AMLC: Philippine remains off global dirty money list

The Anti-Money Laundering Council (AMLC) confirmed that the Philippines remains off the Financial Action Task Force (FATF)’s gray list following its removal in February this year and has not received similar reports of outdated foreign references still linking the country to the list.

In a statement, AMLC said the Philippines was officially delisted from the FATF gray list on Feb. 21, during the global watchdog’s plenary meeting in Paris, France. The delisting came after the country successfully addressed all 18 action items required to strengthen its anti-money laundering and counter-terrorism financing framework.

“The Philippines remains delisted,” AMLC said, adding that the government continues to implement various initiatives to ensure continued compliance with international standards and prevent relisting.

The clarification comes after the Department of Foreign Affairs (DFA) reported that a close relative of journalist Gretchen Ho was denied foreign exchange service at an Oslo airport on Oct. 6. The incident reportedly stemmed from the use of an outdated list that still included the Philippines under the FATF gray list.

The DFA said it has reached out to the Norwegian Ministry of Foreign Affairs and the Financial Supervisory Authority of Norway to clarify the matter.

The AMLC, however, said it “has not received similar reports of outdated references being used abroad.” It added that the country’s delisting was “disseminated through news coverage, foreign governmental regulatory bulletins, foreign financial institutions’ mechanisms and Philippine embassy or trade channels.”

Among the various initiatives it implemented to ensure continued compliance with FATF standards is the conduct of the third National Risk Assessment, a multi-agency initiative led by the AMLC that evaluates the country’s exposure to money laundering, terrorism financing and proliferation financing risks. The results will help shape targeted mitigation strategies.

The AMLC also cited ongoing work to strengthen its supervisory framework, including updates to enforcement manuals and guidelines to align with FATF recommendations and improve regulatory oversight.

In addition, the council said it continues to enhance inter-agency cooperation by working closely with law enforcement bodies to ensure a “whole-of-nation approach” in investigating and prosecuting financial crimes.

On the legislative front, the AMLC said amendments to the Anti-Money Laundering Act of 2001 are being pursued to address emerging threats and maintain alignment with evolving FATF standards.

The Philippines was first placed under the FATF’s increased monitoring list, or gray list, in June 2021 for deficiencies in its anti-money laundering and counter-terrorist financing systems.

Its removal in February marked the culmination of years of reform efforts by the AMLC, the Bangko Sentral ng Pilipinas and other key agencies.

Source: Philstar

Firms expect 5.2% pay hike in 2026 as 1 in 5 workers plan to quit

Companies in the Philippines are projecting only modest pay increases next year despite facing the steepest employee turnover rates in Southeast Asia.

The 2025 Salary Increase and Turnover Study by British-American consulting firm Aon projects an average 5.3% salary increase across Southeast Asia in 2026, signaling a stable but cautious compensation outlook as firms confirm a region-wide retention crisis and widening skills gaps.

“The 5.3% regional average reflects stable growth but underscores that competitive pay alone is no longer enough to retain skilled employees,” Aon said in its analysis.

The study analyzed data from more than 700 companies across six Southeast Asian markets, including Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines.

The study shows that while most countries in Southeast Asia are keeping pay hikes moderate, Vietnam leads the region with a projected 7.1% salary increase next year, followed by Indonesia at 5.9%.

By contrast, Singapore and Thailand are among those keeping a tighter rein on compensation growth, with average increases of 4.3% and 4.7%, respectively.

Philippine companies' dilemma

In the Philippines, salaries are expected to rise moderately by 5.2% in 2026, which is slightly lower than this year’s 5.3% increase. The rate just sits below the regional average.

The country, however, is seen to have highest attrition rates in the region entering 2026, as one in five employees is expected to voluntarily leave their companies.                      

Source: Aon plc — 2025 Salary Increase and Turnover Study.

 This projected 20% attrition rate in the Philippines surpasses Singapore’s 19.3% and Malaysia’s 18.2%, underscoring a growing challenge among Philippine employers to hold on to skilled staff amid rising job mobility across industries. 

Sectors most affected include information technology, sales, engineering, and cybersecurity, where global demand for digital talent continues to pull Filipino workers toward better-paying opportunities abroad and in multinational firms.  

Source: Inquirer

Remittances dip in August but remain higher year-on-year

Money sent home by overseas Filipinos (OFs) eased in August from July’s seven-month high, Bangko Sentral ng Pilipinas (BSP) data showed on Wednesday.

Personal remittances slid to $3.31 billion from $3.35 billion a month earlier. It was, however, 3.2 percent higher compared to the year-ago $3.21 billion.

Cash remittances alone totaled $2.98 billion, also 3.2 percent higher than the $2.89 billion in August last year but lower than July’s $3.18 billion.

The year-on-year gain, the BSP said, “developed on account of higher inflows from both land-based and sea-based workers.”

Land-based OFs were said to have accounted for $2.35 billion, while the sea-based OFWs added $626 million.

SMIC chief economist Dan Roces noted the pickup in cash remittance growth from July’s 3.0 percent, which he said “suggests that remittance flows have some resilience despite global headwinds, and reflects, in part, a lower comparative base or mild fluctuations in monthly flows.”

A weaker peso, he added, will likely boost remittances as recipients benefit from a more favorable exchange rate.

“Evidence from BSP studies has highlighted the positive role of exchange rate depreciation as a driver of remittances,” Roces said.

“The ‘ber’ months (September to December), when remittances traditionally rise, may buoy the remainder of the year,” he added.

Year to date, personal remittances were up 3.1 percent to $25.51 billion from $24.74 billion, while cash remittances also rose 3.1 percent to $22.91 billion from $22.22 billion in January-August 2024.

The United States remained the top source of cash remittances, accounting for 40.4 percent of the eight-month total. Singapore followed at 7.1 percent and Saudi Arabia at 6.3 percent.

Rounding up the top five were Japan (4.9 percent) and the United Kingdom (4.8 percent).

The BSP noted limitations on data by source, as remittance centers abroad normally send the money through correspondent banks that are mostly located in the US.

Also, remittances sent through couriers are recorded under the country where their main offices are located, which again in many cases is the US.

“Therefore, the US would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source,” the BSP said.

Source: Manila Times