The FATF announced the decision on February 21, recognizing the country’s strengthened anti-money laundering and counter-terrorism financing (AML/CTF) framework. The SEC played a crucial role by improving transparency in corporate ownership and financial reporting.
SEC’s push for stronger oversight
“When I became a member of the AMLC in 2018, the SEC stepped up and positioned itself at the forefront of our fight against money laundering and terrorist financing, recognizing the need for reforms to prevent the misuse of the corporate vehicle in illicit activities,” said SEC chair Emilio B. Aquino, currently the longest-serving member of the Anti-Money Laundering Council (AMLC).
“A secure and stable financial system is integral to our vision of a highly sophisticated and globally competitive capital market and corporate sector. To gain the trust of Filipinos and foreigners alike to invest in or transact with corporations based in the Philippines, we must adhere to the highest standards on combating money laundering and the financing of terrorism and proliferation financing,” he added.
Key reforms and compliance gains
Reforms included stricter disclosure rules on beneficial ownership and the prohibition of bearer shares. The SEC also enforced higher penalties for noncompliance and launched an amnesty program to boost corporate transparency.
Over 117,000 inactive companies were suspended, and compliance rates rose from 26 percent in 2021 to 69 percent. The SEC also targeted high-risk non-profits to prevent misuse for illicit financing. Since 2021, 7,631 NPOs have registered with the SEC as part of its transparency push.
