President Ferdinand Marcos Jr. said on Monday the country must double its efforts to keep out of the Financial Action Task Force (FATF) Gray List, for good.
The country realized a “very, very important achievement” when it formally exited the FATF grey list in February, and it would only be fitting to honor those behind the efforts, President Marcos Jr. said in Malacanang.
The President led the Recognition Ceremony of the Presidential and National Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing Coordinating Committee (NACC) in the presidential palace on Monday, May 5.
“Today marks a victory, but let me be clear: The work is not yet finished. The journey continues. More importantly, we need to exert twice the effort to sustain our progress. We must work even harder to institutionalize reforms,” Marcos said.
“We must tighten our enforcement against money laundering and terrorism financing. We must strengthen our financial system so that it can withstand the more sophisticated and technologically advanced challenges faced by the financial sector. The challenge to all of us is to never allow our country to slip into the gray list again,” he said.
He said the administration has been working to further strengthen the credibility of the country’s financial system by securing global confidence in its institutions.
The President said the country must also continue to march forward while observing transparency, accountability, and inclusive development rooted in the Bagong Pilipinas spirit.
He said all Filipinos must continue to help keep the country out of the FATF grey list, a black mark that could hurt the country’s economic growth and credibility, and negatively affect the lives of overseas Filipinos who have been depending on a stable and trustworthy financial system to send their cash remittances.
“Overall, it means stronger safeguards against money laundering, terrorist financing, and proliferation financing—threats that have no place in a nation that is on the path towards genuine and inclusive growth,” Marcos added.
During the event, the President distributed Certificates of Commendation to 29 awardees led by Executive Secretary Lucas P. Bersamin, Deputy Executive Secretary for Legal Affairs Anna Liza Logan, Office of the Executive Secretary Undersecretary Jeffrey Gallardo, Bangko Sentral ng Pilipinas Governor and Anti-Money Laundering Council Chairman Eli Remolona, Jr. Interior and Local Government Secretary Juanito Victor Remulla, Justice Secretary Jesus Crispin Remulla, and Trade Secretary Ma. Cristina Roque.
Finance Undersecretary Bayani Agabin received the commendation on behalf of Secretary Ralph Recto; Social Welfare and Development Undersecretary Alan Tanjusay on behalf of Secretary Rexlon Gatchalian; and Supreme Court Associate Justice Jose Midas Marquez on behalf of Chief Justice Alexander Gesmundo.
Other awardees were: Finance Undersecretary Jesse Hermogenes Andres; Philippine Amusement and Gaming Corporation Chairman and Chief Executive Officer Mr. Alejandro Tengco, and President and Chief Operating Officer Wilma Eisma; Insurance Commission Commissioner Reynaldo Regalado, Ombudsman Samuel Martires; Securities and Exchange Commission Chairperson and Chief Executive Officer Emilio Aquino; Cagayan Economic Zone Authority Administrator Katrina Ponce Enrile; and Bureau of Customs Commissioner Bienvenido Rubio and Deputy Commissioner Teddy Raval.
Also awarded were: National Bureau of Investigation Director Jaime Santiago, Philippine Coast Guard Commandant Admiral Ronnie Gil Gavan, Philippine Drug Enforcement Agency Director general Isagani Nerez, Philippine National Police Chief General Rommel Francisco Marbil, National Intelligence Coordinating Agency Director General Ricardo De Leon, Armed Forces of the Philippines General Romeo Brawner Jr., and Presidential Anti-Organized Crime Commission Executive Director Gilberto DC Cruz.
Also commended were Supreme Court Administrator Raul Villanueva and National Anti-Money laundering Coordinating Committee Secretariat executive Director Matthew David.
On its official website, the Financial Action Task Force (FATF) describes itself as the global watchdog on money laundering and terrorist financing. “It sets international standards that aim to prevent these illegal activities and the harm they cause to society,” it said. The FATF was established in 1989 by the G7 to set international standards against money laundering and terrorist funding. Its work is done through international cooperation and uses inter-governmental legal strategies and mechanisms to combat complex illicit activities related to money laundering and terrorist financing.
Since all countries have financial institutions interconnected with international banks and finance agencies, they all cooperate with the FATF to fight money laundering and terrorist financing.
Being on the FATF gray list means the country’s quality and level of efforts to combat money laundering and terrorist financing are under increased monitoring by the FATF. While being on the FATF Gray List does not automatically lead to sanctions, it results in more stringent scrutiny of the country’s financial transactions and can also cause reputational damage.
