THE Securities and Exchange Commission (SEC) vowed to maintain transparency in beneficial ownership (BO) policies to prevent its misuse in illegal activities.
The government’s regulatory agency sent representatives from the SEC Information and Communications Technology Department and Anti-Money Laundering Division to participate in the Regional Peer Exchange on Advancing Anti-Corruption Efforts through Beneficial Ownership Transparency held in Jakarta last August 12-15.
The event, organized by the United Nations Office on Drugs and Crime (UNODC) and Open Ownership, tackled the increasing role of beneficial ownership transparency in promoting financial integrity and combating corruption.
In a statement, the SEC noted it has made significant progress in implementing BO policies in the Philippines.
“Key milestones include mandating the declaration of beneficial ownership in the General Information Sheets of corporations, prohibiting the issuance of bearer shares to enhance transparency, and launching an amnesty program in 2023 to improve compliance among corporations,” the SEC said.
The agency’s efforts resulted in a marked increase in compliance rates.
In collaboration with UNODC and Open Ownership, the SEC said it is actively working in the country and neighboring nations to promote best practices in BO transparency.
The SEC added it initiated workshops in 2022, focusing on the use cases of BO information in preventing and investigating corruption. In 2023, it held a group discussion on the use of BO data in public procurement and enhancing tax integrity.
These resulted in the signing of data-sharing agreements with law enforcement agencies, such as the Government Procurement and Policy Board (GPPB), the Bureau of Internal Revenue (BIR), and other law enforcement bodies.
On July 20, President Ferdinand Marcos Jr. signed Republic Act 12009 or the New Government Procurement Law, which included a provision for beneficial ownership transparency.
“As businesses increasingly operate across borders, understanding and implementing robust BO frameworks will become essential for compliance and risk management,” the SEC said.
“The SEC remains committed to supporting these efforts, recognizing that regional cooperation is crucial to achieving sustainable progress in the fight against the misuse of corporations for crimes,” the statement concluded.
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