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Agence France-Presse
Inquirer.net

GENEVA, Switzerland — Wages in industrialized countries will fall 0.5 percent next year due to the economic crisis, although on a global level, salaries will still grow by up to 1.1 percent, the International Labor Office (ILO) said Wednesday.

“In 2009, wages will in fact decline by 0.5 per cent in industrial countries and grow by no more than 1.1 per cent globally,” said the ILO’s latest Global Wage Report.

The global growth will come thanks to “emerging countries whose economies are undergoing a slowdown but which are continuing to grow,” said Manuela Tomei, who is in charge of the ILO’s program on employment conditions.

But the ILO warned that it was clear that the economic slowdown would bite into real wages of most workers, with the lowest paid to be hardest hit.

“For the world’s 1.5 billion wage-earners, difficult times lie ahead,” said Juan Somavia, ILO director-general.

“Slow or negative economic growth, combined with highly volatile food and energy prices, will erode the real wages of many workers, particularly the low-wage and poorer households. The middle classes will also be seriously affected,” he added.

To combat a global recession, the ILO warned against lowering companies’ costs by cutting workers’ wages.

Rather, it called on governments to protect the spending power of consumers through measures such as raising minimum wages.

“In the present context, governments are encouraged to display a strong commitment towards protecting the purchasing power of their populations and hence stimulating internal consumption,” said the ILO.

“The levels of minimum wages should be increased wherever possible to protect the purchasing power of the most vulnerable workers,” it added.

The ILO pointed out that salaries tend to lag behind overall economic growth during upswings but tend to drop more steeply during economic downturns.

During 1995-2007, for instance, every 1.0-percent fall in gross domestic product (GDP) led to a 1.55-percent fall in average wages.

Meanwhile, 1.0-percent growth in GDP per capita resulted in an average growth of just 0.75 percent in annual wage growth.

“If this pattern were to be followed in the rapidly spreading global downturn, it would deepen the recession and delay the recovery,” warned Somavia.

Des Ferriols
Philippine Star

An economist of the Union Bank of Switzerland (UBS) warned the government that the slowdown in the global market next year might result in a $800-million decline in remittances from overseas Filipinos workers between 2008 and 2009 although declining import prices would keep the current account surplus rising, providing support for the peso.

UBS economist Edward Teather said investor concerns about remittance flows into the Philippines have increased, both with the dramatic deterioration in dollar liquidity in Asian markets and de-leveraging flows.

The Zurich-based UBS is a leading global wealth manager, investment bank and securities firm that operates in over 50 countries.

Teather said these concerns were heightened by the slowdown in remittance growth from 25 percent in July to just 10 percent year-on-year in August.

“We take a look at Philippines remittance flows in an international context,” Teather said. “Given our projection of the worst global growth environment since the early 1980s, it is quite easy to see how Philippines remittance flows could see some declines in 2009.”

He said UBS’ models indicate an $800-million decline in remittances between 2008 and 2009 although this would be more than offset by the partial reversal of the estimated $5.6-billion loss to the trade balance from the higher value of energy and other commodity imports between 2007 and 2008.

“Indeed, we look for the current account surplus to rise in 2009, despite slower export growth and lower remittances, because of weaker import growth,” Teather said.

He said the improvement in the current account that UBS foresaw should be a plus for the value of the peso.

“However, as we noted earlier capital flows may matter more for the currency in the near term.”

Even taking into account likely data inaccuracies, Teather said the Philippines was one of the largest recipient economies for remittances in the world in terms of dollar value (after India, China and Mexico).

He said countries react differently to economic slowdowns, depending on country’s specific factors that determine the deployment of workers abroad.

“As such, it seems reasonable to expect some, but not a drastic, decline in US dollar remittances into the Philippines. And the above data suggest remittances do not have to decline because global growth is weak,” Teather said. “To be cautious, we have assumed a five percent decline in 2009 in our projections for Philippine remittances in our forecasts.”

He said a decline in remittances represents a loss of income for the Philippine economy.

He explained that the existence of a current account surplus meant that not all-aggregate income in the Philippines was being spent on consumption and investment and that some was being saved.

“Given the remitter has already made the decision not to spend the income on him or herself, remittance flows might be more likely to be saved than income from employment in the Philippines,” Teather explained.

