The Securities and Exchange Commission (SEC) has signed a data sharing agreement (DSA) with the Department of Finance (DOF) to improve access to information on the real owners of companies operating in the extractive sector (oil and mining).
The agreement supports the Philippine Extractive Industries Transparency Initiative (PH-EITI), which works to promote open and accountable governance in industries such as mining, oil, and gas.
“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 said during the signing.
PH-EITI was created under Executive Order No. 147 in 2013 and is the Philippines’ implementing body of the global Extractive Industries Transparency Initiative (EITI). The initiative requires countries to meet international standards on transparency in the management of natural resources, making sure that revenues from these industries contribute properly to national development.
A requirement under EITI is the disclosure of beneficial ownership, or the identity of individuals who ultimately own or control companies. This information helps address issues such as corruption, tax evasion, and illegal financial flows.
Under the deal, the SEC will provide PH-EITI with enhanced access to company records, including beneficial ownership data, of corporations registered in the extractive sector.
The move follows the Philippines’ removal from the FATF’s grey list in February. The SEC has also signed similar data sharing agreements with 23 law enforcement agencies and other authorities as part of efforts to strengthen financial integrity.
Beneficial owners are natural persons who hold ultimate control or significant influence over a corporation, even if they are not the legal owners. Under SEC Memorandum Circular No. 15, Series of 2019, corporations are required to declare their beneficial owners in their general information sheet. Penalties apply for non-disclosure or false reporting, as outlined in SEC Memorandum Circular No. 10, Series of 2022.
“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 agreement also aligns with Republic Act No. 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, signed recently, which promotes transparency and accountability in the mining industry.