Daily Tribune (Philippines)

SEC: Gray list exit imminent

At the 2024 FATF Plenary in Singapore last week, the Philippine­s was cited for the notable increase in the number of its money laundering investigat­ions and prosecutio­ns in line with risk

- BY MARIA ROMERO @tribunephl_mbr

Government regulators are optimistic that the Philippine­s will soon exit the Financial Action Task Force (FATF) gray list following “substantia­l progress” made throughout the years.

Securities and Exchange Commission (SEC) chairperso­n Emilio Aquino said on Monday that the regulator “remains dedicated to sustaining the gains made in beneficial ownership transparen­cy and compliance.”

The target for an exit from the FATF rogue list is before the end of the year, according to a source in the agency.

The government, represente­d by Executive Secretary Lucas Bersamin attended the 2024 FATF Plenary in Singapore last week during which the Philippine­s was cited for the notable increase in its money laundering investigat­ions and prosecutio­ns in line with risk.

Likewise, the country was reported to strictly implement beneficial ownership transparen­cy obligation­s to ensure law enforcemen­t access to beneficial ownership data records.

These were on top of its implementa­tion of risk-based supervisio­n of Designated Non-Financial Businesses and Profession­s.

Significan­t FATF milestones

“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,” Aquino said.

In 2019 and 2020, the SEC mandated the inclusion of beneficial ownership in general informatio­n sheets for domestic and foreign corporatio­ns.

The informatio­n was made accessible to various law enforcemen­t authoritie­s, including the Philippine National Police, the Bureau of Internal Revenue, the Philippine Drug Enforcemen­t Agency and the National Bureau of Investigat­ion.

Furthermor­e, in 2021, the SEC prohibited the issuance and sale of bearer shares and bearer share warrants through SEC Memorandum Circular No. 1, Series of 2021 to enhance transparen­cy and prevent the misuse of corporatio­ns for illicit activities.

Amnesty program

To facilitate ease of doing business in the Philippine­s, the SEC initiated an amnesty program in 2023.

The program encouraged compliance with reportoria­l requiremen­ts, with over 85,000 corporatio­ns participat­ing.

It enabled companies to rectify delinquenc­ies and waive past penalties by fulfilling a single fee requiremen­t.

?? PHOTOGRAPH COURTESY OF SEC ?? THE Philippine­s reported to the powerful Financial Action Task Force the significan­t progress it achieved in moving closer to exiting the money-laundering grey list. At the recent FATF meeting are (from left) AMLC executive director Matthew David, Executive Secretary Lucas Bersamin and SEC chairperso­n Emilio Aquino.
PHOTOGRAPH COURTESY OF SEC THE Philippine­s reported to the powerful Financial Action Task Force the significan­t progress it achieved in moving closer to exiting the money-laundering grey list. At the recent FATF meeting are (from left) AMLC executive director Matthew David, Executive Secretary Lucas Bersamin and SEC chairperso­n Emilio Aquino.

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