MANILA (Bloomberg): The Philippine government welcomed the country’s removal from a global watchdog’s dirty-money list, which could spur remittances and foreign investments in one of Asia’s fastest-growing economies.
The Financial Action Task Force’s decision to take Manila off the list is expected to "facilitate faster and lower-cost cross-border transactions, reduce compliance barriers and enhance financial transparency,” the Philippines’ Anti-Money Laundering Council said in a statement on Saturday.
Bangko Sentral ng Pilipinas Governor Eli Remolona, who chairs the council, said the FATF move "complements our ongoing efforts to make the financial system a stronger driver of sustainable growth.”
The Paris-based watchdog said on Friday that the Southeast Asian country is no longer on the list of nations under increased monitoring after a government push to step up efforts to counter money laundering and terrorist financing.
Bloomberg News reported earlier this month that the FATF was poised to announce the decision.
The development should make it easier and cheaper for Filipinos working overseas to send money home - a key driver of domestic consumption - and may boost investments in a country where monthly inflows dropped 20% from a year ago in November.
The Philippines was the only country removed from the list, while Laos and Nepal have been added. The potential boost for Manila comes at a time of global uncertainty arising from US policies under President Donald Trump and the country’s mounting tensions with Beijing in the South China Sea.
The Philippines was added to the gray list in June 2021 after the FATF cited shortcomings in the nation’s efforts to fight illicit financial flows.
The rise of Chinese-focused offshore gaming operators, which President Ferdinand Marcos Jr. said engaged in money laundering and financial scamming, across the country drew particular scrutiny.
The global watchdog’s latest decision followed an on-site visit to Manila in January, where the nation showed compliance with its action plan, including strengthening supervision of non-financial businesses, reducing risks with casino junkets and increasing investigations and prosecutions related to money laundering and terrorism financing, according to the Anti-Money Laundering Council.
Securities and Exchange Commission Chairman Emilio Aquino, a member of the council, said in a separate statement that the exit from the list is expected "to translate to better economic opportunities and improve investor confidence in the country moving forward.”
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