The Europe-based Financial Action Task Force (FATF) has upgraded the Philippines from its "dark grey list" to the "grey list" for the country's action to curb money laundering and terrorist financing, a senior government official said on Saturday.

Deputy Presidential Spokesperson Abigail Valte said in an interview over a state-run radio station that the FATF has recognized the reforms instituted by the Philippine government by upgrading the country.

"The country was previously under the 'dark grey list,' which refers to jurisdictions not making sufficient progress, and is now in the 'grey list,' which signifies that we are making sufficient progress in addressing deficiencies in our Action Plan," she said.

Valte said the FATF, which just concluded its plenary in Italy, took notice of the Philippine government's passage of the two laws -- An Act to Further Strengthen the Anti-Money Laundering Law and The Terrorism Financing Prevention and Suppression Act of 2012.

She said the laws strengthened the capability of the government to identify and prevent financial transactions related to illegal activities and those that undermine global security.

"While we recognize that more needs to be done to strengthen our existing anti-money laundering and anti-financial terrorism measures, we take the satisfaction expressed by the FATF as affirmation on the institutional reforms that we have constantly advocated," she said.

The FATF is the global standard setting body for anti-money laundering and combating the financing of terrorism which places countries in three categories, namely "grey list", "dark grey list " and "black list".