Philippines Likely to Exit FATF Grey List Soon –DOJ

The Philippines may be removed from the gray list of the Financial Action Task Force (FATF) by 2025, according to the Department of Justice (DOJ). DOJ Undersecretary Jesse Hermogenes Andres expressed confidence that the country could exit the gray list during the upcoming FATF review. He highlighted the nation’s progress in various areas, including the protection of intellectual property rights.

“We are very confident that when the FATF gray list matter is taken up this October, it is very possible that the Philippines will already exit the gray list because of our performance in various areas including the intellectual property rights protection,” the DOJ Undersecretary was quoted as saying by the Philippine Star during the National Committee on Intellectual Property Rights press conference held on September 25, 2024.

Since 2021, the Philippines has been on the FATF’s gray list due to deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) controls. Out of 18 expected outcomes for exiting the gray list, 15 have already been achieved. Andres mentioned that a decision regarding the remaining three items is expected next month.

“I think we are very confident that we have delivered on the three remaining [items] that include cross-border measures, the casino junkets and terrorism financing cases that will be announced most probably at the end of October,” Andres said.

Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. noted, however, that the Philippines might not exit the gray list until January 2025. To address this, the DOJ has taken a proactive role in enhancing compliance initiatives. The DOJ collaborates with the National Anti-Money Laundering Coordinating Committee and the Intellectual Property Office of the Philippines to combat money laundering linked to intellectual property violations.

In July, the DOJ issued a circular establishing new guidelines for preliminary investigations. This circular mandates prosecutors to file cases only when there is substantial evidence of a likely conviction. This new approach aims to strengthen the handling of intellectual property cases and associated money laundering cases.

In 2023, the DOJ processed 679 intellectual property rights cases, successfully resolving 599, resulting in a high disposition rate of 99.01 percent. Andres stated that these efforts reflect the country’s commitment to improving its anti-money laundering framework and addressing intellectual property crimes effectively.

Read related article: Philippines Aims for FATF Grey List Exit in January 2025