THE Securities and Exchange Commission (SEC) and the Department of Finance (DoF) signed a data-sharing agreement (DSA) to exchange information on beneficial ownership of companies, supporting international standards for responsible management of natural resources.
The initiative, formalized on Sept. 3, is part of the Philippine Extractive Industries Transparency Initiative (PH-EITI), which monitors transparency in mining, oil, and gas operations, the SEC said in a press release on Tuesday.
PH-EITI, created under Executive Order No. 147 in 2013 and overseen by the DoF, implements the global Extractive Industries Transparency Initiative in the Philippines, requiring full disclosure of beneficial ownership for firms holding extractive licenses.
Under the DSA, the SEC will provide PH-EITI access to corporate data on beneficial owners to help detect and prevent corruption, tax evasion, and other illicit financial activities in the extractive sector.
“This agreement paves the way for the seamless, secure, and lawful exchange of beneficial ownership data, reinforcing the Government’s commitment to comply with the Financial Action Task Force’s (FATF) international standards,” SEC Commissioner Rogelio V. Quevedo said during the signing.
The SEC defines beneficial owners as natural persons who ultimately own or control a corporation, directly or indirectly, through voting rights or influence over business decisions. They differ from legal owners.
Corporations are required under SEC Memorandum Circular No. 15, Series of 2019 to report their beneficial owners in the general information sheet submitted to the commission. Failure to disclose or providing false information can result in penalties under SEC Memorandum Circular No. 10, Series of 2022.
The agreement also supports the Philippines’ efforts to comply with FATF standards after the country was removed from the FATF grey list earlier this year.
In February, FATF lifted the Philippines from enhanced monitoring following an on-site review and completion of a recommended action plan. The United Kingdom also removed the Philippines from its list of high-risk third countries in March.
Mr. Quevedo said the commission aims to transform the DSA from a legal instrument into a tool for governance, public trust, and sustainable development.
The agreement aligns with Republic Act No. 12253, the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, signed by President Ferdinand R. Marcos, Jr. on Sept. 4, which promotes transparency, accountability, and good governance in the mining sector. — Alexandria Grace C. Magno
