Never Again Gray List

This is the new battle cry of the Anti-Money Laundering Council (AMLC), according to its executive director Matthew David, as he explained how the AMLC intends to sustain compliance with the action items required by the global money laundering and terrorist financing watchdog Financial Action Task Force following the removal of the Philippines from the FATF gray list last month.

- MARIANNE GO

David was the recent guest of the Thursday BREAD Club at The Westin Manila. BREAD stands for business, research, economics, analysis and discussions.

The Philippines was placed on the list in June 2021 after the government failed to comply with 18 action items demanded by the global financial watchdog, specifically those involving money laundering and terrorist financing.

Being designated as among "jurisdictions under increased monitoring" results in unwanted economic consequences that may affect foreign investments and assistance.

Foreign investors and financial institutions may reduce or even cut off completely their business in a country placed on the gray list, posing difficulties for the subject country to transact financial business due to extra compliance and risk management costs.

Its citizens may also experience difficulty in financial transactions such as foreign exchange and remittances, and even force them to use less regulated channels to move money.

Fortunately for the Philippines, David said, President Marcos was fully committed to complying with the FATF's action agenda. "The current administration really exerted more effort. Unlike before, there's more coordination, and there are more instructions that show high-level political commitment."

According to David, it was in October last year when we complied with all action items. These included filing more than 100 terrorist financing cases. For money laundering cases, more than 400.