THE Securities and Exchange Commission (SEC) has signed a data-sharing agreement with the Bureau of Internal Revenue, the Philippine National Police, and the Philippine Amusement and Gaming Corp. to allow access to beneficial ownership information.
In a statement, the commission said the agreement will allow it “to give timely access to accurate and adequate beneficial ownership information to competent authorities, in line with the recommendations of the Financial Action Task Force (FATF).”
The agreement will also incorporate measures that protect a company’s personal and sensitive data as called for under Republic Act No. 10173 or the Data Privacy Act of 2012 along with the pertinent circular issued by the National Privacy Commission on data sharing between government agencies.
SEC Memorandum Circular (MC) no. 15 of 2019 allows the commission to collect beneficial ownership information from regulated entities. SEC MC no. 30 of 2020 expanded the requirement to foreign companies.
The commission said beneficial owners of a corporation own or have the controlling ownership interest over the corporation or have the ability to take relevant decisions within the corporation and impose those resolutions.
Additionally, the commission released SEC MC no. 1 of 2021, which provides guidelines on the prevention of the misuse of corporations for illicit activities.
The commission also released SEC MC no. 10 of 2022, which penalizes corporations for the non-disclosure and false disclosure of beneficial ownership information by increasing the penalties and imposing additional nonfinancial penalties.
“Information gathered by Commission through the aforementioned circulars play a vital role in identifying the natural person/s maintaining ultimate effective control of the corporation,” it said. — Adrian H. Halili