The Philippines might leave the money-laundering grey list more quickly if POGO is banned.

The Philippines might leave the money-laundering grey list more quickly if POGO is banned.

 The Philippines might be able to remove itself from a "grey list" of countries that are vulnerable to money laundering by outlawing offshore gaming.  Since 2021, the nation has been included in the list, which was created by the Financial Action Task Force.
 harbour in the Philippines' Palawan
 The Philippines has been on a global "grey list" of nations with a heightened risk of financial crimes since June 2021.  Removing the Philippines from the list would be made easier with a new prohibition on Philippine Offshore Gaming Operators (POGOs).

 The Financial Action Task Force (FATF) creates the infamous blacklist and the grey list three times a year.  Being on the list "damages a country's reputation and reduces its international standing," according to the FATF website.  It can make it harder to get loans and deter international investors, particularly multinational banks.

 Before the nation may be delisted, it must fulfil the 18 action items that the FATF issued.  At a news conference in June, departing FATF president T Raja Kumar stated, "The Philippines has actually taken action on 15 of the 18 action items that it needed to act on."

 Nevertheless, pending additional improvement, the monitoring agency kept the listing in place.

 "The remaining three action items should be promptly addressed by the Philippines," Kumar stated.  These include "proving that supervisors are reducing the risks associated with casino junkets through the use of anti-money laundering and counter-financing of terrorism (AML/CFT) controls."

 The end of a period of criminality
 Ferdinand Marcos Jr., the president of the Philippines, issued an order on July 22nd to outlaw POGO by the end of the year.  Among other offences, Marcos charged the business with money laundering and financial fraud in his state of the country speech.

 According to the president, POGOs have also been connected to "prostitution, human trafficking, kidnapping, torture, and even murder."  "Our system must no longer be gravely abused or disrespected."

 The POGO prohibition was praised by economist Eli M. Remolona, Jr., governor of Bangko Sentral ng Pilipinas, the nation's national monetary authority.

 Since assuming office in July 2023, Remolona has advocated for measures to support the nation's economic stability.  He told BusinessWorld that "a drop in money laundering, which should help us exit the grey list," could result from the POGO ban.

 The prohibition will encourage more "legitimate" investments, according to Chester B. Cabalza, president of the International Development and Security Corp of Manila.

 He wrote, "The Philippines might be relieved (of) the grey-list tag."  As a result, "more legal and moral entertainment investments for the inclusive growth of the country" may enter the market.

 The restriction will help boost visitation to land-based casinos in Manila and other places, according to research analyst Bienvenido S. Oplas Jr.  "Chinese gamblers will be compelled to come to the Philippines and gamble in large casinos once POGOs are outlawed," he stated.

 A POGO suspension can result in a fresh start.
 Political scientist Alex Magno claimed earlier this year that the Philippines lacked the political will to be taken off the list.

 He wrote, "To little effect, we have been attempting to graduate from the grey list."  We are still stuck in a state of financial purgatory.  Despite the significant impact on our economic development, our lawmakers are still putting off reforms.

 However, FATF's pressure can result in constructive change, as monitored nations are compelled to rectify inadequate financial procedures.  Four nations—Barbados, Gibraltar, Uganda, and the United Arab Emirates—were removed from the list in February alone.  Next year, the Philippines will join them, according to Remolona.

 "(FATF) will determine whether we have completed the 18 action plans in October," Remonolo stated.  They then check between October and January.  The departure date is January.