BSP vows reforms vs financial crimes

As Philippines exits EU’S high-risk list

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has vowed to push ahead with reforms and strengthen safeguards against financial crimes after the Philippines was removed from the European Union (EU)’s list of high-risk third countries.

The delisting, which took effect on June 10, marks the country’s third major exit from international watchlists this year.

“The BSP remains firmly committed to driving financial sector reforms, strengthening anti-money laundering, counter-terrorism and proliferation financing (AML/CTPF) supervision and building a resilient, inclusive financial system that supports economic growth and global confidence,” BSP Governor Eli Remolona Jr. said.

Remolona, who also chairs the Anti-Money Laundering Council, said the central bank is continuing to identify areas where the Philippines can boost its defenses against illicit financial flows and stay aligned with global standards.

The EU cited improvements in the country’s anti-money laundering regime and the resolution of technical deficiencies flagged by the Paris-based Financial Action Task Force (FATF) in its decision to strike the Philippines off the list.

In March, the United Kingdom also removed the Philippines from its high-risk list following the outcomes of the FATF plenary meeting in February.

The three delistings from the FATF, UK and EU signal rising international confidence in the country’s financial system, the BSP said.

“This development is expected to generate benefits, including lower remittance fees and improved relationship of Philippine banks with foreign counterparts, which drives business activities,” it noted.

The European Commission earlier removed the Philippines from its updated list of countries with strategic deficiencies in AML/CTPF regimes.

The commission’s decision took into account the FATF’s February move to remove the Philippines from its gray list of jurisdictions under increased monitoring after the country successfully implemented key reforms.