THE Securities and Exchange Commission (SEC) will strengthen measures to combat money laundering and terrorism financing in the corporate sector following the Philippines’ removal from the European Commission’s (EC) list of high-risk jurisdictions, its chairperson said.
“As the overseer of the corporate sector and the capital market, the SEC will continue adopting best practices in anti-money laundering and counter-terrorism financing (AML/CFT) regulation, in line with global standards, to ensure that the corporate vehicle will not be used for illicit funding,” SEC Chairperson Francis Ed. Lim said in an e-mail statement on Tuesday.
Last week, the EC removed the Philippines from its list of jurisdictions with “strategic deficiencies” in their AML/CFT frameworks. The delisting follows the country’s exit from the Financial Action Task Force’s (FATF) “gray list” in February.
“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,” Mr. Lim said.
The SEC has implemented reforms aimed at improving transparency in beneficial ownership disclosures and the registration of non-profit organizations (NPOs).
Earlier this month, the SEC launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR) online platform, which allows for more efficient and reliable sharing of beneficial ownership information with businesses, regulators, and government agencies.
In 2019, the SEC mandated companies to disclose beneficial ownership data in their general information sheets. In 2021, the commission also prohibited the issuance and sale of bearer shares and bearer share warrants to further curb the use of corporations for illegal activities.
As a result of these reforms, nearly 8,000 NPOs have registered with the SEC since 2021.
To enhance regulation of the digital finance space, the SEC recently issued Memorandum Circular Nos. 4 and 5, Series of 2025, which outline the rules and operational guidelines for crypto-asset service providers.
The rules are designed to uphold investor protection while supporting innovation in financial products. They also form part of the SEC’s broader initiative to tighten AML/CFT compliance among financial entities under its supervision, including brokers, dealers, lending and financing companies, and other securities intermediaries.
“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,” Mr. Lim said. — Revin Mikhael D. Ochave