Moreover, Teather said the reduction in consumption would be partly felt by imported goods rather than domestic production. This was the money sent home for basic expenses which would still be spent on food, education and shelter. Money that would usually be spent on imported consumer products would be reduced or eliminated.

But Teather said the decline in remittances that would result from an inability to find jobs overseas should mean lower investment and consumption growth than would otherwise be the case.

“And because only a fraction of a dollar of remittances is spent on imports, lower remittances would also have to mean a reduced current account balance in isolation,” he said.

Jose Katigbak, STAR Washington Bureau
Philippine Star

WASHINGTON – Filipinos living in the Washington DC metropolitan area are sending less remittances and balikbayan boxes to relatives back home because of the economic and financial crisis in the United States, a leading door-to-door cargo and money remittance company serving the Philippines said.

Carmen de Jesus, chief financial officer of Forex, noted a two-percent drop in remittances and a three-percent decline in balikbayan boxes sent over the past few months.

Because of this, De Jesus said the company is expected post its slowest growth rate on record this year.

“Some of our customers have complained about money being tight or losing their jobs,” she said, adding, “I don’t see the US economy getting better anytime soon.”

De Jesus described the drop in value of the US dollar and the tightening credit situation in the US as a “double whammy.”

Despite a drop in remittances, she said, business for Forex was still relatively good. “We’re still growing, its just that we’re not growing as fast as in previous years though this is to be expected because we are now a mature company.”

Forex claims it delivers more than 500,000 balikbayan boxes a year and remits a substantial portion of the earnings of overseas Filipino workers (OFWs).

According to the last official figures issued by the Philippine Embassy in Washington, remittances by Filipinos and Filipino Americans in the US in 2005 reached about $5.5 billion out of a worldwide total of some $9.5 billion.

Of some eight to nine million Filipinos overseas, about 30 percent are in the US.

De Jesus said while the Philippines has suffered a slight drop in remittances other countries have fared worst.

“From what I hear in the industry, remittances to Mexico have gone down by a significant margin, I think as much as 20 percent due to what is happening in America,” she said.

The Washington Post said the rate of remittances to Latin America has declined and this would potentially exacerbate poverty in many countries, including Brazil, Mexico, El Salvador and Guatemala.

It said the Inter-American Development Bank projected that Latin American migrants will send home about $67.5 billion in 2008, a slight increase of about 1.5 percent compared with the $66.5 billion sent home last year.

‘Recession-proof’

But while acknowledging that Filipinos in the US would be affected by the ongoing financial crisis there, the National Economic and Development Authority (NEDA) does not see it having any substantial impact on the growth of remittances this year and the next.

In a briefing held by the President’s economic managers at Malacañang yesterday, Socioeconomic Planning Secretary Ralph Recto noted that the economic slowdown in the US would affect to some degree OFW remittances from the country, but not as heavily as some would think.

Budget Secretary Rolando Andaya Jr. noted that the jobs of most Filipinos in the US are “recession-proof” in that these are in sectors not affected by the movements in the economy.

Recto explained that a significant number of Filipinos in the US are employed as doctors, teachers and nurses. He said not much are working in the financial sector where all the turmoil is being experienced.

The US is just one of the countries where a substantial amount of remittances originate.

Recto noted that outside of the US, specifically in the Middle East where hundreds of thousands of Filipinos are employed, the economy is booming and this means more remittances to the Philippines.

“So we still expect positive OFW remittances for this year. We only expected a 10-percent (growth rate) but it has been roughly at 18 percent and so there’s no reason why we should expect OFW remittances to go down next year as well,” Recto said.

“It may not have the same 18-percent growth as this year, but still a substantial increase, substantial remittances are still expected next year,” he added.

The Bangko Sentral ng Pilipinas (BSP) expects OFW remittances to hit a record $15.9 billion at the end of the year, which has not been amended in spite of the ongoing global financial crisis.

This has been supported by figures recorded by the BSP in the first seven months of the year at $9.6 billion, or an increase of 18.2 percent over the same period last year.

For 2009, the BSP expects remittances to continue its upward trend and post a yearend total of $18.3 billion.

OFW remittances have historically pulled up the Philippine economy, regardless of what was going on within and outside the country.

President Arroyo has repeatedly acknowledged the contribution of the OFWs to the country, not only in terms of providing dollar inflows for the economy but also in building up the reputation of the Philippines as a dominant source of quality labor in all fields.         – With Marvin Sy

Des Ferriols
Philippine Star

While families of overseas Filipino workers still spend their remittances primarily on food and education, monetary authorities have noted that more money is now being set aside for savings and investments.

