Group warns: Anti-financial scam measures must be enforced
The recent removal of the Philippines from the European Commission’s high-risk list could strengthen investor confidence and ease cross-border financial activity for the Southeast Asian country, a business group said on Thursday.
The European Chamber of Commerce of the Philippines (ECCP), however, warned anti-financial scam measures must, at the same time, be fully implemented to sustain that confidence.
The ECCP described the EC’s move to drop the Philippines from the high-risk list as a milestone that reflects the country’s improved compliance with international financial standards and reinforces its reputation as a credible destination for trade and investment.
“This is a strong affirmation of the Philippines’ significant strides in strengthening its anti-money laundering and counter-terrorism financing framework,” the chamber said in a statement.
“It reflects the government’s continued commitment to financial integrity and regulatory reform,” it added.
In a delegated regulation issued June 10, the EC delisted seven other jurisdictions, apart from the Philippines: Barbados, Gibraltar, Jamaica, Panama, Senegal, Uganda, and the United Arab Emirates.
The regulatory move remains subject to review by the European Parliament and the European Council, and will take legal effect following a one-month non-objection period, which may be extended for another month.
The Commission’s list identifies countries with strategic deficiencies in anti-money laundering and counter-terrorism financing measures.
FATF delisting
The Commission’s updated list comes just months after the Financial Action Task Force (FATF), an intergovernmental watchdog, removed the Philippines from its “gray list” in February.
The country had been placed under increased monitoring in 2021 due to shortcomings in its anti-money laundering (AML) and counter-terrorism financing (CTF) systems.
FATF cited the Philippines’ “positive progress” in addressing these strategic deficiencies, including legislative reforms and improved enforcement capacity.
The organization, in which the EU is a founding member, continues to inform and guide the Commission’s updates to the list of high-risk jurisdictions.
Trade and finance implications
The ECCP said the removal of the Philippines from the EU’s list will reduce barriers in financial and investment transactions with European institutions, which are required to apply enhanced due diligence measures to high-risk countries.
“This development facilitates smoother financial operations with European partners,” the ECCP said, adding that it expects a positive impact on capital inflows and business confidence.
Tighter financial oversight
At the same time, the ECCP said it supports the full implementation of Philippine legislation, especially the Anti-Financial Account Scamming Act (AFASA), which targets digital and cross-border financial fraud, as well as bills pending in Congress that seek to tighten financial oversight.
The AFASA law, or Republic Act No. 12010, aims to curb financial scams, protect consumers and strengthen trust in the country’s financial system.
Signed by President Ferdinand R. Marcos Jr. in July 2024, the law takes effect later this month with the release of the implementing rules.
Foreign investment decisions
The Philippines’ removal from both the FATF gray list and the EU high-risk list positions it more competitively in Southeast Asia, where reputational and regulatory risks increasingly factor into foreign investment decisions.
The ECCP emphasized that it remains committed to working with the Philippine government to advance good governance and sustainable economic growth, and to support reforms that ensure the country remains aligned with evolving international standards.
A systemic shift
The EU’s list is maintained under Article 9 of the Fourth Anti-Money Laundering Directive, which mandates regular updates based on strategic assessments of non-EU countries. Being on the list has historically subjected jurisdictions to reputational damage and limited access to European financial markets.
The delisting, if finalized following the parliamentary scrutiny period, is expected to signal to global markets that the Philippines is steadily strengthening its financial regulatory framework—a move seen as timely amid the country’s broader push to attract foreign direct investment and digital economic growth.
”This is a good development for the country in its bid to attract foreign direct investments,“ George Barcelon, chairman of the Philippine Chamber of Commerce and Industry (PCCI), told this paper in a separate message on Thursday.
However, Barcelon noted that investors have other concerns which the government also needs to address to make the Philippines a preferred destination by foreign investors.
He specified these concerns as the ease of doing business and transparency in private sector dealings with the bureaucracy, as well as the high cost of power and logistics costs in the country.
