Continuous reforms are required even after exiting the ‘grey list’ – AMLC

By Luisa Maria Jacinta C. Jocson, A reporter

PHILIPPINES is expected to finally get off the “grey list” of the Financial Action Task Force (FATF) in February, said the Anti-Money Laundering Council (AMLC), but continued reforms will be important to ensure the country gets off the dirty money list.

“It’s rare that FATF doesn’t give you an exit from the gray list after a (visit),” said AMLC Executive Director Matthew M. David at the SGV & Co. forum on Friday.

“We are very hopeful that we will be able to leave because we have shown (development). That is why I always say that we must be strong. We still have to support what we have been doing before and continue to do it until the next test.”

At its October meeting, the FATF kept the Philippines on its list of places under increased surveillance for “dirty money” risks. The country has been on the list for more than three years or since June 2021.

However, the FATF said it had initially determined that the Philippines had “substantially completed” the recommended measures to improve money laundering and terrorist financing (AML/CFT).

A money laundering watchdog has been set up to conduct on-site inspections to ensure the country’s progress and sustainability of AML/CFT reforms.

The visit will likely take place early next year, before the next FATF meeting in February.

Mr. David said the Philippines will find out in February if it will be able to leave the list.

“Yes, we will foutside. In the same way, they will issue a public statement that they will put on the FATF website,” he said BusinessWorld on the sidelines of the event.

The AMLC is also in the process of submitting a consolidated progress report to the FATF this month. Mr. David said they are “optimistic” about the progress made so far.

“What we will show in the report is that we have evidence that we are in compliance with the 18 recommended elements of the action plan,” he added.

In its review in June, the FATF said the country needs to address three remaining deficiencies out of 18 recommended measures.

This includes “demonstrating that management implements AML/CFT controls to reduce risks associated with casino junkets; implementing border crossing procedures at all sea/airports including detection of false currency declarations and confiscation action in accordance with the risk; and to demonstrate increased prosecution of TF (terrorist-financed) cases in line with the risk,” according to FATF.

Mr. David said failure to address the remaining implementation plans would put the Philippines at risk of being blacklisted.

“If we’re on the gray list, there’s a high chance that we’ll be blacklisted,” he added.

Although it is expected that the country will soon come out of the gray list, there is still work to be done to sustain the progress that has been made so far, said Mr. David.

“We intend to continue with that to ensure sustainability, because sustainability is very important to FATF… We must show that all these recommendations of the action plan are maintained. We support our actions, what we have achieved,” he said.

“He continues to file charges and we intend to do so. We will open charges of money laundering and terrorist financing until December, until January and beyond.”

Mr. David said the AMLC will also continue to improve the country’s AML/CFT regime by amending laws and issuing new policies related to money laundering and terrorist financing, among others.

The AMLC also wants to make some amendments to the Anti-Money Laundering Act, he added.

In 2002, the FATF banned the Philippines for not having a formal anti-money laundering framework. It was removed from the blacklist a year after the Anti-Money Laundering Act was passed.