https://www.philstar.com/business/2025/06/18/2451300/sec-beefs-fight-vs-money-laundering

The Securities and Exchange Commission (SEC) intends to further reinforce its efforts to combat money laundering and terrorism financing in the corporate sector as it welcomed the country’s’ exit from the European Commission (EC)’s list of high-risk jurisdictions for financial crimes.

In a statement, the SEC has reaffirmed its commitment to strictly implement the measures in place to prevent money laundering and terrorism finance in the corporate sector.

The EC, the executive body of the European Union, issued on June 10 a statement announcing the removal of the Philippines from the high-risk list, along with seven other jurisdictions.

“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 Lim said.

The delisting of the Philippines comes on the heels of reforms implemented to strengthen the country’s anti-money laundering and counter-terrorism financing (AML/CFT) framework, which also previously resulted in its exit from the gray list of the global watchdog Financial Action Task Force.

The FATF officially announced in February 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 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,” Lim said.

With necessary systems and measures already in place, Lim said the SEC would 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.”

The SEC has played a key role in driving reforms that drove the country’s gray list exit, such as responding to concerns on beneficial ownership information disclosure and registration of non-profit organizations (NPOs).

As early as 2019, the commission has strengthened the disclosure of beneficial ownership data, requiring companies to declare such information in their general information sheets.

It also 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 SEC launched an online platform that caters to the submission and updating of beneficial ownership information.

The online platform called Hierarchical and Applicable Relations and Beneficial Ownership Registry 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 likewise 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.

The efforts have resulted in the registration of nearly 8,000 NPOs since 2021.