The Bangko Sentral ng Pilipinas (BSP) said the percentage of OFW-supported households that allotted portions of remittances to savings remained high at 30.4 percent, from a low of 7.2 percent in the first quarter of 2007.

The results were derived from the BSP’s Consumer Expectations Survey (CES) covering the third-quarter period this year.

Data from the BSP also indicated that the percentage of households that set aside funds for investments increased from three percent in the second quarter to 7.4 percent in the third quarter.

According to the BSP, the shift was likely the result of growing pessimism over the country’s economic prospects which compelled families to save and invest rather than spend on consumables.

The BSP said most households spent their remittances primarily on food and other household needs such as education, medical expenses and debt payments.

Based on the results of the latest CES, officials said the number of households who indicated that they allot part of their remittances for various types of financial investments had doubled.

These financial investments include savings, other financial investments and purchase of house which is normally the first investment made by families once a household member starts working abroad.

But the CES results revealed that the number of households that used their remittances for house purchases declined to 12.4 percent in the third quarter from 14.3 percent in the second quarter.

According to the BSP’s third quarter CES, the utilization pattern of remittances was similar for households in the National Capital Region and areas outside the capital.

Remittances have been coming into the country at record levels, reaching a monthly average of over $1 billion. In the first six months of the year alone, remittances totaled $8.2 billion.

The massive inflow of remittances from OFWs should be mobilized for investments but the BSP bucked the idea of creating specialized investment instruments with special tax perks.

Remittances have been fueling the country’s economic growth and heavily financing the government’s domestic borrowing but monetary officials said OFWs and their families should be encouraged to invest their money.

The Philippines is now the third biggest recipient of workers’ remittances, now equivalent to over 11 percent of gross domestic product.

“It’s an offshoot of the combination of two factors: the lack of opportunities at home and the demand for labor offshore,” the BSP said. “Remittances are likely to remain strong due to the continued expansion in the global economy and the aging population in some advanced nations.”

So far, however, the BSP said OFW investments have focused on housing development because homeownership is usually the first objective of OFWs and their families.

After acquiring a house, however, the BSP said longer term investment options should be made available to OFWs who would continue generating income from abroad.

Overseas workers sent $1.5 billion home in June, the highest ever recorded since 1989; bringing the total remittance level to $8.2 billion for the first six months of the year.

Since 1989, the BSP said it began classifying foreign exchange (FX) inflows from overseas workers as a separate category in the BSP FX statistical monitoring system.

Remittances have been consistently going over the $1-billion level for nearly a year and the June inflows brought the six-month remittance level higher by 17.2 percent compared with last year’s first semester total.

BSP Governor Amando M. Tetangco Jr. said the sustained rise in the number of deployed Filipino workers was behind the robust remittance inflows.

Des Ferriols
Philippine Star

Given the steady demand for labor especially in the Middle East, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said he expected remittances from overseas Filipino workers (OFWs) to grow more than originally projected this year.

Because of ever increasing deployment of workers, the BSP had projected that OFW remittances would reach $16 billion this year, 10 percent more than last year’s remittances.

Tetangco said the BSP’s projections indicate that the increase in remittances could be higher than 10 percent. OFW inflows remain the country’s sole source of foreign exchange that have been largely unaffected by the global economic slowdown.

“First the demand for our workers is still there and we are sending people who are higher skilled and higher paid than previously,” Tetangco said.

Even with the anticipated slowdown in major economies, the country’s traditional export market for labor in oil-rich countries has been expanding dramatically since they were raking in profits from soaring oil prices.

In June this year, the BSP reported that the monthly remittance reached the highest level since the central bank started counting OFW inflows in 1989. Workers abroad sent home $1.5 billion in that single month.

As a result, OFW remittances for the first six months of the year reached $8.2 billion.

The Philippines started exporting unskilled workers in the 1970s to work in construction and domestic labor markets abroad. In recent years, the government has shifted its focus to training workers for higher-paid jobs that the domestic economy is otherwise unable to absorb.

As a result, workers in the health and medical sector, industry and information technology are trained locally and then exported abroad to generate foreign exchange that support domestic consumption and prop up the economy.

