04/04/25

US: SEC signs beneficial ownership data sharing deal with DBM

As published on: bworldonline.com, Friday 4 April, 2025.

THE Securities and Exchange Commission (SEC) has signed a data-sharing agreement on beneficial ownership data with the procurement service of the Department of Budget and Management (PS-DBM) to help combat illegal activities.

Under the agreement, the corporate regulator will provide PS-DBM with access to the beneficial ownership information of SEC-registered corporations, allowing real-time risk assessments and integration of the data into the procurement systems, the SEC said in an e-mailed statement on Tuesday.

The two agencies signed the data-sharing agreement on March 14, which aims to improve due diligence measures and create an open and competitive business environment.

“Access to beneficial ownership data is critical in achieving the goals of open government principles,” SEC Chairperson Emilio B. Aquino said in his opening remarks during the event.

“By ensuring that government agencies, particularly those involved in procurement, have access to comprehensive information on corporate ownership structures, we enhance the ability of public institutions to scrutinize contracts, detect conflicts of interest, and prevent illicit financial flows,” he added.

Beneficial owners refer to natural persons who own or exercise ultimate effective control over a corporation, as they may directly or indirectly have voting powers or influence over transaction decisions.

ADVERTISING

Meanwhile, the SEC said the data-sharing agreement builds on the country’s recent exit from the grey list of global money-laundering and terrorist financing watchdog, the Financial Action Task Force (FATF), in February.

The FATF removed the Philippines from its list of jurisdictions under increased monitoring for dirty money after an on-site visit. The country had been on the grey list for over three years, or since June 2021.

The SEC has signed similar data-sharing agreements with 21 other law enforcement agencies and authorities to provide access to relevant beneficial ownership information.

“Access to this data empowers civil society organizations and investigative bodies to track and analyze corporate affiliations in government contracts, ensuring that public funds are allocated transparently and equitably,” Mr. Aquino said.

“This aligns with global best practices in open contracting and public finance management, reinforcing our commitment to a governance framework that upholds fairness and accountability,” he added.

Corporations are required to declare their beneficial owners in their general information sheets submitted to the corporate regulator under SEC Memorandum Circular No. 15, issued in 2019.

Those who fail to disclose the information will face penalties for non-disclosure and false disclosure of beneficial ownership information. — Revin Mikhael D. Ochave.

Tags

US SEC DBM Beneficial Ownership