THE Securities and Exchange Commission (SEC) said its digitalization efforts are being undertaken in support of the Philippines’ bid to exit the Financial Action Task Force’s (FATF) “gray list,” which could happen by next year.
“For our part, the SEC will continue investing in digitalizing and optimizing resources to ensure that the reforms we have implemented are sustainable,” SEC Chairman Emilio B. Aquino said in a statement on Monday.
“We will also remain unwavering in our dedication to transparency and compliance, as we build on our gains and work alongside local and international partners to further strengthen our anti-money laundering and combating of financing of terrorism (AML/CFT) efforts,” he added.
In its October plenary, global anti-money laundering regulator FATF kept the Philippines on its list of jurisdictions subject to increased monitoring for dirty money risks. The Philippines has been on the gray list since June 2021.
However, the FATF noted that the Philippines has addressed the remaining deficiencies in the recommended action items to improve its AML/CFT regime.
The FATF is planning to visit the Philippines by February to validate the progress claimed.
“FATF member countries impose restrictions and additional checks, and possibly refusal, of financial transactions with countries in the blacklist. These result in failed transactions, delays, and costs that may be passed on to consumers,” the SEC said.
The SEC has since required a declaration of beneficial ownership to accompany the general information sheets of all corporations.
In 2021, the SEC prohibited the issuance and sale of bearer shares and bearer share warrants to promote transparency and discourage the misuse of corporations for illicit activities.
The commission also invested in technology and human resources to simplify the ease of registration and compliance.
“Looking forward, the SEC is committed to sustaining its AML/CFT reforms through enhanced supervision, continuous audits, and the inclusion of beneficial ownership registry initiatives within its strategic plan for 2023 to 2028,” Mr. Aquino said.
“These measures underscore the SEC’s long-term commitment to protecting the financial system against illicit activities while supporting the Philippines’ journey toward a full exit from the FATF gray list,” he added. — Revin Mikhael D. Ochave