The government has been criticized by credit rating agencies for making a virtue of its inability to generate jobs but remittances have become critical to sustaining the country’s economic growth, with private consumption leading public spending as economic stimulants.

Data from the BSP showed that remittances from OFWs coursed through banks grew year-on-year by 30 percent in June 2008, the highest level since the BSP started tracking remittances.

Since 1989, the BSP said it began classifying foreign exchange (FX) inflows from overseas workers as a separate category in the BSP FX statistical monitoring system.

Remittances have been consistently going over the $1-billion level for nearly a year and the June inflows brought the six-month remittance level higher by 17.2 percent compared with last year’s first semester total.

Tetangco said the sustained rise in the number of deployed Filipino workers was behind the robust remittance inflows and he expected this trend to continue.

Quoting preliminary data from the Philippine Overseas Employment Administration (POEA), Tetangco said there was a 33.5-percent increase in the deployment of workers abroad in the first half of the year.

This year, over 640,000 workers left the country to work abroad, compared with 479,725 over the same period last year, as the government opened bilateral talks with labor-importing countries to open up more employment for Filipinos.

Tetangco said the level of remittances also drew strong support from the expanded presence of local banks and non-bank remittance agents in countries with large concentration of OFs.

To date, the U.S.A, Saudi Arabia, the U.K., Italy, the United Arab Emirates, Canada, Japan, Singapore, and Hong Kong remain to be the major sources of remittances.

The BSP expected remittances to buoy the country’s forex reserves this year, despite heavy portfolio investment outflows, a large trade deficit and lacklustre foreign direct investments.

Tetangco said the BSP was maintaining a projected GIR level of $36.5 – $37 billion, adding that net outflows in portfolio investments were expected to be tempered by stronger than expected OF remittances.

Although reaching record highs this year, the BOP position has been under significant stress from the surges in oil prices that eroded the reserves.

The country’s balance of payments surplus could dip even lower than the projected $2.5 billion level this year and monetary officials are re-examining their numbers to determine just how low.

The balance of payments (BOP) is the sum of the country’s transactions with the rest of the world paid out of the foreign exchange reserves. Last year, the country was in surplus position recorded at $8.6 billion.

This year, however, sources from the Monetary Board said the BOP position could be even lower than latest projections, mainly due to huge outflows of foreign portfolio investments.

Sources said the Monetary Board has asked the BSP to review its projections because they suspected the BOP surplus was being eroded faster than expected.

Of particular concern was the capital account where foreign portfolio investments were booked as they enter and leave the country.

Des Ferriols
Philippine Star

Overseas Filipino workers (OFWs) sent $1.5 billion home in June, the highest ever recorded since 1989, bringing the total remittance level to $8.2 billion for the first six months of the year.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that remittances from OFWs coursed through banks grew year-on-year by 30 percent in June 2008, the highest level since the BSP started tracking remittances.

Since 1989, the BSP said it began classifying foreign exchange (FX) inflows from overseas workers as a separate category in the BSP’s forex statistical monitoring system.

Remittances have been consistently surpassing the $1-billion mark for nearly a year and the June inflows brought the six-month remittance level higher by 17.2 percent compared with last year’s first semester total.

BSP Governor Amando M. Tetangco Jr. attributed the robust remittance inflows to Filipinos with higher paying jobs like nurses sending money home for enrollment in the new school year.

Quoting preliminary data from the Philippine Overseas Employment Administration (POEA), Tetangco said there was a 33.5-percent increase in the deployment of workers abroad in the first half of the year.

This year, over 640,000 workers left the country to work abroad, compared with 479,725 for the same period last year, as the government opened bilateral talks with labor-importing countries to open up more employment for Filipinos.

Tetangco said the level of remittances also drew strong support from the expanded presence of local banks and non-bank remittance agents in countries with large concentration of OFWs.

To date, the United States, Saudi Arabia, the UK, Italy, the United Arab Emirates, Canada, Japan, Singapore, and Hong Kong remain the major sources of remittances.

The BSP expects remittances to buoy the country’s forex reserves this year, despite heavy portfolio investment outflows, a large trade deficit and lackluster foreign direct investments.

Tetangco said the BSP is maintaining a projected GIR level of $36.5 to $37 billion, adding that net outflows in portfolio investments are expected to be tempered by stronger than expected OFW remittances.

Besides these inflows, he said the central bank also expects inflows from tourism and the business process outsourcing (BPO) industry.

