In a ceremony held at Malacañan Palace on May 5, President Ferdinand Marcos Jr., together with Executive Secretary Lucas P. Bersamin, cited the SEC for spearheading corporate sector reforms that were instrumental in bolstering the country’s anti-money laundering and counter-terrorism financing (AML/CFT) framework.
SEC Chair Emilio B. Aquino and the agency’s Enforcement and Investor Protection Department were acknowledged for leading initiatives aligned with FATF’s international standards.
The Commission’s contributions were part of a broader whole-of-government approach led by the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Coordinating Committee (NACC).
The Marcos administration launched this initiative to address the FATF action plan issued after the Philippines was placed on the grey list in June 2021.
Key concerns highlighted by the FATF included beneficial ownership (BO) transparency, regulation of non-profit organizations (NPOs), oversight of designated non-financial businesses and professions, and monitoring of casino junkets.
To address these, the SEC issued a revised general information sheet in 2019 to strengthen BO data disclosure and, in 2021, prohibited bearer shares and bearer share warrants to boost corporate transparency.
In 2023, the Commission launched an amnesty program that significantly improved compliance with reportorial requirements—raising the rate from 26 percent in 2021 to 69 percent as of February 2025.
The SEC also focused on enhancing oversight of NPOs to mitigate the risk of terrorist financing. It conducted risk-based audits of high-risk organizations while encouraging the registration of previously unregistered NPOs, resulting in nearly 8,000 new registrations since 2021.
To further its regulatory objectives, the SEC recently launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR). This digital platform streamlines the submission and updating of BO data, making it more accessible to regulators, businesses, and government agencies.
Aquino emphasized that the coming years will be critical as the Philippines prepares for its next FATF mutual evaluation.
“The SEC remains steadfast in its commitment to leverage innovation to enhance transparency in the corporate sector and strengthen its enforcement and monitoring capabilities to ensure companies are not misused for illicit activities,” he said. — Ed: Corrie S. Narisma
