European Parliament Confirms Removal of Philippines from EU High-Risk Money Laundering List

The European Parliament has formally approved the European Commission’s recommendation to strike the Philippines from the European Union’s list of countries with high risk of money laundering and terrorist financing. The decision, confirmed on Friday by the Philippines’ Anti-Money Laundering Council (AMLC), marks a significant step in the country’s efforts to enhance its financial reputation globally.

This move follows the European Commission’s declaration in June that it intended to delist the Southeast Asian nation. That announcement came on the heels of the Financial Action Task Force (FATF)’s decision in February to remove the Philippines from its “grey list” of jurisdictions under increased monitoring for weaknesses in combating money laundering, terrorist financing, and the financing of weapons proliferation.

In its Friday statement, the AMLC noted that the European Parliament’s adoption of the Commission’s proposal underscores “the country’s efforts to make its financial system more welcoming for foreign investors and easier for its citizens to use, especially overseas Filipinos.”

“The Philippines was removed from the FATF Grey List in February 2025 after implementing reforms to strengthen its AML/CFT regime,” the AMLC stated. “However, delisting from the FATF list does not automatically trigger removal from the EU List. The EC must formally assess the country’s compliance and submit a proposal to the European Parliament and the Council of the European Union.”

According to EU legislative protocol, the Parliament had a 60-day window to object to the Commission’s proposal. No objections were raised, and on 9 July, the Parliament voted to adopt the resolution first put forward by the Commission on 10 June.

The AMLC further explained, “The regulation will enter into force upon its publication in the Official Journal of the European Union, officially ending the Philippines’ designation as a high-risk country under EU financial regulations.”

The AMLC expects this development to have a positive ripple effect on the Philippine economy. The agency anticipates that it will promote foreign investment, facilitate transactions, and maintain easy and cost-effective remittance flows for overseas Filipino workers. Additionally, the AMLC noted that the decision could encourage foreign banks to re-establish correspondent banking relationships with the Philippines, further supporting international trade and finance.

By fLEXI tEAM