Europe takes Philippines off high-risk listing, acknowledging advancement
The Philippines Removed from EU's High-Risk List: Implications for Overseas Workers and Business
The European Union (EU) has announced that the Philippines has been removed from its list of countries considered high risk for money laundering and terrorism financing. This significant move, made official on August 5, follows the Philippines' exit from similar lists maintained by the Financial Action Task Force (FATF) and the United Kingdom earlier this year.
Previously, the Philippines was on the FATF list of jurisdictions under increased monitoring since June 2021, but was removed from the FATF "grey list" in February. The EU's decision to remove the Philippines from its list was based on the recent progress made by the Philippines in strengthening its anti-money laundering and countering the financing of terrorism (AML/CFT) regime.
This development is expected to have several positive implications. For overseas workers, the delisting of the Philippines from the EU's high-risk list is likely to lower remittance fees, making it more affordable for them to send money back home.
In terms of business, the delisting could drive business activities due to better relationships between banks. Improved relationships between Philippine and foreign banks are anticipated as a result of the delisting, which may lead to increased investment and trade opportunities. The move could also enhance investor confidence, as the delisting suggests that the Philippines is taking steps to combat financial crimes effectively.
The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has vowed to continue strengthening safeguards against financial crimes following the decision. BSP Governor Eli M. Remolona Jr. has stated that the central bank will continue its reform efforts. The BSP has reiterated its commitment to financial sector reforms and strengthening anti-money laundering/countering terrorism and proliferation financing supervision.
The Anti-Money Laundering Council is pushing for amendments to the Anti-Money Laundering Act to maintain the Philippines' off-status from international watchlists. The current governor of the BSP, Eli Remolona Jr., has implemented monetary policy measures including lowering interest rates to support economic growth and maintain inflation targets. However, specific reform efforts to prevent financial crime and terrorism financing in the Philippines were not detailed in the provided sources.
Analysts suggest that the move could have far-reaching implications for the Philippines, potentially improving the country's access to global financial markets. As the Philippines continues its efforts to strengthen its AML/CFT regime, it is hoped that it will maintain its off-status from international watchlists, further boosting investor confidence and driving economic growth.
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