Overseas Filipino workers (OFWs) can now enjoy reduced remittance fees and smoother financial transactions following the Philippines’ removal from the Financial Action Task Force (FATF) gray list, a move hailed as a “big win” for migrant workers and their families.
Migrant Workers Secretary Hans Leo Cacdac highlighted the positive impact of the development, emphasizing that the removal from the FATF gray list means lower transaction costs and a more secure financial system. “It’s a good news for our OFWs and their families as the removal of the Philippines from the FATF grey list means lower remittance fees for our modern-day heroes, and more secure financial transactions,” Cacdac stated.
According to the Department of Migrant Workers (DMW), the country’s improved financial standing is the result of a whole-of-government effort led by President Ferdinand R. Marcos Jr., who initiated significant reforms to enhance the country’s anti-money laundering and counter-terrorism financing measures.
The FATF gray list is a watchlist of countries under increased monitoring for money laundering and terrorism financing risks. The Philippines was placed on the list in 2021 due to deficiencies in areas such as money laundering in casinos and lack of prosecutions for terrorism funding.
Under President Marcos’ administration, a comprehensive strategy was implemented to address the FATF’s concerns, including Executive Order No. 33, which strengthened anti-money laundering protocols. The successful reforms not only paved the way for the country’s removal from the gray list but also promised lower remittance costs, simplified documentation for OFWs, and enhanced access to international financial transactions.
“This is a major victory for our OFWs, ensuring that more of their hard-earned money goes directly to their families without being eroded by high fees,” Cacdac added.
The improved financial status is also expected to attract more foreign investments and create a more robust banking sector, further supporting the Philippine economy under the administration’s “Bagong Pilipinas” vision.
