PH tries to beat FATF deadline, exit ‘grey list’

With barely three months left to address eight remaining deficiencies identified by the Paris-based Financial Action Task Force (FATF) for the country to exit its grey list, Malacañang ordered the urgent implementation of the National Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing Strategy (NACS) 2023-2027.

“As of September 2023, out of 18 International Cooperation Review Group (ICRG) Action Plans, there are still eight that the Philippines must address to exit the FATF Grey List by January 2024,” Executive Secretary Lucas Bersamin said in Memorandum Circular No. 37.

Bersamin noted that implementing the national strategy will “intensify and expedite efforts to address deficiencies identified by the FATF ICRG.”

The Philippines is expected to undergo mutual evaluation in 2026.

FATF earlier cited the low number of cases filed against anti-money laundering and terrorist financing violators and their eventual conviction in keeping the country in its grey list.

It gave the Philippines a one-year extension until January 2024 for the government to review the implementation of its money laundering and terrorist financing law.

Bersamin, in issuing MC No. 37, directed all concerned agencies’ heads to review and assess their deliverables under the ICRG Action Plan and assign focal persons to complete the deliverables by Nov. 30, 2023.

The memorandum also directed the Anti-Money Laundering Council to submit to Bersamin, through the Office of the Deputy Executive Secretary for Legal Affairs, a comprehensive report on the status of the implementation of the NACS 2023-2027 on or before Dec. 8, 2023.

Earlier, the Bangko Sentral ng Pilipinas proposed the inclusion of a measure allowing the BSP to open bank accounts suspected of being used for money laundering and terrorism financing.

The proposed Bank Secrecy Law was then included in the administration’s legislative priorities.