Senator Sherwin Gatchalian called the Philippines' removal from the Paris-based Financial Action Task Force (FATF) so-called "grey list” a reversal of the "reputational damage" brought to the country by Philippine Offshore Gaming Operators (POGOs).

"The removal of the Philippines from the Financial Action Task Force gray list, less than two months after the ban on POGOs took effect, is yet another proof that the country is in a much better position economically without POGOs," he said in a statement on Saturday, Feb. 22.

"A reversal of the reputational damage brought to the country by POGOs, the FATF's action is a recognition of the country's efforts in combating financial crimes, including money laundering, organized crime, and terrorism. This reaffirms what we have long maintained," he said.

On Friday, Feb. 21 (Paris time), the FATF, a global anti-money laundering watchdog, removed the Philippines from its ‘grey list’ after nearly four years, citing major improvements in combating money laundering and terrorism financing. 

In an interview at Usapang Senado on DWIZ, the senator said that FATF made it very clear that POGO is indeed a conduit for money laundering and when there's money laundering, there's also criminality. He also added that POGOs have opened the door for the so-called "dirty money", funds that come from criminal activities, to enter the Philippines.

Gatchalian said that the country was removed from the grey list just two months after the total ban on POGO at the end of 2024. 

Gatchalian said the country's reputation took a significant hit because of POGO.

He says that as long as POGO is here, "the country's reputation continues to suffer because they know money laundering is happening".

"If you're on the grey list, as an overseas Filipino Worker (OFW), there are many checks involved, and other countries will have to verify where your money comes from and whether you have a legitimate job.

"So yung OFWs natin ang naagrabyado dyan, affected dahil minamanmanan nila o binabantayan nila ang pagpasok ng pera sa atin. Kaya ngayon wala na tayo dyan, ibig sabihin malaya na tayo, lalo na mga OFWs natin na makapagpadala ng pera rito (So our OFWs are the ones who have been disadvantaged, affected because they were monitoring or watching the flow of money into our country. Now that we are no longer under that scrutiny, it means we are free, especially our OFWs, to send money here without restrictions)," he explained.

Gatchalian, along with Senator Risa Hontiveros, has spearheaded in the upper chamber an investigation on POGO-related crimes in the country.

The senator said that he's confident that the country's removal from the FATF grey list will enhance the country's efforts to attract more foreign direct investments necessary to sustain economic growth and generate employment.

Still, he mentioned that the government should sustain efforts to address potential risks and to further strengthen regulations to deter illicit financial flows.