Philippines still in money launder gray list

MANILA, Philippines — Paris-based Financial Action Task Force (FATF) has retained the Philippines in its “gray list,” citing the country’s need to further strengthen its action plan to address strategic deficiencies in efforts to counter money laundering, terrorist financing and “proliferation financing.”

As part of the “gray list” along with 22 other countries, the Philippines is subject to increased monitoring by the global dirty money watchdog. The list was released during the recently concluded hybrid FATF plenary from June 14 to 17.

The FATF said the Philippines should continue to work on implementing its action plan to address its strategic deficiencies by demonstrating that effective risk-based supervision of designated non-financial businesses and professions (DNFBPs) is occurring and demonstrating that supervisors are using anti-money laundering/ combating the financing of terrorism (AML/CFT) controls to mitigate risks associated with casino junkets.

The global dirty money watchdog also said the Philippines should enhance and streamline law enforcement agencies’ access to beneficial owners information and taking steps to ensure that beneficial owners information is accurate and up-to-date.

It added that the country should also demonstrate greater use of financial intelligence as well as intensify money laundering investigations and prosecutions. There should also be more identification, investigation and prosecution of terrorist financing cases.

According to FATF, the Philippines should continue to take appropriate measures with respect to the non-profit organization (NPO) sector without disrupting legitimate NPO activity.

Furthermore, the country should also enhance the effectiveness of targeted financial sanctions framework for both terrorist financing and proliferation financing.