The BSP said its foreign exchange operations and investments abroad also generated additional foreign exchange that boosted the reserves in July.

However, these receipts were partly offset by outflows arising mainly from payments of maturing foreign exchange obligations of the National Government and the BSP.

The BSP said the current GIR level is enough to cover six months of imports of goods and payments of services and income. It is also equivalent to 5.2 times the country’s short-term external debt based on original maturity and three times based on residual maturity.

Doris Dumlao
Philippine Daily Inquirer

MANILA, Philippines—Money sent home by overseas Filipino workers (OFWs) through banks hit an all-time high of $1.5 billion in June, up 30 percent from a year earlier, reflecting a strong season for remittances for school year opening.

The January-June total reached $8.2 billion, up 17.2 percent from the same period last year, said Governor Amando Tetangco Jr. of the central bank.

Citing data from the Philippine Overseas Employment Administration, Tetangco said OFWs sent abroad in the six months increased 33.5 percent to 640,401 as compared with the same period last year.

“Filipino workers continue to be in strong demand overseas due to the diversity and quality of skills they offer,” Tetangco said.

“The conduct of bilateral talks with host countries also continues to open up new employment opportunities abroad for Filipinos,” he said.

The major sources of remittances were the US, Saudi Arabia, the UK, Italy, the United Arab Emirates, Canada, Japan, Singapore and Hong Kong.

The level of remittances has also drawn strong support from the expanded presence of local banks and non-bank remittance agents in countries with large concentration of overseas Filipinos, as they forged stronger partnerships and tie-ups with foreign counterparts, Tetangco said.

“These initiatives increased the access of overseas Filipinos both to more financial institutions as well as to a wider array of financial products,” he said.

Since May 2006, remittances from OFWs have exceeded $1 billion a month. The level in June was the highest recorded since the central bank started classifying foreign exchange inflows from OFWs as a separate category in its statistical monitoring system.

The growth rate in June was the fastest since April last year, when remittances surged 33 percent.

The central bank data do not include remittances through the “informal channels,” defined as unlicensed or unregulated operations such as personal couriers. According to central bank estimates, this so-called leakage in the remittance pipeline has gone down to five percent of total inflows from a high of 30 percent two to three years ago.

Edited by INQUIRER.net

Jeremaiah M. Opiniano, Contributor
OFW Times

KUALA LUMPUR, Malaysia: For 12 years, Rita’s family in the Philippines was fed through two shoe-box sized containers at her feet.

The rectangular matte-black boxes, scuffed with use, contain Rita’s tools of the trade: nail clippers, nippers, two-inch tall bottles of silver, gold, and red nail polishes, blush-on brushes and mascara.

For more than a decade, Rita relied on her being a manicurist and pedicurist, enabling her to send money to her family in Bansalan, Davao del Sur.

Rita is one of millions of female laborers and unskilled workers among overseas Filipino workers (OFWs) who participated in the annual Survey on Overseas Filipinos (SOF) of the National Statistics Office.

Even if their number is more than that of the men, women OFWs’ meager salaries abroad have not made them the top remitters compared to their counterpart male low-skilled workers.

While not revealing how much she sends monthly, Rita says she earns an average 100 ringgits (a minimum of P1,365.40 at current exchange rates) a day.

Notably, that is still below the RM150 daily cost of living allowance that the Malaysian Trades Union Congress said the government provided to public sector employees last year.

Malaysia, where Rita is based in, hosts some 244,967 Filipinos, according to newly released stock estimates of the government-run Commission on Filipinos Overseas (CFO).

Of this number, the CFO estimates nearly half are undocumented; the rest have declared Malaysia their permanent home (26,002) while the remaining are temporary migrants with legal travel and working documents.

The CFO data, sadly, is not gender-disaggregated, but the SOF is. In 2006, it affirmed there were more women OFWs: 764,000 versus 751,000 men working and living outside the Philippines.

That year, they poured into the Philippines an estimated P102 billion in cash and in-kind remittances

Cash remittances refer to those sent from host countries, as well as money that OFWs brought home.

That estimated total cash and in-kind remittances was higher than the P85.1 billion total in the 2005 SOF.

For cash remittances, the 2006 SOF saw OFWs remitting nearly P76 billion from April to September that year.

