In an update on 21 February following its latest plenary, the FATF (Financial Action Task Force) has removed the Philippines from its grey list while adding two and updating the position of many of the jurisdictions still on the list.
It said: “The FATF removed the Philippines from its increased monitoring following a successful on-site visit. The FATF added Lao People’s Democratic Republic and Nepal to the list of jurisdictions subject to increased monitoring.”
In the case of the Philippines, FATF "welcomes the Philippines’ significant progress in improving its AML/CFT regime. The Philippines strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in June 2021 by:
(1) demonstrating that effective risk-based supervision of DNFBPs is occurring
(2) demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets
(3) implementing the new registration requirements for MVTS and applying sanctions to unregistered and illegal remittance operators
(4) enhancing and streamlining LEA access to BO information and taking steps to ensure that BO information is accurate and up-to-date
(5) demonstrating an increase in the use of financial intelligence and an increase in ML investigations and prosecutions in line with risk
(6) demonstrating an increase in the identification, investigation and prosecution of TF cases
(7) demonstrating that appropriate measures are taken with respect to the NPO sector (including unregistered NPOs) without disrupting legitimate NPO activity
(8) enhancing the effectiveness of the targeted financial sanctions framework for both TF and PF
(9) applying cross-border measures in all main international sea/airports, in line with the risk.
The statement continued: "The Philippines should continue to work with APG to sustain its improvements in its AML/CFT system. The FATF encourages the Philippines to continue its work in ensuring that its CFT measures are appropriately applied, particularly the identification and prosecution of TF cases, and are neither discouraging nor disrupting legitimate NPO activity."
In addition, FATF updated the monitoring of South Africa on the grey list: "Since February 2023, when South Africa made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime, South Africa has taken steps towards improving its AML/CFT regime including by demonstrating that all supervisors apply effective, proportionate, and effective sanctions, ensuring competent authorities have timely access to accurate and up to date BO information on legal persons and arrangements and applying sanctions for breaches of violation by legal persons to beneficial ownership obligations.
"South Africa should continue to work on implementing its action plan to address its remaining strategic deficiency on demonstrating a sustained increase in investigations and prosecutions of serious and complex money laundering and the full range of TF activities in line with its risk profile.
According to South Africa's National Treasuy it is now deemed to have addressed or largely addressed 20 of the 22 action items in its action plan. meaning that there are just two items to be resolved in the next reporting period that runs from March 2025 to June 2025.
The National Treasury said in a reaction statement: "South Africa continues to address both outstanding action items by June 2025 to enable an exit from greylisting by October 2025. Our investigation and prosecution teams are working closely in terms of a prosecution-guided investigation strategy to ensure that we demonstrate the sustained progress as required by FATF. These improvements are critical not just for getting off the greylist, but, critically, for strengthening the fight against crime and corruption."
