The Philippines has achieved an important milestone by being removed from the Financial Action Task Force’s (FATF) grey list of jurisdictions under increased monitoring, but money laundering risks still remain due to sectors such as online gaming and cryptocurrency, according to Moody’s.
While the Philippines has recently banned its controversial POGO or offshore gaming industry, the country still oversees a growing domestic gaming industry – sometimes referred to as PIGO – catering to players based in the Philippines who are registered with licensed land-based gaming entities.
In a Tuesday note, Moody’s Head of Financial Crime Practice Group, Asia-Pacific and Middle East, Choon Hong Chua, said, “The Philippines’ removal from the Financial Action Task Force’s grey list reflects its commitment to strengthening its anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks.
“Exiting the grey list will boost investor confidence and financial stability. The Philippines has enhanced inter-agency coordination and has implemented comprehensive reforms.
“However, money laundering risks are not easy to sweep out entirely. Businesses such as online gaming and cryptocurrency would be areas beyond the financial sector that would require continuous oversight to mitigate potential risks.”
The nation’s POGO industry was officially banned as of 1 January 2025 amid growing concerns around offshore operators – both licensed and not – using the industry as a cover to conduct serious illegal activities such as human trafficking and a variety of online scams.
The Philippines, meanwhile, was removed from the grey list last Friday after FATF found it had made positive progress in addressing the strategic anti-money laundering (AML) , counter-terrorism financing (CTF) and counter-proliferation financing (CPF) deficiencies previously identified during mutual evaluations.
Specifically, it explained that the Philippines had demonstrated that effective risk-based supervision of DNFBPs (Designated Non-Financial Businesses and Professions) is occurring, that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets, that it is increasing the use of financial intelligence and money laundering investigations and prosecutions in line with risk, and more.
“The Philippines has completed their Action Plan to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF’s increased monitoring process,” the agency said.
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