While there are more women OFWs, male migrant workers sent more during that period: nearly P51 billion as against the P26 billion by women.

Analysts expect remittances from women to drop as there was a decrease in the deployment of Filipino domestic helpers last year.

WHILE laborers and unskilled workers were the most number of OFWs from the 2001 to the 2006 editions of the SOF, two occupational groups of male workers have been the leading remitters.

From 2001 to 2005, male “plant and machine operators and assemblers” have been the top remitters–from nearly P8 billion in 2001 to just above P10 billion after five years.

Two years ago, male “trades and related workers” grabbed the top spot by remitting some P13 billion.

The NSO survey aims to know remittance amounts and channels by OFWs by age, sex, country of work, and region of origin in the Philippines.

– OFW Journalism Consortium

Manila Standard

REMITTANCES from Filipinos rose 13.2 percent to $3.95 billion in the first quarter as more of them left for jobs abroad, the central bank said yesterday.

They sent home $1.43 billion in March alone, a 9.42-percent increase from the same month last year, it said.

Citing preliminary data from the Philippine Overseas Employment Administration, the central bank said the deployment of Filipinos abroad rose 13.6 percent to 263,129 in the quarter to March.

The number of land-based workers grew 11.7 percent to 200,398, and the number of sea-based workers expanded 20.1 percent to 62,731.

The increase in the number of workers overseas aside, the central bank attributed the rise in remittances to the growing number of highly skilled Filipinos drawing top salaries abroad, as well as the growing efficiency of banks and financial institutions in handling remittances.

It said the increasing number of tie-ups between domestic banks and foreign banks had also made remitting money here easier and faster.

The bulk of the money being remitted to the Philippines comes from the United States, Saudi Arabia, the United Kingdom, Italy, the United Arab Emirates, Canada, Japan, Singapore and Hong Kong.

Last year, remittances coursed through the banking system rose 13.23 percent to $14.45 billion against $12.76 billion in 2006.

Remittances allow their beneficiaries to spend more, and the government to stabilize the peso against other currencies.

And remittances took the current account to a surplus despite a deficit in the merchandise trade, bringing last year’s balance of payments to plus $8.6 billion.

The central bank expects a surplus of $3.5 billion this year, while the International Monetary Fund predicts a higher $4.6 billion.

Eileen A. Mencias

Des Ferriols
Philippine Star

Remittances from overseas Filipinos rose 9.4 percent to hit $1.4 billion in March, an all-time record for a single month.

This brought the inflows for the first three months of the year to $4 billion, or 13.2 percent higher than last year’s level.

The BSP said remittances have been supported by an increase in the number of Filipinos working abroad, the shifts in skill composition as well as the growing efficiency of banks and other financial institutions as remittance channels.

BSP Governor Amando M. Tetangco Jr. said the number of deployed workers for the first three months continued to grow, with preliminary data from the Philippine Overseas Employment Administration (POEA) showing a rise of 13.6 percent to 263,129 from 231,647 a year ago.

Classified by type of worker, Tetangco said the number of land-based workers grew by 11.7 percent during the three-month period to 200,398 while the number of sea-based workers rose by 20.1 percent to 62,731.  Tetangco said OFW remittances were also strengthened by additional tie-ups established by domestic banks and other local remittance companies with foreign financial institutions to promote a faster and more efficient delivery of remittances.

The BSP reported that the significant portion of remittances continued to come from the US, Saudi Arabia, the UK, Italy, the United Arab Emirates, Canada, Japan, Singapore, and Hong Kong.

Remittances coursed through formal channels are expected to rise almost nine percent to $15.7 billion in 2008.

The BSP, however, has mounting concern over the possibility that the Philippines could land back in the blacklist of the Financial Action Task Force on Anti Money-laundering, making the country’s financial transactions, especially remittances, a target for costly scrutiny.

The World Bank and the Asia Pacific Group on Money Laundering are scheduled to conduct a joint evaluation of the Philippines in October this year.

The Anti Money Laundering Council (AMLC) is still tangled in a legal tussle with the Supreme Court over a decision that prevented the council from conducting bank inquiries without informing account holders.

The FATF blacklist has been empty since countries complied with FATF standards but officials fear that recent developments could make the Philippines the first and only country to be removed and reinstated for insufficient application of FATF recommendations.

The APG and the Financial Action Task Force both conduct periodic reviews that examine compliance with international anti-money laundering standards.