SEC vows continued reforms for FATF compliance

THE Securities and Exchange Commission (SEC) is aiming to continue its reforms and initiatives to help keep the country off the Financial Action Task Force’s (FATF) gray list ahead of the scheduled assessment in 2027, its chairman said.

“The next two years will be crucial for the country as we prepare for the next round of mutual evaluation for the assessment of our anti-money laundering and counter-terrorism financing (AML/CFT) framework,” SEC Chairperson Emilio B. Aquino said in an e-mail statement over the weekend.

In February, the Philippines was removed from the FATF’s gray list, which includes jurisdictions under increased monitoring for “dirty money” following a successful on-site visit and completion of the recommended action plan.

The country had been on the FATF’s gray list for more than three years, since June 2021.

“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,” Mr. Aquino said.

The SEC launched its fourth wave of digital initiatives last week, including the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR) platform, which promotes transparency in beneficial ownership data.

HARBOR provides a platform for the submission and updating of beneficial ownership information, allowing businesses, regulators, and government agencies to access faster and more reliable data.

The SEC previously strengthened beneficial ownership data disclosure among companies through a revised general information sheet in 2019. It also prohibited the issuance and sale of bearer shares and bearer share warrants in 2021 to prevent the use of corporations for illegal activities.

In 2023, the corporate regulator implemented an amnesty program to increase the compliance rate of companies in submitting reportorial requirements. It also advocated for the registration of nearly 8,000 non-profit organizations since 2021 as part of its efforts to expand transparency. — Revin Mikhael D. Ochave