2 weeks ago
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To ensure that the Philippines stays out of the grey list of global financial crimes watchdog Financial Action Task Force (FATF), the Securities and Exchange Commission (SEC) is rolling out more reforms to combat money laundering and terrorist financing.
In a press conference, SEC Chairperson Emilio B. Aquino stressed that the Philippines must sustain the reforms that drove its successful exit from the FATF grey list, continue to identify emerging risks and gaps in the country’s anti-money laundering and counter-terrorist financing (AML/CFT) framework, and promptly implement the necessary measures, especially in the next two years.
“The next two years will be crucial, as the Philippines prepares for another mutual evaluation, where the country’s AML/CFT standards will be assessed for their compliance with global standards,” said Aquino who is currently the longest serving member of the Anti-Money Laundering Council (AMLC).
He noted that, “Failure to address identified risks—such as gaps in beneficial ownership transparency, enforcement actions, or emerging financial threats—could increase our risk of going back to the grey list.
“Therefore, continued vigilance, policy enhancements, and effective enforcement remain critical to ensuring that the Philippines stays off the grey list and maintains its position as a reliable and competitive financial hub in the region.”
FATF President Elisa de Anda Madrazo had said that the Philippines will undergo another assessment in 2027 adding that, “The Philippines is expected to sustain the implementation of the reforms and importantly, to do so in a way that is consistent with the FATF standard.”
“This will provide an opportunity for the FATF to verify that the reforms remain in place and are being sustained in line with FATF standards,” she said.
In line with the Marcos administration’s whole-of-nation approach, the SEC will continue to coordinate with other government agencies and competent authorities to enhance the country’s AML/CFT framework.
The Commission’s improved collection and management of beneficial ownership (BO) information of companies were among the key factors that helped push the Philippines out of the grey list.
This year, the SEC will launch the Hierarchical Applicable Relations and Beneficial Ownership Registry (Project HARBOR), a registry of BO information that will be easily accessible to other partner agencies through the execution of data sharing agreements.
Project HARBOR’s features will include automated data validation, configurable access levels for authorized users, and analytical tools for identifying complex ownership structures.
The system will be integrated with the Commission’s existing online company registration system, the Electronic Simplified Processing of Application for Registration of Companies (eSPARC).
With Project HARBOR in place, the SEC will be able to streamline beneficial ownership disclosures, promote regulatory transparency, and enhance compliance with global AML/CFT standards.
“Project HARBOR will modernize how we manage beneficial ownership data, reducing manual interventions and facilitating a secure, efficient disclosure process for corporations, thereby addressing the concern on the accuracy of BO information submitted to the SEC,” Aquino said.
Meanwhile, the SEC will continue to conduct regular offsite and onsite AML/CFT compliance examinations over supervised entities. This includes the non-profit organization (NPO) sector, which has been identified as a common target for terrorism financing.
The SEC has committed to continuing the conduct of outreach and knowledge sharing activities for the NPO sector, where it also encourages unincorporated entities to register with the Commission to reduce their risk of being used for money laundering and terrorist financing.
It is also actively working with other regulatory bodies to streamline processes and remove redundancies. Instead of adding new regulatory burdens, the Commission focuses on expanding outreach programs by engaging local government units (LGUs) and NPOs through continuous education and capacity-building initiatives.
“We recognize the important role that non-profit organizations play in nation-building through the advocacies they put forward. At the SEC, our goal of regulation is to improve corporate governance without unduly burdening legitimate NPO activities,” Aquino said.
Aside from the NPO sector, the SEC is also fortifying its enforcement of AML/CFT policies over financial institutions under its jurisdiction, including brokers, dealers, lending and financing corporations, and other securities dealers, in line with its mandate as the country’s capital market regulator.
The SEC is also looking at the rise of virtual currencies and other digital assets and how they can be used by illicit actors to perpetuate financial crimes.
To mitigate risks, the Commission is drafting new rules on crypto-asset service providers (CASP), which aims to enhance its oversight and supervision of businesses that involve the offering and trading, as well as other activities of innovative financial products.
To date, the SEC has already released the draft guidelines on CASP for public comment. It will consider suggestions and recommendations of the industry in coming up with the final guidelines.
The SEC is also banking on the recent enactment of Republic Act No. 12010, or the Anti-Financial Account Scamming Act (AFASA), which gives the Bangko Sentral ng Pilipinas (BSP) limited authority to examine and investigate bank accounts, e-wallets, and other financial accounts that are involved in prohibited acts.
“This could help the SEC, through the AMLC and BSP, not only to identify and pursue the individuals and entities behind these investment scams faster but also to bring up our chances of recovering the hard-earned money of the scam victims,” Aquino noted.
In parallel, the SEC is looking at administrative seizures to further strengthen its enforcement capabilities.
Under the Financial Products and Services Consumer Protection Act (FCPA), for instance, the Commission may enter an order requiring accounting and disgorgement of profits obtained, or losses avoided, as a result of a violation of the FCPA and other existing laws, including reasonable interest, in addition to penalties it may impose for such violation.
“While we celebrate this milestone of finally exiting the grey list, our work does not stop here. The SEC reiterates its commitment to implementing the necessary measures in compliance with the evolving global AML/CFT standards, to ensure that the Philippines being on the FATF grey list will finally become a thing of the past,” Aquino said.
