PH escapes inclusion in FATF blacklist

MANILA, Philippines – The Philippines has again escaped inclusion in the Financial Action Task Force (FATF) blacklist despite having failed to pass a third batch of amendments to the Anti-Money Laundering Act (AMLA).

“We were informed that because of the efforts of our Anti-Money Laundering Council (AMLC), the FATF spared the Philippines from being blacklisted,” Deputy Presidential Spokesperson Abigail Valte said over radio dzRB.

Valte however said that the country was still included in the gray list, two notches higher than the blacklist.

Valte said Philippine officials briefed FATF officials on current efforts to pass a third measure to amend the AMLA that is required for the country “to avoid being downgraded.”
 
According to Valte, FATF recognized these efforts and “instead kept us in the gray list but urged us also to adopt the third measure for us to be compliant with international standards.”

Blacklist threat

The Senate adjourned its session last October 16 without passing any of the third batch of amendments.

These amendments will expand the definition of money laundering in the Philippines, and encompass predicate crimes such as bribery, malversation of public funds, human trafficking, tax evasion and crimes against the environment.

Being on the gray list means a country is considered “making sufficient progress” in fighting money laundering.

Getting included in the blacklist suggests being a haven for money laundering and may lead to greater scrutiny of transactions with Filipino individuals and companies. This could delays in the transmittal of letters of credit and dollar remittances by overseas Filipinos to their families.

Congress in early June approved two bills that amended the AMLA.

The first, Republic Act No. 10167, waived the requirement for the AMLC to give notice to suspected launderers that their bank deposits are being monitored. The second, RA 10168, criminalizes financial support for known terrorists as a stand-alone offense.
 
The FATF upgraded the Philippines from the dark gray to the gray list after Congress passed these. – Rappler.com