MANILA, Philippines - The Philippines remains on the "gray" list of tax havens being monitored by the Financial Action Task Force, after lawmakers failed to pass the third amendment to the Anti-Money Laundering Act.
The deadline set by the FATF was October 19, but the third amendment was still pending when the Senate adjourned on October 17.
The revisions represent the third piece of legislation that is required for the Philippines to avoid being downgraded to the "dark gray list", which refers to jurisdictions not making sufficient progress.
In June, the Philippines was upgraded from "dark gray" to "gray", which refers to countries making sufficient progress in fighting money laundering.
In its latest statement, the FATF urged the Philippines to enact pending amendments to the Anti-Money Laundering law to comply with international standards against harboring tax evaders.
"The Philippines has taken steps to improve its AML/CFT system....however, the FATF has determined that certain strategic AML/CFT deficiencies remain. The Philippines should continue to work on implementing its action plan to address these deficiencies," the FATF said.
The FATF specifically wants the Philippine government to extend the coverage of reporting entities to include non-financial businesses and professions. - ANC