The Philippines has been removed from the Global Money Laundering Watchlist

The Paris-based Financial Action Task Force (FATF) officially removed the Philippines from its money laundering watchlist on 21 February 2025, after being on its ‘grey list’ since June 2021. This is a significant milestone for the country's major improvements in complying with global financial regulations.

Successfully pacifying the watchdog

The FATF, which has been described as the ‘global watchdog on dirty money and terrorist financing’, was founded by the G7 countries to develop guidelines and measures to combat money laundering and terrorist financing. The FATF's ‘grey list’ designates countries with strategic gaps in their efforts to combat these issues. Inclusion in enhanced monitoring required the Philippines to implement 18 action points, including the implementation of controls to mitigate the risks associated with the controversial casino junkets.

The Philippine government, led by the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC), implemented sweeping reforms to address the identified deficiencies, such as:

Strengthening anti-money laundering (AML) regulations for vulnerable sectors such as real estate and casinos;
Strengthening the integrity of financial accounts and the financial system as a whole by enacting the Anti-Financial Account Scamming Act (AFASA);
Improving the prosecution of financial crimes;
Improving and facilitating access to beneficial ownership information^[1].

The country's removal from the watch list is expected to enable faster and cheaper cross-border transactions, reduce compliance obstacles, increase financial transparency, and strengthen the country's position as an attractive destination for foreign direct investment (FDI)^[2].

The Philippines being the only country to be removed from the FATF Watch List this year is a testament to the country's commitment to financial accountability and transparency. Despite this accomplishment, vigilance remains essential to maintain the country's reputation as one of the fastest growing economies in international finance.

^[1] http://www.amlc.gov.ph/images/PDFs/Main/PR_PH%20Exits%20FATF%20GREYLIST.pdf

^[2] ‘Philippines Says Exit From “Dirty Money” List to Boost Investment’ by Manolo Serapio, Jr., 22 February 2025, last accessed on 28 February 2025, https://www.bloomberg.com/news/articles/2025-02-22/philippines-says-exit-from-fatf-list-to-ease-cross-border-deals