Philippine Police Chief Backs Marcos’ Push for Stronger Anti-Money Laundering Measures Amid Grey List Concerns

The Philippines’ highest-ranking law enforcement official has thrown his full support behind a renewed nationwide effort to combat money laundering and terrorism financing, following a directive issued earlier this month by President Ferdinand Marcos Jr.

On 12 February, Marcos instructed “concerned government agencies and instrumentalities” to work in close coordination with the Anti-Money Laundering Council (AMLC) to implement an updated national strategy aimed at curbing illicit financial flows and dismantling criminal networks.

Responding to the president’s order, Philippine National Police chief General Jose Melencio Nartatez made clear that the force stands firmly behind the initiative. “The Philippine National Police is fully committed to President Marcos’ directive,” said Nartatez. “We are ready to integrate our investigative powers with AMLC in running after organised crime groups and syndicates, especially those involved in illegal drugs, smuggling and cybercrimes.

“High-risk sectors such as real estate, casinos and import-export businesses will be closely monitored,” Nartatez noted. “International cooperation with foreign law enforcement agencies will be strengthened to track illicit funds entering or leaving the Philippines.”

As part of the intensified campaign, specialised units within the police are enhancing their technical capabilities. Both the Anti-Cybercrime Group and the Criminal Investigation and Detection Group are undergoing training in financial forensics and the analysis of emerging criminal trends, signalling a more sophisticated approach to tracking complex financial crimes.

The renewed focus comes amid mounting concern that the country could once again find itself on the “grey list” of the Financial Action Task Force (FATF), a designation reserved for jurisdictions deemed at elevated risk for money laundering and terrorism financing. According to reporting by the Philippine Daily Inquirer, officials fear that recent developments could jeopardise the country’s hard-won progress.

The Philippines was added to the FATF grey list in mid-2021, partly due to deficiencies linked to money laundering activities conducted through casino junkets. Notably, casinos were not even covered under the Philippines Anti-Money Laundering Act until July 2017, leaving a regulatory gap that contributed to international criticism. From 2021 through 2025, authorities worked to fulfil an 18-point action plan crafted by FATF to address systemic weaknesses and restore confidence in the nation’s financial safeguards. In February of last year, the Philippines was officially removed from the list, a move widely regarded as critical for investor confidence, as inclusion is often interpreted as a warning sign for global markets.

However, fresh scrutiny has emerged in the wake of a corruption controversy involving public infrastructure projects. The Philippines Center for Investigative Journalism reported that 420 flood control initiatives spearheaded by the government were in fact “ghost projects – non-existent or poorly executed infrastructure initiatives”. The implications of these failures were tragically underscored when typhoon-related flooding claimed the lives of hundreds of Filipinos last year.

According to estimates from the World Bank, the Philippines loses approximately 1.2% of its gross domestic product annually due to the impact of typhoons. In 2024 alone, that economic toll would amount to an estimated US$5.64 billion.

Despite the renewed anxieties, Malacañang has sought to reassure the public and international observers. “The Philippines has already been removed from the FATF grey list,” said Claire Castro, Malacañang press officer. “If there is legislation that may be needed, that is already the job of our lawmakers. If they see any gaps, they can draft and pass any new laws related to this matter.”

By fLEXI tEAM