Abstract：Can the Philippines effectively fight crypto scams as an instrument of money laundering and other illegal gambling? Discover the challenges, reforms, and efforts to exit the FATF gray list.
The Philippines' plan to outlaw internet casinos that cater to international gamblers is intended to combat money laundering, but experts warn that considerable hazards remain. According to Moody's analyst Choon Hong Chua, underground gambling and developing scam operations continue to undermine the country's efforts to strengthen its anti-money laundering reputation.
Issues with Illegal Operators and Organized Crimes
Despite President Ferdinand Marcos Jr.'s late 2024 prohibition, unauthorized operations have continued. Recent Bureau of Immigration searches discovered claimed fraud centers and illicit internet gambling operations and even crypto operations, demonstrating that organized crime remains profitable and tough to remove. Chua noted that criminal operations frequently adapt, making law enforcement a constant fight.
Philippines' Attempts to Get Off the FATF Gray List
The Financial Action Task Force (FATF) acknowledged the Philippines' efforts in addressing the issues that landed the nation on its grey list in June 2021.
- Reforms include mitigating hazards from casino junkets.
- Unregistered remittance operators are subject to sanctions.
- Money laundering and terrorist funding investigations and prosecutions will be strengthened.
Exiting the FATF gray list this year may lower remittance costs and boost economic activity, helping millions of overseas Filipino workers (OFWs) and their families.
Consistency in Anti-Money Laundering Enforcement
Chua emphasized the need for constant anti-money laundering efforts to preserve success. He emphasized that nations on the FATF radar had previously cycled in and out owing to uneven enforcement. While financial institutions are subject to strict regulation, corporations serving high-risk clientele remain susceptible.
“Across the world, corporate organizations are not as regulated as financial institutions,” says Chua. This gap emphasizes the importance of maintaining attention in combating money laundering concerns.
Final Thoughts
The Philippines has made progress in preventing money laundering through legislative measures and an online casino prohibition, but obstacles remain. Illegal operators and developing organized crime necessitate ongoing enforcement in order for the country to improve and be removed from the FATF gray list. Exiting the watchlist will provide huge economic benefits, but as Chua argues, perseverance is essential for preventing a relapse into heightened monitoring. The battle against money laundering must remain a top focus for the Philippines as it pursues long-term prosperity.
