The Securities and Exchange Commission (SEC) reaffirmed its commitment to combating money laundering and terrorism financing within the corporate sector, following the Philippines’ removal from the European Commission’s (EC) list of high-risk jurisdictions for financial crimes.
The EC announced the delisting of the Philippines and seven other countries on June 10, 2025. The decision follows significant reforms, which also led to the country’s removal from the Financial Action Task Force (FATF) grey list earlier this year. The FATF is a global watchdog on financial crime.
“The SEC welcomes the Philippines’ exit from the EC list of high-risk jurisdictions,” said SEC chairman Francis Lim.
“This milestone emphasizes the country’s 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 overseer of the corporate sector and the capital market, the SEC will continue adopting best practices in AML/CFT (anti-money laundering and counter terrorism financing) regulation, in line with global standards, to ensure that the corporate vehicle will not be used for illicit funding,” said Lim.
The Philippines was placed on the FATF grey list in June 2021 and exited in February 2025 after implementing reforms addressing concerns about beneficial ownership and the registration of non-profit organizations (NPOs).
Since 2019, the SEC has mandated companies to declare beneficial ownership in their general information sheets. In 2021, it banned the issuance and sale of bearer shares and bearer share warrants to enhance transparency.
Earlier this month, the SEC launched the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR). The online platform enables businesses to submit and update beneficial ownership information, providing faster and more reliable data to regulators and government agencies.
To improve oversight of NPOs, the SEC also encouraged their registration. Since 2021, nearly 8,000 non-profit organizations have registered with the SEC.
The SEC said it is also intensifying its enforcement of AML/CFT rules over supervised financial institutions, including brokers, dealers, and lending and financing firms.
“Necessary systems and measures are already in place. 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,” said Lim.
