The Department of Finance (DOF) and the Securities and Exchange Commission (SEC) have signed a data sharing agreement (DSA) on beneficial ownership information in support of the government-led initiative tasked to uphold international standards for the sound management of natural resources.

The agreement strengthens cooperation in support of the Philippine Extractive Industries Transparency Initiative (PH-EITI) and its mandate to promote open and accountable governance in the extractive sector.

Created under Executive Order (EO) No. 147, series of 2013, PH-EITI operates under the DOF and serves as the Philippines’ implementing body of the global EITI.

EITI sets international standards for transparency and accountability in the management of oil, gas, and mineral resources, ensuring that natural resource wealth is harnessed responsibly for national development.

Among the core requirements under the initiative is the full disclosure of beneficial ownership information for all corporations that hold an extractive license or contract.

Under the DSA, the SEC will provide PH-EITI with enhanced access to corporate data, including beneficial ownership information, of registered companies, in line with efforts to combat corruption, illicit financial flows, tax evasion, and undue influence in the extractive industry.

“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.

The signing of the data-sharing deal jumps off from the country’s exit from the grey list of global watchdog FATF, an international body that sets standards to prevent money laundering and terrorist financing, last February.

The SEC has signed similar deals with 23 law enforcement agencies and competent authorities, following the recommendation of FATF to improve access to beneficial ownership data.

Beneficial owners, which should be distinguished from legal owners, are natural persons who own or exercise ultimate effective control over a corporation as they may directly or indirectly have voting powers or influence on transaction decisions.

Under SEC Memorandum Circular (MC) No. 15, series of 2019, corporations are required to declare their beneficial owners in the general information sheet (GIS) as part of the reportorial requirements submitted to the commission.

Failure to do so will constitute penalties for non-disclosure and false disclosure of beneficial ownership information, among others, as provided under SEC MC 10, series of 2022.

“We are challenged today not only to uphold the letter of the law but to embrace the spirit of our democratic ideals through interagency collaboration,” Quevedo said.

He added that, “The SEC stands ready and fully committed to advancing these goals in partnership with the DOF, 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.”

This agreement likewise reinforces Republic Act (RA) No. 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, signed by President Ferdinand R. Marcos Jr. on Sept. 4 which upholds transparency, accountability, and good governance in the mining industry.