The Bangko Sentral ng Pilipinas (BSP) has expressed strong support for efforts to remove the Philippines from the Financial Action Task Force (FATF) grey list, following an acknowledgment of significant reforms in the country’s anti-money laundering and counter-terrorism financing initiatives.
On October 25, 2024, the FATF announced that the Philippines has “substantially completed its action plan” and now qualifies for an onsite assessment.
The evaluation will confirm whether the country’s reforms are being effectively implemented and sustained, backed by political commitment.
A successful assessment would lead to the Philippines’ removal from the FATF grey list, where it has been since June 2021.
BSP officials underscored the importance of a grey list exit, which would benefit Filipinos, particularly Overseas Filipino Workers (OFWs), by facilitating faster and cheaper remittances and other cross-border financial transactions.
Since its grey list inclusion, the BSP has collaborated with the Philippine government to enhance the nation’s anti-money laundering and counter-terrorism financing (AML/CTF) systems.
The BSP played a crucial role under the National AML/CFT Coordinating Committee’s Supervision of Financial Institutions Sub-Committee, working alongside the Anti-Money Laundering Council (AMLC), Securities and Exchange Commission (SEC), and Insurance Commission (IC) to strengthen the country’s risk-based supervisory framework.
Among these efforts, the BSP has focused on improving supervision of money service businesses and enforcing targeted financial sanctions against terrorism and proliferation financing.
By 2022, the BSP reported that it had implemented key action plans within set timelines, further reinforcing the country’s financial security infrastructure.
“The BSP remains committed to reinforcing the integrity of the Philippine financial system and continues to conduct risk-based AML/CTPF examinations, thematic reviews, and capacity building programs,” the BSP said in a statement.
The BSP also recognized the critical contributions of banks and other financial institutions under its supervision, which have worked diligently to improve their anti-money laundering and counter-terrorism financing (AML/CTF) frameworks in alignment with global standards.
The FATF’s onsite assessment represents the final step for the Philippines to exit the grey list, a move that would not only bolster the country’s financial standing globally but also deliver tangible benefits to Filipino consumers and businesses involved in international financial transactions.
