The Philippines is moving closer to exiting the Financial Action Task Force (FATF) gray list, according to Securities and Exchange Commission (SEC) chairperson Emilio Aquino, who attended the FATF plenary meeting in Singapore last week.
The global money laundering and terrorist financing watchdog acknowledged the substantial progress made by the Philippines including demonstrating an increase in money laundering (ML) investigations and prosecutions in line with risk; enforcing beneficial ownership transparency obligations and ensuring law enforcement access to beneficial ownership data records; implementing risk-based supervision of Designated Non-Financial Businesses and Professions (DNFBPs).
“The SEC remains dedicated to sustaining the gains made in beneficial ownership transparency and compliance,” Aquino said in a statement.
“The recognition of these significant milestones by FATF underscores the SEC’s commitment to being a reliable partner in the global fight against money laundering and terrorism financing. It also demonstrates our full support for the government’s effort to get out of the FATF grey list,” he said.
The SEC said to address some of the concerns, it mandated the declaration of beneficial ownership in the general information sheets (GIS) of domestic and foreign corporations and made the same available to competent authorities of law enforcement among which includes the Philippine National Police, the Bureau of Internal Revenue, the Philippine Drug Enforcement Agency, and the National Bureau of Investigation.
It prohibited in 2021 the issuance and sale of bearer shares and bearer share warrants through SEC Memorandum Circular No. 1, Series of 2021. These measures were crucial in promoting transparency and curbing the misuse of corporations for illicit activities.
The corporate regulator also initiated an amnesty program in 2023 to enhance compliance with reportorial requirements. Over 85,000 corporations participated in the program, allowing them to rectify any delinquencies and waive past penalties while fulfilling only a single fee requirement.
During the FATF plenary, the Philippine government, represented by Executive Secretary Lucas Bersamin, reaffirmed its commitment to continuing its efforts to combat money laundering, terrorism financing, and proliferation financing of weapons of mass destruction.