THE Philippines could again be placed in a global dirty money watchlist and efforts to address money laundering and terrorism financing will have to be heightened, especially given an ongoing corruption scandal.
“To be honest, there’s really a risk — there is a risk of us returning to the grey list,” Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. told reporters on Sunday, referring to the Financial Action Task Force’s (FATF) roster of countries under increased monitoring for money laundering, terrorist financing, and proliferation financing.
The Philippines was included in the list in June 2021 but was removed in February 2025 after addressing issues raised by the FATF. The development was seen as helping lower financial transaction costs and make the country more attractive to investors, among others.
The Anti-Money Laundering Council’s (AMLC) latest national risk assessment has identified money laundering as a “medium-high” concern due to “high-threat predicate crimes and sectoral vulnerabilities that require sustained risk-based supervision.”
Terrorism financing and proliferation financing risks, meanwhile, were tagged as medium. The AMLC noted reduced operational capabilities among terrorist groups but noted residual risks in conflict areas and cross-border channels, while “moderate vulnerabilities” were tagged in the area of funding activities related to weapons of mass destruction.
Remolona’s statement on the possibility of a return to the FATF’s grey list came as the government continues to probe on a flood control project controversy that has revealed systemic corruption in the country.
“We’re doing what we can to prevent that,” he said, adding there was still time to show the Paris-based watchdog that efforts were being made to address existing and emerging risks.
“The next evaluation will probably be in 2027, so we have time to address all the issues,” Remolona said.
The AMLC, which is chaired by the BSP governor, has so far secured freeze orders for over 4,600 bank accounts and nearly 300 insurance policies, aside from electronic wallets and securities accounts, linked to individuals and private entities suspected to have participated in anomalous government flood control projects.
The amount of frozen assets have reached around P13 billion, officials have said, and the figures are expected to rise further as investigation continues.
