EU Removes Philippines from High-Risk List Citing Progress

The Philippines has been officially removed from the European Union’s (EU) list of countries considered to have a high risk for money laundering and terrorism financing. The Bangko Sentral ng Pilipinas (BSP) has vowed to continue strengthening safeguards against financial crimes following the decision.

The country has now made its third major exit from an international watchlist this year. The move was made official when the corresponding EU regulation took effect on August 5.

It follows the Philippines’ removal from the Financial Action Task Force (FATF) “grey list” in February and the United Kingdom’s high-risk list in March. The country had been on the FATF’s list of jurisdictions under increased monitoring since June 2021.

The European Commission’s decision highlighted the recent progress made by the Philippines. Specifically, the commission welcomed the strengthening of the country’s anti-money laundering and countering the financing of terrorism (AML/CFT) regime.

BSP Governor Eli M. Remolona Jr. said the central bank would continue its reform efforts.

“The BSP remains firmly committed to driving financial sector reforms, strengthening anti-money laundering/countering terrorism and proliferation financing supervision, and building a resilient, inclusive financial system that supports economic growth and global confidence,” Remolona stated.

Officials expect the delisting to generate several benefits for the country. These include lowering remittance fees for overseas workers and improving relationships between Philippine and foreign banks, which will help drive business activities.

Analysts also suggest the move could enhance investor confidence and improve the country’s access to global financial markets.

The Anti-Money Laundering Council is now pushing for amendments to the Anti-Money Laundering Act to ensure the Philippines remains off international watchlists.

Featured image by smilephotoap.