The Securities and Exchange Commission (SEC) is developing stronger whistleblower protection policies to combat corruption and promote investor protection within the corporate sector.

In a statment, the commission said its Anti-Money Laundering Division, in partnership with the United Nations Office of Drugs and Crime (UNODC), conducted a technical workshop from Aug. 1 to Aug. 2 with the aim of developing a comprehensive protection policy for whistleblowers.

The workshop also sought to improve the capabilities of SEC personnel in executing mechanisms to ensure the protection of whistleblowers.

Whistleblower protection is seen as vital in gathering evidence against corruption, as well as illegal and unauthorized activities, since witnesses to such activities often come from within the organization.

The SEC said this is also crucial in preventing fraudulent activities as individuals are more likely to think twice before engaging in unethical or illegal behavior when they know that their actions can be exposed.

“Whistleblower protection mechanisms play a crucial role in our ongoing battle against corruption and in addressing illegal and unauthorized activities that violate the laws, rules, and regulations overseen by the SEC,” said SEC Enforcement and Investor Protection Department Director Filbert Catalino F. Flores III.

He added that “these mechanisms are not only vital for safeguarding the brave individuals who report unethical practices but also for promoting transparency and accountability within both our corporate and governmental sectors.”

During the workshop, the SEC and UNODC tackled the integration of international standards and best practices in whistleblower protection to the local framework, enhancing reporting mechanisms, safeguarding whistleblower information, and strengthening legal and enforcement frameworks.

Participants likewise worked on drafting a whistleblower policy and the planning of practical steps for its implementation, including outlining responsibilities and setting timelines.

The SEC and UNODC have also previously worked together to improve the disclosure of beneficial ownership data among corporations, as well as its possible use in the public procurement process.

The SEC has since signed data sharing agreements with 20 government partners on beneficial ownership and implemented SEC Memorandum Circular No. 10, Series of 2022, which revised the sanctions for non-compliance with beneficial ownership disclosure requirements.

These form part of the Commission’s efforts to promote beneficial ownership transparency and compliance in support of the country’s mission to exit the Financial Action Task Force (FATF) gray list.

“We anticipate continued support from the UNODC, as we establish the whistleblower policy, conduct sectoral risk assessment as we enter the period for the 3rd National AML/CFT report, and develop the beneficial ownership registry,” SEC AMLD Supervising Director Oliver O. Leonardo said.

In July, all the FATF Immediate Outcomes led by the SEC was able to get the largely addressed status after making remarkable progress in the beneficial ownership information access and compliance.