The Securities and Exchange Commission (SEC) is stepping up efforts to prevent companies from being used for illegal activities.
SEC representatives recently participated in a regional peer exchange on beneficial ownership transparency, organized by the United Nations Office on Drugs and Crime (UNODC) and Open Ownership in Jakarta, Indonesia.
Participants highlighted the importance of knowing who truly owns companies. This transparency helps fight corruption and financial crime.
The Philippines has made progress in this area. The SEC has required companies to declare their beneficial owners, prohibited bearer shares, and offered an amnesty program.
The SEC worked with UNODC and Open Ownership on workshops and discussions about using beneficial ownership data to prevent corruption and improve procurement and tax compliance.
Recent developments include data-sharing agreements with law enforcement and the inclusion of beneficial ownership transparency provisions in a new law.
These efforts led to increased compliance, showing that the SEC’s initiatives are working.
As businesses operate across borders, strong beneficial ownership frameworks are essential for compliance and risk management.
The SEC said it would continue to support regional cooperation to combat corporate misuse.
