During the announcement that the Philippines has finally exited the Financial Action Task Force’s (FATF) grey list, the Securities and Exchange Commission (SEC) expressed its plans to stay off the list.
- Being on the grey list means a country is placed under increased monitoring while addressing strategic deficiencies in its regimes to counter money laundering, terrorist financing, and proliferation financing.
- The Philippines was included in the grey list in June 2021 and was removed in February 2025.
“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.”
Emilio Aquino, Chairperson, Securities and Exchange Commission
These plans were presented by the SEC during a February 27, 2025 press conference where BitPinas was among the media outlets invited.
Plan #1: Project HARBOR
In 2025, the SEC announced that it would launch Project HARBOR, or the Hierarchical Applicable Relations and Beneficial Ownership Registry.
- This will be a registry of beneficial ownership (BO) information that will be easily accessible to partner agencies through data-sharing agreements.
According to the Commission, improved collection and management of BO information for companies was one of the key factors that helped push the Philippines out of the grey list.
“With Project HARBOR in place, the SEC will be able to streamline beneficial ownership disclosures, promote regulatory transparency, and enhance compliance with global AML/CFT standards.”
The registry boasts features such as automated data validation, configurable access levels for authorized users, and analytical tools for identifying complex ownership structures.
- Furthermore, the system will be integrated with the SEC’s existing online company registration system, the Electronic Simplified Processing of Application for Registration of Companies.
Plan #2: Expanded NPO outreach
The regulator also expressed its intent to continue conducting outreach and knowledge-sharing activities for non-profit organizations (NPOs).
- According to the SEC, it urges NPOs to register with the Commission to reduce the risk of being used for money laundering and terrorist financing, as these organizations are common targets of such schemes.
- The Commission emphasized that, alongside its outreach activities for NPOs, it is now working with other regulatory bodies to expand outreach programs involving NPOs and local government units.
Plan #3: Stronger AML/CFT Capabilities
The SEC informed the media that it is seeking support from the Marcos administration to strengthen its enforcement capabilities, particularly regarding Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act.
- For instance, the Commission may issue an order requiring the accounting and disgorgement of profits obtained or losses avoided as a result of a legal violation, including reasonable interest, in addition to any penalties it may impose.
“This could help the SEC, through the AMLC (Anti-Money Laundering Council) and BSP (Bangko Sentral ng Pilipinas), not only to identify and pursue the individuals and entities behind these investment scams faster but also to bring up our chances of recovering the hard-earned money of the scam victims.”
Financial institutions under the SEC’s jurisdiction that will be subject to its anti-money laundering and countering the financing of terrorism (AML/CFT) policies include brokers, dealers, lending and financing corporations, and other securities dealers.
Plan #4: Crypto Asset Service Providers
The SEC directly mentioned that digital assets, including cryptocurrencies, are being used for financial crimes.
As a result, it is currently drafting rules on crypto-asset service providers (CASP) to enhance its oversight and supervision of businesses involved in offering, trading, and other activities related to innovative financial products.
The regulator is also seeking further comments and suggestions to improve the draft rules.
“While we celebrate this milestone of finally exiting the grey 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 grey list will finally become a thing of the past.”
Emilio Aquino, Chairperson, Securities and Exchange Commission
This article is published on BitPinas: Philippines Exits FATF Grey List: SEC Unveils Plans to Strengthen AML Compliance
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