MANILA, Feb 22, 2025 (BSS/AFP) - The Philippines on Saturday praised its removal from a global financial "grey list" of countries under increased monitoring for money laundering and terrorism financing, a status that can hamper global financial transactions.

The Southeast Asia nation had been on the Financial Action Task Force list, which identifies countries "working with it to correct deficiencies in their financial systems", since 2021.

"The (Financial Action Task Force) removed the Philippines from its increased monitoring following a successful on-site visit and updated its statements on 'high-risk and other monitored jurisdictions'," the Paris-based group said after a Friday vote at its annual plenary.

The FATF, an international organisation that coordinates global efforts to crack down on money laundering and terrorism financing, includes representatives from nearly 40 countries including the United States, China and South Africa.

In a statement Saturday, the Anti-Money Laundering Council in Manila hailed the FATF decision as a "milestone" that would bring a litany of benefits.

"The Philippines' exit from the FATF greylist is expected to facilitate faster and lower-cost cross-border transactions, reduce compliance barriers, and enhance financial transparency," it said.

The move would also provide relief for more than two million Filipinos who work overseas and send remittances home each year, the council added.

It singled out President Ferdinand Marcos' 2023 signing of an executive order targeting money laundering and "counter-terrorism financing" as having played a key role in the decision.

Marcos last year also banned offshore gaming operators, known locally as POGOs, that were said to be used as fronts by organised crime groups for human trafficking, money laundering, online fraud, kidnappings and even murder.

But rights groups this month blasted the government for filing "baseless" charges against civil society groups to improve its standing with the FATF.

"Philippine authorities appear to be stepping up terrorism financing prosecutions to get off of FATF's 'grey list'," said Bryony Lau, deputy Asia director at Human Rights Watch.

Lau said that anti-terrorism efforts had given the government cover "to bring baseless charges against civil society groups and activists in violation of their rights."