Palace: PHL avoids FATF blacklist, gets upgrade as well
The Philippines managed to avoid the Financial Action Task Force (FATF)’s blacklist and the strict international financial sanctions that come with it, a Malacañang official said Saturday.
Deputy presidential spokesperson Abigail Valte said the Philippines even got an upgrade from the FATF, moving up from the agency’s dark-gray to the gray list.
"The FATF is the international organization that sets the standards and monitors implementation of measures for fighting money laundering, terrorist financing and other threats to the integrity of the global financial system," the Anti-Money Laundering Council (AMLC) explained in a statement.
“(On Friday), the AMLC reported the FATF responded positively to the initiatives of the Philippine government to enhance its transparency and accountability mechanisms in financial transactions,” Valte said on government-run dzRB radio.
“(W)hile we recognize that more needs to be done to strengthen our existing anti-money laundering and anti-financial terrorism measures, we take the satisfaction expressed by the FATF as affirmation of institutional reforms that we have constantly advocated,” she added.
She said Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr., who chairs the AMLC, informed President Benigno Aquino III about the upgrade.
Citing excerpts from Tetangco’s letter, Valte said the FATF “recognized” the reforms instituted by the Philippine government by upgrading the Philippines to its gray list.
Valte said the dark-gray list includes territories that are not making sufficient progress, while the gray list “signifies we are making sufficient progress in addressing deficiencies in our action plans.”
“According to Governor Tetangco’s report, the FATF took notice of the passage of key legislative reforms certified as urgent by the president, in particular the bills he recently signed into law,” she added.
She was referring to the “Act To Further Strengthen the Anti-Money Laundering Law” and “The Terrorism Financing Prevention And Suppression Act of 2012.”
These acts strengthen the capability of the government to identify and prevent financial transactions related to illegal activities and those that undermine global security, she said.
“These reforms enabled the Philippines from being classified and being downgraded to the blacklist which would have resulted in stricter inspections of financial transactions in the country, delayed remittances and higher transaction fees,” she said.
Other measures
Meanwhile, Valte said there is one more measure pending approval of the Senate, adding the senators had promised to take it up once Congress resumes session July 23.
"(T)he FATF said certain strategic deficiencies remain in our anti-money laundering and anti-financial terrorism measures," the AMLC said.
"In this connection, it advised the Philippines to enact the pending legislative amendments to our anti-money laundering law that, among others, extend the coverage of reporting entities, provide a broader definition of money laundering and increase the number of predicate crimes to include bribery, malversation of public funds, human trafficking, tax evasion and environmental crimes," FATF pointed out.
Valte noted the Philippines is now one step away from being fully compliant with FATF standards.. The gray and dark-gray lists and the black list are in the middle of the four FATF levels, while the bottom level lists countries that are subject to countermeasures.
The Terrorism Financing Prevention and Suppression Act allows authorities to freeze suspected terrorist funds and inquire into bank accounts even without a court order.
AMLC executive director Vicente Aquino earlier warned the Philippines may face drastic countermeasures or sanctions if it is thrown into the FATF blacklist.
"The people [who] will be hit hard or hit hardest are our overseas Filipino workers and their families because these sanctions would result in delayed and costly remittances, high intermediation costs and other charges and these will not also be good for the banking sector," AMLC’s Aquino had said earlier. — LBG/ELR, GMA News
Deputy presidential spokesperson Abigail Valte said the Philippines even got an upgrade from the FATF, moving up from the agency’s dark-gray to the gray list.
"The FATF is the international organization that sets the standards and monitors implementation of measures for fighting money laundering, terrorist financing and other threats to the integrity of the global financial system," the Anti-Money Laundering Council (AMLC) explained in a statement.
“(On Friday), the AMLC reported the FATF responded positively to the initiatives of the Philippine government to enhance its transparency and accountability mechanisms in financial transactions,” Valte said on government-run dzRB radio.
“(W)hile we recognize that more needs to be done to strengthen our existing anti-money laundering and anti-financial terrorism measures, we take the satisfaction expressed by the FATF as affirmation of institutional reforms that we have constantly advocated,” she added.
She said Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr., who chairs the AMLC, informed President Benigno Aquino III about the upgrade.
Citing excerpts from Tetangco’s letter, Valte said the FATF “recognized” the reforms instituted by the Philippine government by upgrading the Philippines to its gray list.
Valte said the dark-gray list includes territories that are not making sufficient progress, while the gray list “signifies we are making sufficient progress in addressing deficiencies in our action plans.”
“According to Governor Tetangco’s report, the FATF took notice of the passage of key legislative reforms certified as urgent by the president, in particular the bills he recently signed into law,” she added.
She was referring to the “Act To Further Strengthen the Anti-Money Laundering Law” and “The Terrorism Financing Prevention And Suppression Act of 2012.”
These acts strengthen the capability of the government to identify and prevent financial transactions related to illegal activities and those that undermine global security, she said.
“These reforms enabled the Philippines from being classified and being downgraded to the blacklist which would have resulted in stricter inspections of financial transactions in the country, delayed remittances and higher transaction fees,” she said.
Other measures
Meanwhile, Valte said there is one more measure pending approval of the Senate, adding the senators had promised to take it up once Congress resumes session July 23.
"(T)he FATF said certain strategic deficiencies remain in our anti-money laundering and anti-financial terrorism measures," the AMLC said.
"In this connection, it advised the Philippines to enact the pending legislative amendments to our anti-money laundering law that, among others, extend the coverage of reporting entities, provide a broader definition of money laundering and increase the number of predicate crimes to include bribery, malversation of public funds, human trafficking, tax evasion and environmental crimes," FATF pointed out.
Valte noted the Philippines is now one step away from being fully compliant with FATF standards.. The gray and dark-gray lists and the black list are in the middle of the four FATF levels, while the bottom level lists countries that are subject to countermeasures.
The Terrorism Financing Prevention and Suppression Act allows authorities to freeze suspected terrorist funds and inquire into bank accounts even without a court order.
AMLC executive director Vicente Aquino earlier warned the Philippines may face drastic countermeasures or sanctions if it is thrown into the FATF blacklist.
"The people [who] will be hit hard or hit hardest are our overseas Filipino workers and their families because these sanctions would result in delayed and costly remittances, high intermediation costs and other charges and these will not also be good for the banking sector," AMLC’s Aquino had said earlier. — LBG/ELR, GMA News
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