The Securities and Exchange Commission (SEC) has signed a data-sharing agreement with the procurement service unit of the Department of Budget and Management (DBM) aimed at enhancing transparency in the government procurement processes.
The agreement, which centers on the exchange of beneficial ownership information, is designed to combat illicit financial flows within the procurement system. SEC chairman Emilio B. Aquino said the collaboration will allow government agencies, particularly those overseeing procurement, to access comprehensive corporate ownership data. This will bolster the scrutiny of contracts, help detect conflicts of interest, and prevent improper financial activities.
“The integration of beneficial ownership data into procurement systems ensures that public institutions can perform real-time risk assessments, strengthen due diligence, and foster a more open, competitive business environment,” Aquino said.
Under the agreement, the SEC will provide the DBM with direct access to beneficial ownership data of corporations registered with the agency. This initiative supports the transparency of government contracts, allowing civil society organizations and investigative bodies to analyze corporate affiliations and monitor the allocation of public funds.
The agreement is aligned with global best practices in open contracting and public finance management, reinforcing the Philippines’ commitment to fairness and accountability in governance. Aquino also highlighted the importance of the agreement in the context of the Philippines’ recent exit from the Financial Action Task Force’s (FATF) grey list, a milestone that underscores the country’s adherence to international standards on anti-money laundering and combating the financing of terrorism.
This data-sharing partnership is part of a broader effort by the SEC, which has already signed similar agreements with 21 other law enforcement and regulatory agencies to ensure greater access to beneficial ownership information. The move follows FATF recommendations aimed at improving global financial integrity.
The SEC has long required companies to disclose their beneficial owners, who are natural persons exercising ultimate control over a corporation, as part of their reportorial requirements in the general information sheet.
