The Financial Action Task Force, a global AML watchdog, has urged the Philippines to swiftly implement plans to address key deficiencies in its anti-money laundering controls, including those related to casino junkets.
The comments formed part of an update on jurisdictions under increased monitoring following FATF’s fourth Plenary under the Presidency of T. Raja Kumar of Singapore, held last week. The Philippines was placed on the agency’s “grey list” in June 2021 as a result of failing to address various deficiencies that had been previously identified.
Addressing the Philippines’ progress this week, FATF noted that the country’s leadership had made a “high-level political commitment” to work with the FATF and the Asia-Pacific Group on Money Laundering to strengthen the effectiveness of its AML/CFT regime.
“The Philippines should continue to work on implementing its action plan to address its strategic deficiencies,” it said. Among these, FATF explained, the Philippines must demonstrate that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets.
It also calls on the Philippines to demonstrate that effective risk-based supervision of Designated Non-Financial Business and Professions is occurring; that it is enhancing and streamlining law enforcement agency access to beneficial ownership information and taking steps to ensure that beneficial ownership information is accurate and up-to-date; to demonstrate an increase in money laundering investigations and prosecutions in line with risk; and to demonstrate an increase in the identification, investigation and prosecution of terrorism financing cases.
“The FATF urges the Philippines to swiftly implement its action plan to address the above-mentioned strategic deficiencies as soon as possible as all deadlines expired in January 2023,” it said.
FATF earlier this year gave the Philippines an additional 12 months until January 2024 to address these deficiencies and be removed from its grey list.
As reported by IAG, Philippines President Ferdinand Marcos Jr last week issued a Memorandum Circular directing relevant government agencies, including gaming regulator PAGCOR, to “review and assess” their requirements and take all necessary actions to ensure the country exits the FATF “grey list” of nations deemed to have deficient Anti-Money Laundering and Counter-Terrorism Financing controls.
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