The Securities and Exchange Commission (SEC) said it has signed a data sharing agreement (DSA) on beneficial ownership information with the Procurement Service of the Department of Budget and Management (PS-DBM) in a bid to combat money laundering in the procurement process.
The SEC in a statement on Tuesday said having access to beneficial ownership data “is critical in achieving the Open Government Principles’ goals.”
“By ensuring that government agencies, particularly those involved in procurement, have access to comprehensive information on corporate ownership structures, we enhance the ability of public institutions to scrutinize contracts, detect conflicts of interest, and prevent illicit financial flows,” SEC Chairman Emilio Aquino said.
Aquino said, through the DSA, the SEC will provide PS-DBM with access to beneficial ownership information of corporations registered with the Commission, “enabling real-time risk assessments with the integration of the data in the procurement systems.”
“This will contribute to strengthening due diligence measures and fostering an open and competitive business environment,” he said.
“Access to this data empowers civil society organizations and investigative bodies to track and analyze corporate affiliations in government contracts, ensuring that public funds are allocated transparently and equitably. This aligns with global best practices in open contracting and public finance management, reinforcing our commitment to a governance framework that upholds fairness and accountability,” Aquino said.
The agreement builds on the Philippines’ exit from the gray list of the Financial Action Task Force (FATF), a global watchdog that sets international standards to combat money laundering and terrorist financing, last February.
The SEC has signed similar data-sharing deals with 21 other law enforcement agencies and competent authorities, in line with the recommendation of the FATF to provide access to relevant beneficial ownership information.
The agency stressed beneficial owners, which should be distinguished from legal owners, are natural persons who own or exercise ultimate effective control over a corporation as they may directly or indirectly have voting powers or influence on transaction decisions.
“Companies are required to declare their beneficial owners in the general information sheet submitted to the SEC as part of their reportorial requirements, as provided under SEC Memorandum Circular (MC) No. 15, Series of 2019.
Failure to disclose such information will lead to penalties for non-disclosure and false disclosure of beneficial ownership information, among others, pursuant to SEC MC No. 10, Series of 2022,” it said.
