The Philippines has been urged by the International Monetary Fund (IMF) to step up efforts to get off the Financial Action Task Force’s (FATF) anti-money laundering grey list.
Mission leader Mr. S. Jayanath Peiris stressed in a preliminary statement following an IMF mission to the Philippines that removal from the grey list would be facilitated by the release of a credible timeline for resolving outstanding Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) issues.
Peiris specifically highlighted the banking sector’s vulnerabilities while emphasizing the need to improve systemic risk monitoring and financial oversight. In view of international efforts to strengthen bank resolution procedures, he also recommended extending the macroprudential toolset to address risks connected to sectoral exposures and connections between financial conglomerates and non-financial corporates.
The Philippines had been given an extra year by the FATF in January to show that it was in compliance with AML and CTF regulations. Due to concerns about AML/CTF procedures relating to gambling junkets and the exchange of information among financial institutions, the nation was added to the grey list in June 2021. The FATF’s criteria included increased prosecutions, convictions, and meticulous documentation of such events.
The Philippines’ economy shrank from 7.6% growth in 2022 to 4.3% in the second quarter of 2023, according to the IMF, despite the country’s economic difficulties. This decline was mostly caused by a sluggish global economy and tighter regulatory frameworks. Nevertheless, it is anticipated that growth would pick up by the end of the year, reaching 5.3% in 2023 and 6.0% in 2024, thanks to more public expenditure and greater global demand for Philippine exports.
Original story by: IAG
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