IMF advises Philippines to exit “grey list”

The International Monetary Fund (IMF) emphasizes that the Philippines must intensify its efforts in addressing outstanding concerns related to anti-money laundering (AML) and combatting the financing of terrorism (CFT). This is crucial for a prompt removal from the “grey list” of non-compliant jurisdictions designated by the Financial Action Task Force (FATF) based in Paris.

The latest report from the IMF, released publicly on Friday, identifies key gaps that need attention. According to the report, the Philippines must show that it is effectively utilizing AML and CFT controls to manage risks associated with casino junkets, as highlighted by the FATF.

Additionally, the IMF points out other essential areas that require improvement, including demonstrating effective risk-based supervision of designated non-financial businesses and professions, enhancing law enforcement agencies’ access to beneficial ownership information, and investigating and prosecuting complex money laundering cases.

Despite the country being on the FATF’s “grey list” since June 2021, there has been acknowledgment of steps taken by the Philippines to enhance its AML/CFT regime. However, the FATF emphasizes that more actions are needed to address strategic deficiencies, particularly in mitigating risks related to casino junkets.

In October, the FATF urged the swift implementation of the Philippines’ action plan to address existing strategic deficiencies in AML and CFT. Earlier this month, the Philippines’ Anti-Money Laundering Council reiterated the government’s commitment to enhancing the effectiveness of the nation’s AML regime and CFT measures.

The FATF, in its October report, recognized the progress made by the Philippines since June 2021 but outlined specific areas where more efforts are required. The governor of the Philippine central bank announced in January that the country has been granted a one-year extension until January 2024 to meet the financial standards necessary to be removed from the FATF’s risk list.

Exiting the FATF’s “grey list” will help boost confidence in the financial and gaming sector and will be also beneficial to help improve the land based casino and online gaming industry as well.

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