The Philippines has been told to continue monitoring for dirty money risks from cryptocurrency and online gambling to ensure that any “residual” vulnerabilities are contained, according to Moody’s
Xiao Chen, associate director at Moody’s said the country’s delisting from the European Commission’s “high risk” money laundering list is “expected to improve the country’s financial reputation, ease access to the EU financial system, and support cross-border trade and investment.”
He added that “continued vigilance will be essential, particularly in sectors such as online gaming and cryptocurrency, to ensure that residual risks are effectively managed,” he added.
In February, the FATF removed the Philippines from its list of jurisdictions under increased monitoring for “dirty money” risks following a successful on-site visit and completion of the recommended action plan. The country was on the FATF’s gray list for over three years or since June 2021.
The FATF move also resulted in the Philippines’ inclusion in the EU’s list of high-risk jurisdictions for AML/CTF and the UK’s advisory list, which means being subjected to stricter customer due diligence measures by member states for business relationships or transactions, the Anti-Money Laundering Council has said.
The dirty money watchdog noted the Philippines’ progress in addressing the strategic anti-money laundering and countering the financing of terrorism and proliferation financing deficiencies.
To stay out of dirty money watch lists, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr., who also chairs the AMLC, said authorities are now trying to identify emerging risks. He earlier said that the next big threat to the country’s defenses against the flow of illicit funds could come from digital technology, adding that authorities are in the middle of an ‘arms race’ with bad actors. The AMLC is currently doing a risk assessment that includes various forms of online gambling.
The FATF’s next assessment of the country is slated for 2027, where it will verify that the measures are sustained and still in place. That gives our government officials enough time to shore up defenses and put in place programs to sustain the gains that we have made, and maybe even win the arms race with bad actors that are always probing and testing our systems.*
