The Securities and Exchange Commission (SEC) has reaffirmed its commitment to maintaining robust checks and balances to keep the Philippines off the European Commission’s (EC) list of high-risk jurisdictions for money laundering and terrorism financing.
In a statement on Tuesday, the SEC said it remains proactive in implementing and enforcing measures aimed at combating financial crimes in the corporate sector.
The assurance came after the European Commission announced on June 10 that it had updated its list of high-risk jurisdictions with strategic deficiencies in anti-money laundering and counter-terrorism financing (AML/CFT) frameworks. The Philippines was among the countries removed from the list.
“Necessary systems and measures are already in place,” SEC Chairman Francis Lim said. “The SEC will 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.”
Lim noted that the country’s delisting follows the same reform track that led to its removal from the Financial Action Task Force’s (FATF) gray list in February.
“This affirms the Philippines’ strong commitment to ensuring the integrity of the financial and corporate sectors, making the country a more attractive hub for investors,” he said.
As the primary regulator of the corporate sector and capital markets, the SEC said it continues to adopt global best practices in AML/CFT regulation to ensure corporate vehicles are not exploited for illicit funding.
Key reforms highlighted by the SEC include tighter monitoring of beneficial ownership disclosures and increased registration of non-profit organizations (NPOs), two areas identified as vulnerable to misuse.
Since 2019, companies have been required to disclose beneficial ownership information in their General Information Sheets. In 2021, the SEC banned the issuance and sale of bearer shares and bearer share warrants to bolster transparency.
Earlier this month, the agency launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR)—a digital platform designed to provide businesses, regulators, and government agencies with more efficient access to beneficial ownership data from SEC records.
The SEC has also encouraged greater compliance among NPOs, resulting in the registration of nearly 8,000 organizations since 2021 to reduce the sector’s exposure to illicit financing risks.
Additionally, the agency is tightening AML/CFT oversight of financial institutions under its jurisdiction, including brokers, dealers, and lending and financing firms.
To keep pace with emerging risks, the SEC recently issued Memorandum Circular Nos. 4 and 5, Series of 2025, setting the regulatory framework for crypto-asset service providers. The new rules aim to strike a balance between investor protection and support for financial innovation.
