SEC strengthens AML/CFT rules after grey list delisting

The Securities and Exchange Commission (SEC) will strengthen its anti-money laundering and terrorism financing (AML/CFT) rules following the Philippines' delisting from the Financial Action Task Force (FATF) grey list and the European Commission's (EC) list of high-risk jurisdictions.

SEC Chairperson Francis Ed. Lim stated that the SEC will continue adopting best practices in AML/CFT regulation, in line with global standards, to prevent the corporate vehicle from being used for illicit funding.

Necessary systems and measures are already in place, and the SEC will remain proactive in ensuring their strict implementation and compliance to prevent the country's relisting.

The EC announced the country's delisting on June 10, several months after FATF removed the Philippines from its grey list in February.

The SEC has already implemented key reforms, including mandatory disclosure of beneficial ownership data and a 2021 ban on bearer shares.

Additionally, the SEC launched the HARBOR system this month to streamline the submission and updating of beneficial ownership records.