Police memo links Philippines’ exit from FATF ‘grey list’ to activist crackdown allegations

Philippine efforts to exit the global money laundering “grey list” finally succeeded, an accomplishment that will enhance the country’s credibility in the global financial system, making it more attractive to investors.

The Financial Action Task Force (FATF) announced last Friday, February 21, that the Philippines has met its compliance requirements, a month after members of the global money laundering and terrorist financing watchdog visited the country.

The country’s exit from the FATF grey list is expected to benefit millions of Filipinos—including overseas workers—by speeding up and reducing costs of  international business transactions and remittances. 

FATF recognized the Philippines’ progress in curbing the flow of illicit funds through its casinos and shutting down offshore gaming operations. It was the result of collaboration among national agencies.

However, the Philippine government’s success and the FATF process itself are marred by allegations that the grey list exit campaign became the latest pretext for the crackdown and red-tagging of activists and human rights workers.

The Philippine Center for Investigative Journalism (PCIJ) obtained a confidential police memorandum linking the FATF process to at least one case filed against an activist.

Please click to read the rest of the report.

This investigation was produced with Northern Dispatch. Its former correspondent for Cagayan Valley, Deo Montesclaros, is the latest media worker to face terrorist financing charges. We hope you can share them on your websites and social media pages.

The materials are here.

Key points:

• The Philippine government’s success and the FATF process itself are marred by allegations that the grey list exit campaign became the latest pretext for cracking down on activists and human rights workers.
• The criticism against the FATF process involves the quantitative requirement to prosecute terrorist financing cases. There are separate requirements to address money laundering, a related but distinct crime.
• PCIJ obtained a police memo linking the FATF process to at least one terrorist financing case against an activist in the Ilocos region. 
• A report shows how authoritarian governments around the world have abused the FATF process to stifle dissent through actions like strategic bank account freezing, prosecution of organizations, and politically motivated pre-trial detention.
• NTF-Elcac dismissed the criticisms and called out “desperate attempts” by the Communist Party of the Philippines, New People’s Army, National Democratic Front (CPP-NPA-NDF) “and their cohorts to vilify and malign efforts by the government to unmask the true identities of [their] members, financiers, and collaborators.”
• Philippine civil society organizations do not expect the terrorist financing cases to ease up after the country’s successful exit from the FATF grey list.
• A court is expected to promulgate its decision on the terrorist financing charges against journalist Frenchie Mae Cumpio Case this year.

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Next, we will tell you more about Myrna Zapanta, the subject of the police memo that revealed the PNP’s “Project Exit the Greylist,” and how charges against her exhibit a new pattern in the government’s anti-insurgency campaign. 

Maraming salamat.

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