SEC trumpets reforms as Philippines readies gray list exit

October 29, 2024 | 12:00am

MANILA, Philippines — The Securities and Exchange Commission (SEC) is committing to sustain reforms in anti-money laundering and combating of financing of terrorism as the country moves to exit from the global dirty money gray list of the Financial Action Task Force.

The FATF has announced at its October plenary that “the Philippines has substantially completed its action plan” composed of 18 items that had kept the country under increased monitoring since June 2021.

The SEC said that the country’s failure to address the remaining action plan items would have put it at the risk of entering the blacklist.

“This significant milestone demonstrates the Philippines’ strong commitment to tackling money laundering and terrorism financing by adopting crucial reforms aligned with global standards and best practices,” SEC chairperson Emilio Aquino said.

According to the SEC, the FATF Asia/Pacific Joint Group will now proceed with an on-site visit early next year to verify that the reforms on the implementation of anti-money laundering and combating of financing of terrorism have started and are being sustained.

It will also check that the necessary political commitment remains in place to sustain implementation.

Aquino said that the SEC would continue investing in digitalizing and optimizing resources to ensure that the reforms implemented will be sustainable.

“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 efforts,” he said.

Under Aquino’s leadership, the SEC spearheaded reforms through its active role in the Anti-Money Laundering Council.

It has also partnered with regulatory bodies, law enforcement agencies and non-profit organizations to conduct targeted audits, outreach activities and workshops with financial institutions.

Further, the commission has contributed to the successful implementation of other key reforms demonstrating risk-based supervision of designated non-financial businesses and professions, as well as the increase in the use of financial intelligence and an increase in money laundering investigations and prosecutions in line with risk.

“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,” Aquino said.

“Looking forward, the SEC is committed to sustaining its anti-money laundering and combating of financing of terrorism reforms through enhanced supervision, continuous audits and the inclusion of beneficial ownership registry initiatives within its strategic plan for 2023 to 2028,” he said.