Government targets beneficial owners of mining firms for transparency

MANILA, Philippines — The government is now on the lookout for the real owners of the country’s extractive industries as part of its efforts to promote transparency.

The Philippine Extractive Industries Transparency Initiative (PH-EITI) is now requiring mining, oil and gas firms to declare their beneficial owners in the general information sheet (GIS)  they need to file annually with the Securities and Exchange Commission (SEC).

Last July, the SEC revised the GIS to include a beneficial ownership declaration form, requiring all registered stock and non-stock domestic corporations to disclose their beneficial owners.

The SEC defines beneficial owners as “the natural persons who ultimately own or control or exercise ultimate effective control over a corporation.”

It was approved as a policy measure to assist in the anti-money laundering efforts of the government.

The initiative is in line with efforts to counter or prevent the use of anonymous shell companies to hide or launder money and conceal potential conflicts of interest within the extractive sector.

The Chamber of Mines of the Philippines said there is a global shift towards increased disclosure of beneficial owners.

“It enhances confidence in our local companies, thereby helping improve the investment climate. More importantly, it can help prevent corruption and illicit financial flows, and can increase trust and accountability in the mining sector,” COMP executive director Ronald Recidoro said.

“Beneficial ownership disclosure in the country is an enormous task, but we appreciate its value in curbing illicit financial activities,” Finance assistant secretary Ma.Teresa Habitan said.

The revised GIS mandates corporations to fill out a beneficial information declaration form that asks for nine categories of beneficial owners and their information, including complete name, residential address, nationality, tax identification number, and percentage of ownership or voting rights.