The Securities and Exchange Commission (SEC) on Tuesday reaffirmed its commitment to combating money laundering and terrorism financing in the corporate sector, following the Philippines’ removal from the European Commission’s (EC) list of high-risk jurisdictions for financial crimes.
The EC, the executive arm of the European Union, announced on 10 June that the Philippines, along with seven other jurisdictions, was delisted after demonstrating significant progress in strengthening its anti-money laundering and counter-terrorism financing (AML/CFT) frameworks.
SEC chairman Francis Lim welcomed the development, stating it reflects the country’s firm resolve to safeguard financial integrity. “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,” he said.
The SEC has implemented several reforms to support the Philippines’ exit from global watchlists, including the Financial Action Task Force’s (FATF) grey list, from which the country was removed in February. These reforms include the 2019 mandate requiring corporations to disclose beneficial ownership information in their general information sheets.
More recently, the SEC launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR), a digital platform for submitting and updating beneficial ownership records. The system is designed to enhance transparency and provide timely data access for regulators, businesses, and government agencies.
“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,” Lim added. “We remain proactive in enforcing these measures to prevent future relisting and ensure a sound and trustworthy business environment.”
