https://www.pna.gov.ph/articles/1245071

The Securities and Exchange Commission (SEC) has vowed to roll out reforms that will keep the Philippines out of the Financial Action Task Force’s (FATF) "gray list" or countries with deficiencies in their anti-money laundering and combating the financing of terrorism (AML/CFT).

In a press conference at the SEC main office in Makati City on Thursday, SEC Chairperson Emilio Aquino said they are ready to implement reforms such as the Project HARBOR (Hierarchical Applicable Relations and Beneficial Ownership Registry), the expanded non-profit organization (NPO) outreach, the drafting of new rules on crypto-asset service providers (CASP), and strengthening its enforcement capabilities.

"The next two years will be crucial, as the Philippines prepares for another mutual evaluation, where the country's AML/CFT standards will be assessed for their compliance with global standards," Aquino said.

“Failure to address identified risks —such as gaps in beneficial ownership transparency, enforcement actions, or emerging financial threats— could increase our risk of going back to the gray list. Therefore, continued vigilance, policy enhancements, and effective enforcement remain critical to ensuring that the Philippines stays off the gray list and maintains its position as a reliable and competitive financial hub in the region."

Aquino said SEC will launch the Project HARBOR, a beneficial ownership (BO) registry, which aims to improve collection and management of data.

He said the project will employ automated data validation, configurable access levels for authorized users, and analytical tools for identifying complex ownership structures, and will be integrated to the electronic Simplified Processing of Application for Registration of Companies (eSPARC).

"Project HARBOR will modernize how we manage beneficial ownership data, reducing manual interventions and facilitating a secure, efficient disclosure process for corporations, thereby addressing the concern on the accuracy of BO information submitted to the SEC," Aquino said.

He added SEC will also intensify its regular offsite and onsite visits to non-profit organizations (NPOs), which are being used for money laundering and terrorist financing.

"We recognize the important role that non-profit organizations play in nation-building through the advocacies they put forward. At the SEC, our goal of regulation is to improve corporate governance without unduly burdening legitimate NPO activities," Aquino said.

With the rise of virtual currencies and other digital assets that can be used in financial crimes, the SEC is also drafting new rules on CASP to enhance its oversight of businesses offering and trading crypto assets.

The SEC also vowed to intensify its enforcement capabilities with the powers provided to it under Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act (FCPA).

Under this law, SEC may order to require accounting and disgorgement of profits obtained, or losses avoided, as a result of a violation of the FCPA and other existing laws.

“While we celebrate this milestone of finally exiting the gray list, our work does not stop here. The SEC reiterates its commitment to implementing the necessary measures in compliance with the evolving global AML/CFT standards, to ensure that the Philippines being on the FATF gray list will finally become a thing of the past,” Aquino said.