January 20, 2025
To the Members of the Financial Action Task Force,
We, the National Union of People’s Lawyers (NUPL), are writing to bring to your attention the incalculable damage that your recommendations have unleashed in the Philippines. These are being embraced as impositions that have amounted to systemic repression against Philippine civil society organizations (CSOs), development workers, and human rights defenders.
FATF Recommendations, including but not limited to Recommendation 6 (on targeted financial sanctions) and Recommendation 8 (on non-profit organizations), have been weaponized by the Philippine government to suppress dissent and erode civic freedoms. Pursuant to these recommendations, the government enacted the Anti-Terrorism Act of 2020 (Republic Act No. 11479) and the Terrorism Financing Prevention and Suppression Act of 2012 (Republic Act No. 10168), as well as invasive and burdensome regulatory measures that have been used more to institutionalize repression than address genuine financial crimes.
The findings of a study by the NUPL and the Council for People’s Development and Governance (CPDG) reveal that FATF-inspired measures have disproportionately harmed CSOs. Over 60% of surveyed organizations reported red-tagging, harassment, and surveillance, with many facing physical surveillance (57%) and accusations of terrorism financing (33%). Increasing regulatory burdens from banks, the SEC, and the BIR have further hindered operations, with some CSOs experiencing frozen accounts and restricted access to financial services. Financial sanctions have paralyzed operations, leaving marginalized communities without critical services, while fabricated charges have disrupted lives. Moreover, financial exclusion due to invasive regulations by banks and financial institutions is denying resources not only to CSOs and their staff but also to their poor beneficiaries. A copy of the Executive Summary of this study is attached for your reference.
The Philippine government’s fixation on arbitrary quotas, such as the number of terrorism financing cases filed pursuant to the confidential “Project Exit Grey List,” has led to a surge in baseless prosecutions that are built largely on perjured evidence. However, many of these cases, including those that have made it to court, have been dismissed for lack of probable cause.
Overly broad and vague definitions of terrorism under current terror laws have provided a pretext for sweeping actions against CSOs providing services in the poorest communities. The freezing of assets and funds of CSOs maliciously red- tagged as fronts for the Communist Party of the Philippines (CPP) and New People’s Army (NPA) has paralyzed humanitarian activities, caused economic hardship to the lives of their officers and their family members, and rendered them vulnerable to
further punitive sanctions. Notably, some of these CSOs have even been recognized for their efforts to uplift marginalized sectors, including those devastated by disasters.
We, thus, call on the FATF to ensure that its review processes focus not only on numbers but also on the actual injury caused by its recommendations to real people and communities. The impact of FATF standards on fundamental freedoms and human rights must be front and center in any evaluation. Specifically, we urge the FATF to make the review process transparent and inclusive, to reassess its recommendations holistically, and to reverse the harmful consequences caused by its recommendations. The FATF should:
- Open up the process to include civil society participation and input, ensuring that the voices of those most affected by these measures are heard and considered;
- Go beyond Recommendation 8 and conduct a comprehensive review of all FATF recommendations to identify and mitigate the systemic damage they may have caused, particularly in repressive contexts; and,
- Take a long, hard look at the tangible impacts of FATF recommendations and institute changes to reverse or halt their grievous effects on civil society and marginalized communities.
The FATF must ensure that its standards do not come at the expense of democracy, civic freedoms, and human rights. We urge you to reflect on their real-world consequences and act decisively to prevent further harm.
Respectfully,
National Union of People’s Lawyers (NUPL)
Read Executive Summary here:
