The Securities and Exchange Commission (SEC) continues to advance the implementation of beneficial ownership policies to prevent the misuse of the corporate vehicle for illegal activities.

Representatives from the SEC Information and Communications Technology Department and the Anti-Money Laundering Division participated in the Regional Peer Exchange on Advancing Anti-Corruption Efforts through Beneficial Ownership (BO) Transparency in Jakarta, Indonesia from Aug. 12 to 15, 2024.

Organized and sponsored by the United Nations Office on Drugs and Crime (UNODC) and Open Ownership, the event brought together representatives from Southeast Asia to discuss the increasing role of BO transparency in promoting financial integrity and combating corruption.

The peer exchange emphasized the growing importance of BO transparency as a critical tool for both businesses and governments.

Participants highlighted the 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.

The discussions underscored the need for Southeast Asian nations to recognize BO transparency as a growing practice and its importance in fostering a culture of transparency and accountability in business operations.

The Philippines has made significant progress in implementing BO policies, which the SEC shared during the exchange.

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 in 2023 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, in collaboration with the UNODC and Open Ownership, is actively working in the country and neighboring nations to promote best practices in beneficial ownership BO transparency.

Initiatives in the past years include a workshop in 2022 focusing on the use cases of BO information in preventing and investigating corruption, as well as a group discussion in 2023 on the use of beneficial ownership data in public procurement and enhancing tax integrity.

These events were attended by key government authorities from the Executive and Legislative departments.

As a result of these efforts, the SEC has signed data-sharing agreements with law enforcement agencies such as the Government Procurement and Policy Board (GPPB), the Bureau of Internal Revenue (BIR) and other law enforcement agencies.

Furthermore, provisions for beneficial ownership transparency have been included in the newly enacted RA 12009, or the New Government Procurement, signed by President Ferdinand Marcos Jr. on July 20, 2024.

As businesses increasingly operate across borders, understanding and implementing robust BO frameworks will become essential for compliance and risk management.

The SEC said it remains committed to supporting these efforts, recognizing that regional cooperation is crucial to achieving sustainable progress in the fight against the misuse of corporations for crimes.