The National Union of Peoples’ Lawyers (NUPL) has condemned the Financial Action Task Force’s (FATF) decision to remove the Philippines from its “grey list” of jurisdictions under increased monitoring, calling the move a “pyrrhic victory” that legitimizes state repression under the guise of counterterrorism compliance.
In a February 22 statement, NUPL argued that FATF’s delisting ignores systemic abuses of counterterrorism financing (CFT) laws to target civil society groups, journalists, and activists. The Philippine government’s “technical compliance” with FATF standards has coincided with a documented surge in arbitrary asset freezes, fabricated terrorism financing charges, and financial exclusion of NGOs—tactics NUPL describes as “deliberate” tools of political persecution.
The report highlights how authorities have weaponized FATF’s anti-money laundering (AML) framework to harass grassroots organizations, while failing to prosecute high-profile financial crimes. Over $3 billion laundered through Philippine Offshore Gaming Operators (POGOs) in 2024 alone remains unaddressed, even as the state prioritizes trumped-up charges against human rights defenders.
FATF’s February 21 announcement praised Manila’s “progress” but omitted evidence that CFT measures have been used to criminalize dissent. NUPL Secretary General Josalee Deinla criticized the body’s silence, stating: “The FATF congratulates the Philippines without acknowledging the rampant misuse of counterterrorism financing laws to silence dissent and criminalize civil society”.
The statement demands FATF audit Manila’s CFT enforcement, engage directly with affected NGOs, and adopt binding safeguards to prevent AML/CFT measures from disrupting humanitarian work. It also condemns FATF’s “hollow” recommendation to protect non-profits, noting that over 100 organizations have lost banking access since 2023 due to overzealous compliance.
