The Philippines has been removed from the Financial Action Task Force (FATF) grey list, with President Ferdinand R. Marcos Jr.’s ban on Philippine Offshore Gaming Operators (POGOs) playing a crucial role in this development.
Key Takeaways:
- POGO ban significantly contributed to Philippines’ removal from FATF grey list
- Executive Order 33 established anti-money laundering and counter-terrorism financing strategy
- Removal from grey list expected to boost foreign investment and ease financial transactions
POGO Ban: A Game-Changer for Philippines’ Financial Reputation
The Marcos administration’s decisive action against POGOs has proven to be a pivotal move in improving the Philippines’ standing with the FATF. Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro highlighted the importance of this decision in a recent radio interview.
Castro stated, ‘This is a huge factor for FATF to see the improvement and President Marcos really wants everything to be fixed, through Executive Order 33, to follow the recommendation, and do everything that needs to be done for us to be removed from the grey list.’
Executive Order 33: Strengthening Financial Integrity
President Marcos issued Executive Order 33 in 2023, establishing a comprehensive strategy to combat money laundering, terrorism financing, and proliferation financing for the period 2023-2027. This order demonstrated the government’s commitment to addressing the concerns that led to the Philippines’ inclusion on the FATF grey list in June 2021.
Impact on the Financial Landscape
The removal from the FATF grey list is expected to have significant positive effects on the Philippines’ financial sector. Castro explained that this development would lead to:
1. Smoother financial transactions
2. Increased foreign investment
3. Lower remittance fees for overseas Filipino workers
‘Foreign investors will not enter the Philippine market if it’s still in the grey list because there will be doubts,’ Castro noted, emphasizing the importance of this milestone for the country’s economic growth.
POGO Ban: Addressing Criminal Activities
President Marcos ordered a total ban on POGOs last year due to their links to various criminal activities, including human trafficking, prostitution, and murder. This decisive action not only addressed immediate security concerns but also played a crucial role in improving the country’s financial reputation.
FATF: Global Financial Watchdog
The Financial Action Task Force, a 39-member organization, sets international standards to help authorities combat illicit financial activities. Their recent announcement that the Philippines is no longer under increased monitoring marks a significant achievement for the country’s financial sector.
As the Philippines moves forward with a cleaner financial reputation, the impact on various industries, including the regulated gambling sector, remains to be seen. The government’s commitment to maintaining high standards of financial integrity may lead to increased scrutiny and regulation across all sectors of the economy.
