The Bangko Sentral ng Pilipinas (BSP) has expressed optimism following the Financial Action Task Force’s (FATF) recent announcement recognizing the Philippines’ progress in addressing anti-money laundering and counter-terrorism financing (AML/CFT) concerns.
On Oct. 25, 2024, the FATF declared that the Philippines had substantially completed its action plan, paving the way for an onsite assessment to verify the implementation of reforms.
READ: Philippines on track to exit FATF ‘gray list’ in 2025
A successful onsite assessment will lead to the removal of the Philippines from the FATF grey list.
BSP said this development is expected to benefit Filipinos, particularly overseas Filipino workers (OFWs), by facilitating faster and more affordable remittance and cross-border transactions.
Since being included in the grey list in June 2021, the BSP, in collaboration with the national government, has intensified efforts to strengthen the country’s risk-based AML/CTPF supervisory regime.
The central bank has worked closely with the Anti-Money Laundering Council, Securities and Exchange Commission, and Insurance Commission to achieve significant milestones in risk-based AML/CTPF supervision.
The BSP has also implemented relevant action plans to enhance the supervision of money service businesses and the effectiveness of the targeted financial sanctions framework for terrorism and proliferation financing.
The central bank said it remains committed to upholding the integrity of the Philippine financial system and continues to conduct risk-based AML/CTPF examinations, thematic reviews, and capacity-building programs.
The BSP also acknowledged the ongoing efforts of banks and other supervised financial institutions to improve their AML/CTPF frameworks.