Manila: 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.
According to Philippines News Agency, the signing of a data sharing agreement (DSA) between the Securities and Exchange Commission (SEC) and the Department of Finance (DOF) on September 3 at the DOF office in Manila supports the Philippine Extractive Industries Transparency Initiative (PH-EITI). The PH-EITI, established through Executive Order No. 147, series of 2013, and placed under the DOF, 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, stated that the DSA requires the SEC to provide PH-EITI with enhanced access to corporate data, including beneficial ownership information of registered companies. This effort is in line with combating corruption, illicit financial flows, tax evasion, and undue influence in the extractive industry. SEC Commissioner Rogelio Quevedo emphasized that the agreement facilitates a seamless, secure, and lawful exchange of beneficial ownership data, reinforcing the government’s adherence to FATF’s international standards.
The news release explains that beneficial 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,’ and they should be distinguished from legal owners. Corporations are required to declare their beneficial owners in the general information sheet as part of the reportorial requirements submitted to the Commission, with penalties for non-compliance.
The DSA also highlights 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.’ Commissioner Quevedo noted the challenge of not only upholding the letter of the law but also embracing democratic ideals through inter-agency collaboration.
The SEC is fully committed to advancing these goals in partnership with the Department of Finance, PH-EITI, and other stakeholders. Quevedo concluded that collectively, this DSA can be transformed from a legal instrument into a powerful tool for good governance, public trust, and sustainable development.