Every year, Filipino migrant workers send more than US$30 billion US$30 billion Business World Philippines continued to be among top remittance recipients in 2021 Read more back home, making the Philippine economy the fourth fourth Migration Data Portal Remittance Data for 2021 Read more biggest remittance recipient in the world. Remittances, which make up 9% of the country’s gross domestic product (GDP), also power private consumption—another 70% of the Philippines’ GDP.
Money trail
Remittance firms feel the burn as the Philippines scrambles to get off the dirty-money grey list
The Philippines failed the recent FATF review on compliance with money-laundering regulatory standards. Although it’s making strides to address concerns, many roadblocks lie in the country’s way off the grey list
The Philippines was put on the FATF’s grey list in June 2021 and was given time till January 2023 to address crucial issues
The country’s remittance sector is reeling under the reputational hits brought on by the grey list, with a noticeable slowdown in growth
The government and private sector are working on new solutions, with artificial intelligence (AI)-enabled tech and sectoral guards being the biggest bets
But only two months are left before the deadline, and the country needs more money-laundering convictions and has to address the bank secrecy law
