The Philippines Securities and Exchange Commission has published its 2021 AML/CFT sectoral risk assessment of the securities sector. Highlights of this report are discussed below.
Based on the risk assessment, the Commission has given an overall ML/TF risk rating of ‘medium’ to the securities sector. This rating takes into account the evaluation of the ML/TF criminal threat environment, vulnerabilities and related consequences.
As per the Commission’s criminal threat assessment, the Philippines’ securities sector faces a ‘medium’ ML criminal threat environment and a ‘medium-low’ TF threat environment. Looking at various sub-sectors within the securities sector, the ML crime threat for brokers/dealers is medium, for investment houses/underwriters of securities is medium-high, for government securities eligible dealers is low, and for investment company advisors/mutual fund distributors/investment companies is medium-low. Overall, the risk assessment found the ML/TF vulnerability of the securities sector to be ‘medium’. The report has rated the overall consequences of ML/TF activity in the securities sector as medium or moderate.
Based on this risk assessment, the Commission has decided to develop regular reporting and data collection systems for persons in the securities sector. The Commission will also conduct regular on-site and off-site inspections which will include risk-profiling. Furthermore, training activities will be conducted to teach stakeholders about ML/TF risks and counter-measures in the securities sector.
Source: Securities and Exchange Commission, Republic of the Philippines