SEC, 9 gov’t agencies to combat money laundering, terrorist financing

The Securities and Exchange Commission (SEC) on Friday signed data sharing agreements with various government agencies in a bid to streamline efforts in combating money laundering and terrorism financing.

At a ceremonial signing in Makati City, the SEC signed data sharing agreements with the Philippine Drug Enforcement Agency, Insurance Commission, Cagayan Economic Zone Authority, National Bureau of Investigation, Department of Justice, Philippine Center on Transnational Crime, Department of Agriculture (DA), Intelligence Service of the Armed Forces of the Philippines (ISAFP), and the Philippine Economic Zone Authority (PEZA).

Such data could help the signatory agencies uncover illegal activities carried out through the corporate vehicles.

“In this era where data is gold and financial fraud, including cyber fraud, loom large—collaboration between the SEC and law enforcement is not just beneficial; it's imperative,” SEC chairperson Emilio Aquino said in his keynote address.

“First and foremost, sharing corporate data with law enforcement is a powerful tool in combating crime. By providing law enforcement agencies access to pertinent data, we empower them to investigate and apprehend these perpetrators swiftly and effectively,” Aquino said.

The SEC has been signing data sharing accord with several agencies since 2022, which include the Bureau of Internal Revenue, Bureau of Immigration, Department of Trade and Industry- Strategic Trade Management Office, National Intelligence and Coordinating Agency, and Philippine Amusement and Gaming Corporation.

The SEC partners in data sharing also include the Government Procurement Policy Board, Philippine National Police, and the Department of the Interior and Local Government.

According to the corporate regulator, the adoption of the data sharing agreements has yielded requests for beneficial ownership information for more than 5,400 corporations and individuals.

“Whether it's illegal drugs, transnational crime, money laundering, financial fraud, corruption, tax evasion or smuggling - timely access to corporate data can make all the difference in bringing criminals to justice,” Aquino said.

“Sharing corporate data fosters a culture of accountability and transparency within our corporations… It sends a clear message that the Philippines is not a haven for illicit corporate activities, thereby bolstering trust in the integrity of our business sector,” the SEC chief added.

The SEC defines “beneficial owners” of a corporation as “natural persons" --distinct from legal owners who could be juridical entities-- who ultimately owns, controls or exercises authority over relevant decisions within  a corporation.

Sharing beneficial ownership data is also in line with the recommendations of the Financial Action Task Force (FATF), an intergovernmental money laundering and terrorist financing watchdog that sets international standards to prevent such illegal activities.—AOL, GMA Integrated News