Following its recent removal from the European Commission’s list of high-risk jurisdictions for money laundering, the Philippines Department of Justice is reaffirming its commitment to combat financial crimes.
The Philippines Department of Justice has expressed its intentions to intensify efforts against a range of financial offenses, including money laundering, terrorism financing, and proliferation financing.
On Friday, the European Commission officially removed the Philippines from its high-risk financial crime list.
The DOJ stated that the nation has successfully rectified numerous technical deficiencies related to AML/CFT (anti-money laundering and counter-terrorism financing), positioning itself in alignment with global standards.
Justice Secretary Jesus Crispin Remulla remarked that this delisting symbolizes the government’s unwavering commitment to combat money laundering and terrorism financing, promising to enhance the rule of law both nationally and internationally.
Rectifying Financial Practices
Earlier this year, the Philippines celebrated its removal from the Financial Action Task Force “grey list,” which flagged countries at risk for financial crimes.
The Philippines had been placed on this list in 2021 due to issues related to money laundering activities linked to casino junkets and insufficient prosecution of terrorism financing cases. Its removal came after meeting an 18-point action plan designed to showcase the robustness of its financial system. Key reforms included:
- Enhanced investigations and prosecutions of financial offenses;
- Increased scrutiny on non-financial institutions, particularly casinos;
- Implementation of fraud detection technologies to identify financial misconduct.
Casinos: A Late Inclusion
The Philippines enacted its Anti-Money Laundering Act in 2001. However, for many years, this legislation did not encompass the gaming sector, an industry often criticized for being vulnerable to money laundering.
It wasn’t until the introduction of Republic Act 10927 in 2017 that all casinos in the Philippines—whether land-based, online, or on ships—were classified as “covered persons” under the law.
In recent times, the Philippines has taken a firm stand against financial crimes involving gambling. In July, President Ferdinand Marcos Jr. banned Philippine Offshore Gaming Operations (POGOs) amid mounting reports of associated financial crimes, online scams, and human trafficking.
An editorial in the Manila Bulletin stated that tangible advancements have been made in aligning with international AML/CFT standards. However, it cautioned that the delisting from the EU watchlist should be seen as a milestone rather than an endpoint.
“This achievement serves as a stepping stone toward nurturing a more transparent, reliable, and inclusive financial system. The Philippines must remain vigilant and adaptable in the face of evolving threats. By doing so, the country can not only gain regulatory approval but also cultivate long-term trust among investors, partners, and its citizens.”