SEC proposes stricter beneficial owner disclosure rules

The Securities and Exchange Commission (SEC) in the Philippines is proposing new guidelines requiring companies to disclose information about their beneficial owners and the control they exercise, with non-compliant companies facing fines or dissolution.

Under the draft memorandum circular on Revised Guidelines on Beneficial Ownership Disclosure and Transparency, companies must report full names, addresses, nationalities, and details of control for all individuals with significant ownership or influence, including those acting through nominees, trusts, or estates.

The disclosure will also include the percentage of voting rights, the specific nature of control, and the date ownership was established.

These proposed rules aim to enhance transparency, close loopholes facilitating corruption and financial crimes, and align the Philippines with global standards in combating money laundering and countering the financing of terrorism.

The SEC may also request additional documents and details regarding the companies' processes for identifying beneficial owners.

SEC Chairperson Francis Lim emphasized that strengthening beneficial ownership disclosure is crucial in combating corruption and illicit financial activities, aligning with the government's broader anti-corruption initiatives.