The EC, the executive body of the European Union, announced on June 10 the removal of the Philippines from the high-risk list, alongside seven other jurisdictions.
Delisting milestone
This decision, the SEC said in a statement, reflects the Philippines' successful implementation of reforms to enhance its anti-money laundering and counter-terrorism financing (AML/CFT) framework, which also led to the country’s exit from the Financial Action Task Force (FATF) grey list earlier this year.
“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 Chair Francis Ed. Lim said.
“As the overseer of the corporate sector and the capital market, the SEC will continue adopting best practices in AML/CFT regulation, in line with global standards, to ensure that the corporate vehicle will not be used for illicit funding,” he added.
SEC reforms
The SEC has been instrumental in driving reforms that facilitated the FATF grey list exit. These reforms addressed concerns on beneficial ownership information disclosure and registration of non-profit organizations (NPOs).
It strengthened the disclosure of beneficial ownership data, requiring companies to declare such information in their general information sheets. In 2021, it prohibited the issuance and sale of bearer shares and bearer share warrants to boost transparency and prevent the use of corporations for illegal activities.
Early this month, the Commission launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR), an online platform for submitting and updating beneficial ownership information. This platform enables the SEC to provide faster and more reliable data to businesses, regulators, and government agencies.
Stronger oversight
To improve transparency among NPOs, the SEC has conducted outreach and knowledge-sharing activities to encourage registration, resulting in the registration of nearly 8,000 NPOs since 2021.
The SEC is also strengthening the enforcement of AML/CFT policies over financial institutions under its jurisdiction, including brokers, dealers, lending and financing corporations, and other securities dealers.
It recently issued memorandum circulars providing rules and guidelines on the operations of crypto-asset service providers to ensure investor protection while supporting innovative financial products. —Ed: Corrie S. Narisma
