The controversy surrounding alleged corruption in government flood control projects could put the Philippines at risk of being placed back on the Financial Action Task Force’s (FATF) gray list, according to the country’s central bank chief.
“To be honest, we have a risk. We have a risk na babalik tayo sa (that we will return to the) gray list, although we’re doing what we can to prevent that,” Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said on Monday during an information session with journalists.
Remolona said efforts to prevent the country’s re-inclusion in the list would require sustained action, describing the process as lengthy and complex. Preventing a return to the gray list, he noted, “is going to be a long-process,” adding that the next round of evaluation is expected around 2027.
“We have to do what we need to do to show FATF that we’re doing everything we can,” he said.
The Anti-Money Laundering Council (AMLC), which is chaired by the BSP governor, has already secured freeze orders from the Court of Appeals (CA) covering more than 4,600 bank accounts and nearly 300 insurance policies. These are in addition to electronic wallets and securities accounts linked to individuals and private entities suspected of involvement in anomalous flood control projects.
Authorities said the value of frozen assets has reached approximately PHP13 billion, with the figure expected to increase further as investigations continue and the government pursues those allegedly involved in the irregularities.
Inclusion in the FATF gray list indicates that a country has deficiencies in its measures to combat money laundering and terrorist financing, placing it under increased monitoring by the global watchdog.
The Philippines was most recently removed from the gray list in May 2025. It had been placed back on the list in July 2021 due to several issues, including money laundering linked to casino junkets and the lack of prosecution of individuals accused of financing terrorist activities.
PCO PHOTO