The Paris-based Financial Action Task Force (FATF) has acknowledged the progress the Philippines has made in key areas of money laundering and terrorist financing that has fueled optimism for Manila to exit the FATF grey list.
This was learned Monday from the Securities and Exchange Commission (SEC) whose top official attended the FATF plenary meeting held in Singapore from 23 to 28 June who also said the country’s progress has caught the attention of the global financial sector watchdog.
The SEC said the FATF noted the increase in the number of money laundering investigations and prosecution, enforcing beneficial ownership transparency obligations, ensuring law enforcement access to beneficial ownership data records and implementing risk-based supervision of designated non-financial businesses and professions.
The grey list identifies countries that are actively working with the FATF in addressing deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing.
Countries under increased FATF monitoring mean such jurisdictions have committed to swiftly resolve the identified strategic deficiencies within agreed timeframes.
One of the key contributors to this development had been the SEC who in 2019 and 2020 mandated the declaration of beneficial ownership in the general information sheets of domestic and foreign corporations and made these available to competent authorities including the Philippine National Police, the Bureau of Internal Revenue, the Philippine Drug Enforcement Agency and the National Bureau of Investigation.
In 2021, the SEC prohibited the issuance and sale of bearer shares and bearer share warrants which were crucial in promoting transparency and curbing the misuse of corporations for illicit activities.
“The SEC remains dedicated to sustaining the gains made in beneficial ownership transparency and compliance,” SEC chairman Emilio B. Aquino said.
“The recognition of these significant milestones by FATF underscores the SEC’s commitment to being a reliable partner in the global fight against money laundering and terrorism financing. It also demonstrates our full support for the government’s effort to get out of the FATF grey list,” said Aquino.
In support of the ease of doing business, the SEC in 2023 initiated an amnesty program enhancing compliance with reportorial requirements. Over 85,000 corporations participated in the program, allowing them to rectify delinquencies and waive past penalties while fulfilling only a single fee requirement.
