The Securities and Exchange Commission (SEC)—in agreement to its order to assist in implementing the Anti-Money Laundering Act (AMLA), as amended, and the Terrorist Financing Prevention and Suppression Act (TFPSA)—approved the amended version of SEC Memorandum Circular No. 17 s. 2018 on the Revision of the General Information Sheet (GIS) to include Beneficial Ownership Information.
SEC Memorandum Circular No. 17 s. 2018 applies to all SEC-registered stock and non-stock domestic corporations required to submit the GIS under existing laws, rules, and regulations. All SEC-registered stock and non-stock domestic corporations are now required to acquire and hold up-to-date information on their beneficial owners and to disclose such information in the revised and updated GIS.
Beginning July 31, 2019, the revised GIS will be used by corporations whose GIS are due for submission. The submission of the revised GIS is suspended until further notice. After the changes in beneficial ownership have occurred or have become effective, an updated GIS shall be submitted within seven days, but may be submitted within 30 days from the time the change occurred with an explanation for the failure to submit the same within the period, for corporations with multiple layers of corporate stockholders.
Any natural person who ultimately owns, controls, or exercises ultimate effective control over the corporation signifies a Beneficial Owner. It includes a natural person who actually owns or controls the corporation as discerned from the legal owners.
The following information must be provided by the beneficial owner in the GIS:
- Complete name, which shall include the surname, given name, middle name, and name extension;
- Specific residential address;
- Date of birth;
- Tax Identification Number (TIN); and
- Percentage of ownership, if applicable.
The submission of the GIS in the electronic format is currently suspended until further notice, given the above changes.
Penalties of P10,000 up to P40,000 shall be enforced upon failure to disclose information on the beneficial ownership, depending on the amount of retained earnings for stock corporations, or fund balance for non-stock corporations. In addition, directors/trustees or officers of such reporting corporations may be subject to penalties of P5,000 to P50,000.
Please be guided accordingly.
P&A Grant Thornton
Certified Public Accountants
Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu, dated 04 September 2019