Philippine President Ferdinand R. Marcos Jr has directed key government agencies to expedite efforts in resolving eight strategic deficiencies identified by the Financial Action Task Force (FATF), aiming to remove the country from the “grey list” of nations facing heightened scrutiny. The directive, issued during a recent sectoral meeting at Malacañan Palace, underscores the government’s commitment to addressing anti-money laundering (AML) challenges and signals a top priority for the Anti-Money Laundering Council (AMLC).
Presidential Directive:
President Marcos Jr’s directive, delivered at a meeting earlier this week, emphasizes the urgency of addressing the remaining deficiencies identified by the FATF. The President, during the meeting at Malacañan Palace, reiterated the government’s high-level political commitment to swiftly tackle these issues, with the ultimate goal of triggering the process to exit the FATF “grey list” within 2024.
October Memorandum Circular:
In October, the Office of the President issued a Memorandum Circular instructing relevant government agencies, including the Philippine Amusement and Gaming Corporation (PAGCOR), to review and assess their requirements in response to the FATF’s concerns. The recent directive builds upon this, emphasizing the need for immediate action.
Progress Report:
Matthew David, the AMLC Secretariat executive director, provided insights into the Philippines’ progress, stating that the country has already addressed 10 out of 18 items identified by the FATF. The outstanding deficiencies include effective risk-based supervision of Designated Non-Financial Business and Professions, access to beneficial ownership information, improvements in money laundering and financial investigations, prosecutions, and enforcement of cross-border measures.
Remaining Deficiencies:
David highlighted that the remaining eight deficiencies are “still partly addressed,” with one requiring more attention. Key challenges include demonstrating effective risk-based supervision, ensuring access to beneficial ownership information, enhancing money laundering investigations and prosecutions, and strengthening cross-border measures.
Focus on Terrorism Financing:
The most challenging aspect involves terrorism financing prosecution, where the Philippines needs to file more cases. Law enforcement agencies, including the AMLC, are central to meeting this requirement. President Marcos Jr commended the ongoing efforts of various government agencies and emphasized the importance of sustained coordination for success.
Grey List Implications:
David highlighted the repercussions of prolonged inclusion in the FATF “grey list,” emphasizing the higher risk of entering the “black list” with extended non-compliance. The President’s commitment to exiting the grey list reflects a strategic approach to mitigate potential risks and enhance the country’s international standing.
The Philippines, under President Marcos Jr’s leadership, is actively addressing AML deficiencies outlined by the FATF, with a clear target to exit the grey list by 2024. The government’s commitment, coupled with ongoing efforts by law enforcement and other agencies, demonstrates a proactive stance in strengthening the country’s AML and counter-terrorism financing controls. The urgency of the directive underscores the gravity of the situation, signaling a concerted push toward enhanced compliance and international credibility.