Philippines races to avoid FATF gray list amid ₱13B corruption freeze
The Philippines is working to avoid being placed back on the global finance watchlist. Authorities have frozen billions in assets tied to a major corruption scandal, but officials warn the process will take years.
The risk stems from a recent flood control corruption case that has drawn international scrutiny. Regulators are now racing to strengthen financial safeguards before the next evaluation in 2027.
The country was removed from the Financial Action Task Force (FATF) gray list in February 2025 after four years of reforms. Key changes included stricter laws on beneficial ownership transparency and the passage of the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act in September 2025. These measures helped address past weaknesses, such as money laundering through casino junkets and insufficient prosecutions of finance financiers.
Despite progress, new challenges have emerged. In April 2025, finance financing charges were filed against activists, raising concerns. Now, a corruption scandal involving flood control projects threatens to undo earlier gains.
The Anti-Money Laundering Council (AMLC) has already frozen over 4,600 bank accounts and nearly 300 insurance policies linked to the case. The total frozen assets have reached around ₱13 billion, with expectations of further increases. Central bank governor Eli Remolona Jr. has acknowledged that preventing re-inclusion on the gray list will be a lengthy process.
Authorities are now focusing on tightening enforcement and regulatory frameworks. Training programmes for policymakers and civil society groups continue, aiming to maintain transparency in financial dealings. The next FATF review, scheduled for 2027, will determine whether these efforts are enough to keep the country off the watchlist.
The Philippines remains under pressure to prove its financial systems can withstand corruption risks. With ₱13 billion in assets frozen and reforms still underway, regulators must demonstrate lasting improvements.
Failure to address these issues could see the country return to the gray list by 2027. The outcome will depend on sustained enforcement and compliance with international standards.
