SEC to boost efforts vs money laundering as PH exits Europe’s ‘high-risk’ list

The Securities and Exchange Commission (SEC) on Tuesday said it will strengthen its efforts to combat money laundering and terrorism financing in the country’s corporate sector on the heels of the Philippines’ exit from the European Commission’s (EC) list of high-risk jurisdictions for financial crimes.

Last week, European Union’s executive body announced the removal of the Philippines from its list of high-risk countries that the bloc monitors for money laundering and terrorism financing.

“The SEC welcomes the Philippines’ exit from the EC list of high-risk jurisdictions. This milestone emphasizes the country’s strong commitment to ensuring the integrity of the financial and corporate sectors, making the country a more attractive hub for investors,” SEC Chairperson Francis Lim said in a statement.

“As the overseer of the corporate sector and the capital market, the SEC will continue adopting best practices in AML/CFT (anti-money laundering and counter-terrorism financing) regulation, in line with global standards, to ensure that the corporate vehicle will not be used for illicit funding,” Lim added.

The country’s removal from the EC’s monitoring came after the Financial Action Task Force (FATF), in February, delisted the Philippines from its list of jurisdictions under increased monitoring since its inclusion in June 2021.

The FATF cited reforms that addressed strategic deficiencies in its AML/CFT framework.

In particular, the SEC addressed concerns on beneficial ownership information disclosure and registration of non-profit organizations (NPOs) requiring companies to declare such information in their general information sheets.

The corporate regulator also prevented the issuance and sale of bearer shares and bearer share warrants in 2021 to boost transparency and prevent the use of corporations for illegal activities.

Early this month, the SEC launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR), an online platform that caters to the submission and updating of beneficial ownership information.

The HARBOR would enable the SEC to provide faster and more reliable beneficial ownership data to businesses, regulators and government agencies.

To improve transparency among NPOs, the SEC also conducted outreach and knowledge-sharing activities to encourage them to register with the Commission to minimize the risk of being used for illicit financing activities.

These efforts resulted in the registration of nearly 8,000 NPOs since 2021, according to the agency.

The SEC, likewise, strengthened its enforcement of AML/CFT policies over financial institutions under its jurisdiction, including brokers, dealers, lending and financing corporations, and other securities dealers.

The corporate regulator issued Memorandum Circular Nos. 4 and 5, Series of 2025, providing for the SEC Rules on Crypto-Asset Service Providers and SEC Guidelines on the Operations of Crypto-Asset Service Providers, respectively.

The rules seek to ensure investor protection while supporting innovative financial products.

“Necessary systems and measures are already in place. The SEC will remain proactive in ensuring that these are strictly implemented and complied with, to prevent the country’s relisting and to foster a sound business environment where companies can thrive,” Lim said.  — BAP, GMA Integrated News