Philippines Celebrates Removal from FATF Money Laundering ‘Grey List’

MANILA, Feb 22, 2025 (BSS/AFP) – The Philippines has welcomed its removal from the Financial Action Task Force (FATF) "grey list," a designation that had subjected the country to increased monitoring for money laundering and terrorism financing—a status that can complicate global financial transactions.

The Southeast Asian nation had been under FATF scrutiny since 2021, working to address weaknesses in its financial system.

"The FATF removed the Philippines from its increased monitoring after a successful on-site visit and updated its statements on 'high-risk and other monitored jurisdictions'," the Paris-based watchdog announced Friday following a vote at its annual plenary session.

A Milestone for the Philippines

The FATF, which includes nearly 40 countries such as the United States, China, and South Africa, oversees international efforts to combat money laundering and terrorism financing.

In a statement Saturday, the Anti-Money Laundering Council (AMLC) of the Philippines hailed the FATF decision as a "milestone" that promises multiple benefits.

"The Philippines' exit from the FATF grey list is expected to facilitate faster and lower-cost cross-border transactions, reduce compliance barriers, and enhance financial transparency," the AMLC said.

The removal from the list is also expected to ease financial transactions for more than two million Filipinos working overseas, whose remittances are crucial to the country's economy.

Government Reforms Paved the Way

The decision follows key reforms led by President Ferdinand Marcos Jr., particularly his 2023 executive order aimed at strengthening anti-money laundering and counter-terrorism financing measures.

Last year, Marcos also banned offshore gaming operators (POGOs), which had been accused of money laundering, human trafficking, online fraud, kidnappings, and even murder—often linked to organized crime networks.

Concerns Over Human Rights Abuses

However, some human rights groups have criticized the government’s actions, accusing it of using the FATF grey list removal as a pretext to target civil society organizations and activists.

"Philippine authorities appear to be stepping up terrorism financing prosecutions to get off the FATF’s 'grey list'," said Bryony Lau, deputy Asia director at Human Rights Watch.

She warned that the government’s counter-terrorism measures had been used as a cover to file baseless charges against activists, violating their rights.

Despite the controversy, the Philippines' removal from the FATF grey list marks a significant step toward improved global financial standing, potentially boosting investor confidence and economic growth.