The Bangko Sentral ng Pilipinas on Tuesday expressed optimism the Philippines could soon exit from the Financial Action Task Force’s grey list, following a recent statement from the international watchdog recognizing the country’s reforms in anti-money laundering and counter-terrorism financing initiatives.
Last Friday, the FATF announced that the Philippines has substantially completed its action plan and will undergo an onsite assessment to verify the effective implementation of these reforms.
A successful assessment and subsequent removal from the grey list would have significant benefits for Filipinos, particularly overseas Filipino workers. It is expected that the exit will lead to faster and more affordable remittances and cross-border transactions, easing the financial burden of many families relying on support from abroad.
Overseas Filipinos’ cash remittances between January and August this year total USD22.22 billion, up 2.9 percent from the USD21.58 billion the year-earlier period. Land-based migrants workers accounted for 80 percent of total cash remittance while the balance came from sea-based workers.
The Philippines was placed on the FATF grey list in June 2021, prompting the BSP to collaborate closely with the national government to strengthen the country’s risk-based AML/CFT supervisory framework. This partnership has focused on enhancing regulatory measures and ensuring compliance with international standards.
Through the National AML/CFT Coordinating Committee’s Supervision of Financial Institutions Sub-Committee, the BSP has supported the Anti-Money Laundering Council, the Securities and Exchange Commission, and the Insurance Commission in achieving significant milestones in risk-based supervision. These efforts underscore the BSP’s commitment to enhancing the integrity of the Philippine financial system.
The central bank has also executed action plans to improve supervision of money service businesses and to enhance the effectiveness of financial sanctions related to terrorism and proliferation financing. The timely implementation of these plans in 2022 demonstrates the BSP’s proactive approach in addressing compliance challenges.
The monetary authority remains dedicated to conducting risk-based examinations, thematic reviews, and capacity-building programs to further strengthen AML/CFT frameworks. It also acknowledges the ongoing efforts of banks and other financial institutions to bolster their anti-money laundering practices, setting the stage for a more secure financial environment for all Filipinos.
