Philippines Removed from FATF Grey List as Laos and Nepal Are Added

The Philippines has been officially removed from the Financial Action Task Force (FATF) ‘grey list’ in the latest update from the international regulatory body, while both Laos and Nepal have now been added to the list of jurisdictions under increased monitoring.

The decision will likely be a disappointment for South Africa, which had been pushing to have its own designation removed but remains on the grey list.

Following its most recent plenary session, the FATF announced, “The FATF removed the Philippines from its increased monitoring following a successful on-site visit.” At the same time, the organization confirmed that “the FATF added Lao People’s Democratic Republic and Nepal to the list of jurisdictions subject to increased monitoring.”

The FATF also reiterated that its suspension of Russia’s membership remains in effect, a measure that was imposed in response to the country’s invasion of Ukraine.

As the Paris-based global watchdog for anti-money laundering (AML) standards, the FATF plays a crucial role in assessing the effectiveness of national financial regulations. Jurisdictions placed on its grey list face increased scrutiny and potential economic consequences, such as reduced foreign investment and higher borrowing costs.

The FATF’s decision-making body, known as the FATF Plenary, convenes three times each year to review key AML developments and update its ‘Black’ and ‘Grey’ lists, which highlight jurisdictions with deficiencies in their financial regulatory frameworks.

By fLEXI tEAM