European Commission removes PHL from ‘high-risk’ money laundering list
THE PHILIPPINES has been removed from the European Commission’s (EC) list of “high-risk” countries for anti‑money laundering and countering the financing of terrorism (AML/CFT) following its exit from global watchdog Financial Action Task Force’s (FATF) “gray list.”
The commission said in a statement on Tuesday that it has updated its list of high‑risk jurisdictions that showed “strategic deficiencies” in their AML/CFT regimes to remove the Philippines.
“The updated list takes into account the work of the Financial Action Task Force and in particular its list of “Jurisdictions under Increased Monitoring”. As a founding member of FATF, the Commission is closely involved in monitoring the progress of the listed jurisdictions, helping them to fully implement their respective action plans agreed with FATF. Alignment with FATF is important for upholding the EU’s (European Union) commitment to promoting and implementing global standards,” it said.
Other jurisdictions that were delisted by the commission were Barbados, Gibraltar, Jamaica, Panama, Senegal, Uganda, and the United Arab Emirates.
“That’s certainly good news,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said in a text message to reporters on Wednesday when sought for comment. “But the EU parliament will still need to confirm the EC decision.”
“After we got off the FATF gray list, we also got off the UK’s (United Kingdom) list, which is a separate one. To stay out of those dirty money lists, we’re now trying to identify emerging risks.”
In February, the FATF removed the Philippines from its list of jurisdictions under increased monitoring for “dirty money” risks following a successful on-site visit and completion of the recommended action plan. The country was on the FATF’s gray list for over three years or since June 2021. The FATF’s move also resulted in the Philippines’ inclusion in the EU’s list of high-risk jurisdictions for AML/CTF and the UK’s advisory list, which means being subjected to stricter customer due diligence measures by member states for business relationships or transactions, the Anti-Money Laundering Council has said.
The dirty money watchdog noted the Philippines’ progress in addressing the strategic anti-money laundering and countering the financing of terrorism and proliferation financing deficiencies.
The BSP has said that it is working to ensure that the country will stay out of the FATF’s gray list.
The Anti-Money Laundering Council is also pushing amendments to the Anti-Money Laundering Act as part of its next steps to ensure the country will not return to the list.
These changes aim to align the law with international standards, such as the enhanced monitoring of virtual asset service providers and other emerging threats.
The FATF’s next assessment of the country is slated for 2027, where it will verify that the measures are sustained and still in place.
Meanwhile, the European Commission added Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela to its list of high-risk jurisdictions.
“European Union entities covered by the AML framework are required to apply enhanced vigilance in transactions involving these countries. This is important to protect the EU financial system,” it said. — BVR
