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Philippines: SEC targets financing, lending firms in dirty money crackdown
MANILA, Philippines — The Securities and Exchange Commission (SEC) is mandating all financing and lending companies to submit a program aimed at preventing money laundering and terrorist financing.
All entities seeking to operate as financing and lending companies must submit their respective anti-money laundering and terrorist financing blueprint not later than June 21.
“As covered persons (CPs) supervised and regulated by the SEC, you are required to formulate and implement a comprehensive and risk based money laundering and terrorist financing prevention program (MTPP),” the SEC said in a notice to these entities.
For new applicants, the SEC said once their application for registration or licensing is approved, the CPs shall submit a soft copy of the MTPP within 10 days from receipt of their certification of registration and secondary license from the SEC.
The move is part of the SEC’s efforts to fight money laundering and terrorist financing in the Philippines. The SEC is part of the Anti-Money Laundering Council.
It has also been stepping up its anti-money laundering regulations in the securities market.
The SEC earlier noted that the Philippine securities sector is at medium risk for money laundering and terrorist financing.
Some P11.5 billion worth of flagged transactions were assessed or a total 774 suspicious transactions from 2017 to 2019, some of which were found linked to illegal activities.
“Of the total, 4.9 percent was linked to the predicate crime of plunder, 2.5 percent to graft and corrupt practices, 0.9 percent to drug trafficking and related offenses, and 0.6 percent to fraudulent practices and other violations of Republic Act No. 8799, or the Securities Regulation Code,” the SEC said.
A majority of the transactions were suspected to have been facilitated for the commission of the predicate crimes within the Philippines, while five transactions were suspected to have been committed in China.
Source: https://www.philstar.com/business/2021/06/15/2105473/sec-targets-financing-lending-firms-dirty-money-crackdown