The Philippines has addressed the 18 deficiencies identified by the Financial Action Task Force (FATF) that could lead to the country’s exit from the grey list soon, a United Nations official said on Tuesday.
UN Office on Drugs and Crime (UNODC) country manager Daniele Marchesi, during the 5th State Conference on the United Nations Convention Against Corruption (UNCAC) implementation and review held in Malacanang, said the FATF during its plenary in October had announced and recognized the Philippines’ efforts to resolve the 18 deficiencies.
“The Philippines is achieving another significant milestone. All 18 action items required by the Financial Action Task Force, FATF, to exit the grey list of jurisdictions under increased monitoring for the anti-money laundering and counter-financing of terrorism, have been addressed,” he said.
He said FATF would conduct an on-site assessment to confirm the sustainability of the reforms implemented by the Philippines.
Marchesi said successfully exiting the grey list will enhance the Philippines’ reputation in the international financial community and will open doors for greater investment and economic opportunities.
Among the actions taken by the Philippines include the demonstration of effective risk-based supervision of Designated Non-Financial Business and Professions (DNFBP); the use of anti-money laundering and counter-terrorism financing (AML/CTF) controls to mitigate risks associated with casino junket; and the implementation of new registration requirements for Money or Value Transfer Services (MVTS) and sanctions to unregistered and illegal remittance operators.
Other measures adopted by the country include the improved law enforcement authorities’ access to beneficial ownership (BO) information, the use of financial intelligence and increase in money laundering investigations and prosecutions; the increased identification, investigation, and prosecution of terrorist financing (TF) cases; implementation of appropriate measures for the non-profit organization (NPO) sector; and enhancement of the targeted financial sanctions framework for both TF and proliferation financing (PF).
Marchesi said while reforms are commendable, the fight against corruption must continue.
He said the UNCAC identified “critical areas” that the Philippines should focus on to sustain its campaign and achievements in the fight against corruption which include the enactment of a comprehensive Whistleblower Protection Law to protect witnesses against retaliation and empower individuals to report wrongdoing and strengthening accountability and a Beneficial Ownership Transparency Law to prevent the misuse of corporate structures to conceal illicit financial flows.
He said UNCAC also recommended focusing on expanding the freedom of information framework to include the legislative and judicial branches; addressing the risks posed by Philippines offshore gaming operations; and continued promotion of integrity, accountability, and human rights in law enforcement and the criminal justice system.
The Philippines has been in the FATF’s grey list since June 2021.
The country had been under increased monitoring by the international watchdog since its inclusion in the grey list.
