Philippine authorities are intensifying efforts to avert the nation's potential return to the Financial Action Task Force's (FATF) gray list, a risk heightened by the ongoing flood control corruption controversy, according to a senior central bank official.
Central Bank Governor Highlights Financial Risk
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. candidly addressed the situation during an information session with journalists in Dumaguete City. "To be honest, we have a risk. We have a risk na babalik tayo sa (that we will return to the) gray list, although we're doing what we can to prevent that," Remolona stated on Monday. He emphasized that preventing re-inclusion is a protracted process, with the next FATF evaluation anticipated around 2027.
Massive Asset Freezes in Corruption Crackdown
The Anti-Money Laundering Council (AMLC), which is chaired by the BSP governor, has secured Court of Appeals freeze orders targeting:
- Over 4,600 bank accounts
- Nearly 300 insurance policies
- Numerous electronic wallets and securities accounts
These assets are linked to individuals and private entities suspected of involvement in anomalous government flood control projects. Authorities report that frozen assets have reached approximately P13 billion, with expectations that this figure will increase as investigations continue.
Historical Context and Current Challenges
Inclusion in the FATF gray list indicates a country has inadequate measures against money laundering and terrorist financing. The Philippines was most recently removed from the list in May 2025, following its re-listing in July 2021 due to several deficiencies including:
- Money laundering through casino junkets
- Insufficient prosecution of suspects involved in terrorist financing
Governor Remolona stressed the importance of demonstrating commitment to international standards: "We have to do what we need to do to show FATF that we're doing everything we can." The current corruption scandal presents a significant test for the country's anti-money laundering framework as authorities work to maintain its improved standing.
