The Securities and Exchange Commission (SEC) has signed a data-sharing agreement (DSA) with the Department of Finance (DOF) on beneficial ownership information.
The deal, signed on Sept. 3, is part of a government initiative to uphold international standards for managing natural resources. It strengthens cooperation in support of the Philippine Extractive Industries Transparency Initiative (PH-EITI) and its mandate to promote open and accountable governance in the extractive sector.
PH-EITI, created under Executive Order No. 147, series of 2013, is the Philippines’ implementing body of the global Extractive Industries Transparency Initiative (EITI).
The EITI sets international standards for transparency in managing oil, gas and mineral resources. A core requirement is the full disclosure of beneficial ownership information for all corporations holding extractive licenses or contracts.
Under the DSA, the SEC will give PH-EITI enhanced access to corporate data, including beneficial ownership information of registered companies. This is aimed at combating corruption, illicit financial flows, tax evasion, and undue influence in the extractive industry.
“This agreement paves the way for the seamless, secure, and lawful exchange of beneficial ownership data, thereby reinforcing the government’s commitment to strictly adhere to the Financial Action Task Force’s (FATF) international standards,” SEC Commissioner Rogelio Quevedo said.
The agreement comes after the country’s exit from the “grey list” of the FATF, a global watchdog that sets standards to prevent money laundering and terrorist financing, last February.
The commission has signed similar deals with 23 other law enforcement agencies and competent authorities, following a FATF recommendation to improve access to beneficial ownership data.
Beneficial owners are the natural persons who ultimately own or control a corporation, distinguished from legal owners. They may have voting powers or influence on transaction decisions.
Under SEC Memorandum Circular (MC) No. 15, Series of 2019, corporations are required to declare their beneficial owners in the general information sheet as part of the reportorial requirements. Failure to do so will result in penalties for non-disclosure and false disclosure of beneficial ownership information, as outlined in SEC MC No. 10, Series of 2022.
The agreement also reinforces Republic Act No. 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, which was signed by President Ferdinand Marcos Jr. on September 4. This upholds transparency and good governance in the mining industry.
 and the Department of Finance (DOF) have signed a data-sharing agreement to increase transparency on beneficial ownership and combat corruption in the extractive industries.){kind=link}