DOJ: Philippines may soon exit FATF gray list

MANILA, Philippines — The Philippines may be removed from the gray list of Paris-based Financial Action Task Force (FATF) by 2025 as the country continues to deliver the necessary reforms to counter money laundering, according to the Department of Justice (DOJ).

“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,” DOJ Undersecretary Jesse Hermogenes Andres said during the National Committee on Intellectual Property Rights press conference yesterday.

The country has been on the FATF’s gray list of countries under increased monitoring since 2021 due to deficiencies in its anti-money laundering/combating the financing of terrorism (AML/CFT) controls.

Of 18 outcomes that were expected of the Philippines to be able to exit the gray list, Andres said that 15 have already been completed.

As for the three remaining items, he said the FATF is expected to make a decision 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 and Anti-Money Laundering Council chairman Eli Remolona Jr. said earlier that the country may not be able to exit from the gray list in October and would likely be removed only in January next year.

In line with its commitment to protection of intellectual property rights given its critical importance to economic development, Andres said the DOJ has taken a proactive leadership role in the financial intelligence and enforcement partnership for securing compliance initiatives to help the country exit the gray list.

Through the National Anti-Money Laundering Coordinating Committee, government agencies are working together to combat money laundering, in areas intersecting with intellectual property violations.

“The Philippines’ inclusion in the FATF gray list underscores the urgent need to enhance our capacity to address money laundering within the realm of intellectual property violations,” Andres said.

According to Andres, the DOJ is working with the Intellectual Property Office of the Philippines in engaging key stakeholders in the intellectual property industry to pursue not only administrative actions, but also criminal prosecution in cases where intellectual property violations are linked to money laundering activities.

Last July, the DOJ issued Department Circular No. 015 establishing new rules on preliminary investigation and inquest proceedings.

Under the circular, prosecutors are mandated to file criminal information only when prima facie evidence with a reasonable certainty of conviction is established.

The circular also strengthens the principles outlined in Department Circular No. 20, series of 2023, which emphasizes the prosecutors’ proactive role in the investigation of crimes, particularly during the case build-up stage, where they may assist or cooperate with the complainants and/or law enforcement agencies.

Under this structure, prosecutors work with law enforcement agencies and can provide guidance on steps to take in instituting administrative cases, as well as in building stronger criminal cases.

“This approach will not only ensure that intellectual property cases are effectively pursued but will also guarantee that associated money laundering cases are filed when applicable,” Andres said.

In 2023, the DOJ handled a total of 679 intellectual property rights cases, resolving 599 cases, with a disposition rate of 99.01 percent.

Andres said 186 cases resulted in information being filed in, while 35 convictions were secured, alongside nine acquittals and dismissals.