SEC role in FATF gray list exit cited

The Office of the President recognized the Securities and Exchange Commission (SEC) for its pivotal role in the Philippines’ exit from the gray list of global financial crimes watchdog Financial Action Task Force (FATF).

In a ceremony at the Malacañang Palace on 5 May, President Ferdinand R. Marcos Jr., with Executive Secretary Lucas P. Bersamin, recognized the Commission for implementing reforms in the corporate sector that were crucial in enhancing the country’s anti-money laundering and counter-terrorism financing (AML/CFT) framework.

SEC chairperson Emilio Aquino, alongside members of the SEC Enforcement and Investor Protection Department, was likewise cited for his leadership in spearheading programs that helped the country meet international standards set by the global watchdog.

The commission was among several other government agencies recognized by the President and the National Anti-Money Laundering, Counter-Terrorism Financing (AML-CTF), Counter-Proliferation Financing Coordinating Committee (NACC) for their active participation in facilitating and operationalizing action plans to enhance the country’s AML-CTF framework.

“It is an honor to be recognized by no less than the president for our efforts in the milestone exit from the FATF gray list last February. This serves as a testament to our hard work and commitment to enhance and uphold financial integrity in the Philippines, especially in the corporate sector,” Aquino said.

Following the country’s inclusion in the gray list in June 2021, the FATF issued an action plan to improve the country’s AML/CFT framework. The plan addresses concerns about beneficial ownership, non-profit organizations, regulation of designated non-financial businesses and professions, and casino junkets.

The Marcos administration subsequently instituted a whole-of-government approach, through the leadership of the NACC, to meet the action plans.

For its part, the SEC strengthened beneficial ownership data disclosure of companies by issuing a revised general information sheet as early as 2019.

In 2021, it also prohibited the issuance and sale of bearer shares and bearer share warrants to boost transparency and prevent the use of corporations for illegal activities.

The SEC then implemented an amnesty program in 2023 to urge companies to comply with the submission of reportorial requirements, resulting in a significant increase in compliance rate to 69 percent in February 2025 from 26 percent in 2021.

The Commission also enhanced transparency among NPOs to ensure that they would not be subject to terrorist financing. It identified and audited high-risk NPOs while ensuring minimal disruption to legitimate operations.

8K NPOs registered

It further encourages unregistered NPOs to incorporate with the SEC, registering nearly 8,000 NPOs since 2021.

The SEC also enhanced its risk-based regulatory approach for the AML/CFT compliance of covered institutions under its jurisdiction.

The SEC aims to sustain these reforms and continue addressing emerging risks in the country’s AML/CFT framework to keep the country out of the grey list.

To further promote transparency in beneficial ownership data, the SEC recently launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR) as part of the fourth wave of its digital initiatives.

HARBOR is an online platform dedicated to submitting and updating beneficial ownership information. It enables the provision of faster and more reliable data to businesses, regulators and government agencies.

“The next two years will be crucial for the country as we gear toward the next round of mutual evaluation for the assessment of our AML/CFT framework,” Aquino said.

“The SEC remains steadfast in its commitment to leverage innovation to enhance transparency in the corporate sector and to strengthen its enforcement and monitoring capabilities to ensure that companies are not misused for illicit activities,” he added.