The Philippines has made significant progress in implementing beneficial ownership policies that prevent the misuse of corporate vehicles for illegal activities.
According to the Securities and Exchange Commission (SEC), milestone reforms like mandating the declaration of beneficial ownership in the general information sheet of corporations, prohibiting the issuance of bearer shares to ensure transparency and the launching of an amnesty program in 2023 to boost compliance among corporations made it happen.
The regulator presented these reforms before colleagues at the Regional Peer Exchange on Advancing Anti-Corruption Efforts through Beneficial Ownership Transparency meeting held in Jakarta, Indonesia.
Organized and sponsored by the United Nations Office on Drugs and Crime and Open Ownership, the event brought together representatives from Southeast Asia to discuss the increasing role of beneficial ownership transparency in promoting financial integrity and combating corruption.
“As businesses increasingly operate across borders, understanding and implementing robust beneficial ownership (BO) frameworks will become essential for compliance and risk management. The SEC remains committed to supporting these efforts, recognizing that regional cooperation is crucial to achieving sustainable progress in the fight against the misuse of corporations for crimes,” the agency said.
Collaborative efforts between the SEC and the UN in past years include a workshop in 2022 focusing on use cases of beneficial information in preventing and investigating corruption, as well as a group discussion in 2023 on the use of beneficial ownership data in public procurement and enhancing tax integrity.
As a result of these efforts, the SEC signed data-sharing agreements with law enforcement agencies such as the Government Procurement and Policy Board, the Bureau of Internal Revenue and other enforcement agencies.
Furthermore, provisions for beneficial ownership transparency have been included in the newly enacted Republic Act 12009, or the New Government Procurement law signed by President Ferdinand Marcos Jr. in July.
