “demonstrating that risk-based supervision of Designated Non-Financial Non-Financial Businesses (DNFBPs) is taking place; demonstrating that management is using AML/CFT controls to reduce risks associated with casino junkets; implementing new registration requirements for Money or Value Transfer Services (MVTS) and implementing sanctions against unregistered and illegal money transfer providers.”
In July, Malacañang issued an executive order authorizing all government offices to adopt the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Strategy 2023-2027.
The FATF also noted national reforms focused on increasing law enforcement agencies’ access to beneficial ownership information and the increasing number of money laundering investigations and prosecutions.
Mrs. FATF’s Madrazo said the Philippines is “an example of the positive impact this process can have on a country.”
“For billions of dollars fdeclining in the country every year and the high volume of cross-border transactions, the progress made by the Philippines will have a significant impact on the security of the international financial system,” he added.
Meanwhile, analysts say that the country is on its way out of the gray list, but further reforms are still needed.
“There is a good chance of getting off the list if a clear warning and dissemination of information about the need to comply with the ‘strong bodies’ of FATF violations is done. Continuous monitoring of these organizations must be done,” Antonio A. Ligon, professor of law and business at De La Salle University. in Manila, said the Viber message.
On the other hand, Chester B. Cabalza, the founding president of the International Security and Development Center, said that the visit to the site “remains confirmation that the country is still vulnerable to dirty money that needs to be cleaned.”
“We need transparency in our financial records and strong communication between government agencies to deal with this disagreement,” he said. “The Philippines must come out of the gray list to be more productive and return to good health fa bad situation in the area.”
Leonardo A. Lanzona, a professor of economics at the Ateneo de Manila University, said that it will be important to deal with poverty and corruption if he wishes to reach the end of the dangers of dirty money.
“Even though the government sets the requirements of the institution by getting out of the gray list, the prominent condition that keeps the country on the list is still standing. This affects poverty which is not a direct requirement on the list but which can have an indirect effect on the things needed to get off the list,” he said in an email.
Mr. Lanzona said poverty causes disorganization and “gives rise to unregulated transactions and corrupt financial networks prohibited by the FATF.”
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