Moodys notes rise in AML incidents in The Philippines

However, it predicts the Philippines will exit the FATF grey list soon.

The Philippines.- Moody’s Analytics has forecast that the Philippines could soon exit the Financial Action Task Force (FATF) Grey List soon despite facing significant challenges related to money laundering, particularly in the gaming industry.

Choon Hong Chua, senior director and head of the Financial Crime Practice Group for Asia and the Pacific and the Middle East, told Business World that the country was making progress in strengthening anti-money laundering and counter-financing of terrorism (AML/CFT) controls, including the implementation of stricter regulations and increased enforcement measures.

However, according to Moody’s Grid database, the Philippines has consistently ranked among the top five countries in Southeast Asia in terms of money laundering activity over the past five years. Data indicates a 45 per cent rise in incidents from 2022 to 2023.

In January, president Marcos Jr set a target for the country’s removal from the FATF Grey List by October. He ordered the Anti-Money Laundering Council (AMLC) to intensify efforts.

The Philippines has been on the list since June 2021. The FATF previously said the Philippines needs to demonstrate effective supervision of anti-AML and combating CFT controls in sectors vulnerable to financial crimes, including casinos, legal, accounting and real estate.