President Marcos’ POGO Ban Leads Philippines Exits FATF Grey List

The Philippines has been removed from the Financial Action Task Force (FATF) grey list, according to President Ferdinand “Bongbong” Marcos Jr.'s decision to prohibit all Philippine Offshore Gaming Operators (POGOs), Malacañang stated on Sunday.

Marcos ordered the closure of all POGOs in his third State of the Nation Address in July 2024, citing their involvement in crimes like human trafficking, unlawful incarceration, and financial fraud.

According to Palace Press Officer Undersecretary Claire Castro, the POGO ban had a substantial impact on the FATF's decision to delist the Philippines from its heightened surveillance category.

“Opo, napakalaking pong naging factor ito (POGO ban) para makita ng FATF 'yung improvement,” Castro said in a Super Radyo dzBB interview.

(“Yes, the POGO ban was a major factor in FATF recognizing the country's improvements.”)

She also stressed the significance of Executive Order No. 33, which Marcos signed in 2023 to align the country's policies with global anti-money laundering and counter-terrorism funding standards.

“Talaga pong inutos ni Pangulong Marcos na dapat maiayos lahat, kung anuman ang rekomendasyon, lahat ng dapat na gawin ay gawin para po matanggal tayo sa grey list kasi malaking pong bagay ito lalong-lalo na sa mga OFWs at sa mga investors,” Castro made clear.

(“President Marcos ensured that all necessary measures were implemented to meet FATF recommendations, as removal from the grey list is crucial for OFWs and investors.”)

EO 33 provides the country's anti-money laundering, counter-terrorism, and counter-proliferation finance plan for 2023-2027. The direction bolstered efforts to combat illegal financial activity, prompting the FATF to delist the Philippines.

The FATF made its conclusion following a successful onsite inspection from January 20 to 22, during which the government exhibited complete compliance with its action plan.

Under the Duterte administration, the Philippines was placed on the FATF gray list in 2021 after the watchdog discovered 18 flaws in its financial monitoring systems. The following were included:

• Weak regulatory monitoring of gaming businesses tied to POGOs.
• Failures in implementing targeted financial sanctions
• Delays in implementing the 2020 Anti-Terrorism Act.

The Philippines has enhanced its financial integrity via regulatory reforms and tough enforcement, opening the door for increased investor confidence and economic stability.