The Securities and Exchange Commission (SEC) and the Department of Finance (DOF) have entered into a data-sharing agreement expected to strengthen efforts against corruption, tax evasion, and illicit financial flows in the extractive sector by expanding access to corporate beneficial ownership information.

The agreement, signed on September 3 at the DOF Building in Manila, will allow the Philippine Extractive Industries Transparency Initiative (PH-EITI) to tap corporate data from the SEC, including beneficial ownership details of registered firms. 

PH-EITI, created under Executive Order No. 147 (2013), is the government-led body under the DOF that implements global standards for open and accountable governance in oil, gas, and mineral 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 V. Quevedo said during the ceremonial signing.

Among PH-EITI’s core requirements is the full disclosure of beneficial ownership information for corporations holding extractive licenses or contracts. Beneficial owners, distinct from legal owners, are natural persons who ultimately control a corporation, whether directly or indirectly.

The DSA builds on the Philippines’ exit from the FATF grey list last February and supports broader reforms to improve access to ownership data. 

The SEC has already signed similar agreements with 23 law enforcement agencies and competent authorities, in line with FATF recommendations to enhance oversight in industries vulnerable to misuse.

“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.”

Corporations are mandated under SEC Memorandum Circular No. 15, Series of 2019, to declare their beneficial owners in their general information sheet. Failure to comply or submitting false disclosures is subject to penalties under SEC MC No. 10, Series of 2022.