STATEMENT BY SEC. FLORENCIO B. ABAD ON THE FATF UPGRADE FOR THE PHILIPPINES

“The Financial Action Task Force (FATF) decision to step up its classification of the Philippines is very good news for the Administration. The events preceding this upgrade are especially notable. Recently, President Aquino signed into law two legislations that boost our anti-money laundering and anti-terrorist efforts. Republic Act No. 10167 will strengthen our current anti-money laundering rules, while Republic Act No. 10168 criminalizes terrorist financing as a standalone offense.

“Besides vindicating President Aquino’s dedicated platform of good governance and transparent fiscal practices, the upgrade reaffirms the Philippines’ readiness to cut down its risk profile and engage the international community in sustainable and fruitful trade.

“In 2009, the Philippines was blacklisted by the FATF for the country’s inadequate response to money laundering activities and its deficiencies in curbing and penalizing terrorist financing. The Philippines was later upgraded to a dark gray list, noting the lack of progress in our efforts to fight these activities. This year, however, the FATF recognized the Administration’s focused efforts to fill the gaps in the country’s Action Plan by upgrading the Philippines to the gray list.

“Together with the Aquino administration, we at the Department of Budget and Management thank the FATF for its positive appraisal of the country. The administration will continue to pursue and enforce economic strategies that effectively combat money laundering and terrorist activity to encourage the influx of investments and long-term and inclusive economic stability. In the end, our goal is to catalyze economic progress so it will manifest in real and immediate benefits to all Filipinos.”