The Philippines achieved an important victory for its financial reputation by eliminating its position on the Financial Action Task Force (FATF) grey list. The Financial Action Task Force reviewed the Philippines’s financial reforms successfully and announced to removal of the country from their watchlist.
What is the FATF Grey List?
FATF includes nations in its grey list when their systems for preventing money laundering and counter-terrorism financing show insufficient monitoring abilities. New members have joined the list where Laos and Nepal entered while the Philippines achieved removal from the gray list decreasing the overall count to 25 states.
The grey list of the Financial Action Task Force currently includes Bulgaria, Croatia, Haiti, Monaco, Nigeria, South Sudan, and Yemen.
What This Means for the Philippines
Being taken off the grey list is a huge victory for the Philippines, as it will:
- Facilitate easier international transactions
- Reduce business and individuals’ banking fees
- Enhance financial transparency
- Benefit more than 2 million overseas Filipino workers (OFWs) by cutting remittance fees.
The FATF noted among the primary reasons for the country’s delisting was the Philippines government’s 2023 executive order banning terrorism financing and money laundering signed by President Ferdinand Marcos Jr.
Marcos had also prohibited offshore gaming operators (POGOs), which were allegedly being used by crime syndicates for money laundering, online scams, and human trafficking.
