The Securities and Exchange Commission (SEC) and the Department of Finance (DOF) have signed a data sharing agreement (DSA) concerning beneficial ownership information.

The agreement, signed on September 3, aims to support the Philippine Extractive Industries Transparency Initiative (PH-EITI). The initiative’s mandate is to promote open and accountable governance in the extractive sector.

The PH-EITI, which operates under the DOF, is the country’s implementing body for the global Extractive Industries Transparency Initiative (EITI).

All corporations holding an extractive licence or contract are subject to a core EITI requirement. They must provide full disclosure of their beneficial ownership information.

The new DSA gives the PH-EITI enhanced access to corporate data from the SEC, which includes beneficial ownership information.

The goal of this data sharing is to help in the fight against corruption, illicit financial flows, and tax evasion within the industry.

SEC Commissioner Rogelio V. Quevedo stated that the agreement reinforces the government’s commitment to international standards.

“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,” Quevedo said.

The signing of the data sharing agreement comes after the Philippines’ exit from the FATF’s grey list last February. Furthermore, this is one of 23 similar deals the SEC has signed with various law enforcement agencies.

Under SEC regulations, corporations are required to declare their beneficial owners—the natural persons who ultimately own or control them—in their general information sheet.

The new DSA also reinforces the recently signed Enhanced Fiscal Regime for Large-Scale Metallic Mining Act.

Featured image by diloka107 via Freepik.