The International Monetary Fund (IMF) urges the Philippines to intensify its efforts in addressing key deficiencies in anti-money laundering (AML) and combatting the financing of terrorism (CFT). These actions remain critical for the country to secure prompt removal from the Financial Action Task Force’s (FATF) “grey list” of non-compliant jurisdictions.
In its latest report released Friday, the IMF outlines several gaps that the Philippine government must close. Specifically, the report stresses the importance of showing effective use of AML and CFT controls to mitigate risks associated with casino junkets—an area the FATF continues to flag as a serious concern.
Moreover, the IMF highlights several additional areas that demand immediate improvement. The government must demonstrate stronger risk-based supervision of designated non-financial businesses and professions. At the same time, it needs to improve law enforcement agencies’ access to beneficial ownership information and actively pursue investigations and prosecutions of complex money laundering cases.
Although the Philippines has remained on the FATF’s grey list since June 2021, both the FATF and IMF acknowledge that the country has taken meaningful steps to enhance its AML/CFT framework. Nonetheless, they emphasize that significant work still lies ahead—particularly in addressing strategic weaknesses related to the gaming industry and junket operators.
In October, the FATF called on the Philippines to implement its action plan without delay. This plan outlines the steps needed to correct identified strategic shortcomings. Meanwhile, the Anti-Money Laundering Council (AMLC) reaffirmed earlier this month that the government remains fully committed to boosting the effectiveness of its AML and CFT efforts.
Furthermore, the FATF’s October review recognized the country’s progress since its initial grey-listing in 2021. However, it also detailed key areas that require further action. Back in January, the Bangko Sentral ng Pilipinas (BSP) governor announced that the Philippines secured a one-year extension—until January 2024—to meet all international financial standards necessary for delisting.
Successfully exiting the FATF grey list would significantly improve investor confidence. It would also create a ripple effect of benefits across the Philippine financial system—especially in bolstering trust in both land-based casinos and the online gaming industry. Therefore, the urgency to act now remains greater than ever.
