FATF keeps Philippines on AML/CFT grey list

In order to be removed from the FATF’s “grey list” of countries under observation, the Philippines has been asked to swiftly implement its action plan addressing strategic inadequacies in anti-money laundering and fighting the financing of terrorism (AML/CFT).

Following six days of plenary and working group meetings in Singapore, the FATF decided to remove Jamaica and Turkey off the grey list because of their notable advancements in resolving identified AML/CFT inadequacies. This call coincided with the conclusion of those meetings.

According to an International Monetary Fund research study, the Philippines was placed on the grey list in June 2021, a designation that has the potential to cause disturbances in capital flows.

The FATF underlined in its most recent update how urgent it is for the Philippines, a major regional center for both offline and online gaming, to solve pending matters as soon as possible, keeping in mind that all deadlines ended in January 2023.

As stated in the Friday announcement, when a jurisdiction is placed under higher FATF monitoring, it agrees to swiftly address any identified strategic inadequacies within predetermined timelines and is scrutinized more closely.

The Philippines has to show that supervisors can effectively use AML/CFT controls to mitigate the risks associated with casino junkets. It also needs to implement cross-border measures at all major seaports and airports to detect false currency declarations and take confiscatory action based on risk. Finally, it should increase the prosecution of cases involving terrorism financing commensurate with the assessed risks.

The governor of the central bank in the Philippines announced in January of the previous year that the nation had been granted an extension of one year, but until January 2024, in order to satisfy the financial requirements needed to be taken off the FATF risk list.

The Philippines’ Anti-Money Laundering Council released a statement in February of this year, after the deadline had passed, reiterating the government agencies’ commitment to bolstering the nation’s AML/CFT framework and tackling the hazards related to casino junkets.

Original Story by: GGRAsia