The Philippines maintains its high-level political commitment in addressing the deficiencies to finally exit from the Financial Action Task Force (FATF) gray list, President Marcos said.

Marcos made the statement as he reiterated his directive to concerned government agencies to comply with international anti-money laundering and counter terrorism financing standards so the country can finally exit from its FATF status, which put the Philippines into an "increased monitoring" by the FATF.

In a sectoral meeting on Tuesday, Jan. 2, the President gave a directive for the Anti-Money Laundering Council (AMLC) and concerned government agencies to ensure the implementation of the action plans.

"I'd like to confirm that during the sectoral meeting this morning with the President, the President has reiterated the government's high level political commitment and directed all government agencies concerned to swiftly address the remaining strategic deficiencies identified by the FATF in relation to the graylisting of the Philippines," AMLC Secretariat Executive Director Matthew David said in a Palace briefing.

David disclosed that the country aims "to address all these deficiencies within 2024 and to trigger the exit process from this FATF graylisting."

The AMLC official said the country has originally 18 recommended action plans since June 2021. At present, the government still has eight action plan items that must be addressed.

Marcos also directed government agencies to continue with their actions and to continuously sustain good coordination among themselves between the law enforcement and other government agencies in meeting the concerns.

"All agencies have expressed in fact during the meeting their commitment to address the deficiencies in our implementing measures to strengthen our AML/CTF (Anti-Money Laundering, Counter-Terrorism Financing) system in the Philippines," David said.

"Everybody believes we are on the right track," he added.

In October 2019, FATF placed the Philippines under a 12-month observation period in terms of its technical compliance with international anti-money laundering /counter terrorism financing standards.

In June 2021, the country was included in the FATF list of "jurisdiction under increased monitoring" or the gray list for its failure to show tangible and positive progress in addressing all key recommended actions.

Marcos issued Executive Order No. 33 last year to implement the National AML/TF/CPF Strategy (NACS) 2023-2027 to ensure that the Philippines exits the gray list.

Through Memorandum Circular No. 37, Marcos directed all concerned agencies to support efforts in fighting money laundering and terrorism financing risk assessment.

He noted that "under international standards on combating ML/TF, countries are required to identify, assess and understand the money laundering and terrorism financing risk for the country, and are mandated, based on said assessment, to apply a risk-based approach to ensure that measures to prevent or mitigate ML/TF are commensurate with the risks identified."

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According to David, there are repercussions for being included in the gray list "because the longer we are at the gray list, the bigger the possibility or the higher the risk that we will enter the black list."

Being included in the "black list" may affect the transactions of overseas Filipino workers (OFWs), David said stressing that there will be increase in cost, more stringent requirements, or sometimes the transactions may be denied or disapproved.