Bangko Sentral ng Pilipinas Governor Benjamin Diokno expressed optimism the Philippines will soon be removed from the “grey list” of the Paris-based Financial Action Task Force once it implemented the anti-money laundering and counter-terrorism financing measures in the country.
Diokno’s statement was in reaction to the FATF’s move to again include the Philippines on its grey list after the country failed to address strategic deficiencies to counter money laundering and terrorist and proliferation financing.
FATF removed Ghana from its increased monitoring process and added Haiti, Malta, the Philippines and South Sudan on the organization’s grey list to monitor and counter money laundering and terrorist financing.
FATF said nations on the grey list were working with it to correct deficiencies in their financial systems.
Diokno said the country adopted compliant laws and regulations but those were not sufficient. “The Philippines need time to implement them to demonstrate effectiveness of anti-money laundering and counter-terrorism financing measures. That said, the Philippines has been working relentlessly to address the deficiencies identified in the 2018 Mutual Evaluation even amidst the pandemic,” Diokno said.
“We remain strongly committed to swiftly resolve the remaining strategic deficiencies [18 from the original 70] within agreed timeframes. In any case, there is no sanction for being a ‘jurisdiction under increased monitoring,’” Diokno said.
Diokno said the Philippines largely addressed the action plans initially indicated in the 2018 Mutual Evaluation Report. The National Anti-Money Laundering/Combating the Financing of Terrorism Committee or NACC is also addressing the remaining action plans.
Diokno said the Philippines would report its progress to the FATF thrice a year—January, May and September, with the first report this September.
“The Philippines will be delisted from grey list upon successful completion of all action plans—hopefully on or before January 2023,” Diokno said.
Finance Secretary Carlos Dominguez III said the country made commitments to correct deficiencies within a particular timeframe.
“Hence, it is under increased monitoring,” he said.
