Government says POGO ban key to Philippines' removal from FATF 'grey list'?
President Ferdinand Marcos Jr.’s decision to ban Philippine Offshore Gaming Operators (POGOs) was a key factor in the Philippines’ removal from the Financial Action Task Force (FATF) grey list, according to a government official. In a local radio interview, Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro emphasised that the continued presence of POGOs had been a major concern for FATF, which monitors countries for deficiencies in anti-money laundering and counter-terrorism financing measures.
Castro said that Executive Order 33, issued by Marcos in 2023, outlined the country’s strategy to strengthen financial regulations and address FATF’s recommendations. The order covered anti-money laundering, counter-terrorism financing, and counter-proliferation financing for the period 2023 to 2027.
On 21 February, FATF announced that the Philippines had been removed from its grey list, signifying that the Southeast Asian country no longer requires enhanced monitoring. The Philippines had been under scrutiny since June 2021 due to gaps in its financial security framework.
Last week, Ariyo Aboumahboub, Chief Business Development Manager at Infinite Payment Technology told SiGMA World News that the Philippines’ removal from the grey list is a notable achievement and a promising development for the country’s financial and business landscape. He expressed optimism that this would enhance investor confidence, facilitate smoother transactions, and strengthen global competitiveness across various industries, including iGaming.
The Philippine Amusement and Gaming Corporation (PAGCOR) also welcomed the development. They expressed pride in its role in this achievement and assured the public of its continued commitment to enforcing anti-money laundering regulations among its licensees.
Impact of FATF ‘grey list’ removal
With the country now off the grey list, financial transactions are expected to become smoother. The government anticipates increased foreign investment as international businesses avoid jurisdictions flagged for financial security risks. Additionally, remittance fees for Overseas Filipino Workers (OFWs) may decrease as financial institutions become more willing to process transactions with Philippine banks.
Economic experts have noted that countries on the FATF grey list often face difficulties in attracting foreign capital. The removal is expected to improve the country’s standing in global financial markets and boost investor confidence.
Criticism of the FATF decision
Despite the positive outlook from the government, some groups have criticised the circumstances surrounding the delisting. A local media reported that the National Union of People’s Lawyers described the development as a “pyrrhic victory,” arguing that compliance with FATF standards had led to restrictions on civic freedoms. The organisation claimed that counter-terrorism financing measures had been used to justify actions that suppress political dissent.
