Philippine exit from list of ‘risky’ markets seen raising investor interest
Securities and Exchange Commission (SEC) —PHOTO FROM SEC WEBSITE
MANILA, Philippines — The Philippines will likely become a “more attractive hub” for investors following its removal from the European Commission’s list of jurisdictions where there is a “high risk” of financial crimes, according to the Securities and Exchange Commission (SEC).
In a statement on Tuesday, SEC chair Francis Lim said the country’s exit from the list emphasized its “strong commitment to ensuring the integrity of the financial and corporate sectors.” This makes the Philippines’ a less risky investment destination.
Lim vowed to continue adopting best practices in combating antimoney laundering and counterterrorism financing—or AML/CTF—in line with global standards. This would ensure that the SEC would be helpful in global efforts against illicit funding.
“Necessary systems and measures are already in place,” Lim added. “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.”
READ: Staying off ‘dirty money’ lists
EU updates list
This comes days after the European Union updated its list of jurisdictions with a “high risk” of money laundering and terrorism financing. The update officially delisted the Philippines along with seven others.
READ: Philippines exits EU ‘high-risk’ dirty money list
According to the trading bloc, it had taken into consideration the intergovernmental Financial Action Task Force’s decision in February to remove the Philippines from its own “grey list” of jurisdictions that are under increased monitoring. This was nearly four years since the Philippines was included in the grey list in June 2021.
Although Lim did not elaborate on which industries would benefit the most from the Philippines’ delisting, the SEC earlier said banks and other financial institutions would likely stand out, resulting in “billions in foreign direct investments.”
For its part, the SEC noted it had issued more stringent rules in the disclosure of beneficial ownership data. This must now be included in companies’ general information sheets.
