Philippines Off the FATF Gray List: A Boost for the Economy and Real Estate

The Philippines Is Off the FATF Gray List – Here’s What It Means for Clark, Pampanga, and Real Estate in 2025

The Philippines started 2025 with a major win: as of February, it has officially been removed from the Financial Action Task Force (FATF) "gray list." That means the country is no longer considered a high-risk area for money laundering and terrorism financing. For many, this sounds technical. But for the economy, global investors, OFWs, and real estate markets in places like Clark and Pampanga, this is very good news.

What Is the FATF Gray List?

The FATF is a global body that sets financial safety standards. Countries placed on the "gray list" are those that need to fix weak spots in their anti-money laundering laws. Being on the list means slower international money transfers, extra checks by global banks, and less investor trust. In short, it's like being under financial probation.

The Philippines was added to the gray list in 2021. Why? FATF said the country needed to crack down on unregistered remittance services, regulate casino junkets, track suspicious financial flows through charities, and improve transparency about who really owns certain businesses (beneficial ownership).

What Changed?

It took 4 years of reforms to exit the list:

• Anti-Money Laundering Law strengthened: Real estate brokers and developers must now report big transactions (over ₱7.5M).

• Casino and remittance rules tightened: The government regulated junket operators and shut down unregistered money transfer businesses.

• Stronger teamwork: Government agencies collaborated via a task force (NACC) to hit FATF goals.

• More enforcement: Asset freezes, arrests, and bulk cash seizures surged. Real cases, not just paperwork.

• Greater transparency: A national ID system and rules on business ownership made financial activities easier to track.

In February 2025, FATF confirmed the Philippines had met all requirements and announced the country's removal from the gray list.

Why It Matters for Real Estate and Clark

Exiting the gray list strengthens global trust. This has real benefits:

1. Faster, cheaper remittances – OFWs may now pay fewer fees and face fewer delays. That’s more money flowing into home purchases, construction, and savings.

2. More foreign investment – Global investors and banks are more willing to partner with Philippine firms. This includes real estate companies, REITs, and large-scale developments.

3. Better financing for property buyers and developers – With improved country risk ratings, loans may become easier to access and cheaper.

4. Clark gets more attractive – Already a rising business and leisure hub, Clark stands to benefit big. Over ₱77B in investments poured into Clark in 2024 alone. International companies and developers are more confident investing in Clark now that the Philippines is seen as financially sound.

5. OFWs buy more homes – With smoother remittances and more trust in the system, expect more OFW families to buy property in Pampanga and beyond.

6. Tourism & luxury projects benefit – Resorts and casino investors (like the Hann Group in Clark) now find it easier to raise money and attract foreign brands.

A Boost for Pampanga

Pampanga, already a top-performing region, is ready to ride this wave. With Clark International Airport, the upcoming NSCR railway, and infrastructure pouring in, confidence in the region is high. Singaporean firms have already invested over $140M in Clark, and more are likely to follow.

For homeowners and real estate investors, this development is a green light. It signals lower risk, better financing conditions, and more buyers in the market. The outlook for Pampanga real estate in 2025? Bright and bullish.

Bottom Line

Getting off the FATF gray list is a sign that the Philippines is serious about doing business right. It means money moves faster, investor confidence is higher, and places like Clark and Pampanga are even more promising for real estate growth.

Whether you’re an OFW looking to buy your first home, a developer planning your next project, or a foreign investor looking for growth markets – now is the time to look at the Philippines, especially Pampanga.

The country is back in the game. And Clark is leading the charge.