https://www.manilatimes.net/2025/12/25/business/top-business/imf-pushes-reforms-ahead-of-fatf-review/2249164

THE International Monetary Fund (IMF) has urged the Philippines to continue strengthening its anti–money laundering and counter-terrorism financing (AML/CFT) framework, saying reforms must be sustained even after the country’s exit from global watchlists.

In its 2025 Article IV Consultation report, the IMF noted that the Philippines made significant progress in 2025 after successfully exiting the Financial Action Task Force (FATF) grey list and being removed from the European Union’s list of high-risk jurisdictions.

The IMF cautioned that these achievements must be sustained, particularly with the next FATF mutual evaluation set for 2027.

The Philippines was removed from the FATF gray list in February, after nearly four years of increased monitoring, following reforms in risk-based supervision, law enforcement and the prosecution of money laundering and terrorism financing cases.

The IMF noted that global AML/CFT standards were continuing to evolve, making it essential for Philippine authorities to keep pace with international best practices to avoid renewed scrutiny.

“Advancing AML/CFT efforts should remain a priority,” it said.

One of the key reforms highlighted was the need to amend the country’s bank secrecy laws. The IMF said that aligning these with international good practices would help enhance the Bangko Sentral ng Pilipinas’ powers and improve the overall effectiveness of AML/CFT supervision.

Authorities were urged to continue strengthening counter-terrorist financing efforts, particularly in identifying and prosecuting cases.

The IMF also stressed the importance of improving the country’s capacity to investigate cases involving crypto assets, which are increasingly being used in complex and cross-border financial crimes.

“The authorities should continue pursuing CFT improvements, especially in the identification and prosecution of terrorist financing cases ... and adopt an updated national AML/CFT strategy upon completion of the ongoing National Risk Assessment,” it said.

“Strengthening the AML/CFT frameworks is also important to support broader anti-corruption efforts and effectively combat the laundering of proceeds of corruption.”