Philippines exits FATF grey list, sparks human rights concerns

The Philippines has exited the Financial Action Task Force (FATF) grey list, reflecting significant progress in its financial systems but raising concerns over the government’s methods.

This decision follows substantial improvements in addressing all 18 deficiencies in its anti-money laundering and counter-terrorism financing systems since being placed on the grey list in June 2021.

However, human rights groups have criticized the government for filing a large number of terror-financing cases against activists and progressive NGOs to meet FATF requirements.

There was a 371% increase in terror financing complaints filed by the government in 2024, according to the National Union of Peoples' Lawyers (NUPL) and the Council for People's Development and Governance (CPDG).

Analysts note that sustained reforms are necessary to maintain progress and attract foreign direct investments, but they also emphasize the need for human rights safeguards.