(UPDATE) PRESIDENT Ferdinand Marcos Jr. is committed to addressing the "mess left behind by the previous administration," particularly in eliminating or reducing activities related to money laundering and terrorist financing, Malacañang said Saturday.

Palace Press Officer Claire Castro reaffirmed the President's commitment following the Philippines' removal from the Financial Action Task Force (FATF) grey list.

In a video message, Castro said the Philippines' exit proves that the FATF saw the Marcos administration's efforts to fulfill its obligation to address money laundering and terrorism financing issues in the country.

"We, especially the President, will clean up the mess left behind by the previous administration. Let us pray that we will never again be included in the FATF's grey list or black list," Castro said, in an apparent reference to the administration of former president Rodrigo Duterte.

"We were placed on the grey list in 2021 after the international watchdog identified 18 deficiencies that the government must address to combat money laundering and terrorism financing in the country," she added.

If a country is grey-listed, it is under increased monitoring by the FATF due to certain deficiencies in its campaign against money laundering and terrorism financing.

Blacklisted countries, on the other hand, are those with significant strategic shortcomings or with a severe lack of measures to fight money laundering and terrorism financing.

Castro said the Philippines was placed on the FATF grey list in June 2021 during the Duterte administration due to regulatory weakness in gambling operations, failure to implement financial sanctions, and delays in enforcing the Anti-Terrorism Act of 2020.

"Let us remember that Philippine offshore gaming operators were rampant back then," the Palace official said.

Castro also said regulator agencies at the time seemed to have ignored these issues, especially the supposed financial anomalies during the height of the Covid-19 pandemic.

To address these shortcomings, Castro said that Marcos issued Executive Order 33, which directed government agencies to take immediate action to remove the country from the FATF grey list.

"Removing the country from the FATF is a great accomplishment of the president," she said. "The FATF recognized the country's improvements in terms of money laundering and terror financial controls."

Castro said the country's removal from the FATF grey list was expected to facilitate smoother financial transactions, attract more foreign investors, and lower remittance fees for overseas Filipino workers (OFWs).

"Our President will not stop in eradicating activities related to money laundering and terrorist financing," she added.

The FATF is the global watchdog for money laundering and terrorist financing. It sets international standards to prevent these illegal activities and the harm they cause society.

The 39-member body also sets international standards to ensure national authorities can effectively go after illicit funds linked to drug trafficking, the illegal trade in arms, cyber fraud, and other serious crimes.

PH investor confidence

Meanwhile, administration senatorial bet and former senator Panfilo Lacson said the Philippines' removal from the FATF grey list would boost the confidence of businesses to invest in the country.

Lacson attributed the country's improved standing to key legislative measures, including the passage of the Anti-Terrorism Act of 2020 and the strengthening of the Anti-Money Laundering Act (AMLA) — laws he either authored, co-authored, or sponsored.

He also cited the total ban on POGOs as a crucial factor.

"Being taken off the grey list should increase investor confidence in the country. The provisions in the Anti-Terrorism Act on terrorist financing, along with the strengthened Anti-Money Laundering Act, played a significant role," Lacson said in an interview.

Lacson said these combined efforts contributed to the FATF's decision, which he believed would encourage more investors to place their money in the Philippines.

His legislative efforts include amendments to the AMLA, such as lowering the threshold for covered transactions from P4 million to P500,000, making it more effective in detecting illicit financial activities.

The Alyansa Para sa Bagong Pilipinas senatorial candidate underscored that these initiatives were part of a broader push to combat financial crimes.

"Our goal has always been to crack down on dirty money and hold accountable those who have tarnished the country's reputation as a hub for financial crimes," he said.

Lacson also called for consistent enforcement of anti-money laundering and counter-terrorism financing laws to ensure the country does not fall back into FATF scrutiny.

He reiterated the need to exclude public officials from the Bank Secrecy Act to further strengthen transparency measures.

"We already have the necessary laws. The key now is consistent implementation," Lacson said.