PH SEC Partners With US Counterpart to Fight Crypto Fraud

• The  Securities and Exchange Commission of the Philippines hosted two workshops with the U.S. SEC, the Asian Development Bank, and the International Organization of Securities Commissions.
• From August 14 to 17, 2023, the PH SEC joined the IOSCO Workshop and Investigation and Enforcement Training Workshop at the SEC Headquarters in Makati City. 
• On August 18, 2023, the PH SEC signed a Multilateral Memorandum of Understanding with the US. SEC, IOSCO, and ADB, and had the Exchange of Information Public Workshop 2023.

Aiming to strengthen its capability to protect the public from securities fraud and other forms of investment scams, the  Securities and Exchange Commission of the Philippines (PH SEC) hosted two workshops with the U.S. SEC, the Asian Development Bank (ADB), and the International Organization of Securities Commissions (IOSCO).

“Scammers are becoming more advanced and sophisticated in their techniques as new technologies arise. As such, the SEC must constantly improve its investigation and enforcement capabilities to ensure that we are always one step ahead in preventing scams.”

Emilio Aquino, Chairperson, SEC

Investigation and Enforcement Training Workshop

From August 14 to 17, 2023, the PH SEC joined the IOSCO Workshop and Investigation and Enforcement Training Workshop at the SEC Headquarters in Makati City. 

Founded in 1983, IOSCO claims to be the global standard setter for the securities sector, as it allows international securities regulators to cooperate on capital market development and stability.

“The workshop aimed to strengthen the capability of the SEC Philippines’ enforcement personnel in conducting investigations on securities-related crimes such as insider trading, market manipulation, off-market fraud, and crypto scams.”

Securities and Exchange Commission, Philippines

The joint workshop was said to be attended by Paul Gumagay, the associate director for operations and technical assistance in the U.S. SEC Office of International Affairs (OIA); Tom Swiers, a branch chief in the OIA; and Glenn Gordon, the associate regional director of the U.S. SEC Miami Regional Office. 

These U.S. SEC officials shared their experiences and techniques in apprehending investment scammers and filing court cases against scammers, according to a media release. 

Moreover, they also paid a courtesy visit to House Speaker Ferdinand Martin Romualdez and Senate President Juan Miguel Zubiri “to seek support in strengthening the Commission’s enforcement powers by crafting laws that comply with the standards set by the IOSCO in forwarding the interests of financial consumers and fostering international cooperation.”

In August 2022, Aquino said during a meeting with the Senate Committee on Banks, Financial Institutions, and Currencies that a law directly addressing digital assets is needed so that the Commission will be a more efficient regulator.

The law, if passed, will give the Commission jurisdiction and appropriate powers to accomplish this. However, there are no updates on ‌whether a bill relating to the regulatory agency’s concern was created. 

Exchange of Information Public Workshop 2023

Meanwhile, on August 18, 2023, the PH SEC signed a Multilateral Memorandum of Understanding with the US. SEC, IOSCO, and ADB, and had the Exchange of Information Public Workshop 2023. 

“The MMoU is a multilateral instrument established in 2002 that provides for cross-border cooperation among its signatories, particularly on information exchange, for the purpose of regulatory enforcement regarding the securities market,” a media release explained.

Gumagay, Swiers, and ADB Principal Financial Sector Specialist Ahmad Faris Rabidin led the workshop, where they discussed the implications, responsibilities, and benefits of tapping into the global network of the IOSCO on information sharing.

PH SEC and U.S. SEC Connection

A year ago, the U.S. SEC praised the PH SEC regarding the latter’s issuance of a cease-and-desist order for Forsage, a fraudulent crypto pyramid and Ponzi scheme that obtained more than $300 million from millions of retail investors worldwide.

In a press release published by the U.S. SEC regarding the case, they noted that the PH SEC released the order to Forsage and Forsage Philippines to stop soliciting unregistered investments from the public using a crowdfunding platform as early as September 2020.

Read: US SEC Cited Local Counterpart Over Forsage Cease-and-Desist Order

“We are grateful for the U.S. SEC, ADB, and IOSCO for sharing their experiences and learnings with us and other law enforcement agencies in the Philippines, which will surely guide us as we pursue more programs and activities toward the protection of the investing public.” 

Emilio Aquino, Chairperson, SEC

This article is published on BitPinas: PH SEC Partners With US Counterpart to Fight Crypto Fraud

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