There is greater emphasis for companies in the mining and oil sector to disclose in full their beneficial owners to regulators, the Department of Finance (DoF) said on Wednesday.

This was further elaborated on during a workshop organized by the Chamber of Mines of the Philippines (COMP) and conducted by the DoF — Philippine Extractive Industries Transparency Initiative (PH-EITI).

“The activity centered on the new requirement for corporations to declare their beneficial owners as part of the general information sheet that all domestic corporations are mandated to file annually with the Securities and Exchange Commission (SEC),” the DoF said.

“Coincidentally, the PH-EITI, the government’s transparency initiative for the extractive sector, has likewise required the reporting of beneficial owners of mining and oil and gas companies,” it added.

According to the agency, the move was in line with an international campaign to counter or prevent the use of anonymous shell companies to hide or launder money and conceal potential conflicts of interest within the sector.

Finance Assistant Secretary Ma. Teresa Habitan cited the need to implement full disclosure despite its challenges.

“Beneficial ownership disclosure in the country is an enormous task, but we appreciate its value in curbing illicit financial activities. We are glad that the SEC is with us in this undertaking,” Habitan said.

COMP Executive Director Ronald Recidoro said the measure’s benefits include heightening trust on domestic firms and curbing corruption.

“There is a global shift towards increased disclosure of beneficial owners, and COMP is committed to taking a lead role in this direction through the PH-EITI. We see the benefits of increased transparency in beneficial ownership. It enhances confidence in our local companies, thereby helping improve the investment climate,” Recidoro said.

“More importantly, it can help prevent corruption and illicit financial flows and can increase trust and accountability in the mining sector,” he added.

Earlier, the SEC issued a revised general information sheet on 26 July 2019 and required all stock and nonstock domestic corporations to disclose their beneficial owners.