SEC Deepens Commitment Against Money Laundering as PH Exits Europe High-Risk List

The Securities and Exchange Commission (SEC) has reaffirmed its commitment to strengthen efforts to combat money laundering and terrorism financing in the corporate sector, following the Philippines’ exit from the European Commission’s (EC) list of high-risk jurisdictions for financial crimes.

The EC, the executive body of the European Union, on June 10 issued a statement announcing the removal of the Philippines from the high-risk list, along with seven other jurisdictions.
 
The country’s delisting jumps off from the same reforms the Philippines implemented to strengthen its anti-money laundering and counter-terrorism financing (AML/CFT) framework, driving its exit from the grey list of the global watchdog Financial Action Task Force (FATF).
 
“The SEC welcomes the Philippines’ exit from the EC list of high-risk jurisdictions. 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,” SEC Chairperson Francis Ed. Lim said.
 
“As the overseer of the corporate sector and the capital market, 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,” he added.
 
In February, the FATF officially announced the Philippines’ exit from the list of jurisdictions under increased monitoring since its inclusion in June 2021, citing reforms that addressed strategic deficiencies in its AML/CFT framework.
 
As part of the Marcos administration’s whole-of-government approach, the SEC has been instrumental in driving reforms that drove the grey list exit. These reforms responded to concerns on beneficial ownership information disclosure and registration of non-profit organizations (NPOs).
 
The SEC, as early as 2019, has strengthened the disclosure of beneficial ownership data, requiring companies to declare such information in their general information sheets.
 
Likewise, it prevented the issuance and sale of bearer shares and bearer share warrants in 2021 to boost transparency and prevent the use of corporations for illegal activities.
 
Early this month, the Commission launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR), an online platform that caters to the submission and updating of beneficial ownership information.
 
This will enable the SEC to provide faster and more reliable beneficial ownership data to businesses, regulators and government agencies.
 
To improve transparency among NPOs, the SEC has conducted outreach and knowledge-sharing activities to encourage them to register with the Commission to minimize the risk of being used for illicit financing activities.
 
These efforts resulted in the registration of nearly 8,000 NPOs since 2021.
 
The SEC is also strengthening the enforcement of AML/CFT policies over financial institutions under its jurisdiction, including brokers, dealers, lending and financing corporations, and other securities dealers.
 
Recently, the SEC issued Memorandum Circular Nos. 4 and 5, Series of 2025, providing for the SEC Rules on Crypto-Asset Service Providers and SEC Guidelines on the Operations of Crypto-Asset Service Providers, respectively. The rules seek to ensure investor protection while supporting innovative financial products.
 
“Necessary systems and measures are already in place. The SEC will remain proactive in ensuring that these are strictly implemented and complied with, to prevent the country’s relisting and to foster a sound business environment where companies can thrive,” Mr. Lim said.​