SEC, DOF to tighten monitoring of oil, gas, mining firms’ owners
The Securities and Exchange Commission (SEC) and the Department of Finance (DOF) plan to tighten monitoring of the real investors running the country’s oil, gas and mining companies amid chronic concerns about dummies.
This in line with efforts to combat corruption, illicit financial flows, tax evasion and undue influence in the extractive industry, the SEC said in a statement on Tuesday.
The agreement also aims to reinforce Republic Act No. 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, signed by President Marcos on Sept. 4. The new law aims to uphold transparency, accountability and good governance in the mining industry.
The SEC and the DOF signed on Sept. 3 a data sharing agreement on beneficial ownership information on the extractive industry. They aim to “uphold international standards for the sound management of natural resources.”
“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.
Under the agreement, the SEC will provide PH-EITI with enhanced access to corporate data, including beneficial ownership information, of registered companies.
Beneficial owners, as distinguished from legal 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.
The partnership aims to strengthen cooperation between the two government agencies in support of the Philippine Extractive Industries Transparency Initiative (PH-EIT) and the mandate to promote open and accountable governance in the extractive sector.
Created under Executive Order No. 147, series of 2013, PH-EITI operates under the DOF and serves as the Philippines’ implementing body of the global Extractive Industries Transparency Initiative (EIT).
The EITI sets international standards for transparency and accountability in the management of oil, gas and mineral resources, ensuring that natural resource wealth is harnessed responsibly for national development.
Among the core requirements under the initiative is the full disclosure of beneficial ownership information for all corporations that hold extractive license or contract.
The signing of the data-sharing deal is seen to sustain the momentum following the country’s exit last February from the grey list of global watchdog FATF, the international body that sets standards to prevent money laundering and terrorist financing.
Under SEC Memorandum Circular No. 15, Series of 2019, corporations are required to declare their beneficial owners in the general information sheet as part of the reportorial requirements submitted to the Commission.
Failure to do so will constitute penalties for non-disclosure and false disclosure of beneficial ownership information, among others, as provided under SEC MC 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 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,” he added.
For its part, the SEC has signed similar deals with 23 law enforcement agencies and competent authorities, following the recommendation of FATF to improve access to beneficial ownership data.
