.svg)
The Financial Action Task Force (FATF) has updated its list of jurisdictions under increased monitoring, adding Laos and Nepal, but removing the Philippines after notable progress in combating financial crimes.
The Philippines’ removal from the international consortium’s increased monitoring list, commonly referred to as the "grey list", was a key outcome of FATF’s plenary session, held from February 19–21, and follows a successful on-site evaluation.
It marks the country’s completion of its Action Plan to address previously identified deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) work.
Vixio’s Horizon Scanning tool shows that it made changes to its AML oversight as recently as January 2025, when the Anti-Money Laundering Council (AMLC) of the Philippines released updated guidelines on transaction reporting and compliance submissions, effective in phases from May 1, 2025 to January 2, 2028.
The international watchdog acknowledged the Philippines' commitment to strengthening its financial regulatory framework, but urged the country to remain vigilant.
“The Philippines should continue to work with the Asia/Pacific Group on Money Laundering of which it is a member to sustain its improvements in its AML/CFT system,” the FATF said in a media statement.
“The FATF encourages the Philippines to continue its work in ensuring that its CFT measures are appropriately applied, particularly the identification and prosecution of TF cases, and are neither discouraging nor disrupting legitimate not-for-profit activity.”
Conversely, however, Laos and Nepal have been added to the list of jurisdictions under increased monitoring.
Both countries have committed to working with the FATF to address strategic deficiencies in their AML/CTF frameworks.
Their inclusion means they will need to implement corrective measures within set timeframes to avoid further regulatory or financial repercussions.
Other countries that remain on the grey list include Nigeria and South Africa, and Bulgaria and Croatia.
New consultations
Beyond grey list adjustments, the FATF’s plenary session covered a range of issues, including efforts to improve financial inclusion and combat online child sexual exploitation.
To support financial inclusion efforts, the FATF announced a new public consultation on guidance for implementing the updated risk-based approach.
This includes revisions to its Recommendation 1, which advises countries to identify, assess and understand their money laundering and terrorist financing risks.
In addition, a consultation will be launched on payment transparency, with the aim of improving standardisation and quality of originator and beneficiary information in payment messages.
“This should help achieve greater transparency and security, avoid duplication and foster more effective compliance processes by financial institutions, while also supporting faster, cheaper payments,” the FATF said.
It added that it “seeks the broadest range of views as it aims to support the use of new technologies without compromising defences against illicit finance”.
The FATF has also sought input on its work to understand Complex Proliferation Financing and Sanctions Evasions Schemes.
It will seek information on best practices and challenges on identifying, assessing, understanding and mitigating proliferation financing risk, and the public consultation will also seek views on how the FATF can support the private sector to meet its obligations.
Further updates
The FATF has also reaffirmed the suspension of Russia’s membership, urging jurisdictions to remain vigilant against risks related to sanctions evasion and illicit finance.
In addition, the plenary selected the UK’s Giles Thomson to be the next FATF vice president.
He will succeed Jeremy Weil of Canada, and will hold this position for two years from July 1, 2025.
Thomson is currently director of the Office for Financial Sanctions Implementation and Economic Crime at HM Treasury and head of the UK delegation to the FATF.
