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Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. revealed that the global anti-money laundering watchdog has recognized the Philippines as a regional leader in combating financial crimes and terrorism financing, even tapping the country to assist others in strengthening their defenses.
“In fact, we are recognized for good behavior. [The Philippines is seen as] a regional leader in tackling money laundering and terrorism financing, so they [FATF] asked us to provide evaluators for the other countries in Asia that are still on greylist,” Remolona told reporters at a Tuesday Club meeting on March 11, Tuesday.
Last month, the Philippines officially exited the Financial Action Task Force’s (FATF) ‘grey list’ after nearly four years of increased monitoring. FATF said the country was removed from the list because it had significantly improved its anti-financial crime measures.
“Now, just because we are off the greylist does not mean that we are done. We have to make sure we do not get back into the greylist,” Remolona said, adding that historically, the Philippines went in and out of the list.
“This time, we are determined to stay out of the greylist,” the central bank governor stressed.
He pointed out that February’s “good news” did not mark the end of just a four-year struggle—“it was actually the end of a nine-year ordeal if you count from 2016.”
Even years before the country was placed on the ‘grey list’ in 2021, Remolona said foreign “banks were already doing something called de-risking: they were already starting to cut off relationships with our banks.”
“The correspondent banks abroad were cutting relationships with our banks here, which meant it was hard to send money here, it was hard to open accounts abroad, especially the smaller banks,” he explained.
Late last year, the Philippine government officially banned the operation of Chinese-run Philippine offshore gaming operators (POGOs) due to escalating concerns over criminal activities linked to their operations, including various forms of fraud, such as credit card scams and cryptocurrency investment schemes.
“The banning of POGOs was not on the FATF’s list of action items for the Philippines,” Remolona said. “Nonetheless, I think it was important in getting us off the grey list.”
He added that by banning the POGOs, the Philippines showed FATF its high-level commitment, besides complying with the 18 action items provided by the global watchdog.
Staying out of ‘grey list’
Remolona, who also chairs the Anti-Money Laundering Council (AMLC), emphasized the country’s determination to keep off the list.
“So, part of that means looking at our risks again. We call that national risk assessment,” Remolona said. “So, we look at the whole economy to figure out what else can lead to risks of money laundering, what else can lead to terrorism financing and so on.”
Part of this strategy is staying ahead of financial criminals in their move to innovate schemes.
“Digital technology is evolving, and digital technology is the preferred means for money laundering actors to take money out or put money in. So we have to look at digital technology and what it’s doing,” he said.
“These guys are very innovative as you know, right? And it’s essentially an arms race between us and them. So we have to keep up with the arms race. That’s why we're doing this national risk assessment.”
The Philippines is set to be reevaluated by the FATF in 2027. The central bank governor “wants to make sure that we pass that evaluation.”
