SEC sees increase in foreign business registrations after PH's exit from FATF ‘grey list’

The Securities and Exchange Commission (SEC) is expecting an increase in foreign businesses registering with the country’s corporate regulator following the Philippines’ removal from an international list of jurisdictions notorious for being safe havens of money laundering and terrorism financing.

“We look forward to the positive outcome because of our exit… but even before the [grey list] exit there are a number of companies coming in already,” SEC chairman Emilio Aquino said at a press conference in Makati City on Thursday.

Aquino noted that there are already 10,000 companies registered under the SEC’s Foreign Investment Registration Station since it was launched in 2023.

“We would expect that would increase… With our removal, we will be [more] attractive,” the SEC chairman said.

Last week, the Paris-based Financial Action Task Force (FATF) announced its decision to remove the Philippines from its list of countries under increased monitoring for dirty money, nearly four years since Manila’’s inclusion in the so-called “grey list.”

“‘Yung pag exit natin this is a positive catalyst for investors… As a result of that, they will lease infrastructure, engage in construction, hire our local people and spur more spending eh consumption driven economy tayo eh,” Aquino said.

“We expect an increase in the foreign direct investments or FDIs as well as possible credit rating upgrade. I can’t straightforwardly say the amounts but it will be substantial. It will be billions,” he added.

Aquino, however, said the Philippines should not be complacent and must sustain reforms that drove its successful exit from the FATF grey list, continue to identify emerging risks and gaps in the country’s anti-money laundering and counter-terrorist financing (AML/CFT) framework, and promptly implement the necessary measures, especially in the next two years.

“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,” said Aquino.

“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 grey list," he added.

"Therefore, continued vigilance, policy enhancements, and effective enforcement remain critical to ensuring that the Philippines stays off the grey list and maintains its position as a reliable and competitive financial hub in the region,” Aquino said.

The SEC chairman said that the agency is also looking at the rise of virtual currencies and other digital assets and how they can be used by illicit actors to perpetuate financial crimes. 

The commission is drafting new rules on crypto-asset service providers (CASP), which aims to enhance its oversight and supervision of businesses that involve the offering and trading, as well as other activities of innovative financial products. –NB, GMA Integrated News