Philippines exits EU’s high-risk money laundering list

MANILA, Philippines —  The European Commission has removed the Philippines from its updated list of countries with strategic deficiencies in anti-money laundering and counter-terrorism financing (AML/CFT) regimes, marking a significant milestone in the country’s efforts to strengthen its financial integrity framework.

The delisting, announced on Tuesday in Brussels, reflects the country’s progress in addressing previously identified gaps and follows a rigorous review aligned with the standards set by Paris-based Financial Action Task Force (FATF).

Aside from the Philippines, other jurisdictions removed from the European Union’s high-risk list include Barbados, Gibraltar, Jamaica, Panama, Senegal, Uganda and the United Arab Emirates.

The European Commission said the update is meant to “strengthen the international fight against financial crime” and protect the European Union’s financial system.

Under the EU’s AML rules, financial institutions are required to apply enhanced due diligence when dealing with countries on the high-risk list.

The commission’s decision took into account the FATF’s February move to remove the Philippines from its gray list or list of jurisdictions under increased monitoring after the country successfully implemented key reforms.

These included improvements in the supervision of designated non-financial businesses and professions, tighter controls on casino junkets and enhanced financial intelligence operations.

Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. welcomed the development but cautioned that the decision has yet to be finalized.

“That’s certainly good news,” Remolona said.

“But the EU Parliament will still need to confirm the European Commission’s decision,” the BSP chief said.

The European Commission said its latest assessment was conducted based on a “specific criteria and a well-defined methodology,” which involved technical analysis, consultations and in some cases, on-site visits.

The updated list is now subject to review by the European Parliament and Council. Unless objected to, the changes will take effect after a one-month scrutiny period, which can be extended by another month.

The removal of the Philippines from the list is expected to further unlock access to European financial services, ease compliance burdens for local firms engaged in cross-border trade, and enhance the country’s international reputation in the fight against dirty money.