Philippines Poised to Exit FATF Grey List in 2025

After over three years on the FATF grey list, the Philippines is on track to exit in early 2025, thanks to substantial reforms in anti-money laundering (AML) and counter-terrorism financing (CTF) protocols. The Financial Action Task Force (FATF), which regularly reviews high-risk jurisdictions, has noted that the Philippines has “substantially completed” an action plan to secure its financial system. This anticipated delisting marks a significant milestone, signaling restored confidence in the nation’s financial integrity and commitment to combatting financial crime.

Philippines to Exit FATF Grey List in Early 2025 with AML, CTF Reforms

The Financial Action Task Force (FATF), an international watchdog based in Paris, has confirmed that the Philippines has made significant progress in addressing AML and CTF deficiencies. This progress could see the country removed from FATF’s grey list as early as February 2025. Currently, the grey list comprises 21 nations, including Haiti, Lebanon, South Africa, and Yemen, deemed to require “increased monitoring” due to risks associated with financial crimes.

Key Points:

• The Philippines could exit the FATF grey list by February 2025 after fulfilling AML and CTF requirements.
• 18-point action plan includes measures to mitigate financial crime risks and strengthen financial intelligence.
• The delisting would reinforce the country’s financial credibility and contribute to global financial security.

In October 2024, FATF reported that the Philippines has “substantially completed” an 18-point action plan focused on safeguarding financial integrity. Without these reforms, the Philippines risked downgrading to the black list, alongside North Korea, Iran, and Myanmar—jurisdictions marked as high risk for financial crimes. This black list designation, last held by the Philippines in 2002, would severely impact its access to international finance.

In response, the Philippine government enacted several robust measures to strengthen its AML and CTF frameworks. Recent enhancements include improved oversight of financial institutions, more comprehensive investigations and prosecutions of financial crimes, and reinforced safeguards within the national financial system. FATF has commended these measures, recognizing their importance for mitigating money laundering, terrorism financing, and proliferation financing risks (such as funding entities involved in the illicit trade of weapons of mass destruction).

As part of the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Strategy (NACS) for 2023-2027, President Ferdinand Marcos Jr. mandated that all government agencies actively engage in financial security efforts. This directive aligns with Marcos’s decision to prohibit Philippine Offshore Gaming Operations (POGOs), which had become hubs for financial crime, further underscoring the administration’s commitment to maintaining financial security and integrity.

A Milestone for Global Financial Security

The anticipated delisting has garnered praise from financial leaders. Philippines Executive Secretary Lucas Bersamin hailed the development, noting that it represents the “hard work and coordination across government agencies.” He emphasized the importance of maintaining and sustaining these reforms, which will continue to secure the nation’s financial stability.

Elisa de Anda Madrazo, FATF President, highlighted the far-reaching impact of these improvements, stating, “The progress made by the Philippines will have a huge impact on the security of the international financial system.” With billions of dollars in annual cross-border transactions, the Philippines’ progress serves as a model for other nations navigating FATF’s monitoring list.

With its potential exit from the FATF grey list, the Philippines stands poised to reclaim its position as a trusted player in global finance. By implementing critical AML and CTF reforms, the nation has significantly improved its financial system’s transparency and accountability. As early as 2025, this progress could enhance international confidence in the Philippines, solidifying its commitment to financial security and contributing to the stability of the global financial landscape.