RP to remain in FATF list this yr, but no sanctions seen — Paeng

The Philippines is not expected to be removed from the blacklist of the Paris-based Financial Action Task Force (FATF) this year but officials expressed optimism that no fresh sanctions would be forthcoming.

The Anti Money Laundering Council (AMLC) met yesterday to discuss the country’s compliance with FATF requirements but the Philippines will not be part of the agenda when the task force meets in June.

According to the Bangko Sentral ng Pilipinas (BSP) which co-chairs the AMLC, the country’s implementation plan would not be taken up when the FATF holds its annual meeting.

BSP Governor Rafael Buenaventura told reporters yesterday that the Asia Pacific Review Group met recently with AMLC officials and thus initiated a review and evaluation of the implementation plan.

The AMLC had originally hoped for the possibility of being removed from the FATF’s list of non-cooperative countries and territories (NCCTs) this year but Buenaventura said this was not likely.

"They only just started looking at our implementing plan and I don’t think we will be delisted this year," Buenaventura said.

The FATF was originally scheduled to take up the Philippines in its February meeting but it was bumped off for the June plenary meeting as the APRG prepared to meet with Philippine officials to discuss the government’s Anti Money Laundering Program.

But the APRG did not complete its review and evaluation of the plan, making it necessary to take it out of the June agenda until the new administration settled down after the May elections.

Buenaventura said, however, that the postponement may turn out to be good for the Philippines because this will give the AMLC more time to complete its computerization program.

"By then, we hope to have completed the initial roll-out of our information technology program," Buenaventura said. "In terms of timing, June is probably better since that is an additional point in the implementation plan that we would have accomplished."

Reports from the APRG revealed that the evaluation of the country’s implementation plan was not completed in time for the February meeting of the FATF because the individual members wanted to discuss the plan in detail.

"We have no problems discussing the implementation plan one by one with all the members," Buenaventura said. "We’re not rushing this anyway, let FATF take its time; there is a process being observed."

The APRG’s evaluation of the anti money laundering program is critical in the on-going process for the country’s removal from the FATF blacklist.

The reaction outside the FATF, however, was more positive, with the Asia Pacific Group on Anti Money Laundering (APG) endorsing the plan as a model for other Asian countries.

The APG also formally requested for permission to distribute the Philippine Implementation Plan which has been hailed as "outstanding and very satisfactory" during the group‚s recent annual meeting in Macao.

The APG and the FATF are distinct organizations against anti-money laundering but the APG is ahead on its evaluation of the Philippines‚ compliance with their requirements.