Philippines Country Summary

FATF Status

Philippines is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Compliance with FATF Recommendations

The last follow up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in the Philippines was undertaken in 2022. According to that Evaluation, the Philippines was deemed Compliant for 8 and Largely Compliant for 29 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

The Philippines faces significant challenges related to crime and corruption, with pervasive issues in both public and private sectors, particularly highlighted by the ongoing problems of human trafficking and organized crime. Despite some progress in anti-money laundering measures, the country's governance is hampered by corruption and inefficiency, leading to a fragile law enforcement system and a lack of accountability within the judicial framework.

The Philippines has made significant strides in enhancing its investment climate and fostering economic growth, evidenced by a GDP growth of 5.6% in 2024, although it fell short of the government's target. The country maintains investment-grade sovereign credit ratings, bolstered by robust macroeconomic fundamentals, despite facing challenges such as high inflation, interest rates, and global demand fluctuations. Recent legislative efforts, particularly the CREATE MORE Act, aim to attract foreign direct investment by expanding tax incentives and streamlining local tax policies, while ongoing issues like inadequate infrastructure, regulatory inconsistencies, and a complex judicial system continue to pose barriers to investment.