BSP vows reforms after EU delists Philippines

The Bangko Sentral ng Pilipinas (BSP) pledged to sustain financial reforms and strengthen anti-crime safeguards following the Philippines’ removal from the European Union’s (EU) list of high-risk third countries on June 10, 2025.

It marked the country’s third delisting this year after similar exits from the United Kingdom’s high-risk list in March and from the Financial Action Task Force (FATF) watchlist earlier in February.

BSP Governor Eli M. Remolona said the milestone reflects growing international confidence in the Philippines’ financial system and its ability to combat money laundering and terrorism financing.

“The BSP remains firmly committed to driving financial sector reforms, strengthening anti-money laundering/countering terrorism and proliferation financing (AML/CTPF) supervision, and building a resilient, inclusive financial system that supports economic growth and global confidence,” Remolona said.

Remolona, who also chairs the Anti-Money Laundering Council (AMLC), said efforts continue to identify areas where the country can further improve its capacity to fight financial crimes and keep pace with evolving global standards.

In its decision, the EU cited the Philippines’ improved effectiveness in enforcing AML/CTPF rules and its resolution of technical deficiencies earlier flagged by the FATF.

The FATF plenary in February noted progress in compliance, prompting the UK to remove the Philippines from its high-risk third country list on March 27, 2025.

The BSP said these developments would bring tangible benefits, including lower remittance costs for overseas Filipino workers and smoother correspondent banking relations between Philippine and foreign banks.

Analysts said the exits could also strengthen investor confidence, making the country more attractive for foreign capital inflows and trade expansion.

The Philippines had long struggled with global scrutiny over its AML regime, with compliance issues leading to costly barriers for overseas workers, exporters, and banks dealing with foreign counterparts.

With the country now off the FATF, UK, and EU lists, officials said the challenge is to sustain reforms and ensure that regulatory momentum translates into a stronger, more transparent financial sector.