The government further increased its measures against corruption and illicit financial transactions in the country’s extractive industry following the Philippines’ removal from the Financial Action Task Force’s (FATF) gray list last February.
This, after the signing of a data sharing agreement (DSA) between the Securities and Exchange Commission (SEC) and the Department of Finance (DOF) at the DOF office in Manila last Sept. 3, in support of the Philippine Extractive Industries Transparency Initiative (PH-EITI).
The PH-EITI was established through Executive Order No. 147, series of 2013, and was placed under the DOF. It serves as the country’s implementing body of the global EITI.
One of the main requirements under the EITI is the full disclosure of beneficial ownership information for all entities with an extractive license or contract.
The SEC, in a press release on Tuesday, said the DSA signed by its officials and that of the DOF tasked the former to “provide PH-EITI with enhanced access to corporate data, including beneficial ownership information, of registered companies, in line with efforts to combat 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 was quoted as saying during the signing ceremony.
The news release defines beneficial owners as “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, noting that they “should be distinguished from legal owners.”
It said “corporations are required to declare their beneficial owners in the general information sheet as part of the reportorial requirements submitted to the Commission”, otherwise they will be penalized.
It also noted that the DSA underscored the importance of “Republic Act No. 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, signed by President Ferdinand R. Marcos, Jr. on Sept. 4, which upholds transparency, accountability, and good governance in the mining industry.”
“We are challenged today not only to uphold the letter of the law but to embrace the spirit of our democratic ideals through inter-agency collaboration,” Quevedo said.
“The SEC stands ready and fully committed to advancing these goals in partnership with the Department of Finance, PH-EITI, and other stakeholders. Collectively, we can transform this DSA from a legal instrument into a powerful tool for good governance, public trust, and sustainable development.”
PNA PHOTO
