FATF checks on Philippines efforts to exit gray list

MANILA, Philippines — Officials from the Financial Action Task Force (FATF) are currently in the Philippines for an onsite visit, a critical component of the country’s efforts to exit the global watchdog’s “gray list.”

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona confirmed the visit, saying that “they’re here now for the required onsite visit. The visit will allow them to confirm what we said in our reports.”

According to Remolona, the FATF delegation arrived in the Philippines last week. The group also evaluated other jurisdictions while staying in the Philippines.

“Yesterday was their last day here,” the BSP chief said.

The meetings aim to verify the sustainability of reforms toward addressing the 18 action plan items as well as the high-level political commitment of the government to continue improving the country’s measures against money laundering, terrorist financing and other related financial crimes.

Should the Philippines pass the assessment, it will mark the country’s removal from the gray list, in which it has been included since June 2021.

In a statement on Tuesday, the BSP said that the first meeting of the Monetary Board this year would be moved to an earlier date, on Feb. 13 instead of the initially planned Feb. 20.

“The BSP governor will be attending the Financial Action Task Force Plenary and Working Group Meetings in Paris, France from Feb. 17 to 20,” the central bank said.

The FATF gray list comprises countries identified as having deficiencies in their efforts to combat money laundering and terrorist financing, but which have committed to address these issues.

Remaining on the list can negatively affect a country’s reputation, foreign investment prospects and access to international financial systems.

Earlier in October 2024, the FATF announced that the Philippines “has substantially completed its action plan” and warrants an onsite assessment.

The FATF has been urging the Philippines to swiftly implement its action plan to address the strategic deficiencies as soon as possible, as all deadlines expired in January 2023.

On the other hand, the Defend Against NGOs Alliance issued a media advisory urging the FATF and Philippine officials to scrap “Project Exit Gray List.” The coalition alleges that the government’s intensified crackdown on non-government organizations is tied to its bid to meet FATF requirements.

The group claims that the Marcos administration is using “arbitrary quotas” for filing cases against NGOs, accusing them of financing terrorism as part of efforts to demonstrate compliance with FATF standards.

“NGOs simply filling in gaps in government services are being spuriously accused of financing terrorism. This started under the Duterte administration and is happening on a greater scale under the Marcos government,” it said.

According to the alliance, nearly 70 people from 30 NGOs to date have reportedly faced charges of terrorism-related offenses, leading to frozen organizational and personal funds.