MANILA, Philippines — The Securities and Exchange Commission (SEC) is working with its peers in Southeast Asia to ensure that corporate structures are not used for illegal activities by advancing the implementation of beneficial ownership policies.
Recognizing that regional cooperation is crucial to achieving sustainable progress in the fight against the misuse of corporations for crimes, the SEC participated in a regional peer exchange on advancing anti-corruption efforts through beneficial ownership transparency in Indonesia last month.
The commission said the peer exchange recognized the increasing importance of beneficial ownership transparency as a critical tool for both businesses and governments.
According to the SEC, there is a growing need to identify the individuals who ultimately own or control companies to prevent the misuse of corporate structures for illicit activities, especially in Southeast Asia.
It likewise emphasized the need for Southeast Asian nations to recognize beneficial ownership transparency as a growing practice and its importance in fostering a culture of accountability in business operations.
“As businesses increasingly operate across borders, understanding and implementing robust beneficial ownership frameworks will become essential for compliance and risk management. The SEC remains committed to supporting these efforts,” the commission said.
The SEC said the Philippines has made significant progress in implementing beneficial ownership policies.
The regulator said key milestones include mandating the declaration of beneficial ownership in the general information sheets of corporations, prohibiting the issuance of bearer shares to enhance transparency and launching an amnesty program to improve compliance among corporations.
“These efforts have resulted in a marked increase in compliance rates, demonstrating the effectiveness of the commission’s initiatives in promoting beneficial ownership transparency,” the SEC said.
In collaboration with the UN Office on Drugs and Crime and Open Ownership, the SEC is actively working in the country and neighboring nations to promote best practices in beneficial ownership transparency.
Among the initiatives in the past years are workshop and discussions focusing on the use cases of beneficial ownership information in preventing and investigating corruption as well on the use of beneficial ownership data in public procurement and enhancing tax integrity.
The SEC has signed data sharing agreements with law enforcement agencies such as the Government Procurement and Policy Board, the Bureau of Internal Revenue and other law enforcement agencies as a result of these efforts.
Further, the commission said provisions for beneficial ownership transparency have been included in the newly enacted Republic Act 12009 or the New Government Procurement signed by President Marcos last July.